We got an offer to sell Heyo

The Top Podcast Nathan Latka Episode 171

In Episode #171, Nathan breaks some big news regarding his business Heyo – he got an offer to sell it. Listen as Nathan discusses with his team the process and ramifications of selling their business. This is part 1 of a 3 part series

Part 1: A Competitor Emailed Me Asking To Buy Heyo, Are They Serious? (listen/read below)

Part 2: The Big Decision, Should We Sell Or Not

Part 3: Signing On The Dotted Line, “The Big Bank Wire”, Whats Next?

3 Key Points:

  1. Transparency has the advantage of keeping everyone on Heyo’s team informed and learning. The downside is that they may feel anxious about what the future holds.
  2. A big part of selling a business is considering its future profitability and potential.
  3. When selling a business, it’s important to be sensitive to the feelings of the people who are invested in it. (Employees, investors, customers, etc.)

Skip Around The Episode With Time Stamped Show Notes:

  • 00:00 – Nathan talks about when he first started his business with his mom.
  • 02:02 – Early on building Heyo, Nathan resolved to be transparent about how offers were negotiated so that everyone on the team could learn from it.
  • 04:28 – Nathan’s team got an offer to sell their five year old business Heyo by their competitor.
  • 05:56 – In line with the founding philosophy, Nathan’s decided to be fully transparent about the process to his Heyo team.
  • 07:22 – Chris Rieger, the head of operations at Heyo expresses his thoughts.
  • 08:04 – Heyo has sentimental value to the team and still possesses long-term value in its future opportunities.
  • 09:20 – Nathan’s concern with transparency is losing talented employees due to the potential acquisition.
  • 10:10 – Nathan is also concerned that the business might become too comfortable and miss out on bigger opportunities.
  • 10:30 – A big part of deciding whether to sell Heyo is its future potential.
  • 11:18 – Nathan doesn’t like the offer – he plans to reach out to other potential buyers get LOI’s (letters of intent) to leverage Heyo’s value.
  • 13:37 – Christina, Heyo’s head of branch strategy joins the show.
  • 16:01 – Nathan thinks that Heyo’s brand wouldn’t be shut down if acquired by their competitor, only reused.
  • 18:01 – Nathan and Christina have faith in their team to find a new project if Heyo were acquired.
  • 19:01 – Christina thinks that as long as they properly manage the communication to their customer base, the transition will be smooth for users.
  • 21:48 – There are numerous people tied to the business – Nathan sees his business partners as life-long, not business long.
  • 22:19 – The investors in Heyo is an important factor to consider in the acquisition decision.
  • 22:44 – What do you guys think – should Nathan sell Heyo?

Resources mentioned:

  • Host Gator – The site Nathan used to buy heyo.com and get hosting at an affordable rate.
  • Leadpages – The drag and drop tool Nathan uses to quickly create his webinar landing pages which convert at 35%+
  • Audible – Nathan uses Audible when he’s driving from Austin to San Antonio (1.5 hour drive) to listen to audio books

>> Continue to Part 2: The Big Decision, Should We Sell Or Not