I almost sold it all...

A few months ago, a stranger reached out asking if I was interested in selling WhiteboardCrypto. 

Well, at the time, the right price could’ve convinced me. This buyer was also interested in growing a crypto channel for the next bull run, and thought buying a channel that’s already doing well would be a great jumpstart. 

After many back and forth emails, we agreed on a price! It was based on last year’s average monthly profit, with a multiple of 24. 24 is actually a little low for a well-known brand - but:

• I’m the “operator” of the business, and it would be difficult to find another “me”

• The business is very seasonal, and crypto was “down”

• Crypto has regulation risk - nobody wants to learn about crypto if it’s illegal

As an entrepreneur with a few online businesses, having my first “exit” was very attractive. I’m a dad now, so I’m not as risky as I used to be. Taking some risk off the table by selling one of my businesses for a nice cushion was something that felt right. 

This negotiation lasted probably 2 full months, and during that time, I stopped production of all my businesses. I kinda just sat and thought about life. My wife jokes that I looked out a window looking sad for a decent portion of it. More about that in another email, though. 

However, after we agreed on price, I hopped on a call with the buyer and his financing friends. They were private equity. Well, private equity loves to do deals that “de-risks” an investment for them, because they have to raise money from investors to purchase it. 

This means as little cash down on closing as possible. In fact, here’s the terms they presented:

• 5% immediately on closing

• 10% after a year of closing (for R&W insurance)

• 32.5% as a 4 year unsecured loan, paid to me monthly

• 32.5% earnout (If they earn $x by y date, then I get paid $z, but for 3 different dates)

• 20% for 2% of the future company (okay, this one is kinda a slap in the face)

To be honest, I was a little embarrassed about being side-whammied as I was expecting 100% cash on close. Well, I’ve never sold to private equity before, and the buyer never mentioned anything about the terms before the call, so I wasn’t prepared for such an interesting “de-risk”ing offer from them. 

To be even more honest, part of the reason I wanted 100% cash on close was to be able to give a decent cash gift to each of our team members who have helped create and grow WhiteboardCrypto - it was likely they wouldn’t have a job after the sale. WhiteboardCrypto wouldn’t be where it is without our small team, and the various freelancers who have helped us in the past. 

Long story short, after thinking about the offer, why I wanted it, and how private equity might run WBC differently than I would… I declined the offer. 

I offered to help the buyer set up their own channel, free consulting to grow that channel, and we resolved the discussion positively. We both understood each other’s perspective. 

After looking out the window for 2 months… I realized that I am the happiest when I have goals, are actively helping people, and working with other people on exciting projects. I have a newfound excitement in working on WhiteboardCrypto now, projects have been popping into my head daily, and I can’t get enough work done in the hours that I have allotted for work (I spend every minute I can being present with my son and wife - usually during the evenings and on weekends). 

I’m really thankful that someone else approached WhiteboardCrypto wanting to buy it, and put a number value to it. It’s very humbling and I’m taking it as a signal that we’re building something valuable. Now, it’s time to double down and keep on chugging along into what is hopefully a green 2024. 

I hope you have a great Sunday!

- Theodore

P.S. Do you like me sharing deeply personal stuff like this? Or should I stick with just crypto news, tips, and stories?

P.P.S I also considered that if it were legal, would I sell shares of WBC via a token launch for the price they offered? No, I could launch a dividend-paying token that would pay 20% a year monthly and would raise 2.5x what they offered. Or launch a dividend-paying token that would pay 40% a year and raise 1.25x what they offered. I know that people would love to invest in WBC as a token and receive a portion of the profits as a crypto dividend. This is illegal under current SEC rules, and it would make me stressed out all the time trying to please investors, plus it would make our incentives profit-based and not audience-based, so I’m not going to do that, but it was a thought in my mind while selling.