This story is part of CNBC Make It’s The Moment series, where highly successful people reveal the critical moment that changed the trajectory of their lives and careers, discussing what drove them to make the leap into the unknown.
The first time Daniel Lubetzky accepted significant investment money for Kind Snacks, he made a huge mistake.
Today, Kind is a big name in the snacks industry, reportedly valued at $5 billion when it was acquired by food giant Mars in 2020. But back in 2008, the company was much smaller, and the money — roughly $16 million, from a private equity firm called VMG Partners — was hugely important for its ability to grow.
There was just a single catch: The deal called for Lubetzky to sell the company within five years. At the time, he thought it seemed like a good idea. But after four years, Lubetzky felt like he was still the best person for the job.
So, he made a gamble that saved him from losing control of his company — and ultimately enabled it to become a multibillion-dollar brand, he says.
He bought his shares of the company back from VMG.
It was expensive, risky and time-consuming. Lubetzky had to assemble $220 million for the deal, a mix of company cash and millions of dollars in bank loans. Any drop-off in Kind’s revenue could have meant defaulting on that debt, possibly costing him his company for good.
Negotiations took two years, culminating in 2014. Kind’s annual sales nearly doubled that year — and when Lubetzky eventually decided to sell the company six years later, it was worth billions, not millions.
Here, he discusses the decision to repurchase those Kind shares, why he was willing to take such a big risk and how he overcame his fears to take back control of his company.
CNBC Make It: What were you thinking as the deadline to sell Kind approached? What made you decide to buy the private equity company’s stake back?
Daniel Lubetzky: It’s like when you go climbing. Once you get to one peak, you can see higher, and then you’ve…
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