E44: Inside a Social Media Agency Pioneers Exit: Earnouts, Post Close, Lessons Learned

In this episode of the Inorganic Podcast, co-host Ayelet Shipley interviews Carrie Kerpen, a pioneer in social media and co-founder of Likeable Media. They discuss Carrie's journey from starting a social media agency to successfully exiting the business. Carrie shares insights on the importance of profitability, setting exit goals, choosing the right M&A advisor, and negotiating earn-outs. She reflects on her experiences and the lessons learned, particularly for women entrepreneurs, and emphasizes the need for community and support in the business world.TakeawaysCarrie started Likeable Media in 2007, one of the first social media agencies.The initial focus was not on exiting but on building a profitable business.Setting a target exit value can help guide business decisions.Timing and personal readiness are crucial when deciding to sell a business.Choosing the right M&A advisor can significantly impact the sale process.Negotiating earn-outs requires careful consideration of control and reporting.Reflecting on the exit process can reveal areas for improvement.Building a community for women founders can provide essential support.Women entrepreneurs often face unique challenges in the exit process.M&A can be a powerful tool for business growth and problem-solving.Chapters0:00 Introducing Carrie Kerpen1:05 Founding Likeable Media 3:33 Early Growth & Cash Flow Challenges5:22 Becoming CEO and Focusing on Profitability6:37 Market Shifts & Productizing the Agency7:21 Building a Brand through All the Social Ladies9:07 Financial Stability & the $20M Exit Goal 10:43 Knowing When It's Time to Sell12:55 Choosing an M&A Advisor vs. a Banker15:36 Price vs. Timing After the Exit18:22 Negotiating & Protecting an Earnout22:02 Life After the Sale23:12 What Carrie Would Do Differently24:51 Acting Like a Platform and Rethinking Capital25:58 The Exit Gap and The Whisper Group27:45 Closing ThoughtsConnect with Christian and AyeletAyelet’s LinkedIn: https://www.linkedin.com/in/ayelet-shipley-b16330149/Christian's LinkedIn: https://www.linkedin.com/in/hassold/Web: https://www.inorganicpodcast.coIn/organic on YouTube: https://www.youtube.com/@InorganicPodcast/featuredConnect with guest, Carrie Kerpenhttps://www.linkedin.com/in/carriekerpen/ Hosted on Acast. See acast.com/privacy for more information.