Episode Details

Anne Mahlum: Why I Wasn't in ANY Exit Meetings During My $100M Solidcore Sale | Founder Independence

Anne Mahlum reveals the counterintuitive strategy that gave her complete leverage in her $100M Solidcore exit: she wasn't in a single meeting with the acquiring private equity firm. This clip explains why building a founder-independent business is the key to commanding premium valuations.

KEY INSIGHTS FROM THIS CLIP:

• Anne wasn't in ANY meetings during the final acquisition process
• She negotiated an extra $10M above her share value because she had all the leverage
• Had already taken $15M off the table in earlier rounds (2017 & 2021)
• Promoted her COO to CEO in May 2021 - 2 years before exit
• The business ran without her, proving it wasn't founder-dependent

Anne's negotiation leverage: "You can either pay an extra $10 million now, or we'll wait six months. We'll run another competitive process. We're opening another 15 studios during that time frame, and you can end up paying more for the business, or you could get outbid by someone else."

THE CRITICAL LESSON: Private equity firms were buying the NEW leadership team, not Anne. If she had been in those meetings speaking and presenting, they would have assumed she was still running the business and demanded she stay post-acquisition.

Anne's advice to founders: "Don't be a starving founder running toward your exit because you'll sell for way less than the business is worth. You will feel like X amount of money feels like a lot because you've never had a taste of it before, and you'll make a bad deal."

COVID PIVOT STRATEGY:

• 2020: Planned to sell, COVID hit, revenue went to zero
• 2021: Raised $50M, opened 11 studios in red states while competitors stayed closed
• 2022: Back to pre-COVID numbers by Q1/Q2
• 2023: $100M+ exit on her terms

TIMESTAMPS: 00:00 Taking money off the table in 2017 & 2021 00:45 Planning to sell in 2020, then COVID hit 01:30 Raising $50M and playing offense during COVID 02:15 Opening 11 studios when competitors were closed 03:00 Promoting COO to CEO in 2021 03:30 The $100M exit in 2023 04:00 Why she wasn't in ANY acquisition meetings 04:45 Negotiating $10M ABOVE share value 05:30 "Don't be a starving founder" advice 06:15 The leverage of founder independence

CONNECT WITH ANNE MAHLUM: 🔗 Instagram: https://www.instagram.com/annemahlum 🔗 LinkedIn: https://www.linkedin.com/in/annemahlum 🔗 Website: https://www.annemahlum.com 🔗 Solidcore: https://www.solidcore.co