Walked Away From $38M, Sold to Fiverr for $91M
About this episode
Lior Pozin started AutoDS to run his own eBay dropshipping stores. The software finds trending products to sell, tracks supplier price and stock changes, and fulfills orders automatically so a dropshipper never touches the inventory.
He bootstrapped the company for eight years, keeping the bank balance at zero on purpose, and grew it to 200 employees and more than $20 million in annual recurring revenue. Along the way he turned down a $38 million private equity offer one day before signing, and still ended up selling to publicly traded Fiverr for roughly $55 million in cash plus a $36 million earnout.
In this episode of Built to Sell Radio, Lior walks through what made him kill the private equity deal, why he chose Fiverr over higher bids, and how the earnout changed the way he ran the business.
Listen in and you discover how to:
Read a buyer’s true intentions from the questions they ask in diligence.
Spot the warning sign when an acquirer wants aggressive growth targets but won’t pay more for hitting them.
Protect yourself when your banker’s team leaves mid-process.
Use competing offers to figure out whether you actually want to sell.
Decide between a higher offer and a buyer you trust.
Structure an earnout tied to revenue and EBITDA so it works in your favor.
Keep running the business as if you’ll own it forever, even while fielding offers.
About Our Guest
Lior Pozin
Lior Pozin is an entrepreneur and the founder of AutoDS, a leading dropshipping automation platform that helps e-commerce entrepreneurs build, manage, and scale their online businesses.
Drawing on his own experience in e-commerce, Lior built AutoDS to simplify the complexities of running a dropshipping business through automation and technology. Under his leadership, AutoDS grew into a global platform serving online sellers.
Lior ultimately sold the company, marking a significant milestone in his entrepreneurial journey.
Definition of Terms
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.
Roll Over Investor: A rollover investor, in the context of selling a business, refers to an individual or entity that rolls some of their proceeds from the sale with the buyer. This strategy allows the seller to defer capital gains taxes and potentially leverage their expertise or resources in a new venture.
Every business owner wonders,
“Am I doing the right things for the future?”
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