Raising Capital, Content Media Empires & A DEEPER Dive: Competitive Advantage

This Week On How2Exit, Chatting With a Capital Rasing Expert, and a Seasoned Media CEO about The Profit in Content - DEEPER into Finding The Competitive Advantage In Your Acquisition Targets

Summary/Abstract

SUMMARY:

Ron Skelton interviews Michael Fink, the Co-CEO of Treasure Hunter. Michael is originally from Munich, Germany, and currently living near the world's longest castle in Burghausen. Michael shares the story of how he and his wife co-founded Ever Growing more than 10 years ago with a thousand euros. They published product review sites and eventually expanded into building media assets. 

The conversation was about the journey of Ever Growing, a product review website founded in 2011. Initially, the website was focused on the German speaking markets and gained fast traction, becoming one of the leading product review websites in Germany. In 2019, however, large media companies began to enter the space and Ever Growing decided to team up with them instead of competing against them. They started partnerships first in Germany, then expanded all over Europe, the US, and even Brazil, acquiring a stake in Rewoo, a public company in Latin America. From its humble beginnings in a student housing living room, Ever Growing has grown to be a successful product review website in multiple countries. 

In 2021, two entrepreneurs, Benjamin and Ola Schmidtz, co-founded Treasure Hunter, a content aggregator modeled after the success of Amazon FBA aggregators. Treasure Hunter leverages the organic traffic and growth of their assets, and multiplies the valuation of their portfolio. The company is deeply rooted in the content space and works with more than 30 million people each year. In addition, they have partnerships with media companies that have over 1.2 billion monthly users. Together, Treasure Hunter is striving to make a success of their business model and disrupt the content space. 

Four co-founders, Jens, Alex, David and Daniel, started two companies, Ever Growing and Treasure Hunter. Ever Growing was an Amazon Affiliates network, while Treasure Hunter was a travel blog. They used their own funds to acquire their first site, and they professionalized it by using better SEO tactics, better content strategy, and removing all the technical issues. They were able to double the revenue and EBIT within a couple of months. They raised a couple of million in their funding round and went on a shopping tour to acquire more than 10 additional content websites in various spaces. They focus on passion-related verticals such as travel, outdoor nature, sports, and food.  (55:16) Listen Here

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E110: Founder Of Raises.Com, Natu Myers, Discusses Raising Investment Money

Summary/Abstract

Natu Myers is the founder of raises.com, a platform that helps companies raise money. Most of his educational background was in software development and coding. He soon noticed that companies wanted to raise money, but had little knowledge of how to do it compliantly. Natu worked with mentors and coaches, and he found a Canadian company that was legally allowed to raise money for companies. He soon noticed that the bigger market was regular companies and real estate deals that needed to be funded, and raises.com was created to help them do this.

Natu Myers discusses his work with Raises.com, a group of companies that assists people in structuring their real estate or business acquisition deals and building systems to raise capital and create a capital-raising team. The company is based in the US and Natu has learned the necessary licensing requirements from a previous broker dealer. Ron Skelton inquires about the licensing process, to which Natu explains how they create entities for people and show them how to get people to raise capital.

Natu Myers and Ron Skelton are discussing the services offered by Natu's company, which helps people raise capital for their real estate and business acquisitions investments. Natu explains that his company will help with paperwork and finding a salesperson to raise capital, as well as structure the consultancy side of the business. They will also be able to raise capital for clients directly through an exempt market dealer application, and partner with other broker-dealers in the US through a chaperone broker-dealer arrangement. The company has been running for about two or three years since the pandemic.

Natu Myers and Ron Skelton discussed two different methods of raising money to purchase a business. The first method is a share purchase, where the buyer offers the shares of the target company. The second method is a fund, where money is raised to pay for the down payments of multiple businesses. They then discussed Regulation D 506C and D 506B, which allow companies to raise money from accredited and non-accredited investors, respectively. Natu also mentioned Regulation A and A+, which allows companies to market to unaccredited investors, with a cap of 75 million and 25 million, respectively. They concluded by discussing the Offering Memorandum Exemption in Canada, which requires a lot of paperwork and literature for unaccredited investors.  Watch Here:(48:46)

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This week’s “DEEPER” Dive: Finding The Competitive Advantage In Your Acquisition Targets

In this article, we will discuss what gives a company a competitive advantage and makes it defensible against competitors, new, old, domestic, and foreign. 

As you look to make an acquisition some of the critical questions should be: 

What set’s this company apart from others?

What is keeping competitors at bay?

How easily could someone challenge your position in the market once you start to make headway and get attention? 

Let’s dive in.

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FROM THE Editor:

Disclaimer: This newsletter is provided for informational & educational purposes only, and should not be relied upon as legal, business, investment, or tax advice. We are not attorneys, tax, or financial advisors and not qualified to give any such advice. 

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