Due Diligence Fatigue Can Ruin Your Exit - Randy Woods

Dreamcatchers Hosted by Jerome Myers

Hustle, integrity, and recognizing weaknesses can lead to success.

Join us as we talk to Randy Woods about his journey starting a technology company in 1995 with his university housemate, despite having yet to gain prior training or knowledge about the internet. Hear how they grew it to 120 people operating in four countries and sold it in 2017. He'll discuss his experience learning from his former employer how to handle team members leaving to start their gigs by investing in their new ventures. Finally, he'll talk about his current role at Valtech, where he helps bring new companies into the fold and build a portfolio of companies.

Take advantage of this exciting conversation about the journey of starting a business and the lessons that come with it!

[00:01 - 12:10] Randy Woods' Two-Decade Journey of Founding a 120-Person Company

• Randy and his business partner started an internet-based company in 1995 with a couple of thousand dollars and laptops of dubious provenance
• Randy's former employer showed him one way of building a company through hustle and integrity
• A readiness assessment can help people with a soft landing when leaving a job

[12:11 - 25:57] Transforming Dell Tech and Maximizing Your Exit

• Recognizing that no one is better at everything than everyone else was vital in getting out of the day to day
• Allowing others to spend more time on tasks than you can is a win
• Randy worked with a broker who added value, and it was essential to evaluate them carefully

[25:58 - 37:06] How Goodwill, Deal Fatigue, and Celebrating Success

• Founder-led organizations have a broader set of considerations than just the dollar value when selling
• The process of selling can be emotionally draining, and buyers may take advantage of this
• It is essential to understand the integration plan on day two and negotiate personal job descriptions before acquisition
• Treat people well, create opportunities for them, and help them excel at what they want to do

[37:07 - 47:54] Finding Fulfillment After Achieving Financial Freedom

• Randy celebrated the exit by going to a Greek island with his wife
• Realized money was not the ultimate goal
• Look for fulfillment instead of financial freedom

[47:54 - 52:32] Exploring the Challenges of Exiting a Company

• People may need to ask themselves if their marriage makes sense anymore when going through the exit paradox
• Having someone help you get ready for the reality of life after the check clears would have been helpful

[52:33 - 53:49] Closing Segment

Quotes:

"The market drives valuation. We had a sense of where it would line up. We also knew how much we needed for the company, for us to be comfortable." - Randy Woods

"If you're a founder, and it's your firm, and you bring people in, you're responsible for many mortgages once you get up to a big payroll. So you have a responsibility there to them that goes beyond just making sure the banks are happy." - Randy Woods

"Money for most founders, like most entrepreneurs, I think is really a way of counting score as much as the goal in itself." - Randy Woods

"Having somebody work through some of the realities of what life after the check clears is like would have been helpful." - Randy Woods

Connect with Randy!

LinkedIn: https://www.linkedin.com/in/randwoods/?originalSubdomain=ca

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