Conversion rate: it’s a term every entrepreneur has heard, but few actually understand on a...
Navigating Life After an Acquisition: Lessons from Kenny Ratton on The Ownership Advantage
If you’re an entrepreneur, at some point you’ll ask yourself the big question: What happens if I sell my company—but stay on as CEO? In a recent episode of The Ownership Advantage, host Tanner sat down with Kenny Ratton, founder and CEO of Radiant RFID, to dig into exactly what that transition looks like. Kenny’s story is packed with practical insights for business owners considering an exit, especially those thinking about selling to private equity while continuing to lead the company.
From Chaotic Founder to Focused CEO
Kenny’s journey began in 2004, launching Radiant RFID to originally serve the trade show world with attendee tracking. Over nearly two decades, the company evolved into asset management, tracking everything from laptops at Texas State University to high-value containers in the automotive and aerospace industries. This adaptability kept the business alive—especially through pivots like adapting asset tracking technology for social distancing during COVID, a move that kept revenue flowing when many customers pressed pause.
But the entrepreneurial grind was real: Kenny found himself wearing “multiple hats,” constantly patching payroll with personal funds, and fighting fires on all fronts. Eventually, the strain became unsustainable. Kenny explains, “At some point ... I’d like to get some equity out of the business and live less chaotic, if you will, a little more cash in the bank.”
The Acquisition: More Relief Than Regret
When private equity came knocking in 2021, Kenny weighed his options. While an exit meant giving up some autonomy, he emphasizes the relief that came from handing off the finance and operational headaches. “For me, it was a sort of a big relief. I didn’t have to worry about payroll. They had deep pockets ... we were not worried about small changes in market and things like that.” This newfound freedom allowed him to focus on growth and business development, rather than sweating the next invoice or banking rule change.
He also points out that picking the right acquirer is crucial. The transition can feel “offensive” at times—especially when outsiders scrutinize costs or push for deeper financial discipline—but Kenny credits this reporting structure with growing the company healthier and faster than before. Suddenly, hitting 25% EBITDA was a reality rather than a dream.
Critical Lessons for Entrepreneurs Considering an Exit
Kenny’s experience dispels the myth that “selling out” means selling short. Instead, he found that:
- Discipline matters: “Had we been more disciplined ... we would have avoided the need to even be acquired.”
- Get your team and terms right: The right legal and financial advisors are non-negotiable. Even lucrative offers can hold hidden liabilities.
- Choose your acquirer wisely: Culture fit and the ability to work through challenges together—especially when inevitably gray areas arise—are key for a smooth transition and future collaboration.
- Embrace new reporting: Moving from solo decision-maker to board reporting builds muscle around analysis, accountability, and sustainable growth.
The Role of AI and Learning
Another takeaway? Encourage a culture of innovation and continuous learning. Radiant RFID actively integrates AI not just into their product but across every role in the organization. Kenny says, “Every role in our company has some goal around using AI.” Whether it's summarizing meetings or scaling analytics in their software, he sees AI as a way to free up time for more strategic thinking.
Final Thoughts
For business owners on the path to a potential exit, Kenny’s advice is clear: listen widely, learn continuously, and know your numbers. Take input from peers and networks, and don’t be afraid to seek outside counsel—legal or otherwise. Most importantly, don’t lose sight of the bigger picture: “You should definitely be aware of what [AI] can and can’t do for you. The can’t is probably just as important as the can.”
Thinking about selling—or just curious about life after acquisition? Take a page from Kenny Ratton: with the right prep, partners, and perspective, you can turn a daunting transition into your company’s next era of growth.
Check out the full episode on YouTube HERE
Listen to the full episode on Apple Podcasts HERE
