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What do you do when you are inches away from a life-changing wire transfer, and you decide to say “no”?
In the latest episode of The Exit, Steve McGarry sits down with Steve Young, the founder of App Masters. Steve has been a fixture in the mobile app world since 2013, building a powerhouse agency with over 30 employees. But his journey isn’t just a straight line of wins—it’s a masterclass in the psychological and financial complexities of selling a business.
From flipping educational apps on Flippa to navigating the high-stakes world of eight-figure acquisitions, Steve breaks down the “hidden” side of M&A that every founder needs to hear.
The “Failed” Exit: Why Steve Walked Away
One of the most compelling parts of the episode is Steve’s transparency regarding a recent major exit that didn’t go through. After months of due diligence, Steve realized that the deal structure didn’t align with his vision.
“I got to see how the buyer was thinking… I got to see how he was going to finance the entire purchase. We were literally at the finish line, and I was not ready to let go… I ended up backing out.”
For Steve, this “failed” exit wasn’t a loss—it was a lesson. It taught him the mechanics of Creative Deal Structuring and the importance of knowing your “Why” before the LOI (Letter of Intent) is even signed.
Solving “Seller Regret” with the 5 Whys
We often hear about buyer’s remorse, but Seller Regret is the silent killer of founder happiness. Steve suggests that before you sell, you must use the “5 Whys” framework to get to the root of your motivation.
- Is it Burnout? If you’re selling because you’re tired, you might just need a better team or a vacation—not an exit.
- Is it Strategy? If the business has reached its peak and someone else is better suited to scale it, it’s time to move on.
- The “Screenshot” Test: Steve famously sold an app portfolio simply because he didn’t want to update the App Store screenshots for new iPhone sizes. That was a clear, logical reason to exit an asset that no longer sparked joy.
How to Prepare Your Business for a 7-Figure Exit
If you want to achieve a high multiple, you cannot have “messy” operations. Steve emphasizes that the bigger the deal, the more “expensive” every email becomes. To ensure a smooth transaction, you need:
- Squeaky Clean Books: Separate your personal and business expenses completely. If a bank gets involved, they will scrutinize every tax return.
- The Centralized Asset Vault: Have your Figma files, UI/UX designs, codebases, and icons in one systemized location.
- Minimum Viable Revenue (MVR): Stop building just for the sake of the product. Build for revenue. Distribution matters more than the “perfect” feature set.
Creative Financing: The Power of the Seller Note
A key takeaway for anyone looking to acquire or sell is the use of Seller Notes. Steve explains how a buyer can essentially take a loan from the seller to bridge a valuation gap.
For example, on a $1M deal, a buyer might pay $800,000 upfront and structure a $200,000 note to be paid over 24 months. This lowers the buyer’s risk and provides the seller with continued cash flow post-exit—a win-win that can save a stalling deal.
Steve Young’s Advice to His 10-Year-Younger Self
“Do the work, give up the timeline.”
Steve reminds us that success is a game of persistence. Whether you are building an app marketing agency or a SaaS product, the goal shouldn’t always be the exit—it should be building something that allows you to live the life you want today.
Steve Young Bio:
Steve Young is an author, speaker, and host of the #1 app marketing YouTube channel with 50K subscribers. He has interviewed the biggest names including the co-founder of Shazam, Crossy Road, Mafia Wars, Color Switch, and more! He is also the founder of App Masters the app marketing agency that helps grow apps faster, better & cheaper.
Website – https://appmasters.com/
LinkedIn – https://www.linkedin.com/in/stevepyoung/
