Christine McDannell, founder of boutique M&A advisor The Magnolia Firm, describes the timeline for closing the acquisition of TripKit.
0:00 / 0:04exact quote · 4.2s
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“From when he saw the company to when we closed was maybe two, one to two weeks.”
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More from Christine McDaniel
AssertionNot checkable as stated
Digital M&A remains a seller's market despite 2022 rate hikes
“It's, anybody listening, it's definitely still a seller's market. The R word isn't scaring anybody. The Fed raising the rates is not, like, it's just a seller's market still, which is amazing”
Christine McDanielNov 15, 2022▶ 10:49Startup Acquisition Stories with Christine McDannell, Founder of The Magnolia Firm
Insight
Sellers should send prospective buyers weekly growth updates during closing
“Every single week, we're sending that buyer, like, an exciting email, like, hey, this is a new initiative we launched this week. Hey, these are our sales numbers. Hey, et cetera, and keeping them completely excited, engaged the whole way until the close”
Christine McDanielNov 15, 2022▶ 20:03Startup Acquisition Stories with Christine McDannell, Founder of The Magnolia Firm
What-if
McDannell saved an acquisition after low appraisal via weekly growth updates
“And like, it almost fell out because the appraisal came in so low and I stuck to the full price offer. And, but I know he would have, they would have dropped if they weren't so excited and engaged and watching me grow the company for three and a half months.”
Christine McDanielNov 15, 2022▶ 20:24Startup Acquisition Stories with Christine McDannell, Founder of The Magnolia Firm
AssertionNot checkable as stated
Unnamed buyer signed LOI, completed diligence, and wired funds within 24 hours
“So from the morning he came in and then he met with the seller in the afternoon. We did LOI same day and then we did due diligence and then he closed and wired the money the very next day.”
Christine McDanielNov 15, 2022▶ 5:37Startup Acquisition Stories with Christine McDannell, Founder of The Magnolia Firm
AssertionNot checkable as stated
Richard Branson admitted Virgin Galactic cost double his original budget
“Virgin Galactic, he said he spent double what he would think he would spend. He said it was super crazy stressful”
Christine McDanielNov 15, 2022▶ 9:08Startup Acquisition Stories with Christine McDannell, Founder of The Magnolia Firm
Disclosure
M&A brokers often reject clients under $120,000 in annual net profit
“The magical number seems to be about a 120 K net profit a year because somebody can quit their job, maybe not in California, but quit their job and like live on that. Right. And so, so that's this magical number. So yeah, we're typically not taking any clients…”
Christine McDanielNov 15, 2022▶ 24:06Startup Acquisition Stories with Christine McDannell, Founder of The Magnolia Firm
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