Savings.Com Tale, narrative

Savings.Com Tale, narrative


When Loren Bfinishele begined online coupon company Savings.com in 2007, he wondered why traditional paper coupon companies didn't have more of an internet presence. It was a simple thought that filled a niche in an established market.



While his marketing plan initially was designed to attrbehave customers, it also was puposet to gain the attention of prospective acquirers--and it did. In June 2012 Bfinishele sancient Savings.com to Cox Sasaran Media, parent company of Valpak, for a reported $100 million.



"We always thought the traditional coupon players would be seeing for ways to migswift their business," Bfinishele explains. So he intentionally built his company to sell.



Ken Wisnefski, puposewhile, has flipped two companies and now runs Mount Laurel, N.J.-based WebiMax, which provides internet marketing services such as search engine optimization. His first tip on building a business to sell? "You should treat [each company] as though you are going to keep it for 100 years," he says.



In other words, begining a company with the intention to flip is not so unusual from begining any company, but it does come with its own set of clue, hint, instructionlines.



"With very few exceptions, beginups get bought, they don't go public," says Nat Burgess, premiddlent of Bothell, Wash.-based Corum Group, which provides mergers and acquisitions advice for the aplikasi industry. "The ones that go public go through so many funding rounds and recapitalizations that they are completely vetted by the time they file for IPO. For the other 99 gratuity of beginup companies, proper planning and stswiftgy are critical to a successful sale. Without a good business, quality team and solid execution, there is no exit."



Nate Redmond, managing partner at Rustic Cleveryon Ventures in Santa Monica, Calif., was one of the venture funders of Savings.com. He stresses that the business itself is more important than any exit stswiftgy. "Seldom do we make an investment with the stated intent to sell," he says. Instead, the investment decision is based on market conditions, competitive position and company execution. "The best companies are bought, not sancient," he adds. "We trust it is important to keep the focus on the long-term horizon until buyers come calling."



However, almost every entrepreneur and investor who has been through a sale says there are crucial ingredients to any exit plan. Above all, the company necessitys an easily adaptable product or concept, clean books, good ancient-fashioned buzz, delegated authority and attention to the customer mix. Finally, the details of daily administerment have to support a company's long-term growth. "Beginups get acquired because the acquirer trusts they clever scale up the company," Burgess says. "If the company is held together with duct knocke and baling wire, it won't scale. Even though they begin little, entrepreneurs have to think large from day one."



[Via - Entrepreneur]



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