Ep 177, Nathan talks more about selling his business Heyo and brings on Jim Risner of Votigo to talk about what makes Heyo desirable. Listen as Nathan comes to a decision regarding a dream he’s had since college – selling a business before the age of 30.
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3 Key Points:
- Offers to buy a business may be a ploy to gain information by competitors. Often it’s prudent to hold off on any announcements before seeing a contract.
- LOI’s aren’t created equally. Some of them are offers of pure cash while others include other things like stock in a publicly traded company.
- Even after a signed LOI, many deals fall through. Due diligence is required for the actual exchange of money for a company.
Time Stamped Show Notes:
- 01:00 – If you haven’t caught up already, one of Nathan’s biggest competitors has offered to buy Heyo.
- 01:26 – One concern is that the offer may not be serious, only a ploy for information.
- 01:51 – Ken Armijo calls in to offer advice: before taking the buyers seriously, wait until they produce a contract.
- 03:02 – Nathan plans to obtain LOI’s (Letter of Intent) from companies that might be interested in buying Heyo and leveraging competition to raise its price.
- 03:17 – Another Top Tribe listener weighs in on what Nathan should do with the company.
- 04:36 – Nathan called CEO’s to talk about Heyo’s desirability so he could better understand its selling points.
- 05:06 – Nathan talks with Jim Risner of Votigo, one of Heyo’s main competitors in the SMB space (Small Business Space) about obtaining a LOI (Letter of Intent).
- 05:51 – With one LOI in hand from Jim, Nathan began emailing other CEO’s to gauge other interest in Heyo. He obtained four LOI’s from interested companies.
- 06:30 – The LOI’s weren’t created equally – some of them are pure cash and others include stock in a publicly traded company.
- 07:27 – Jim Risner talks about Votigo and why they would want to acquire Heyo.
- 09:10 – Votigo’s been thinking about entering Heyo’s space for a while, expanding into the SMB market. Buying the company would be a big head start into the space.
- 10:21 – Bethany London calls in to express her thoughts that selling Heyo, a long-time dream of Nathan’s, might not be all that it’s cracked up to be.
- 11:34 – One of Nathan’s friends from Virginia Tech’s Pamplin School of Business offers his thoughts that Nathan may have outgrown Heyo.
- 13:58 – Nathan signed the LOI - he’s selling Heyo.
- 14:22 – Many deals fall through even after a signed LOI.
- 15:21 – Tune in next Monday to find out what happens. And also, call in to express your thoughts @ com/talk
Resources Mentioned:
- Edgar – Nathan uses Edgar instead of other scheduling tools for Twitter because Edgar cycles through content over and over (buffer/others you have to re-input content over and over – time consuming). In the last several months, Edgar has driven Nathan over 3728 clicks that he didn’t have to work or pay for.
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The Software as a Service (SaaS) entrepreneur who wants to grow to a $100m+ valuation (episode #14).
Your host, Nathan Latka is a 25 year old software entrepreneur who has driven over $4.5 million in revenue and built a 25 person team as he dropped out of school, raised $2.5million from a Forbes Billionaire, and attracted over 10,000 paying customers from 160+ different countries.
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