This week on Built to Sell Radio, listen to Connor Tomkies, founder of Support Ninja, who shares his story of transforming an outsourcing firm into an industry leader.
SupportNinja provides outsourced customer support services, handling tasks such as customer experience, social media management, and technical support.
In this episode, you’ll learn how to:
Build a resilient culture.
Leverage global talent from countries like Colombia, the Philippines, and Romania.
Navigate a partner breakup.
Weigh the pros and cons of a post-termination execution period for your stock options.
Calculate the one number private equity investors use to measure the success of their investments.
Build in public (without giving away the farm).
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About Connor Tomkies
Connor Tomkies is the Founder of Support Ninja, a company he co-founded alongside Craig Crisler and Cody McLain with a mission to demystify global talent acquisition. Over the past seven years, Connor has led Support Ninja to a 9-figure valuation, connecting growing companies with the skilled talent they need to thrive. Picture Support Ninja as ninjas, not in the shadows but in the spotlight, ensuring businesses find the perfect match for their staffing needs.
In addition to his work with Support Ninja, Connor is the visionary behind Operator Equity, where the motto is investing in founder-led businesses for the long haul. Here, Connor employs a unique 45-day process that feels more like a firm handshake than a corporate merger, offering cash upfront and a simple LOI to streamline the acquisition experience.
Connor also shares his insights on the Made It Podcast, where he dives into the intricacies of entrepreneurship. When not guiding businesses to successful exits or podcasting, he serves as an EOS Implementer, helping entrepreneurs achieve better outcomes.
His passion extends to educating the next generation of entrepreneurs through initiatives like the Entrepreneur Cooperative. Connor is dedicated to fostering a positive workplace culture and enjoys discussing business growth strategies.
Definitions
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.
Letter of Intent (LOI):
This document outlines the basic terms and conditions of a deal before a formal agreement is drawn up. It serves as a mutual commitment between the buyer and the seller to move forward with the transaction on the agreed-upon terms.
Put Option:
A put option is a bit like an insurance policy for your stock investment.
Imagine you own a stock that you think might go down in price, and you want to protect yourself from losing too much money. A put option can be your safety net.
Here’s how it works:
You pay a fee, known as a “premium,” to buy a put option.
This option gives you the “right” to sell your stock at a predetermined price, called the “strike price,” by a certain date.
You don’t have to use this option if you don’t want to. It’s like paying for car insurance but hoping you never have to use it.
So, let’s say you own a stock that’s currently worth $50. You buy a put option with a strike price of $40 that expires in one month. You pay a premium, maybe a few dollars per share, for this right.
Two things can happen:
The stock price drops to $30. Yikes! But because you have the put option, you can still sell your stock for $40, the strike price. So, the option saves you from a bigger loss.
The stock price stays the same or goes up. You decide not to use your option. It expires, and you lose the premium you paid. But your stock is worth more or the same, so you’re probably okay with that.
Remember, unlike owning a stock, which you can keep for as long as the company is in business, an option has an expiration date. Once that date passes, the option is either used (exercised) or it becomes worthless.
So in simple terms, a put option is a way to pay a little money now to protect yourself from potentially losing a lot more money later. It’s a form of financial safety net for your stock investment.
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