SaaS Interviews with CEOs, Startups, Founders
Nathan Records Negotiation With Seller, Should He Sell Heyo or Not?
08 Feb 2016
Chapter 1: What prompted Nathan to consider selling Heyo?
Hey Nathan, Nick here. Remember I sent the pitch about our CEO from coach.me for the podcast and had to tune in on this. My initial gut reaction is to sell it and take that opportunity to get all the freedom in the world.
Chapter 2: What concerns did Nathan have about the buyer's offer?
You'll always have that. You can from then create whatever you want.
Chapter 3: How did Nathan plan to leverage competition for Heyo's sale?
And as long as you can make it a great deal for the team and make sure everybody transitions well, of course,
Chapter 4: What insights did Jim Risner provide about acquiring Heyo?
Because you'll never get that opportunity again. But then again, I'm not running a company.
Chapter 5: What factors differentiate the LOIs Nathan received?
I have never had that option before. And I guess the question to ask yourself is, do I want to help people run giveaways, etc.
Chapter 6: What advice did listeners provide regarding Nathan's decision to sell?
on Facebook for the rest of my life or at least another, I don't know, five years? And yeah, think about if that's what you want to do.
Chapter 7: How did Nathan come to the decision to sign the LOI?
And I think then you'll have your answer.
All right, guys, I told you last week something very exciting happened.
Chapter 8: What challenges does Nathan anticipate during due diligence?
I got an email and the email was one of our big competitors emailing me to acquire Hayo. And the big question was, would we take the deal or not? Last Monday, I took you guys in. I said I was going to be fully transparent with the team. You heard from Chris and Christina and their thoughts on the deal.
One of Chris's main concerns was that this might not be a serious offer, that they might just be digging for information. You see, I tend to get excited about things pretty easily. And also I get down on things pretty easily and then obviously recover. And Chris was worried that I was overreacting to this email and it might not actually be a real offer.
Well, Ken Armijo called in, like I asked you guys to. He's from New Mexico, and he agreed with Chris.
Hey, Nathan. This is Ken Armijo in Bosque, New Mexico. I just listened to your podcast. I'm an older businessman and I would say that wait till they show you a contract because right now they might just be fishing and you know dangling a carrot in front of you and it would be harder for you to tell your team oh the deal fell through sorry I shouldn't I should have waited
Well, Chris, Ken has a good point, but the problem is I've already told the team that's really part of the risk of being transparent. If this whole deal does fall through, I'll have to lead through a big emotional letdown that the whole team will have. Now, look, I don't want to do that. I tend to be a pretty non-emotional kind of guy and I move on fast. You can just ask my exes.
But look, I don't know if the whole team is like that as well. In fact, they're probably not. So I've got to get to an LOI or a letter of intent and then see if I can create a bidding war between all the folks or the companies that put in the letter of intent to potentially buy Hayo. So again, we've got a bunch of folks calling in and many of them are agreeing.
Here's another member from the top tribe and their thoughts.
Hey Nathan, I just listened to your podcast about a potential offer to sell Hayo and thought it was super interesting. Very cool that you're sharing all this information with listeners and also very cool that you're sharing it with the team. I think that'll help you make a much better decision.
My opinion, since you asked the listeners what you should do, is you run the course you're on, which is get all your numbers in hand. If it's a serious offer, you take the strategy of getting four or five counter offers from additional competitors. And you run that through. And if you get to a final number that makes sense to exit, I would encourage you to do so.
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