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The Exit - Presented By Flippa

From Bootstrapped Beginnings to Strategic Exit to Brandwatch: The Story of Paladin with James Creech

The Exit - Presented By Flippa

The Exit - Presented By Flippa

Technology

52K Ratings

🗓️ 8 April 2024

⏱️ 29 minutes

🧾️ Download transcript

Summary

This week on The Exit: Before the days of YouTube and TikTok, James Creech was creating videos, little did he know this interest would lead him to one day launch a company focused on content creation. In 2016 when influencer marketing and the creator economy was still finding its feet, James and his partners saw a need for tracking and reporting on the impact of influencer marketing, and the opportunity to turn this into a business. Together with his two partners, James launched Paladin, an influencer marketing platform for brands and agencies to work with, manage and track influencer partnerships. Entirely bootstrapped, the three founders each invested their life’s savings to get the business started, including James taking the downpayment he had saved for a house and putting it all into the business. They were first time founders figuring it out as they went, but always focused on revenue, customer count and retention rates. And when it came time to sell the business, these were the same metrics buyers were interested in. After six years the business had grown to 25 people when the world was hit by Covid. For the influencer industry and Paladin, the impact of Covid only meant increased investment from brands who were looking to connect with people while they were stuck at home on their phones. The business hit an inflection point and James and his partners saw their opportunity to exit. They realized they either needed to raise funding to acquire smaller operations in order to grow in what was now a crowded market, or find a strategic partner who could help them grow. They met over 30 potential buyers as they tried to narrow down the list to those who had similar values and shared their vision to take the business to the next level. Buyer were primarily interested in topline revenue, potential for the business, strength of customer contracts, customer retention and how sticky the technology is - everything James was focused on as they built the business. Ultimately Brandwatch was the best fit, Brandwatch believed in the business they had built and what they were trying to achieve. Listen to learn more about what James learnt along the way and his advice for other founders and entrepreneurs. James Creech is a 3x entrepreneur who helps founders sell their business. James offers advisory services for entrepreneurs and operators looking to navigate the M&A process and maximize their outcome. He built and sold his first startup, currently is working on 2 more, and “has had countless failures along the way.” James Founded Creator Economy Jobs in October of 2023, which operates as the premier job board for creator economy companies and candidates. He is also the Co-Founder and Board Member of Measure Studio, which provides AI-powered social media insights for brands, agencies, and publishers. LinkedIn: https://www.linkedin.com/in/jlcreech/ Website: https://www.measure.studio/ Website: https://creatoreconomyjobs.co/ For a Free Flippa Business Valuation: https://flippa.com/exit -- The Exit—Presented By Flippa: A 30-minute podcast featuring expert entrepreneurs who have been there and done it. The Exit talks to operators who have bought and sold a business. You’ll learn how they did it, why they did it, and get exposure to the world of exits, a world occupied by a small few, but accessible to many. To listen to the podcast or get daily listing updates, click on flippa.com/the-exit-podcast/

Transcript

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0:00.0

Hello and welcome to the exit presented by Flip Up the number one platform to buy and sell online businesses

0:06.0

Flipa manages over a billion in deal value annually and combines expert buy and sell side advisory

0:12.2

with its market

0:13.0

leading valuation tool, deal room, off market offering,

0:16.3

market insights, an AI-based deal by deal matching engine.

0:20.7

Now for the exit.

0:22.0

The exit is a 30 minute podcast featuring awesome

0:24.4

entrepreneurs who have been there and they have done it. The exit talks to

0:27.6

operators who have bought and sold businesses of all different sizes. You learn

0:31.5

how they did it, why they did it, and get exposure to the world

0:34.8

of exits. It's a world occupied by a small few, but accessible to many.

0:40.1

On this episode of the exit, I sit down with James Creech.

0:43.2

And this is a really special episode for anybody out there that is a creator.

0:47.6

And by creator, I mean someone that is creating content on a regular basis,

0:51.7

whether it's YouTube or Instagram or Facebook or

0:56.7

Tik-Tock or any one of these social media platforms where you can build an audience.

1:01.0

James walks us through his business that he exited a few years ago and it is a

1:06.7

really fantastic way of people to connect with brands. It's called Palladin and

1:11.0

they were required by Brand Watch in March of 2022 and what James

1:15.6

walks through is the start and effective finish of Pallidin from his three

1:21.5

co-founders the chapters they were in in their lives, when the transaction went through,

1:26.1

how the process worked with using a banker and the negotiations, how they derived their

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