Bridger PenningtonFund Launch & Investment Expert

Selling The Same Company Over And Over | Bridger Pennington

7 Dec 2023 · 1 min

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This content was created by Bridger Pennington. This content was uploaded by Bridger Pennington. This is a YouTube video titled "Selling The Same Company Over And Over | Bridger Pennington" (posted 2023-12-07). The excerpt is a spoken monologue by Bridger Pennington about entrepreneurship and exit strategies — specifically how founders and investors repeatedly sell portions of a company (recaps/resales) at higher valuations over time. He gives examples such as Todd Peterson and Vivint, and explains investor incentives to drive growth (e.g., buying competitors) to ensure a positive ROI.

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It's interesting. I follow these billionaires and I have some billionaire mentors. What's funny enough, they didn't just sell their company once. They've sold their company like 4, 5, 6, 7 times, selling the same company over and over and over again. What do I mean by that? So, you sold, let's call it 10% now. You then do a recap or resale at a 9x and you sell another 15% and then you grow it and you whatever, and then you sell it at a 13 or 14x. Again, you sell another piece and you keep selling. You keep biting at the same apple and you keep selling over and over. Like a great example, Todd Peterson with Vivint. He has sold Vivint. It feels like 5 times. He had a sale early on his career and then he had another one at like a billion-dollar valuation. Then another one to Blackstone, like a multi-billion-dollar valuation. Then they had another sale with another company. He has sold the same company multiple, multiple times. And what happens is, by the way, when you get people invest in your company, they've already written you a check for multiple 8 figures in your company. They want to make sure that has a positive ROI. So, they're going to do whatever necessary to help fuel you, fuel your team, buy companies, buy competitors to make sure you guys are successful.