In 2014 Tim Grassin founded Candy Banners, which designs ads that show up along the top, bottom, and sides of a website.
Grassin built a remote team in the Philippines to minimize his costs. Hiring inexpensive developers allowed Grassin to charge lower rates to agency owners, resulting in rapid growth.
The business had grown to over seven figures in revenue in 2020 when Grassin received an acquisition offer from one of his clients, Native Touch. The offer valued Candy Banners at around five times EBITDA, and the deal closed in 2021.
In this episode, you’ll learn how to:
Build a company that can thrive without you.
Establish trust with a team of freelancers.
Repair a damaged relationship with your co-founder.
Structure a favorable earn-out when selling your business.
Avoid a tricky mistake many founders make during due diligence.
More About Tim Grassin
Tim Grassin is a co-founder of Asia-based FinTech company TendoPay, a sales automation consultant, and an angel investor. Tim has built and sold two North America-based service businesses in the past while applying the concepts he learned in Built to Sell.
Earn-out: Earnout or earn-out refers to a pricing structure in mergers and acquisitions where the sellers must “earn” part of the purchase price based on the performance of the business following the acquisition. Source.
Due-Diligence: Due diligence is an investigation, audit, or review performed to confirm facts or details of a matter under consideration. In the financial world, due diligence requires an examination of financial records before entering into a proposed transaction with another party. Source.
Letter of Intent (LOI): A letter of intent (LOI) is a document declaring the preliminary commitment of one party to do business with another. The letter outlines the chief terms of a prospective deal. Commonly used in major business transactions, LOIs are similar in content to term sheets. One major difference between the two, though, is that LOIs are presented in letter formats, while term sheets are listicle in nature. Source.
AD Ops: Ad Ops is the management of investments in paid media, which includes search, display and video across online, mobile and social destinations, and the use of programmatic techniques to measure and optimize advertising. Source.