13 Oct Acquiring Minds: Buying 2 Rivals to Create a Dominant Leader
When today’s guest first learned about his target business, it seemed like an alignment of the stars. The business, GetOutPass, sells passes that grant families access to dozens of local attractions for a flat annual fee. Well, Kyle Poll had run and grown Gym Pass in the US, a business whose model was pass-based access to multiple local gyms. Similar models, and so coincidental. There really aren’t that many such businesses in the world. And GetOutPass wasn’t even listed for sale. The owner and Kyle happened to meet at an event, and after talking shop into the night, the owner tells Kyle that he’s been looking for someone just like him to take the business to the next level. Meanwhile, Kyle is already a customer of the business; they have GetOutPass at the Poll household. And as if all that weren’t enough, Kyle lives just 10 minutes from GetOutPass. This deal was written in the stars, right? Well so often in our world, a buyer feels like they’ve found the perfect business for themselves. It’s obviously destiny. And so often, that excitement gives way to heartbreak when the deal dies. Kyle went through the same. This deal did die, suddenly, painfully. And when it died, there were tears at the Poll household. Listen for how Kyle broke the bad news to his kids, turning personal defeat into a teachable moment. Well the deal came back around, which is also a pattern in our world. The structure and the parties involved evolved in an interesting way. Kyle unpacks it for us. Here he is, Kyle Poll, CEO of GetOut.
