Hey, thanks for tuning in to another Partner Interview at EcomBalance. At EcomBalance, we’re all about creating win-win partnerships where we are able to grow with other companies in the eCommerce space.
In this exclusive interview, we interview Mac Lackey from ExitDNA. Mac Lackey is an American entrepreneur who has started, scaled and sold six companies (all seven or eight figure exits). Mac and his companies have been featured on CNN, The Wall Street Journal, Fast Company, Business North Carolina, USA Today and The New York Times. Notable ventures include: KYCK (acquired by NBC Sports), Mountain Khakis (acquired by Remington) and InternetSoccer Network (acquired by division of News Corp/Sky). He additionally served as a member of the Board of Directors for Lending Tree (NASDAQ: TREE) for over five years and is currently an angel investor in over 50 companies.
We hope that you enjoy the interview and that it brings value to you as an eCommerce business owner.
Connor: Hey Mac, thanks for taking the time to chat with us today. As a company, one of our goals is to highlight our partners so that our clients can benefit where it makes most sense. To get started, can you give us a high-level introduction to ExitDNA and a little bit about how the company got started?
Mac: Absolutely. My journey to creating ExitDNA was based on a very fortunate intersection of a market need and my background. Over the first 25 years of my business life I was an entrepreneur. Over that time I started, scaled up and exited 6 companies. I had some amazing, life changing exits (several eight figure exits) and also made a ton of mistakes. I was incredibly fortunate to have six chances, when statistically speaking most entrepreneurs are lucky to have one. So in the biggest financial opportunity of most founders lives (an exit) they have one chance to get it right – to maximize the opportunity. And sadly, what makes most entrepreneurs so successful is a particular skill (engineering, design, or whatever)… that is almost never “great at creating exits”. So they need help and guidance. I’m pretty uniquely positioned to help them do that.
Connor: Thanks for sharing that! Can you dive a bit more into the exit strategy services that you offer? Our audience is always looking for reputable companies that they can lean on for specific parts of their eCommerce businesses.
Mac: Of course. The reality is exits don’t start when you want to sell, they start years earlier. Creating a great exit is all about doing the little things (knowing which to do 🙂 and letting them compound in value over time. Knowing how to find the best buyers (again, most people look in the wrong places), knowing how to create what I call an Irresistible Exit Story… knowing how to articulate why your strategic value is higher than a simple financial multiple. We teach you to do these things. We do it via LIVE coaching sessions in small groups (to teach the concepts) then give you exercises you can do on your own to start taking action. Our members also get the benefit of a community of founders all over the world on the same journey. So the Q&A and group sessions are amazing. We also have an online platform which holds all of our proprietary content (available 24/7), a VAULT full of documents our members can leverage, and the specific frameworks that help truly create exit value. Its a pretty neat program.
Connor: Jumping off of that…when you’re thinking about your ideal customer, who is that? Where are they selling online? Where are they located in the world? How much sales do they typically have in a year? If there’s any other qualities, please include them as well. We’re all about making introductions where it benefits both parties.
Mac: We have members from all over the world. Different industries, different size companies as what we teach has pretty broad application. But in terms of “average” or “ideal” I would say most of our members are seven and eight figure businesses operating in modern industries (ecommerce, health/wellness, SasS… etc.). Most aspire to sell for big premiums over the typical 4.7x EBITDA, so we talk a lot about how you set up your company to exit for strategic value… that can make a 7 figure revenue company worth 8 figures or more. And although clients are global, I’d say major markets are US, Canada, and Central Europe (Germany, UK, Spain, etc.).
Connor: For our audience to truly understand what makes you stand out from other companies in the exit strategy space, can you share a story of how ExitDNA truly helped one of its customers?
Mac: We keep most of our members and clients info confidential as it’s their financial matters. But we hear almost every month that we help members think completely differently about how they are going to build their companies and how they look at strategic value vs financial metrics.
Connor: As you and your company think about the next year ahead, what does it look like? Are there any specific initiatives that you’re working on as a team to better your product or service for your customers?
Mac: We’ve created a few new programs (at various price points to serve a broader audience) and have added a ton of new value, additional support, etc. We have some cool stuff in store for 2023 and beyond.
Connor: How about this…everyone loves a company’s growth story. We all naturally go through ups and downs as a company. What was one of the biggest challenges that the company faced in its growing stages?
Mac: I’m not a good self promoter. I was raised not to brag or talk about myself so although I was pretty good at promoting my companies and products, talking about myself (which ExitDNA is based so heavily on my unique experiences) has been a challenge. People don’t know me (as I haven’t been a big social media guy… I don’t go to many events, etc. So letting people know I can help them was a challenge (now thankfully our members really help spread the word and make referrals)
Connor: Thanks! Let’s talk some eCommerce! Where do you see the industry heading in the next 1-2 years? Any big changes that you’re predicting for the industry? How can eCommerce companies prepare for it?
Mac: The biggest challenge to e-commerce companies will be customer acquisition. With increasing focus on privacy ad targeting will become more difficult. So building audience and reach will require more creative approaches (affiliates, joint ventures, distribution partnerships and more). Building those channels NOW will put people way ahead of their competition.
Connor: Changing gears a little bit…When it comes to bookkeeping and accounting, what do you think the biggest pain points for eCommerce business owners are? Feel free to speak from personal experience as well.
Mac: Well from an exit perspective I can tell you “finance” is one of the biggest risks to mitigate. There is nothing that will kill a deal faster, or drop a valuation lower than having bad books and records. So having a very consistent and professional approach to bookkeeping (like many things we discuss) can compound in value over time. It can not only mitigate risk, it can increase value (by shocking buyers with quality bookkeeping, pristine accounting and no errors. That is rare, so it matters a lot.
Connor: Okay, here’s an open mic opportunity. If there’s one thing that you’d want the EcomBalance community to hear from you, what would it be?
Mac: Businesses are not bought, they are sold. That means if you wait for a buyer to show up and think they will pay you top dollar it wont happen. YOU have to create exit opportunities. And the more you know how to do that, the more value you will create for yourself and your stakeholders.
Connor: As we close this out, I just have one more question. Where is the best place to find and follow you and the company online? Also, if you have one, is there any special offer that you’ll be offering to the community today?
Mac: I have a personal site at maclackey.com that talks a bit about my background and current focus. ExitDNA.com is a good place to learn more about our programs…
