Navigating the startup world often leads entrepreneurs to a crucial decision: selling their business. This choice represents a defining moment in their entrepreneurial journey, shaping the future of their venture and personal path. Ramzey Nassar, Co-Founder and CEO of DOE Media, shared his experience of selling his startup Soil and Clay, an online houseplant business that took root during the pandemic. With no prior experience in horticulture, Nassar successfully scaled the business before making the strategic decision to sell. Here’s a closer look at his journey and the valuable insights he offers for fellow entrepreneurs.
Overview of the Startup: Soil and Clay
Launched in 2020, Soil and Clay quickly became a go-to destination for plant lovers, offering a curated selection of mature houseplants online. The startup flourished during the pandemic as people embraced the comfort of houseplants while spending more time at home. However, Nassar’s primary venture—running a direct response advertising agency—was also booming, experiencing a 400% year-over-year growth. Balancing both businesses soon became a challenge, prompting a critical decision about the future of Soil and Clay.
The Decision to Sell
Managing multiple successful ventures is no easy feat, and for Nassar, the need to allocate time and resources became a key factor in his decision to sell Soil and Clay. Rather than raising a Series A round of funding, which would require additional time and oversight, he opted to look for a buyer who could take the company to the next level. Nassar realized that Soil and Clay had great growth potential but needed the focus and infrastructure he couldn’t provide while juggling other ventures.
Finding the Right Buyer
Nassar took a proactive approach in finding a buyer by listing Soil and Clay on Acquire, a platform designed for buying and selling startups. Simultaneously, he reached out to potential buyers through 250 personalized LinkedIn messages and emails. This dual approach generated significant interest, leading to multiple inquiries and even a few letters of intent (LOIs) from serious buyers, both through Acquire and outside the platform.
Navigating the Acquisition Process
One of the most critical elements of the acquisition process is preparation. Nassar built a comprehensive data room containing financial statements, legal documents, intellectual property, and other essential business information. This streamlined the process for interested buyers and provided them with a clear vision of the company’s current standing and future potential. To further entice buyers, Nassar presented them with growth plans, highlighting opportunities for scaling the business post-acquisition.
Nassar also emphasized the importance of negotiating his continued involvement in Soil and Clay. Even after the acquisition, Nassar and his team at DOE Media still manage the marketing for the brand, ensuring continuity and a smooth transition.
Key Advice for Sellers
Nassar’s experience offers valuable lessons for entrepreneurs looking to sell their startups:
Be Prepared: Build a data room with all the relevant business documents, including financials, legal paperwork, and intellectual property information. This will save time during the due diligence phase and create trust with potential buyers.
Engage Early: Use platforms like Acquire and send out personalized messages on LinkedIn to attract buyers. Casting a wide net can lead to multiple options, allowing for more negotiation leverage.
Ask the Right Questions: When engaging with potential buyers, vet them thoroughly by asking questions about their intentions for the business and the resources they’ll bring to help it grow. This ensures you’re partnering with a buyer who aligns with your vision for the future of the company.
Plan for Growth: Present potential buyers with strategies and plans for scaling the business. This not only makes your company more attractive but also sets the buyer up for success post-acquisition.
Staying Involved Post-Sale
Selling a business doesn’t always mean walking away. For Nassar, maintaining involvement in Soil and Clay post-sale was important. His team continues to handle marketing for the brand, which allows him to contribute to the company’s growth while benefiting from the infrastructure and resources of the acquiring party. This type of arrangement can provide sellers with both financial security and ongoing influence in the business they worked hard to build.
Final Thoughts
The decision to sell a startup is complex and multifaceted. Ramzey Nassar’s story provides a clear roadmap for entrepreneurs navigating the process. From preparing detailed documents to engaging potential buyers and negotiating post-sale involvement, his approach is thorough and strategic. For founders considering an exit, Nassar’s insights serve as a reminder that preparation, persistence, and vision are key to a successful sale.