Hard Lesson in Selling a Business
“Kevin Wagstaff co-founded Spectora, a SaaS platform for home inspectors. They eventually sold a majority of their business for $90 million after having a heart-breaking deal fall apart at the last minute,” shares Sam Thompson, a Minneapolis business broker, and the president of M&A firm Transitions In Business. “Kevin shares his story along with how to recognize last-minute re-trade tactics and structure the deal to protect your financial future.”
When Kevin Wagstaff and his brother bootstrapped Spectora, a SaaS platform for home inspectors, with just $2,500 each, they never expected to one day face an $80 million acquisition offer. Spectora transformed the home inspection industry by replacing outdated paper reports with a digital platform that streamlined workflows, saved inspectors time, and enhanced the client experience.
But when an acquirer attempted to re-trade the deal at the last minute—adding a $25 million seller’s note, a $10 million earn-out, and a 36-month call option—Kevin learned a hard lesson: Just because an offer is on the table doesn’t mean the deal is done.
The acquirer assumed Kevin and his brother would be too invested in the deal to walk away. But thanks to their advisor’s guidance, they stood firm. The result? The acquirer backtracked, offering the original terms. Kevin and his brother still walked, ultimately selling a majority stake at a $90 million valuation to a better partner.
In this episode of Built to Sell Radio, you’ll discover how to:
- Handle intimidation tactics from potential acquirers.
- Recognize last-minute re-trading tactics and avoid being pressured into bad terms.
- Use SEO and content marketing to disrupt an industry dominated by legacy players.
- Build a product that drives word-of-mouth growth—even in a niche market.
- Structure a sale that protects your financial future.
Kevin’s story is a powerful lesson in knowing your worth, standing your ground, and never assuming a deal is final until the money is in the bank.