thomas smale speaking at retail global usa 2016
TRANSCRIPT
Thomas Smale – @thomassmale #RetailGlobalUSA
Mistakes Founders Make When Thinking About Selling
Their Business
Who Am I?
2010 2016
Launched 2010 450 deals Over $60M in sales
80% YoY growth Team of 20
champions
SaaS
Content
e-Commerce
What Are We Going to Learn?
• Find out what buyers want
• Help increase the value of your business BEFORE selling
• Avoid mistakes that founders regularly make
What Makes a Business Sellable
What Buyers Want
Multiple of Profit (SDE)
Buy
er D
eman
d
One Time Software
SaaS/Recurring Subscription
Content
eCommerce
*Content includes: Advertising (display and direct), affiliate and lead generation sites.
Demand vs. Sales Multiples
• Outsourced fulfilment
• Multiple suppliers
Site 1$2M
Site 3$225K
Site 2$680K
• Consistent growth
• Documented processes
Lessons From Successful Sales
Mistake 1 – Timing
• Buyers love to see growing businesses
• Declining businesses attract sharks
• Sell while it is growing, not when it has stopped
Growing Businesses Sell For A Premium
Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
$160,000Financials
Gross Revenue SDE
Mistake 2 – Unprepared
• Know your numbers!
• Stock up
• Manage cash-flow efficiently
• Ensure transferability
Preparation Wins
Mistake 3 – Ineffciency
Build A Machine, Not A Job
• No-one wants to work 80 hours per week
• Document everything
• Automated where possible
• Outsource mundane tasks
Mistake 4 – Low Hanging Fruit
Leverage Quick Wins And Best Practises
• Abandoned carts cost e-commerce sellers millions
• Small e-commerce businesses do not have resources
• Use a product like magemail.co to help
• Don’t leave anything on the table
Contact: [email protected]
Free exit planning course:http://feinternational.com/retailglobal
Slides: http://www.slideshare.net/ThomasSmale/
Wrap Up
• Time it right
• Always be prepared
• Be efficient
• Don’t leave anything on the table
“We can not recommend FE International highly enough.”Steven Bristol and Allan BranchFounders of Less Everything
“I’m absolutely thrilled about the sale I just completed!”Patrick McKenzieFounder of Kalzumeus Software
“As professional as it gets.”Jeff TaylorFounder of Devise
“FE International has put together a team that knows how to make deals happen.”Rob WallingFounder of Drip
www.feinternational.com