In 2013, Alex McClafferty co-founded WP Curve, a company that provided IT support for people with a WordPress site.
McClafferty and his partner stitched together a network of contract support professionals in developing countries and quickly grew the company. They hired a few managers, and by the beginning of 2016, McClafferty was already looking for an exit.
He wrote his goal down on an index card that hung in his office:
- All-cash offer
- Sell to a 3rd party
He asked around to see what his company might be worth and was disappointed by the initial estimates. Then internet giant GoDaddy approached McClafferty, indicating they wanted to grow their WordPress business and saw WP Curve as a perfect fit. In this episode you’ll discover:
- The quirky visualization trick McClafferty used to get his employees to provide support customers could understand
- “Outside In vs. Inside Out” thinking and how it can be the secret to winning the attention of a strategic acquirer
- What an “attached rate” is and why it’s important to buyers
- Two surprising reasons big companies buy little ones
- How to avoid falling victim to the fishing trick
- The biggest mistake first-time sellers make in dealing with corporate development professionals
- Why non-linear scale matters
If you’re interested in improving the value of your business, take our questionnaire or contact Colonial Business Brokerage today at 443-982-7332.