4.8 • 2.1K Ratings
🗓️ 31 March 2025
⏱️ 135 minutes
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0:00.0 | You sold a company for $792 million that was back in 2012? |
0:04.4 | Well, the sale happened in 2008 and then there was a multi-year earn-out situation and a bunch |
0:09.3 | of other things. |
0:10.3 | It culminated in 2012 and then I stayed on for a little longer after that. |
0:14.0 | Man, I have so many questions now. |
0:15.6 | A company may be worth $100 million to investors, but that doesn't mean that anyone will |
0:19.9 | come in and buy it for $100 million. |
0:22.6 | What would cause a company to not? |
0:24.6 | So volatility is the main item that you're discounting for. |
0:27.6 | When I was going public, I was doing 100 million in EBITDA. |
0:30.6 | Valuations ranged from like $1.5 billion in the public-trade markets. |
0:35.6 | At the same time, Facebook was going public and I was working with the same bankers and I was talking |
0:40.6 | to them and they were doing also $100 million in EBITA but they were worth $100 billion. |
0:45.4 | You're like. |
0:46.2 | Yeah, that's when I realized I'm in the most volatile, unscalable model and I'll never build that |
0:51.5 | way again. |
0:53.4 | What's up, wealth builders? |
0:54.5 | Today, I've got somebody who has sold a company for $792 million and he has an amazing |
1:00.9 | story to go with it. |
1:03.1 | Growing up in the gangs of L.A. |
1:05.4 | and still persevering through it to build multiple companies that have exited and now |
1:09.6 | helping entrepreneurs everywhere. |
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