How Does $1.5 Million Plus $2 Million Equal $30 Million?
In this Video:
I started a #business that we were doing about a million and a half dollars a year in revenue and I had a competitor who was kind of, kept bumping into me all over the place. And this was before Google, the search engine of the time was Yahoo. That was the big search engine back then. They were kicking my butt on Yahoo. This was shortly after Yahoo introduced paid keyword searches, which is again, ubiquitous today that was brand new back then and you could get five cent clicks back then that were really valuable
Paris Vega
Mmm.
Marty M. Fahncke
But they were kind of out maneuvering me in some places and I was really frustrated and I went to my CEO and I said, “look, these guys are doing this and they’re doing that and somehow they’re able to move faster than we are. I don’t know how, but our team’s good, but they seem a little bit better.” And he said, “Well, if they’re that good, why don’t you go buy them?” “I don’t know, I never thought about that”. And he goes, “Yeah, go see if they’ll sell to us.” So I called him up and I said, are you interested in telling your business? And you know, when… Most people get that call #entrepreneurs, they get that call. There, you know, well, I don’t know, it depends on how much, right? So the guy said, yeah, I’d be open to it, you know, and we talked, we had some conversations, found out, they were doing about $2 million a year. I was doing about $1.5, so combined, we were doing about $3.5 million in sales. So we agreed to #merge our businesses, we #acquired them. By the way, they took a substantial amount of stock in that deal, some cash, a lot of stock.
Two years later, if my business was doing one and a half million and their business was doing two million, how much do you think we were doing two years later as a combined entity?
Paris Vega
I guess five million.
Marty M. Fahncke
$30 million.
Paris Vega
Whoo, look at that.
Marty M. Fahncke
We grew a $1.5 million business and a $2 million business. We put them together. We did $30 million the second year.
Paris Vega
amazing.
Marty M. Fahncke
Just a great synergy between our, what we were able to offer with some major distribution points that they didn’t have, access to products that they didn’t have, at prices they couldn’t get. They had some really great marketing tactics that we weren’t able to really replicate, and just a really great team. And that was a case of 1 and 1 not making 2, 1 and 1 made 11.
This is an excerpt from the First Customers Podcast with Paris Vega. The First Customers podcast is on a mission to learn how entrepreneurs, founders, CEOs, and sales & marketing experts found their very first customers.
Check out the full episode at the links below…
View here:
Listen here:
Apple https://podcasts.apple.com/us/podcast/54-marty-m-fahnckes-billion-dollar-journey/id1487739303?i=1000644059559
Spotify: https://podcasters.spotify.com/pod/show/first-customers/episodes/54-Marty-M–Fahnckes-Billion-Dollar-Journey-e2farkk
To learn more about Marty Fahncke, Business #Acquisitions, and Westbound Road visit our website: https://www.westboundroad.com
