“Eytan Wiener co-founded Quantum Networks and in a few months had a successful business with revenues near $30 million,” shares Sam Thompson a Minneapolis business broker and the president of M&A firm Transitions In Business. “He realized his competition was fierce and his margins were thin. His company then started to bundle their products. This provided their customers better service and also increased their profit margins.”
Eytan Wiener started Quantum Networks as a simple Amazon Reseller of technology gadgets. The business model was basic. Resell a semi-known brand’s product on Amazon, or source a device people wanted in China and resell it on Amazon at a slim margin.
But Wiener wanted more than just a cash flow business. He decided to create a sellable company by promoting his brand (Blucoil), bundling products bought together frequently, and striking exclusive reseller arrangements with some brands. The three tactics jacked sales, took gross margin from around 5% to approximately 20%, and top-line revenue to $30 million, which caught the attention of Advantage Solutions (NASDAQ: ADV).
In this episode, you’ll discover:
- Why owning your brand is essential to building a valuable company.
- How to differentiate yourself in a sea of competitors online.
- The surprising reason Wiener decided to sell.
- How inventory is valued.
- How to know when an acquirer is motivated to close.
- The psychological impact of selling your baby.