“Cary Moretti, founder of NewSportMedia, created a software application called LeagueStat,” shares Sam Thompson a Minneapolis business broker and the president of M&A firm Transitions In Business. “He eventually connected with an acquirer that only wanted to buy his software and not the rest of his business that included professional services. This is an excellent podcast that explains how Cary “carved out” his software service and sold only that piece of his business.”
Cary Moretti is the founder of NewSportMedia, an IT consulting company that does work with sports leagues. Along the way, Moretti created a software application called LeagueStat. The app helped hockey leagues like the AHL and CHL provide fans, journalists, parents, and scouts with real-time statistics on their favorite teams.
NewSportMedia grew to 27 employees, but Moretti was conflicted. The professional service side of his business required a different model than the software app that he had built. He knew that if LeagueStat were to reach its potential, he would need a deep-pocketed investor or a new home with a company that could invest in the business. Moretti decided to carve LeagueStat out of NewSportMedia and sell it as an asset separate from his consulting company.
Moretti is a self-described “nerd” who loves to code but knew little about negotiating the sale of his business. In this episode, Moretti describes what he learned about selling a company with humor, candor, and a heaping dose of humility.
- The pricing model that led Moretti to the brink of bankruptcy twice.
- How Moretti fixed his business model.
- The nuances of carving out a part of your business to sell.
- What Moretti wishes he had known about selling a business.