When Frank Shultz started Infinite Blue, he never expected to fire his cofounder. The business was thriving, and they had bootstrapped it from nothing to millions in recurring revenue. But as the company grew, tensions rose. His partner wanted out, but the price he demanded was impossible for Frank to meet.
So he took an unconventional route—he fired his partner.
In this episode of Built to Sell Radio, Shultz reveals:
-
Why he fired his cofounder even though they were 50/50 partners.
-
How he secured outside capital to buy his partner out.
-
The moment he realized he was ready to sell the business.
-
How he negotiated a no-earn-out, walkaway deal with his acquirer.
-
The mistake that almost killed his company—and how he fixed it.
This is a masterclass in navigating cofounder disputes, raising capital, and exiting on your terms.
Quote of the Week
I had the business valued, and I offered to buy him out. He didn’t appreciate the number and had kind of a pie-in-the-sky expectation on what the business might be worth.
Deals
-
Alliance Drilling Tools, LLC (ADT), a drilling equipment supply and repair company serving the oil and gas, geothermal, mining, and water-well industries, has been acquired by Star Equity Holdings, Inc. (Nasdaq: STRR; STRRP) for $12.65 million. In 2024, ADT generated approximately $10.5 million in revenue and $2.4 million in adjusted EBITDA. The acquisition price reflects an EBITDA multiple of 5.27 times.
