Making the Leap From 20 to 50 Employees
“Ed Buckley owned a fitness business called Peerfit that offered classes to companies that in turn can offer these classes to their employees as a benefit,” shares Sam Thompson a Minneapolis business broker and the president of M&A firm Transitions In Business. “This episode shows how business owners can start a business with friends without damaging the relationships. It also explains how the owner was able to increase a very low offer.”
Ed Buckley started Peerfit, which allows companies to offer fitness classes as part of their employee benefits package. Buckley struggled to grow from 20 to 50 employees. But, after making one critical change to his management approach, he overcame the obstacle.
Ultimately, Buckley grew Peerfit to more than 150 people before receiving an acquisition offer for almost $100 million from a major fitness brand widely reported to be Peloton. Buckley retained some of Peerfit’s IP, which, in a strange twist, he was able to sell in another eight-div exit months later. In this episode, you’ll learn how to:
- Avoid the most common mistake entrepreneurs make when growing from 20 to 50 employees.
- Start a business with friends without damaging your relationships.
- Choose the most strategic investor for your business (even if their opinion of value is lower than other investors).
- Rekindle an acquisition deal that has fallen through.
- Develop a strong relationship with a potential acquirer.
- Jack up a lowball offer from an acquirer.
