30 Aug Built to Sell Radio: From Broke to Big Time Exit in Just 2 Years
In 2017, Justin Adams co-founded Digitize.AI to help hospitals get paid. They used artificial intelligence to get medical treatments pre-approved by insurance companies ensuring their patients could pay their medical bills.
The business was hungry for cash, and Adams and his wife put everything their young family had into the idea. At one point, Adams was so short of money that when their clothes dryer broke, the Adams family started hanging their laundry because they couldn’t afford the repair.
By 2019, things had started to turn around for Adams. Digitize had signed up their first few hospitals. However, the business was still thirsty for cash, and their competitors were raising eight and nine-figure investment rounds. Adams started partnership conversations with other software companies in the medical industry. He was pleasantly surprised to learn his young company may be worth 15-25 times revenue.
Adams decided to sell, and in this episode, you’ll learn:
- How to increase the likelihood-hood your business idea will be a success.
- The hidden downside of retaining at least 50% of your company when you sell equity.
- How service businesses are valued compared to software companies.
- How to ensure you protect your intellectual property if you’re considering turning your consulting business into a product company.
- Why limiting the diligence period is a crucial deal point you need to negotiate in a Letter of Intent (LOI).
- The ultimate BATNA that maximizes your negotiating leverage.