Dan Martell started Spheric Technologies to help Fortune 500 companies build website portals, an emerging business back in 2004. Within four years, Martell had scaled the business to 30 employees when he received an acquisition offer that would change his life.
Martel has gone on to start and exit two more businesses since Spheric, and in this episode, he shares his negotiation tips and tricks. You’ll learn:
- A negotiation trick to get all of your potential acquirers into one room
- The strategic shift Martell made at the four-year mark which made is business much more valuable
- How to use currency arbitrage
- The key to productizing a service
- Where to find the most natural (i.e., strategic) buyers for your business
- How to approach potential acquirer without losing negotiation leverage
- The secret to getting the deal terms you want (Martell cut his industry’s standard three-year earn-out down to just six months)
- The definition of optionality and why you want it
- The surprising downside of a big financial windfall
Developing Your Short List
When Martell decided it was time to sell, he hosted a party and invite the CEOs of the five companies most likely to buy his business. Getting the CEOs in the room together was a savvy way for Martell to communicate to the buyers there would be a competitive bidding process for his company. The tactic worked because Martell knew who his likely acquirers would be. Find out your natural strategic buyers by completing The Short List Builder exercise, Module 11 of The Value Builder System™.
Get started now by completing Module 1 for free.
About Dan Martell
Dan is a serial entrepreneur, speaker, investor, former founder of Clarity. Dan is a perfect example of someone who has overcome all odds to achieve massive success. Having built and sold 3 technology companies, Dan now dedicates his time to coaching high performing SaaS entrepreneur to scale their businesses in a predictable way.
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, 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 100,000 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.
Have you received a call from an industry luminary congratulating you on the company you’ve built? Here’s why you may want to decline their lunch invitation.
Terry Lammers took over the family oil wholesaling business in 1991. By 2010, Tri-County Petroleum was selling $42 million worth of gas and oil, when Lammers decided it was time to cash in.
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.