Naperville Business Attorney on the Accidental Millionaire in Startup Sale

sale, Naperville business lawyerWhen another business owner or entrepreneur is fortunate enough to enjoy a major success, it is tempting to ascribe the event to good luck or being in the right place at the right time. Of course, there is little question that timing has a great deal to with commercial profitability, but, in many cases, the beneficiary of such “luck” has worked hard to get where they are, often requiring a significant investment of time and money.

In my practice as a business law attorney, I have assisted many entrepreneurs as they have positioned themselves for future success. For some, the return was realized very quickly while, for others, the results took a little longer. Few, however, have had an experience quite like Eric Martin, a man from York, Pennsylvania, who stands to become a multi-millionaire following Wal-Mart’s acquisition of the marketplace website Jet.com.

Beating the Competition

Last year, Martin entered a contest to see who get the most new subscribers for Jet.com, an e-commerce forum somewhat similar to Amazon. Martin spent an estimated $18,000 for online ads to attract new members, ultimately winning the competition and the grand prize of 100,000 shares in the startup company. While the shares were certainly valuable even at the time, recent developments could make Martin a very rich man.

Earlier this week, Wal-Mart Stores, Inc. announced that it would be acquiring Jet.com in a deal worth an estimated $3.3 billion. Wal-Mart’s acquisition is an attempt by the retail giant to increase online business and to improve its standing against Amazon, the worldwide e-commerce leader.

The sale is also expected to increase the value of Jet.com’s shares, which would result in serious profit for Eric Martin. His shares were valued last year at between $10 million and $20 million, a number that could jump dramatically. He is currently waiting to find out exactly how much his shares are worth, but, in the meantime, is considering creating a startup of his own.

Legal Guidance for Your Company

While media attention is focused on the so-called “accidental millionaire,” it was Jet.com’s efforts that positioned the company for such a profitable sale. By offering shares in the company, the startup was able to attract not only new members but also the attention of a retail behemoth interested in improving its own bottom line.

If you own a business and are looking for unique ways to grow and be noticed, contact an experienced Naperville business law attorney today. At The Gierach Law Firm, we can help you develop a strategy for increasing profitability and public visibility. Call 630-756-1160 to schedule a consultation.

 

Sources:

Bloomberg

Jet.com

Wal-Mart