They Got Acquired - A boatload of 💰

February 24, 2022
​Read on web​

When we hear about acquisitions, we tend to assume founders walk away with a boatload of money.

But the truth is, that's not always the case.

If a founder raised money, they probably owe their investors at closing. Sometimes they have a co-founder or several to split the prize.

Maybe they sold because the business wasn't doing well, and the sale wasn't all that lucrative.

Maybe it was an all-cash deal, but not a life-changing amount.

Or maybe the sale was set up in such a way that any payments rolled right into another startup.

That was the case for the founders of Tutorfly, a marketplace for parents to discover and connect with tutors for grade-school students.

Parsa Rezvani and Alejandro Mendoz sold to Kip McGrath Education Centres for up to $3 million, including $500,000 cash—but didn't take home that money.

Instead, they rolled the funds right into their next company, with the goal of avoiding another raise and maintaining more equity the next time around. (They'd raised $500,000 for Tutorfly.)

More details on how they built the company and what the terms of this deal looked like:

​They sold a tutoring marketplace for $3M, but didn’t take home any cash. Here’s why​

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Based on that experience, they created a list of the top 10 things you need to know before you sell.

Important details like:

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Don’t sell your business until you read their free guide:

Have you sold a business?

If you've sold a business, we want to hear from you!

We're always looking for founders to feature, even if you can't share everything.

To qualify:

• Deal size between $100K-$50M
• Sold since 2017
• Business must be primarily online

Press reply and we'll tell you more.

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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