Mike Fata’s path from a 300-pound high school dropout to a $419M success story proves resilience in the hemp industry.
Weekly Pilot Briefing
In this week’s podcast, we listen in on another entrepreneur’s journey; starting with an interest that becomes a hobby that becomes a passion that becomes a job that becomes a business. Mike Fata’s journey with Manitoba Harvest, a hemp products company, is so like the journey that many of our clients are on.
Listening to this episode, I am sure that each of you will see a little bit of yourself in Mike and the various phases he went through in his growth and development: whether it is learning about financing growth through friends and family, institutional investors, or private equity; or whether it is determining when to sell your business and for how much; or whether it is understanding what the value of your business might be at some point in the future and struggling to balance multiples against specific deal terms.
Mike was able to negotiate all these issues effectively and lead his company to a sale netting $419M. Amazing!
While the entire episode is worth a listen, a couple of key takeaways for me can be found at the following timestamps in the episode:
7:30 – Having enough “runway” to get your business off the ground, and your commitment to “sweat equity.”
23:15 – Why Sell?
26:10 – The trade-off between deal terms versus multiple/valuation.
37:30 – Industry specific concerns with value: Growth vs. Profits.
43:15 – Regrets about not planning for what comes after the sale.
If you would like to discuss where you are on your entrepreneurial journey, and start planning for your eventual exit, feel free to schedule some time with us using the following link: https://calendly.com/the-flight-plan-group. We look forward to learning about your future goals and your business!
About This Episode
Few founders exemplify resilience like Mike Fata, co-founder of Manitoba Harvest. Growing up in a single-parent, low-income household, Fata dropped out of school in grade 10, struggled with health issues, and found himself weighing 300 pounds by age 18.
A life-changing commitment to health led him to discover hemp as a nutritional powerhouse, sparking his path to founding Manitoba Harvest and building it into one of North America’s leading hemp food companies.
In his interview on Built to Sell Radio, Mike dives into the journey that saw him go from construction worker to the sale of Manitoba Harvest to Tilray for $419 million. You’ll discover how to:
Navigate the complexities of partnership dynamics and equity distribution
Fund business growth creatively, including leveraging vertical integration and cash cycle manipulation
Build a quality-driven brand without relying on costly ads or celebrity endorsements
Approach investor relationships with eyes wide open to terms like liquidation preferences and voting rights
Time a sale for maximum value, especially in the consumer-packaged goods industry
Explore how grit, strategic growth, and an unyielding commitment to quality led Fata from humble beginnings to one of the largest hemp industry exits. Listen to Mike’s full story on Built to Sell Radio and gain insights into building your brand for long-term success.
About Our Guest
Mike Fata
Mike Fata is an accomplished entrepreneur, author, and health advocate best known as the co-founder of Manitoba Harvest, the world’s largest hemp foods company. Under Mike’s leadership, Manitoba Harvest grew from a small startup to a global success, reaching millions of consumers and eventually selling for a combined total of over $500 million through two major transactions.
With over two decades of experience in the natural health industry, Mike is passionate about sharing his knowledge on building high-growth companies and advocating for healthier living. He is also the author of Grow: 12 Unconventional Lessons for Becoming an Unstoppable Entrepreneur, where he provides actionable insights for aspiring business leaders.
Beyond his business achievements, Mike serves as a mentor and advisor to founders, leveraging his experience to help others unlock their potential and scale their ventures. His inspiring journey from high school dropout to self-made millionaire serves as a testament to resilience, vision, and the power of entrepreneurship.
Definitions
Due-Diligence: This is a comprehensive appraisal of a business or investment undertaken before a merger, acquisition, or investment. It seeks to validate the information provided and uncover any potential risks or liabilities.
Earn-out: This is a financing arrangement for the purchase of a business, where the seller must meet certain performance goals before receiving the full purchase price. It reduces the buyer’s risk and aligns the interests of both parties post-acquisition.
Letter of Intent (LOI): This document outlines the basic terms and conditions of a deal before a formal agreement is drawn up. It serves as a mutual commitment between the buyer and the seller to move forward with the transaction on the agreed-upon terms.
Want to dive deeper into your exit planning?
Prepare for your successful exit with four powerful assessments available on our homepage.
Or schedule a call with us here:
Comments