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In this week’s Built to Sell Radio, George Hartley shares the story of selling Smarter Mail, a carve-out SaaS business generating $2 million in annual recurring revenue (ARR). George’s first deal fell apart when the buyer—who had signed an LOI—admitted they didn’t have the funds to close.
Here’s what you’ll learn:
- How to avoid the common mistake of relying on a single buyer
- The dangers of proprietary processes when selling your business
- How to verify a buyer’s ability to close
- The red flags that can signal an unreliable acquirer
- How running a competitive process saved George’s exit
Quote of the Week
If you’re ever going to sell, make sure you get an advisor who does this all the time. Run a process. That’s it. Just run a process.
George Hartley on the importance of competitive tension when selling Smarter Mail
Deals
- BJJLink, a platform that helps manage jiu-jitsu gyms and connects over 50,000 active students, has been acquired by Mixed Martial Arts Group (NYSE American: MMA) for up to $13 million. The deal includes $3 million in fixed payments over the first two years and $10 million in variable earn-outs tied to revenue milestones. BJJLink generates approximately $3 million in annual revenue, with the acquisition price reflecting a revenue multiple of approximately 4.33 times.
- Inertial Labs, Inc., a company specializing in motion sensors and navigation technologies, is being acquired by Viavi Solutions Inc. (NASDAQ: VIAV) for an initial consideration of $150 million, with up to $175 million in contingent payments over four years. The acquisition, which Viavi will fund through cash on hand, is expected to add approximately $50 million to its Network and Service Enablement (NSE) annual revenue by 2025. The maximum acquisition price reflects a revenue multiple of approximately 6.5 times.
- First We Feast, creator of the YouTube show ‘Hot Ones,’ has been sold by BuzzFeed (NASDAQ: BZFD) to a group led by a Soros Fund Management affiliate for $82.5 million. Following the sale, First We Feast will operate as an independent company, with founder Chris Schonberger as CEO and ‘Hot Ones’ host Sean Evans as chief creative officer. BuzzFeed, which acquired First We Feast in 2021 as part of a $198 million deal, is shifting its focus to high-margin, tech-enabled revenue streams like programmatic advertising and affiliate commerce amid challenges in the digital advertising landscape.
