Matt Matros built Protein Bar from a single smoothie shop into a fast-growing chain. In 2012, private equity firm L Catterton came knocking with a deal valuing his company at $44 million. Matt decided to roll 40% of his equity, expecting it to grow even more.
In this episode of Built to Sell Radio, you discover how to:
Navigate the risks of rolling equity.
Learn why Matt now regrets rolling equity and how the liquidity preference given to investors could leave him with nothing.
Understand the implications of a liquidity preference.
Find out how the investor's preference means they get paid first, and why this can wipe out the value of your remaining equity.
Avoid common pitfalls in private equity deals.
Get insight into the clauses and terms you need to watch out for when considering rolling equity.
Listen to the episode to hear Matt's eye-opening story and his advice on how to protect yourself when selling to private equity.
Want to learn how to make your business irresistible to buyers? CLICK HERE to schedule a meeting with me today.
Video: The Hidden Risk In Selling to Private Equity: A Warning From Protein Bar’s Matt Matros
Mark Hartmann is a three-time Inc 500|5000 CEO with a rich sales, operations, and leadership background in the insurance, financial services, and healthcare sectors. With extensive experience growing and selling his own businesses, Mark leverages his expertise to help owners grow and sell businesses valued at $1M —$25M. He’s earned a Master of Business Administration from Eastern University, a master of science degree in organizational change management from St. Elizabeth University, and a graduate certificate in executive coaching from Columbia University. Mark’s professional certifications include Certified Mergers and Acquisitions Professional (CM&AP), Certified Business Intermediary (CBI), Certified Exit Planning Advisor (CEPA), and Certified Value Builder (CVB).