The Exchanges

Q Microquire network. So we've definitely, um, appreciate all the help that you do for founders. But, uh, now I'm just thinking, um, you know, in terms of the deals that you've closed, it sounds like a number of them and one year, which is really impressive. Do you have maybe like one or two of the favorite deals that you've helped to get acquired, um, that you'd like to share?

A Yes, definitely. I have two quick stories. So Grace with TripKit was on your, on your podcast not too long ago. So we did her transaction. Um, so that was great. She's an amazing, you know, we're, we're picky in a lot of ways. Also the founders we work with, right? I just want to make sure we get along and we vibe because, you know, it could get stressful. It could be an emotional rollercoaster, no matter how much we take off their plate, right? It's an emotional transaction. It's usually the biggest transaction of their life, right? So, you know, Grace was amazing to work with. That's such a rad company. The buyer was incredible. You know, he, he made a decision very quickly on, on closing the transaction. It was a short, you know, from when he saw the company to when we closed was maybe two, one to two weeks. It was very quick. He was a first time buyer. Um, so he was great to work with. Uh, so that was one story. Another story was a recent transaction, um, where we, we got the seller from you guys. And then we, and she was amazing. We loved working with her. And so we actually had, um, one LOI and then the next LOI that came right in was for 40 K more. This guy, you know, he just was like, I want this company so bad, all cash, full price. And he's like, but I'll, I'll pay more than the other LOI because the other LOI was full price, 20% seller carry. So there's a little bit …

AI assessment note: “Yes, definitely. I have two quick stories. So Grace with TripKit”

Q I'm a huge fan too. What I, what I've heard, tell me if this is true. So I've heard of people, um, he's one of those entrepreneurs that's kind of reached celebrity status. Like people will come up to him, they know him, he's kind of a global icon, if you will, but he doesn't have security. He's like a really down to earth person, uh, very approachable. Is that?

A Oh yeah. I ran, it's very accurate. In 2015, I, he was in speaking in San Diego. And they were, he was walking off the stage, and I ran up on to the stage, and I handed him the first check. First check was only a grand, so I could do first charity. I was like, Richard, I love you so much. You're so inspiring. I give him the check, and I ran, and he called my cell phone like half an hour later to thank me, which is so crazy. Um, but no, there's no security, and I just ran up to him. Um, everybody at that event was like, Richard, I want you to sign my book. I want a picture with you. I want you to invest in my company. Like, it was sad to see, like, everybody trying to take from him. So I think it was different for someone just to give him a check and run off.

AI assessment note: “Oh yeah. I ran, it's very accurate.”

Q Yeah. He, I mean, he's, he's an amazing figure, no doubt. Um, so moving back to, um, acquisitions as, as the topic, um, given that you work with so many different, um, businesses, what would be maybe some reasons you would not work with a particular startup if they're looking to sell their business? Like, what are some yellow flags, red flag?

A Yeah, and I've watched some of your amazing previous podcasts, and you guys have talked about it before, and you guys are kind of great about, you know, on your marketplace, weeding out the ones that, like, can't really, you know, aren't obviously ready to sell. So zero revenue or being upside down, obviously. So pre-revenue, that's not going to work. You know, and it's sad because I think these people, you know, people spend, like, and I've had a tech company, I get it. You know, you spend 600 K on building the software, and you think you're at least going to get that or more. And that's not necessarily true. So that, that's kind of hard to, to tell people.

AI assessment note: “zero revenue or being upside down, obviously. So pre-revenue, that's not going to work.”

Q of a, a curveball question at you. Um, so I, I was on LinkedIn today, and I saw a picture of you and Richard Branson. What, I didn't have a chance to look through that post, but, um, can I get, like, the two-minute version of that story? And, uh, for those listening, it was a picture of, um, Christine and Richard Branson. It looked like having, like, lunch together.

A It was breakfast, but close enough in Paris. I know, right? So yeah, anybody listening to this, like I'm great at LinkedIn. If you want to connect on LinkedIn, um, would love that. You know, I put it as one of my featured posts, so you'll see it on there. Cause I haven't really shared this story. It was five years ago. I never shared on LinkedIn. Um, yeah, he's my business idol and it was my dream to, to meet him in person. And so I tell the whole story. There's even a video and it's fun watching the video because it's like flashbacks. All the way to, and when I was obsessed with him, you know, I'd make video blogs and talk about him. So like, it shows that whole, you know, all those years of that. And then, yeah, at 2017, I sold my, I exited my last company, um, or one of my companies. I've had a few, um, it was a real big exit, and I wrote a sizable check to his charity. And so, I wrote two checks. One was small, and that one was big. So, yeah, um, he is amazing. It was so much fun having breakfast with them. I'm a massive fan. Massive.

AI assessment note: “I exited my last company... and I wrote a sizable check to his charity.”

Q is going to deliver on their word. And if you start off a call just on like very hard stance, like, I'm firm on this price, and, and it just feels like there's no, um, uh, I guess leeway in terms of, you know, building a relationship or connection that's going to go beyond just wiring money. I've always seen that as kind of a, what's your thoughts on that?

A Oh my gosh, you're exactly right. Okay, for the seller and the buyers, right? Same with the buyers. We've had six LOIs coming in on one deal, you know, two weeks of negotiating all of them, which I love negotiating, so it was fun, but like, But some of the guys weren't that nice, right? And so, or some of these potential buyers come in with attitude from the start. They don't build rapport with the seller. And the seller, no matter how much money, they might pick somebody else, right? Because they're like, oh, I'm, because they're gonna have to hand off. They're gonna have to train. They're gonna have to like that person. And I think that's, that's the number one thing we're proud of at the firm. I'm like, I'm gonna find you the most amazing buyer. Like the money, of course, that's important. I am gonna find you the most amazing buyer. And like, people can go to our website. You can read our testimonials. You could talk to those, my sellers, because they love all their buyers. So, and then you're right with, we've been lucky. The sellers, I don't have, I've never had a seller waiver on selling their company ever. We're not attracting that. I think we attract, um, you know, most of our sellers are in their thirties. You know, it's their first exit and they're ready. They got the, they got the next project already rolling, right? They're like, we got to sell this quick. Like my n…

AI assessment note: “Oh my gosh, you're exactly right. Okay, for the seller and the buyers, right?”

Q is actually like in your hands. Um, let's see, what else do I got? Um, what, um, I guess, what do you see coming for the next, um, year in terms of acquisitions? I would agree with you in terms of, we haven't really seen too much change in terms of acquisitions on our end. Microquire. Have you seen, or do you foresee anything changing in the next 12 months?

A I mean, we definitely have had even more of a flood of people that want to sell their company, but it's not out of like, oh, I'm scared of the, I don't even like saying recession because it's like, you got to just press on no matter what. And actually the biggest companies were grown and built during recessions, mine included. So I actually like, I'm a wartime general and at peace times I actually like those times. Yeah. Yeah. I don't hear that right now. It's not like, oh my God, I'm scared. I'm going to sell my company. There's none of that. It's like, oh, I'm building another company. Um, and then same. And I foresee that in the near future. I've actually talked with other brokers and advisors. Like I wasn't there, you know, in oh, wait, doing this. So they said, oh, wait, to 2010 was like their heyday because like the stock market and everything else is so volatile. And that's what's happening right now. Crypto stock market. Everybody's jumping out. To something more stable, something with an ROI, right? That's predictable. Um, so that, so then they're starting to buy businesses. COVID made a massive, oh my gosh, so many, I have a lot of corporate first-time buyers, people getting out of corporate because they had that freedom during COVID. Now they're back at work and not working from home and they don't like it. So a lot of them, and they could pull from their foreign one…

AI assessment note: “we definitely have had even more of a flood of people that want to sell”