Rebuild Post-Acquisition

Shaan discusses the opportunity to rebuild successful businesses approximately 3 years after they've been acquired, noting that founders can often recreate the same business model successfully.

Key Points:

• Timing Window:

  • Wait approximately 3 years after a company has been acquired
  • This period allows for organizational changes and potential product degradation

• Why It Works:

  • Original team has typically changed
  • Product often gets folded into larger organization
  • Things have usually "gone awry" with the original product

• Real Example Given:

  • Milk Road buyer previously:
    • Built and sold company for $45M
    • Built same company again
    • Sold it again for $45M to same buyer
    • Finally got hit with a non-compete

• Key Insight:

  • People underestimate how much you can rebuild the same successful business
  • Particularly effective when product has been absorbed into larger company
  • Only stops when acquirer implements non-compete clause

• Example of Trends Newsletter:

  • Had 500,000 person email list
  • Generated $5-6M annually with 2 people
  • After acquisition, made free to drive software sales
  • Creates opportunity for someone to rebuild similar paid newsletter