Scott Duffy outlines the employee option pool and equity breakdown of Smart Charter when negotiating its acquisition by Virgin Group.
0:00 / 0:06exact quote · 6.1s
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“When we did the deal, I probably had, I would say 10 to 12% of the company had been given away.”
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More from Scott Duffy
Insight
An entrepreneur's most important job is downside self-protection
“I think the most important job for every entrepreneur is learning how to protect yourself. So if things don't work out as planned, they take longer than plan. They go sideways. You can adjust and you can bounce right back.”
Scott DuffyJul 17, 2017▶ 7:10723: He Sold His Company to Richard Branson, Then Oil Tanked Him
Insight
Big company partnerships don't improve startups; they expose flaws faster
“When dealing with big partners, if you're a small company, and your goal is to go get a big partner out there, big companies don't make you better. They expose your flaws faster.”
Scott DuffyJul 17, 2017▶ 10:48723: He Sold His Company to Richard Branson, Then Oil Tanked Him
AssertionSupported
Scott Duffy's Smart Charter closed a deal with Virgin Group
“I had a business, it was called Smart Charter, and it was like Expedia for private jets, and we were looking for investors, we were looking for distribution, and we ended up doing a deal with Virgin.”
Scott DuffyJul 17, 2017▶ 2:44723: He Sold His Company to Richard Branson, Then Oil Tanked Him
Disclosure
Scott Duffy received a $450,000 salary in the Virgin acquisition
“Oh, I was, it was like a 450,000 dollar deal.”
Scott DuffyJul 17, 2017▶ 4:23723: He Sold His Company to Richard Branson, Then Oil Tanked Him
Disclosure
Scott Duffy chose 20% equity over cash in the Virgin deal
“The way that smart charter work is instead of taking money out, I decided to go all in and just had to take more equity. So when we did the deal, so I had, you know, there, there's some things I can't say because of confidentiality, but I had a good chunk, you…”
Scott DuffyJul 17, 2017▶ 5:47723: He Sold His Company to Richard Branson, Then Oil Tanked Him
AssertionContradicted
A $10 oil increase cost commercial aviation $1 billion in 2008
“Every 10 dollar increase in a barrel of oil at that time represented about a one billion dollar increase in fuel prices for the commercial aviation.”
Scott DuffyJul 17, 2017▶ 9:19723: He Sold His Company to Richard Branson, Then Oil Tanked Him
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