During COVID, Rich Culgano sold his company—not because he had to, but because the business was too valuable not to buy.
Why did buyers chase it?
Because great assets attract acquisition.
What made it great?
- 💸 Strong, predictable cash flow
- 👥 Great employees who stayed loyal
- 🔍 Radical transparency
- 🔁 Processes that scale
Rich looks at 80–250 businesses a year — and most are crap.
When you finally see a great one… you go.
⛰ Market Cycles Matter
- In boom years, even average businesses sell at crazy multiples.
- In downturns, nothing sells.
So the real play?
Build something great in any market.
🏗 Smart Deal Structure → Accelerated Growth
One of his best moves: sell a stake, then buy back in later.
He sold 35% of the company to CyberEquity Partners at a $42M valuation → pocketed $6.5M in 2006.
Putting chips aside changed the mindset, reduced risk, and helped expand the business to $400M+.
✨ Sometimes you grow more by letting go.
⚔ Be Both the Buyer and the Seller
- Sellers want max exit.
- Buyers want lowest entry.
True power comes from playing both sides of the table.
🔥 The $135M Sale & Culture Move
In a later sale, founder Bob Swiller pushed for more — but made a surprising call:
👉 $65M went to employees. Why?
“Loyalty is the real asset.”
🏁 Takeaways for Founders
✔ Build a business strong enough to attract buyers
✔ Take risk off the table early to think bigger
✔ Use M&A to vertically integrate and accelerate
✔ Share the win — people build the value
❓If your company sold tomorrow…
Would someone chase the opportunity, or would you need to pitch it?
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