PRZOOM - /newswire/ -
Provo, UT, United States, 2006/03/28 - The Angel Investor Series Podcast released by FundingUniverse.com has released its long-anticipated third episode. Scott Frazier, angel investor and founder of the UtahAngels, shares his insights on mergers and acquisitions of start-up companies.
Scott Frazier, a major investor in companies like TruVision, Omniture, and MyFamily.com, provides five tips from his personal experience that entrepreneurs can apply to any selling situation:
1) Sell something other than net income
2) Build a unique skill or resource
3) Add an earn-out on top of the sale price
4) Learn the needs, desires, and motivations of the purchasing company without revealing your own
5) Recognize the importance of an excellent merger/acquisition attorney
ďScott Frazierís experiences are invaluable to entrepreneurs,Ē said FundingUniverse.com CEO Brock Blake. ďNot only has he been through the selling process on more than one occasion, but heís turned multi-million dollar profits.Ē
From 1987 to 1995, he was co-owner and CEO of Achievement Rehab, a leading provider of contract therapy to nursing homes. Frazier grew this company from 150 employees to 2,000 employees. Frazier orchestrated the sale of the company for $55 million.
Frazierís experience with TruVision was equally successful. The companyís yearly revenue was just over $1.5 million a year and, under Frazierís care, was acquired for $44 million.
ďYou should really be selling something other than revenues and net income,Ē said Frazier. ďThatís why you need to build a unique skill or resource, one that includes synergy with an acquiring company.Ē
This interview by the Angel Investor Series Podcast follows two sessions by one of the countryís leading experts in angel investing, Bill Payne. Prior episodes are available on fundinguniverse.com or any of its site-family members.
FundingUniverse.com is a family of 51 state-specific Websites (FundingNewYork.com, FundingUtah.com, etc.) designed to match entrepreneurs and investors. Entrepreneurs looking for start-up capital may submit their business plans to independent investors on the Website. The basic service is free-of-charge, while video-pitching is available on a subscription basis. Accredited angel investors who register for a free FundingUniverse.com membership review posted plans on the site and contact the entrepreneurs that catch their attention.