Mergers can be painful. But when Mitchell Feldman was approached by Microsoft about merging with another company, the result was a match not even HPE could resist.
Mitchell Feldman founded Cloudamour, providing Microsoft cloud solutions to small and medium businesses, in July 2012. With an active marketing and sales presence, by 2015, Cloudamour had reached a staff of 35 and approximately £3.5 million in annual revenue. The company was well established and fast growing, and that’s when Microsoft came knocking. But they didn’t come to buy, they came to play matchmaker.
Microsoft put Feldman in touch with another one of their partners called RedPixie which was doing about the same revenue as Cloudamour. Cloudamour and Red Pixie merged. The combined company grew quickly, and within 3 years was acquired by Hewlett-Packard Enterprises .
In this episode, you’ll learn:
- How to navigate a merger of equals
- The importance of your brand in valuing your company
- The different valuation techniques Feldman used for each of his services
- How to structure a “Russian Roulette” Merger
When it comes to getting acquired by a strategic buyer like HPE, size matters. Neither Cloudamour nor RedPixie would have likely been attractive to HPE on their own, but combining them made a large enough business to win the attention of the world’s largest technology company. To find out how your size impacts the value of your business, and whether a merger might be a lucrative stepping-stone on the way to an exit, complete the 13-minute Value Builder questionnaire now.
About Mitchell Feldman
Mitchell Feldman was born in 1971. His father was a black cab driver and his mother was a home secretary. At the tender age of 11, Feldman was given a Sinclair ZX81 for his birthday, and so began his love affair with technology. Through school, he also discovered a love for sales and marketing. In the year 2000, he turned both those passions into his career. Since then, he has built and sold three IT companies.
Do You Know An Entrepreneur With A Story To Tell?
We’re constantly on the prowl for interesting stories from owners who have sold their businesses. We look for owners who have sold a business that was generating $1 million or more in revenue and who are willing to share their story candidly with our community. Forbes ranked Built to Sell Radio one of their top 10 podcasts for entrepreneurs and we have more than 400,000 downloads, so your story will get shared with a great community of like-minded owners. Nominate yourself or someone you know today.
At Built to Sell we’re all about shifting the balance of power from the buyer to the seller. If you support our mission, please write a review on iTunes—and if you have any comments or questions you can find us on Twitter and Facebook. Tune in every Wednesday for another episode of #BuiltToSell Radio with John Warrillow.
What if you really want to sell? Maybe you’ve got a new idea for a business you want to start or your health is suffering. Then what? As with many things in life, the secret may be a simple tweak in your vocabulary.
David Hauser’s Grasshopper is a masterclass in building a business to sell. With no venture funding and fewer than 40 staff, Grasshopper was acquired 12 years after its founding for $165 million in cash and $8.6 in Citrix stock.
What’s Your Business Worth?
Take the 13-minute survey and get your Value Builder Score
The Value Builder Score was inspired by the book, Built to Sell. It was created to help business owners like you build more valuable companies. Join more than 30,000 entrepreneurs by getting your free Value Builder Score, and find out how valuable your company really is.
Get Your Score Now It’s free and 100% confidential.