Devon Gethers, founder of admissions consulting platform EarlyAdmit, discusses the commitment required during an acquisition process.
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“And in fact, I actually left my investment firm to focus 100% on the sale of this business. I left Mercado Partners to go do that.”
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More from Devon Gathers
Opinion
Gethers: Admissions consulting costs directly drive demographic disparity at elite business schools
“If there's a segment of people who can afford those services then naturally the quality of their application is going to be higher than for people who just don't have access to those resources. And so again, this has a direct Correlation with the type of demog…”
Devon GathersOct 3, 2023▶ 8:07Startup Acquisition Stories with Devon Gethers, Founder of EarlyAdmit
Insight
Gethers: Traditional M&A sales processes require around $5M in EBITDA
“But for business at the scale that I was at good luck. Kind of trying to go run a traditional sell process for that. I think typically in the business that we're in, if we were to go out to market to sell this business, this is like a business I would be doing…”
Devon GathersOct 3, 2023▶ 16:23Startup Acquisition Stories with Devon Gethers, Founder of EarlyAdmit
AssertionNot checkable as stated
Gethers: EarlyAdmit saw 75 NDAs and 15% buyer engagement on Acquire.com
“We had, I think on, on the acquire platform, we had about 75 NDAs over the time span of four to five months or so. And we probably had about a 15% Like, I would say real engagement rate, like potential buyers who were actually interested and have conversations…”
Devon GathersOct 3, 2023▶ 18:30Startup Acquisition Stories with Devon Gethers, Founder of EarlyAdmit
AssertionNot checkable as stated
Gethers: EarlyAdmit operated at 40% profit margins during acquisition process
“I remember days where we didn't get bites and we were like, well, you know, we're running at 40% profit margins.”
Devon GathersOct 3, 2023▶ 25:01Startup Acquisition Stories with Devon Gethers, Founder of EarlyAdmit
AssertionSupported
Gethers: Legacy admissions consultants charged over $300 an hour
“Legacy admission consultants were charging north of 300 dollars an hour”
Devon GathersOct 3, 2023▶ 5:02Startup Acquisition Stories with Devon Gethers, Founder of EarlyAdmit
Disclosure
Gethers: EarlyAdmit hired 75 global campus ambassadors to drive growth
“We, as a company, we went and hired about 75 campus ambassadors is what we classified them as. And these were students that we interviewed.”
Devon GathersOct 3, 2023▶ 11:51Startup Acquisition Stories with Devon Gethers, Founder of EarlyAdmit
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