Today’s guest sold his app for 5X his yearly revenues. He shares how he came up with the idea and how getting on the Startup Podcast led to his eventual acquisition. Also you will discover why he should have hired an M&A lawyer during the negotiations, how he did research on his acquiring company and finally what he felt like after the sale.
How Trevor Came Up with His Idea
Trevor came up with the idea of a Spanish Bible app simply by scrolling through the App Store listings to see how much money apps are making. For him, this is really important data so he looked at the top charts and segmented to top grossing ones. There were Spanish Bibles which fit the mold and he was lucky he spoke Spanish so he went for it. The competitors that he looked at also had audio versions so he decided to build one as well. He learned how to wisely haggle when he was pondering about building the audio version and it proved to be a good investment in the long run.
How Getting on the Startup Podcast Led to Acquisition
The idea of selling the app was a weird concept for Trevor as he never went about looking for someone to sell it to. But one day, he saw a tweet from a podcast he really liked looking for stories from their listeners. He responded sharing that he is an atheist with a Bible app and they took interest. He was invited to the podcast and it garnered lots of publicity that the news got to one of the acquirers and they reached out to Trevor. The price was right but the whole process was painful and it took about 7 months so he shares that the biggest learning lesson here was that he should have hired an M&A lawyer early onto be part of the original negotiations rather than becoming scared of a huge legal bill.