Turning a $2M Business Into a 9-figure Windfall in 3 Years
“Matt Schmeltz walks us through how he and his partners took a business they acquired and grew it to amazing results,” shares Sam Thompson a Minneapolis business broker and the president of M&A firm Transitions In Business. “Their ROI was 15:1. From beefing up their sales team to creating outstanding customer service. Their revamped company demanded an incredible multiple and they got it. Matt’s story has many twists and turns.”
When Matt Schmeltz and his partners acquired CloudCraze, it was a simple software application helping businesses that use Salesforce.com manage their customer relationships. CloudCraze generated $2 million in annual recurring revenue, but Schmeltz & Co. figured it could do much more.
The acquisition kicked off a three-year value building odyssey culminating in a 9-figure acquisition offer from Salesforce.com. It was a spectacular rise, which is why it was so shocking when Schmeltz’s largest investor threatened to kill the deal in an expletive-laced rant claiming Schmeltz was not looking out for his shareholders. It was a surprising turn of events that almost lead to disaster.
In the end, Schmeltz saved the deal and delivered a 15:1 return on investment for his shareholders. It’s a fantastic story in which you’ll discover:
- What drives value for an enterprise acquirer like Salesforce.com.
- The danger of having your most natural acquirer sour on their decision to buy you.
- The three most essential things Schmeltz and his partners did to turn a $2 million business into a 9-figure exit.
- The benefits (and risks) of partnering with your most natural acquirer.