E466: Society Brands’ “Founder to President” Approach in Aggregating Ecommerce Businesses
Being the sentimental guy that I am, I’ve always found it a little disheartening how swift it is for entrepreneurs to sell and turn over their businesses to aggregators.
However, Society Brands strategy is more of a collaborative effort than a one-and-done business transaction. It’s a concept I can definitely get behind.
Unlike many roll-ups where the seller relinquishes full control of the company after a certain period, Society Brands encourages founders to stay on and help steer the ship.
Michael (Sirpilla, not Jackness), who is the co-founder of Society Brands, describes the company as “if an aggregator and an FBA mastermind had a baby” and his brain child.
This strategy offers a win-win scenario for the seller, giving them an opportunity to take an offer, continue to manage the business as it grows, and then fully exit at a higher level down the line.
Check out the highlights from this episode:
- Intro to Michael and what Society Brands is all about – 3:29
- Why it helps to keep founders onboard – 7:33
- Society Brands’ valuation multiples -10:52
- The “founder to president” transition – 13:17
- How long the transition process takes – 16:29
- Society Brands’ criteria for acquiring businesses – 19:49
- What’s happening in the aggregator space? – 21:34
- Areas where aggregators could succeed or fail – 25:23
- How to contact Society Brands – 27:53
Michael, thank you for your time. I look forward to doing a followup on this conversation a year or two from now and see how the aggregating space would look then.
If you have a business for sale and want to find out if Society Brands is a good match, head over to their website and schedule a call. You can also reach out to Michael on LinkedIn.
If you enjoy our podcast, feel free to leave us a review on iTunes. Happy selling and we’ll see you in the next one!