Couple successfully offloads their business for maximum profit mark
Codners Sell Fresh Heritage Brand Amidst Booming E-commerce Market
In 2021, Natarcia and Gamal Codner, the founders of men's grooming brand Fresh Heritage, made a strategic decision to sell their e-commerce business to a global conglomerate. The sale came at a time when retail e-commerce penetration was surging, bringing a rush of acquisitive capital into the sector.
The Codners had been preparing for this moment for years. They built their brand with the intention of selling it, and their quiet preparation paid off. The business was structured in a way that prioritized life over business problems, a smart move that became evident when a health issue arose.
The Codners wrote a one-page business plan with a three to five year exit horizon, limiting themselves as "the brand" and creating a playbook anyone could follow. This lowering of perceived risk for potential buyers was a key factor in the swift sale of Fresh Heritage.
The onboarding process took about sixty days, including the preparation of a confidential information memorandum. Within seven to ten days after the deal went to market, around two hundred nondisclosure agreements arrived. The buyers moved quickly, sensing the preparation and clarity that the Codners had put into their sale.
The first offers landed around day fourteen, and the Codners went under contract in three weeks. The sale closed twenty-eight days after that. The Codners' focus on growing enterprise value rather than revenue, building processes and systems to make the business more attractive to potential buyers, was evident in the speed of the sale.
The Codners' decision to sell was not driven by a desire for more money or a new treadmill, but by a desire for safety and freedom. Money meant safety, not a new treadmill, and freedom meant options, not more stress. After the sale, the Codners took a sabbatical and watched their daughter's first steps on the beach.
To unlock a higher multiple, businesses need to cross into the next profit band. If your profit falls within a certain band (e.g., 500K to 1M), you will likely earn a similar multiple. To cross into the next band (e.g., 1M to 3M in profit), you need to take steps to increase your profitability.
The sale of Fresh Heritage was not just a financial transaction, but a means to a life for the Codners. They viewed the sale as a way to ensure that their family life was not compromised, placing a hard rule on their business decisions. The Codners' approach to business and life is a reminder that the way out for business owners who feel trapped by their own success is not endless grind and more revenue, but by design. If you are ready for your big exit, start today to earn options and sleep.
