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Kaelon Egan on Selling AccelaSchool to PowerSchool



Weekly Pilot Briefing

This week’s episode is short, but it discusses some key concepts regarding positioning your business for eventual acquisition by a strategic buyer.  There are four key takeaways for me this week:

  1. It’s never too early to plan for your eventual exit.  Kaelan built AccelaSchool from the very beginning to be acquired by PowerSchool, and that’s just what happened.

  2. The right strategic buyer is likely to pay a much higher multiple than a cash buyer because of the natural synergies and efficiencies that exist at scale.

  3. Knowing your exit options and what terms you are willing to accept in an offer is incredibly important before going to market or entering due diligence (e.g., Earn Out, Equity Roll, Seller Financing, Etc.).

  4. Value Builder Systems has a great module called “Your Short List Builder,” where we walk through building a list of your potential strategic acquirers. If you want to learn more, feel free to schedule a call using the Schedule a Call button at the top of the page.

 


About This Episode

In this week’s episode of Built to Sell Radio, John Warrillow interviews Kaelon Egan, the founder of AccelaSchool, who successfully sold his company to PowerSchool—a giant in the K-12 education technology space. 


For most founders, the ultimate dream is to sell to a strategic acquirer: a well-funded, industry leader with deep pockets. Egan shares exactly how he positioned his company to become a natural acquisition target, avoiding common pitfalls along the way. 


You’ll discover how to: 


  • Position your business to attract a strategic acquirer. 

  • Sell to large, bureaucratic organizations by understanding their decision-making processes. 

  • Identify when a partnership discussion is really a veiled acquisition conversation. 

  • Build your business to fit seamlessly into a suitor’s ecosystem. 

  • Decide whether to focus on one perfect buyer or broaden your appeal to multiple acquirers. 

  • Avoid earn-outs while still creating a deal that works for both sides. 


If selling your business to an industry powerhouse is part of your long-term vision, this episode offers a practical blueprint for how to get there. 


 

About Our Guest
Kaelon Egan

Kaelon Egan


Kaelon Egan is an accomplished entrepreneur who founded, expanded, and sold his first company before turning 35. Despite feeling like a misfit during his school years, he discovered his niche in entrepreneurship.


Egan began his career in the public school sector at 19 and later worked with school districts worldwide for a Student Information System technology company.


This experience led him to establish AccelaSchool LLC, where he served as CEO, aiming to enhance data collection processes in education. His journey exemplifies resilience and innovation in the face of challenges.


Definitions

Due-Diligence: This is a comprehensive appraisal of a business or investment undertaken before a merger, acquisition, or investment. It seeks to validate the information provided and uncover any potential risks or liabilities.


Earn-out: This is a financing arrangement for the purchase of a business, where the seller must meet certain performance goals before receiving the full purchase price. It reduces the buyer’s risk and aligns the interests of both parties post-acquisition.


Letter of Intent (LOI): This document outlines the basic terms and conditions of a deal before a formal agreement is drawn up. It serves as a mutual commitment between the buyer and the seller to move forward with the transaction on the agreed-upon terms.


TAM: “Total Addressable Market.” It’s a business term that represents the overall revenue opportunity available for a product or service in a specific market. To put it simply, TAM is the maximum amount of money a company could potentially make if they captured every single customer in a given market who might be interested in what they’re selling.


 

Are you personally ready for what should be the happiest day of your life?

By analyzing 40,000 business owners and conducting hundreds of in-depth interviews with owners who have recently sold their business, we have determined that there are 4 major drivers that lead to an exit without regret.


Future Vision: Why do you want to exit your business? What do you plan to do after you leave your business?


Personal Detachment: How attached are you personally to your business? Have you built a fulfilling life outside of your company?


Team Involvement: Have you considered how your employees will be treated when you exit your company?


Structuring Flexibility: How much is your business worth to you? What is your bottom line? Have you considered the practical financial questions surrounding your exit?



Click the link below to take your 8-minute, 12-question PreScore assessment and take the first step toward making a profound impact on the second half of your life.





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