I Built a $9M Company And Got Nothing - Moneywise Recap

Podcast: Moneywise

Published: 2025-11-18

Duration: 34 min

Summary

Kevin Bartlett shares his harrowing experience of building a successful toilet company valued at nearly $9 million, only to walk away with nothing due to a lack of documented agreements and trust in partnerships. His story emphasizes the critical importance of having everything in writing, regardless of personal relationships.

What Happened

In this episode, Kevin Bartlett recounts his six-year journey building a thriving business in the toilet industry, which he genuinely believed would lead him to financial success. However, the reality was starkly different when it came time to sell. Despite the company's valuation at around $9 million, Kevin's expectations of receiving 15% of that value were shattered when he found himself with nothing after the sale. He reflects on how he trusted his business partner too easily and ignored the advice of many who cautioned him to get everything in writing.

Kevin describes the painful moment when his partner bluntly informed him that he wouldn't be receiving the payout they had discussed. This realization hit him hard, especially after he had invested so much time and effort into building the company. Despite the heartache, Kevin chose to take the high road, opting to part ways amicably rather than engage in a legal battle. He emphasizes how breadcrumbs of warning signs, such as his partner's changing communication habits, should have alerted him to the impending issues, but his optimism led him to ignore them. Ultimately, Kevin learned a painful lesson about the necessity of written agreements and the importance of safeguarding one's contributions in a business partnership.

Key Insights

Key Questions Answered

What went wrong during Kevin's business exit?

Kevin Bartlett's exit from his toilet company took a turn for the worse when his business partner informed him that the payout would not be as he expected. Initially, Kevin had anticipated receiving around 15% of the business's value, which was approximately $9 million. However, as negotiations progressed, he learned that he would receive significantly less, ultimately leaving him with nothing after the sale. This disappointment stemmed from a lack of written agreements, which made it difficult for him to claim what he believed he was owed.

How much was Kevin's company valued at?

At the time of sale, Kevin's business was valued at around $9 to $9.5 million. However, the actual amount he expected to receive was much lower than anticipated. He believed that he was entitled to a 15% stake based on his contributions, but his partner disagreed, stating that it would not be feasible to provide him with such a payout. The disparity between the company's valuation and Kevin's expected compensation highlights the complexities involved in business exits.

What lessons did Kevin learn about business partnerships?

Kevin's experience taught him invaluable lessons regarding trust and the necessity of having things in writing. Despite the strong relationship he believed he had with his partner, Kevin learned that personal connections should not replace formal agreements. He realized that many people had warned him to document everything, and in hindsight, he recognized that he should have heeded that advice. This experience underscored the notion that in business, it's essential to protect oneself legally, regardless of how well you know someone.

What were the warning signs Kevin ignored?

Throughout the process leading up to the sale, Kevin began to notice changes in his partner's behavior, which he now sees as warning signs. His partner started to communicate less with him and more with an accountant and others, indicating a shift in priorities. These changes, combined with the lack of written documentation regarding their agreement, should have raised red flags for Kevin. However, his optimism and trust in the partnership led him to dismiss these signs until it was too late.

How did Kevin feel about the outcome of the sale?

Despite the disheartening outcome of walking away with nothing from the sale of his company, Kevin expressed a surprising lack of anger. He acknowledged the pain of the situation but chose to focus on the lessons learned rather than fostering resentment. Kevin's decision to remain positive and not engage in a legal battle demonstrates his resilience and a desire to move forward constructively, despite the challenges he faced in the exit process.