HubSpot Acquisition Timing
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Sam Parr shares a story about how timing impacted the value of his company's acquisition by HubSpot.
"When we sold the company, the HubSpot stock was $350. Basically a week later it was $550, and then about 3 months after that it was $850. So the sale price was one thing, but it changed quickly.
I made a huge mistake during negotiations - I said the number first. I told them 'these companies typically sell for [range] to [range].' The first offer they made was the low number of that range. We ended up settling in the middle, but because of the stock price increase afterward, it really impacted the final value.
I'm now friends with the woman who did the deal at HubSpot. She doesn't even work there anymore, and I told her 'you got me on that.' She agreed - saying 'yeah, you said the number.' That one mistake cost me many millions of dollars. It's like that one decision was more important than the previous 2 years of operating."
Sam Parr
Host of MFM and fitness influencer
Sam Parr is a serial entrepreneur and business media pioneer.
In 2016, he founded The Hustle, a business news media company that started in his kitchen with just $12 and grew to eight figures in revenue.
Sam led the charge in making newsletters popular when few believed in their potential.
After four successful years, he sold The Hustle to HubSpot, a publicly traded company. Now operating as HubSpot Media, The Hustle reaches 3 million readers daily, employs a team of nearly 100, and has been the launchpad for dozens of its staff to found their own media companies and newsletters.
Sam remains the host of the popular business podcast, My First Million, and continues to start and sell companies. He also co-founded Hampton, a highly vetted community for entrepreneurs, founders, and CEOs, and teaches people to write better through his platform, Copy That.