Tag: billion

A CEO shares the surprising lesson he learned from selling his company for $4 billion

bob carr

Last November, Bob Carr signed a deal to sell his payments processing company Heartland Payment Systems for $100 a share to Global Payments, for a total of $4.3 billion.

The deal made him a very rich man, but it also taught him a surprising lesson about the meaning of work.

Both public companies in the same industry, Global Payments had a thriving business abroad but a weak influence in the US, and Heartland’s sizeable American customer base among small and midsize merchants was a perfect complement.

Carr, 70, declined a board seat and decided to step away from the company he founded in Princeton, New Jersey, in 1997. Although he hadn’t been planning to sell, Heartland’s healthy performance and the generous offer convinced him that ending this chapter in his life was worth it.

The move also required that six of his direct reports cash out of the company. Yet, while it made them much richer, it left them unhappy. The CFO, for example, made $65 million on the deal and is 60 years old, but now feels lost, Carr told Business Insider.

“I just never really appreciated that until the sale of the company,” Carr said. It made him realize how valuable it is to do something that you love.

“We didn’t always talk about how wonderful it was to always be fighting the battle every day,” he said. Once that sense of purpose was gone, they became genuinely unhappy — despite being millionaires.

As for himself, he has the Give Something Back Foundation, which he founded 15 years ago to put underprivileged students through private high school and college, to occupy his days. Around 480 kids have gone through the program, and he is working on partnerships with the likes of celebrity performance coach Tony Robbins and NBA player Dwayne Wade. The foundation’s team expanded to 10 people last year.

But once Carr has steered it in the right direction, he knows it won’t need him to be hands-on any longer, which can be a scary thought.

“The foundation could be enough to keep me busy for the next 15 years,” he said, but “I suspect it won’t be.” The idea of spending the rest of his life on the golf course or in front of a television is out of the question. Even the idea of a week-long vacation feels wrong, he joked.

That’s why he’s in the planning stages of another company in the community banking space. He said that this moment in his life showed him that he still hasn’t lost what an early mentor called his “race with death.”

Carr grew up in a struggling working class family in Lockport, Illinois, to parents who both hated their jobs. Carr said that when he lost his religious faith as a young man, he decided that he needed to fit in as much as possible in the time he was given in life, and his experience as a child made him want to create his own business that would in turn give employees a job they could be proud of.

As he grew older, he stopped being driven by an increasing paycheck and instead became motivated by having an impact, he explained.

Even though the sale of his company was bittersweet, he feels assured by the prospect of both enhancing his foundation and creating something new.

“When I was in high school I thought, ‘OK, I see these 60-year-old people out there, and it doesn’t seem like they have that happy lives. They’re not proud of what they did. And I don’t want to be that way,'” he said.

“My greatest achievement is not building a $4.3 billion company — which shocks me to this day that it got that big — it’s having all these people doing great things,” he said, referring to the Heartland’s 4,600 employees. “It’s not just that we have great jobs; we’re doing great work. We’ve been changing the lives of 300,000 customers. Creating technology, doing things that have never been done before — it’s cool. It’s a privilege, too.”

SEE ALSO: 9 timeless lessons from the great Roman emperor Marcus Aurelius

Join the conversation about this story »

NOW WATCH: ‘Shark Tank’ star Robert Herjavec knows what to do when everything is against you

Read More

How 3 guys turned renting an air mattress into a $25 billion company

Long before Airbnb persuaded strangers to sleep in one another’s homes and became a $25 billion company, it was just an idea to make extra bucks and make rent.

After their first guests, Airbnb’s founders realized they were on to something bigger than a stopgap for rent. They faced rejection plenty of times — and created their own version of Obama O’s cereal — but the three founders of Airbnb have built a big business in the past nine years.

Here’s how they turned their idea to rent out an air mattress into a business that has the hotel industry running scared.

SEE ALSO: The 25 hottest San Francisco startups to watch in 2016

It started with an email. Joe Gebbia sent his roommate, Brian Chesky, an idea: What if they made a designer’s bed and breakfast, complete with a sleeping mat and breakfast? It was a way to “make a few bucks.” Almost nine years later that idea is worth $25 billion.

Tweet Embed:
Here is the email that started Airbnb. Shown onstage at #TED #TED2016 pic.twitter.com/A2ZF9Epcxj


In 2007, the two roommates living in San Francisco couldn’t afford to pay rent. The pair decided to turn their loft into an area that could fit three air mattresses. Along with the mattress and a night’s sleep came the promise of a breakfast too.

The pair knew a big design conference was coming to San Francisco, and it was making hotels hard to come by. They created a simple site, airbedandbreakfast.com, and bought three air mattresses. The duo had met at college at the Rhode Island School of Design, so they thought acting as tour guides to designers would be a fun way to make money.

See the rest of the story at Business Insider

Read More

THE QUEST: From A Kitchen Counter, To A Billion In Revenue…

I learned an extremely valuable lesson during my early years as an entrepreneur… If you want to make a lot of money, stop thinking about making money, and start thinking about making a difference. I’ve had plenty of opportunities to test that theory over the years, and the time or two that I’ve strayed from30

The post THE QUEST: From A Kitchen Counter, To A Billion In Revenue… appeared first on Mike Dillard.

Read More