Selling your Amazon Business – Part 2
25 Mar 2016
Followup on acquisition meeting today:
Just met with the potential acquisition. Here’s what happened.
We went to a very…very fancy restaurant. Everything was over $25 (for lunch). We were the only ones there..beautiful restaurant, yet empty lol. “Order anything!” he says. Exactly how you would think these things go down…
So we talk alot about the business. His businesses, mine… etc. He’s a very interesting, very savvy, business guy. Exactly how you’d think he would be like.
Then things get down to business. He’s very interested and sees the potential for expansion.
His request is 66% of the business. 33% for him. 33% for his business partner. And 33% for myself.
In return, I give him a “x” valuation of both perceived combined with actual costs. This “$x” value is not yet finite, and I have not yet thought of number. By paying $x he gets the 66%.
In addition to “$x” he is also guaranteed to fuel the company, providing 2M minimum to fuel growth and accelerate it to brick and motor both in the U.S and overseas.
At which point, he aims to super launch the company to acquisition in 36 months, for an acquisition of 200-300M.
All would be done with teams of lawyers, everything in writing, and paperwork//contracts.
I have yet to determine my valuation of the company, but this is definitely getting interesting. Do I want to sell? No. Would I consider a partner who is extremely savvy in business overseas, well connected with major business players… definitely.
Advantages: I am super techie and businessy. But my true strength is my technology side. His true strength is networking, business savvyness, and money. He can get into Costco, the walmarts of other countries, IPO, and has experience in all that. I don’t.
Lessons learned: People with different mindsets, visions, and knowledge is better than people with similar skill set.
Connections are everything. Whether or not this plays out, meeting people, socializing, and talking to others leads to doors. This guy personally, lives in my home town. I’ve known him for about 2 years, and did a web development project for him in the past.
2 years later we meet up, and who knows, it could go somewhere. Meeting was approxiately 2 hours.
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