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Chapter 1 - Birth, Growth and Acquisition of a Software Company

3:00 A.M. Wake-Up Call
From: Fire Up Your Startup and Keep It Up
By: Gary Sitton

The reader is taken through the author’s creation of a software system, incorporation and ultimately the acquisition of the company. At the time of acquisition, the company had over 200 employees, over 300 clients and was generating over $30 million in revenue per year.

Chapter 1 Excerpt:

“One year after we dropped off SunGard’s radar, I received a call from Rick Tarbox, SunGard’s acquisitions officer. He said to meet him in two days at the east Red Carpet club in Denver International Airport. He said SunGard was prepared to make an offer for Bi-Tech. I called John Dorey and we made flight arrangements. I had no idea what to expect. I wondered what the document containing the offer would look like. We had finished a very successful 1994, with revenue near $30 million.

Rick Tarbox came into the private room we had arranged, pulled an envelope out of his pocket and slid it across the table to me. On the back of the envelope, in pencil, were the words, “$x purchase price, $y earn-out in 3 years.” I told Rick I would need to step out and talk to John Dorey. Outside, I told John that x was much, much larger than I was expecting. What should I do, John? He said go back and ask for one more million in earn-out. I did and Rick accepted it. The meeting lasted less than an hour.”