They Got Acquired - Sustainable retail = $21M sale 🌿

July 1, 2022
​Read on web​

Julie Mathers proved that a social and environmental mission can be a powerful asset in building — and selling — a company.

Mathers spent two decades working for traditional retailers and realized she wanted to do things differently.

So she launched her own business, the beauty and wellness company Flora & Fauna, with the intention of helping the earth and spurring social good.

Flora & Fauna began with small roots that grew into an international retailer offering 10,000+ vegan, cruelty-free products from 340 brands.

Mathers used a combination of savvy e-commerce tactics, altruism and tenacious storytelling to fuel growth. Within seven years, Flora & Fauna attracted an offer from a publicly-traded, Australian conglomerate that wanted to amplify her mission.

🌿 Julie Mathers aimed to raise capital for her sustainable retail business. Instead, she got an acquisition offer​

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Buy types to know: strategic vs. financial

Why do most sellers seek out a strategic buyer over a financial one?

And how should the differences between these types of buyers influence how you think about selling your own business?

Here’s why this matters: Understanding what motivates strategic buyers vs. financial buyers is one step toward maximizing the value of your business at sale.
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We spoke with M&A experts and founders with experience in selling to help you learn more.

🤔 Strategic vs. financial buyer: What’s the difference, and which one is best? ​

So you want to sell. What's next?

A reader wrote in recently with a big question:

Where do I go when I'm ready to sell?

You've got three options:

1. Pitch buyers directly
2. Try a marketplace
3. Engage a broker or M&A advisor

We're working on resources to help with each of these options: a guide for pitching buyers directly, a list of marketplaces and a list of brokers. Until they're ready...

The best route depends on a lot of factors, including:

• Which industry you play in
• How much revenue you're bringing in
• Whether you know how to position your business to get maximum value in a sale

If you feel confident in doing all the pre-work an acquisition requires and positioning your business for maximum value, I'd think through who might want to buy your business (competitors in your space are a good starting point) and how you might pitch them.

If pitching your business seems too time-consuming or overwhelming, try a marketplace, as this will make it easy for buyers to find you. Every marketplace has its own focus, some broad and some niche, so look for one that helps to sell your type of company.

If you're not confident in how to position your business for maximum value, consider working with a broker or M&A advisor. They tend to get a bad rap, but if you work with a good one, they will make the selling process so much smoother for you.

While brokers take a cut of your sale (typically around 15-20%), they are incentivized to maximize the value of your business, and — this is the important part — they know what they're doing.

Like marketplaces, brokers have areas of specialization, so find one who has sold online businesses like yours. If you need a recommendation while we're building our list of preferred vendors, we're happy to make one. Just press reply and tell us about your company.

See you next time,

Lexi Grant
Founder & CEO
​They Got Acquired​
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Our mission is to redefine startup success by showcasing companies that sell for $100K-$50M. Learn more about us or follow us on Twitter.

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