How To Avoid The Hodgepodge Discount
Nobody likes paying for a hundred TV channels when all you want is a few, which is why so many people are dropping cable in favor of a subscription to only the select channels they’ll watch.
Similarly, no investor wants to buy a business with a hodgepodge of product lines if they can’t figure out how to value and monetize all of what you’ve created.
…Which is how Ryan Deiss got himself into a sticky situation.
Deiss is the co-founder of Digital Marketer, a growing e-learning platform for marketers with – up until recently – a thriving annual conference that draws 7,000 marketers and speakers like Sir Richard Branson.
When Deiss went to raise money for Digital Marketer, would-be investors didn’t know how to categorize them. Some investors liked Deiss’ e-learning company but didn’t want to be in the events business. Others liked events and didn’t value e-learning as much. That’s when Deiss made a drastic decision that would end up paying off handsomely.
In this episode, you’ll learn:
- How more product and service lines could reduce your market value
- How to identify if you have a division worth selling off
- What it takes to get Richardson Branson to keynote your event
- How to negotiate your Non-Compete
- The one thing you should never do when agreeing to an earn out
- The importance of knowing your number before you start negotiating with an acquirer
- How to fly business class on your acquirer’s dime
- How to avoid the biggest regret Deiss wishes he had avoided