16 May Built to Sell Radio: Saying No To 7 Times Revenue
Eddie Whittingham started a company called The Defense Works in 2016. His idea was to provide companies with information on how to avoid getting hacked. Whittingham created a series of animated video clips explaining cyber security best practices and offered his content on a subscription model to companies.
By 2020, Whittingham had bootstrapped his business to 8 full-time employees when he attracted an offer of 7 times revenue from Proofpoint, one of the largest players in the cyber security industry. Whittingham got Proofpoint up to 10 times revenue and agreed to the deal. Listen to this episode and you’ll discover how to:
- Cut your churn on annual subscriptions
- Leverage an accelerator to answer your business model questions
- Slash your costs for developing a subscription business
- Get on the radar of an acquirer (without saying you’re for sale)
- Convince your customers to write a review for your business
- Protect your secrets while being wooed by an acquirer
- Explain a visit from a potential acquirer to your employees
- Push an acquirer to increase their offer (without sounding like a jerk)
- Protect your downside when accepting equity as a currency when selling your business
