how’d it get bought out by a large company so got a great question for one
company so got a great question for one
company so got a great question for one of my YouTube viewers love you guys I am
of my YouTube viewers love you guys I am
of my YouTube viewers love you guys I am greater who wrote in to say I’ve noticed
greater who wrote in to say I’ve noticed
greater who wrote in to say I’ve noticed that many smaller the medium companies
that many smaller the medium companies
that many smaller the medium companies often get bought by a large figure my
often get bought by a large figure my
often get bought by a large figure my company such as Google Yahoo Facebook
company such as Google Yahoo Facebook
company such as Google Yahoo Facebook however I was wondering if the small
however I was wondering if the small
however I was wondering if the small companies contacted them for offers or
companies contacted them for offers or
companies contacted them for offers or if they wait until the big companies
if they wait until the big companies
if they wait until the big companies contact them and want to buy thanks
contact them and want to buy thanks
contact them and want to buy thanks greater this is a great question and one
greater this is a great question and one
greater this is a great question and one a lot of entrepreneurs think about you
a lot of entrepreneurs think about you
a lot of entrepreneurs think about you know you want to get acquired someday
know you want to get acquired someday
know you want to get acquired someday you want to build this business up and
you want to build this business up and
you want to build this business up and exit and make a big payday and so I want
exit and make a big payday and so I want
exit and make a big payday and so I want to start by talking about why companies
to start by talking about why companies
to start by talking about why companies will acquire you there are three main
will acquire you there are three main
will acquire you there are three main reasons why a big company will dig in
reasons why a big company will dig in
reasons why a big company will dig in and acquire your company the first is
and acquire your company the first is
and acquire your company the first is team the second is technology and the
team the second is technology and the
team the second is technology and the third is your customers so team this is
third is your customers so team this is
third is your customers so team this is basically they’re buying you just to
basically they’re buying you just to
basically they’re buying you just to have you just to have the founders or
have you just to have the founders or
have you just to have the founders or whoever you’ve hired on board on their
whoever you’ve hired on board on their
whoever you’ve hired on board on their company they don’t like your company
company they don’t like your company
company they don’t like your company they don’t like what you’ve made but
they don’t like what you’ve made but
they don’t like what you’ve made but they want you on board so an example is
they want you on board so an example is
they want you on board so an example is when Google bought milk which is a
when Google bought milk which is a
when Google bought milk which is a company set up by Kevin Rose who was one
company set up by Kevin Rose who was one
company set up by Kevin Rose who was one of the Digg founders they bought the
of the Digg founders they bought the
of the Digg founders they bought the company they paid you know rumor fifteen
company they paid you know rumor fifteen
company they paid you know rumor fifteen million dollars to the company they shut
million dollars to the company they shut
million dollars to the company they shut down the new company they fired all the
down the new company they fired all the
down the new company they fired all the engineers and basically kept Kevin rose
engineers and basically kept Kevin rose
engineers and basically kept Kevin rose on board and some of the designers
on board and some of the designers
on board and some of the designers because they wanted Kevin they wanted
because they wanted Kevin they wanted
because they wanted Kevin they wanted him on Google’s team and so that’s why
him on Google’s team and so that’s why
him on Google’s team and so that’s why they hired it that’s why they bought the
they hired it that’s why they bought the
they hired it that’s why they bought the company so people may buy your company
company so people may buy your company
company so people may buy your company just for your team the second is
just for your team the second is
just for your team the second is technology and this is where you have
technology and this is where you have
technology and this is where you have something that is better than what’s out
something that is better than what’s out
something that is better than what’s out there on the market right so you’ve got
there on the market right so you’ve got
there on the market right so you’ve got you’ve got software you’ve got you’ve
you’ve got software you’ve got you’ve
you’ve got software you’ve got you’ve got patents you’ve got technology of
got patents you’ve got technology of
got patents you’ve got technology of some sort that a company will want to
some sort that a company will want to
some sort that a company will want to buy they don’t have yet and the third is
buy they don’t have yet and the third is
buy they don’t have yet and the third is customers you know they made this big
customers you know they made this big
customers you know they made this big company maybe trying to move into your
company maybe trying to move into your
company maybe trying to move into your space and they realized hey here’s a
space and they realized hey here’s a
space and they realized hey here’s a leader they already have all these
leader they already have all these
leader they already have all these customers and instead of trying out and
customers and instead of trying out and
customers and instead of trying out and go to acquire these customers ourselves
go to acquire these customers ourselves
go to acquire these customers ourselves we can just acquire the business and get
we can just acquire the business and get
we can just acquire the business and get all these customers to ourselves right
all these customers to ourselves right
all these customers to ourselves right away and so the stronger your team is
away and so the stronger your team is
away and so the stronger your team is the stronger your technology is and the
the stronger your technology is and the
the stronger your technology is and the stronger your customer base is the
stronger your customer base is the
stronger your customer base is the higher price you get acquired for
higher price you get acquired for
higher price you get acquired for one quick thing to think about for for
one quick thing to think about for for
one quick thing to think about for for being bought and the price tag when
being bought and the price tag when
being bought and the price tag when you’re going into a company and you say
you’re going into a company and you say
you’re going into a company and you say you know okay we’re gonna be bought out
you know okay we’re gonna be bought out
you know okay we’re gonna be bought out this is our price tag if you want to buy
this is our price tag if you want to buy
this is our price tag if you want to buy us the company say thank you and then
us the company say thank you and then
us the company say thank you and then the CEO will talk to his head of sales
the CEO will talk to his head of sales
the CEO will talk to his head of sales and his head of technology and let’s say
and his head of technology and let’s say
and his head of technology and let’s say how long and how much will it take us to
how long and how much will it take us to
how long and how much will it take us to replicate what this company does so big
replicate what this company does so big
replicate what this company does so big company Facebook Yahoo whatever we’ll
company Facebook Yahoo whatever we’ll
company Facebook Yahoo whatever we’ll look at your company and say how long
look at your company and say how long
look at your company and say how long will it take us and how much money will
will it take us and how much money will
will it take us and how much money will it cost to reproduce their technology
it cost to reproduce their technology
it cost to reproduce their technology and to get the customers that they have
and to get the customers that they have
and to get the customers that they have and they’ll assign maybe it’s a year
and they’ll assign maybe it’s a year
and they’ll assign maybe it’s a year maybe it’s two years anybody’s three
maybe it’s two years anybody’s three
maybe it’s two years anybody’s three months maybe it’s a million dollars
months maybe it’s a million dollars
months maybe it’s a million dollars maybe it’s a hundred million dollars
maybe it’s a hundred million dollars
maybe it’s a hundred million dollars whatever it is and then that helps them
whatever it is and then that helps them
whatever it is and then that helps them set the valuation for your business
set the valuation for your business
set the valuation for your business right so if it’s gonna be cheaper for
right so if it’s gonna be cheaper for
right so if it’s gonna be cheaper for them and faster for them just to buy you
them and faster for them just to buy you
them and faster for them just to buy you out and that gets them to market faster
out and that gets them to market faster
out and that gets them to market faster and it’s worth it for them they’re gonna
and it’s worth it for them they’re gonna
and it’s worth it for them they’re gonna give you a higher price tag if they feel
give you a higher price tag if they feel
give you a higher price tag if they feel like you know what we could do this
like you know what we could do this
like you know what we could do this ourselves
ourselves
ourselves thank you very much they’re not gonna
thank you very much they’re not gonna
thank you very much they’re not gonna buy from you this is a conversation it
buy from you this is a conversation it
buy from you this is a conversation it always happens before you get bought out
always happens before you get bought out
always happens before you get bought out by that big company now how does the
by that big company now how does the
by that big company now how does the structure actually work how does that
structure actually work how does that
structure actually work how does that process work so you get approached by a
process work so you get approached by a
process work so you get approached by a big company it’s very rare that it’s the
big company it’s very rare that it’s the
big company it’s very rare that it’s the little guy going up to the big guy and
little guy going up to the big guy and
little guy going up to the big guy and saying hey we want to get bought out
saying hey we want to get bought out
saying hey we want to get bought out will you guys buy us out
will you guys buy us out
will you guys buy us out right it looks desperate how it usually
right it looks desperate how it usually
right it looks desperate how it usually works is the big company has to realize
works is the big company has to realize
works is the big company has to realize that they have a hole in their offering
that they have a hole in their offering
that they have a hole in their offering they have to realize that they want to
they have to realize that they want to
they have to realize that they want to get into this market whatever that
get into this market whatever that
get into this market whatever that market is they want to get into it and
market is they want to get into it and
market is they want to get into it and the realize that they don’t have the
the realize that they don’t have the
the realize that they don’t have the right team technology marketing yet to
right team technology marketing yet to
right team technology marketing yet to fulfill that and they’re looking to you
fulfill that and they’re looking to you
fulfill that and they’re looking to you as a potential way to jumpstart that
as a potential way to jumpstart that
as a potential way to jumpstart that process to get them there faster to beat
process to get them there faster to beat
process to get them there faster to beat their competition but they have to
their competition but they have to
their competition but they have to realize that there’s a hole if there’s
realize that there’s a hole if there’s
realize that there’s a hole if there’s no hole then they’re not gonna do it
no hole then they’re not gonna do it
no hole then they’re not gonna do it right if they realize there’s a hole
right if they realize there’s a hole
right if they realize there’s a hole then they’re gonna go out and start
then they’re gonna go out and start
then they’re gonna go out and start looking for opportunities they’re gonna
looking for opportunities they’re gonna
looking for opportunities they’re gonna start looking for you know who are the
start looking for you know who are the
start looking for you know who are the leaders in this field and let’s start
leaders in this field and let’s start
leaders in this field and let’s start talking to them if they don’t realize as
talking to them if they don’t realize as
talking to them if they don’t realize as a whole yet then
a whole yet then
a whole yet then you have to create it you have to kick
you have to create it you have to kick
you have to create it you have to kick up a storm you have to say hey this is
up a storm you have to say hey this is
up a storm you have to say hey this is an industry worth paying attention to
an industry worth paying attention to
an industry worth paying attention to and then companies will look at and say
and then companies will look at and say
and then companies will look at and say hey maybe we should be branching into
hey maybe we should be branching into
hey maybe we should be branching into this field too and maybe instead of
this field too and maybe instead of
this field too and maybe instead of trying to do it ourselves which you just
trying to do it ourselves which you just
trying to do it ourselves which you just acquired these guys it’s creating
acquired these guys it’s creating
acquired these guys it’s creating awareness on the big company side that
awareness on the big company side that
awareness on the big company side that they need to be getting into this field
they need to be getting into this field
they need to be getting into this field so I sold my first business to a
so I sold my first business to a
so I sold my first business to a multi-billion dollar company and it
multi-billion dollar company and it
multi-billion dollar company and it wasn’t us going to them and saying hey
wasn’t us going to them and saying hey
wasn’t us going to them and saying hey here’s a software company coming by us
here’s a software company coming by us
here’s a software company coming by us it was a combination of one us creating
it was a combination of one us creating
it was a combination of one us creating a lot of momentum and kicking up a lot
a lot of momentum and kicking up a lot
a lot of momentum and kicking up a lot of noise in our field so we’re getting
of noise in our field so we’re getting
of noise in our field so we’re getting customers acquiring a large base doing a
customers acquiring a large base doing a
customers acquiring a large base doing a lot of media doing a lot of press
lot of media doing a lot of press
lot of media doing a lot of press acquiring distribution channels
acquiring distribution channels
acquiring distribution channels internationally kicking up a storm to
internationally kicking up a storm to
internationally kicking up a storm to help our business but also make people
help our business but also make people
help our business but also make people pay attention to us combined with the
pay attention to us combined with the
pay attention to us combined with the fact that these bigger companies we’re
fact that these bigger companies we’re
fact that these bigger companies we’re now starting to look at our field and
now starting to look at our field and
now starting to look at our field and say hey we need to get in here we need
say hey we need to get in here we need
say hey we need to get in here we need to get into this business and we’re
to get into this business and we’re
to get into this business and we’re gonna start buying companies up to do it
gonna start buying companies up to do it
gonna start buying companies up to do it and that’s how I ended up selling my
and that’s how I ended up selling my
and that’s how I ended up selling my business and how hopefully you can sell
business and how hopefully you can sell
business and how hopefully you can sell yours to believe those are watching I’d
yours to believe those are watching I’d
yours to believe those are watching I’d love to hear your thoughts leave it in
love to hear your thoughts leave it in
love to hear your thoughts leave it in the comments below if you have a
the comments below if you have a
the comments below if you have a question that you want me to dig into
question that you want me to dig into
question that you want me to dig into deeper leave it in the comment section
deeper leave it in the comment section
deeper leave it in the comment section below if you guys like this video you
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