Kaelon Egan, the founder of AccelaSchool, shares how he planned and prepared his company for a successful sale to PowerSchool. Through careful planning, building strong partnerships, and making the deal simple, Egan’s story offers helpful tips for anyone looking to sell their business.
Egan’s first step was to make sure AccelaSchool’s product, E Collect Forms, worked well with PowerSchool’s system. By connecting his product directly to PowerSchool’s platform, he made it more useful for schools that already used PowerSchool.
“I chose to go toward PowerSchool,” Egan said, showing how focused he was on this goal.
This decision helped AccelaSchool become more valuable to PowerSchool. Even though it meant limiting opportunities with other companies, it was the right move to catch PowerSchool’s attention.
At first, Egan and PowerSchool talked about working together as partners. But soon, those talks turned into discussions about PowerSchool buying AccelaSchool. The change happened when PowerSchool’s team saw how well the two companies’ products could work together.
“This is really turning much more into a commercial transaction,” Egan explained.
PowerSchool’s sales team saw that joining forces would create a “better together” situation, which pushed the talks toward a full sale.
Selling to schools is not easy. Decisions involve many people, and the process can take a long time. Egan’s ten years of experience working in schools gave him an edge. He understood what educators needed and how to explain solutions to their problems.
“When you can relate to a problem, then you can speak to it very clearly,” Egan said.
Egan’s strategy was to connect with the people who experienced the issues his product solved. These people then recommended the product to decision-makers. This bottom-up approach worked better than trying to sell from the top down.
“I was building the relationships, which is really what I needed,” he added.
When selling AccelaSchool, Egan avoided complicated deal terms like earn-outs, which require sellers to stay involved in the business after the sale. Instead, he chose a simple deal where PowerSchool bought the company with no extra debts or conditions.
“It was a very, very simple, you know, kind of cash-free, debt-free deal and, you know, minor stipulations around some of those warranties,” Egan explained.
This straightforward approach made the process smoother and allowed Egan to move on without any strings attached.
Negotiating the sale was challenging for Egan. The process was complicated and emotional but having a strong team of advisors made it easier.
“When I first looked at it, it’s kind of like a shock to see it. I mean, it’s very interesting seeing the amount that an acquisition typically means, but there’s a lot of emotions that come with it,” Egan said.
His advisors helped him understand the education market and guided him through the negotiation process. Their support was key to getting a deal that worked for both sides.
Here are some important takeaways from Kaelon Egan’s story:
Focus on Fit: Align your product with a potential buyer’s needs to make your business stand out.
Build Relationships: Connect with the people who face the problems your product solves. They can help you reach decision-makers.
Keep It Simple: Avoid complicated deal terms to make the sale process easier.
Get Expert Help: A good team of advisors can guide you through tough negotiations and emotions.
Egan’s experience shows that careful planning and strong relationships can lead to a successful business sale. For anyone hoping to sell their company, his journey offers valuable lessons.
Are you planning to sell your business or need help aligning your company for acquisition? At Breaking the Mould Consulting Ltd, we specialize in helping business owners like you position for a successful exit. Contact us today to learn how we can support you in reaching your goals.