Rory Fatt began his entrepreneurial journey running marketing seminars for restauranteurs. After several owners approached Fatt to do their marketing for them, he decided to launch Royalty Rewards in 2005.
The business was a multimedia marketing platform that helped small businesses market their products and services by rewarding loyal customers. The company took off, hitting just over $2 million in revenue in its first year.
Inspired to achieve financial freedom, Fatt began to explore selling his company. In 2022, he accepted an offer from Schianti Partners that would set his family up for life.
In this episode, you’ll learn how to:
Build a business that doesn’t rely on you.
Successfully defend a lawsuit against your company.
Transform your business model to prepare for an acquisition.
Utilize one tactic to speed up the sale process.
Avoid seller’s regret by calculating your exit number.
Prepare for life after the sale.
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More About Rory Fatt
Rory Fatt built and exited businesses generating $85 Million in sales. Before his successful 30-year entrepreneurial career, he set sales records as an employee. The exit we will hear about today required him to overcome numerous significant obstacles before achieving his entrepreneurial dream of selling Firepower Marketing and his multimedia marketing and software program.
Definitions
Errors and omissions insurance (E&O): is a type of professional liability insurance that protects companies, their workers, and other professionals against claims of inadequate work or negligent actions. Source.
Offering Memorandum: An offering memorandum is a legal document that states the objectives, risks, and terms of an investment involved with a private placement. This document includes items such as a company’s financial statements, management biographies, a detailed description of the business operations, and more. Source.
Confidential Information Memorandum (CIM): A confidential information memorandum is a document prepared by a company in an effort to solicit indications of interest from potential buyers. The CIM is prepared early on in the sell-side process in conjunction with the seller’s investment banker to provide potential buyers with an overview of the company for pursuing an acquisition. The CIM is designed to put the selling company in the best possible light and provide buyers with a framework for performing preliminary due diligence. Source.
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