Betting It All to Build a $100 Million Outdoor Luxury Empire
Published on September 06, 2023
Sarah Dusek and her husband started Under Canvass, which offered large-scale tent hotels (called "glamping") near U.S. national parks. The business got off to a good start, and within five years, Dusek had four sites that were making $3 million in EBITDA (earnings before interest, taxes, depreciation, and amortization). Dusek didn't want to just stay the same, so she chose to grow much bigger. She raised $16 million in equity and mezzanine debt at a rate of 13%, which she personally guaranteed.
The stress of having her entire net worth tied to her business caught up with Dusek, and she chose to sell a majority stake in her business to a private equity group (KSL Capital). Dusek gave away 25% of her stock and kept her job as CEO. When she gave up her position as boss, Under Canvass was worth more than $100 million. This show is full of useful tips, such as how to:
- Use risk-taking debt to help pay for your growth.
- If you want to get venture capital, don't make this common mistake.
- Check out possible sponsors.
- Get money for your business without having to give up ownership.
- Make your business more valuable in the eyes of someone who wants to buy it.
- Figure out when to sell.
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