How to Avoid Getting Trapped in a Low-Valuation Industry
“Jeremy Parker co-founded Swag.com in 2016 and by 2020 his company was generating $30 million in revenue before he sold to Custom Ink,” shares Sam Thompson a Minneapolis business broker and the president of M&A firm Transitions In Business. “In this episode you’ll discover how proper use of technology can add tremendous value to your company.”
In 2016 Jeremy Parker co-founded Swag.com to offer branded promotional products for businesses. Parker and his team developed a powerful online platform that enabled customers to order products through their unforgettable website.
Thanks to Swag.com’s innovative approach and memorable domain name, the company was generating $30 million in revenue by 2020. However, when Parker began to explore acquisition offers, potential buyers viewed Swag.com as just a distribution company, which is typically valued in low single digits of EBITDA.
Fortunately, Parker met the founder of Custom Ink, who recognized that Swag.com was more than just a traditional promotional products business; it was a technology company. Custom Ink made Parker a lucrative acquisition offer, and in this episode, you’ll learn how to:
- Prevent potential investors and acquirers from undervaluing your business.
- Buy a seven-figure domain without paying up front.
- Leverage a blue-chip client to attract dozens of new customers.
- Secure funding without giving up a large portion of your equity.
- Use a surprising customer feedback technique to improve your business.