Supporting Mental Health with Virtual Therapy – A Start-Up’s Expansion

About the Episode

Learn about the M&A growth of two start-ups in a new virtual business – mental health services online. William Masih discusses questions for sellers to ask themselves before considering an M&A transaction, raising capital, building relationships, and finding synergies with a potential partner business. He talks about making mental health therapy accessible, the mechanics of his acquisition, details on the scorecard method of valuing a business, and applying it to a company in the early stages of growth.

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“I would encourage anyone who is considering an M&A transaction in the future to reach out to the founders and CEOs of a competitor – direct or indirect – and begin to build those relationships. Depending on the synergies, how you feel, and the level of trust you can build, it is always great to have that relationship early on because you never know how that might change in the future and possibly become the foundation for an M&A later.”

William Masih

In this Episode

1:38 William Masih’s background as a startup entrepreneur.
5:28 How does virtual therapy function? What is its real-world impact, including the effects on individuals and society?
7:25 What current trends are rising in social media, and what is the impact on business?
11:10 How can technology be used to improve the lives of human beings?
13:24 What is the mission of Wellin5?
17:04 How did the process of acquiring the U.S. therapy app company Therachat evolve?
23:13 Are there advantages to partnering with a potential target company before beginning an acquisition?
23:02 How can a seller build relationships that might turn into a partnership or M&A transaction in the future?
28:27 What steps did Wellin5 go through during its acquisition of Therachat?
32:29 How does one value a business that’s still in its early stages? What is the scorecard method of valuing a company?
36:57 Is there anything specific to look out for when conducting due diligence?
40:35 What does the business integration process look like since the acquisition of Therachat?
42:53 Who was involved in Wellin5’s acquisition team?
44:01 What was the capital raising process like for Wellin5, and what is the best advice for entrepreneurs on that process?
47:45 How can Wellin5 and Therachat help people?

Learn More

Resources Mentioned in This Episode

Terms Mentioned in This Episode

  • Acqui-hire: When one company buys out another specifically to gain access to key personnel.
  • ARR: Annual Recurring Revenue – refers to all ongoing revenue for a product or business, projected over one year.
  • COVID-19: The coronavirus disease 2019 – a highly contagious respiratory illness caused by the SARS-CoV-2 virus, which has significantly impacted global economies and business operations.
  • CTO: Chief Technology Officer – a senior executive responsible for overseeing the development and implementation of an organization’s technology strategy.
  • IPO: Initial Public Offering – the first sale of shares of a private company to the public, allowing it to raise capital from investors.
  • NDA: Non-Disclosure Agreement – a legal contract that outlines confidential information that parties wish to share with one another while restricting access to third parties.
  • R&D: Research and Development – the process of investigating, designing, and creating new products, services, or technologies to improve existing ones or develop new ones.
  • Scorecard Method: A method used in business evaluation and performance management to measure and track progress toward specific goals or objectives using key performance indicators.

Meet Our Guest

William Masih

William Masih

Chief Executive Officer and Founder of Wellin5

William Masih is the Chief Executive Officer and Founder of Wellin5, a leading online platform that connects clients with qualified therapists and provides them with personalized and accessible in-between session support and mental health care. 

William has over 15 years of experience in vision-casting, fundraising, strategic partnerships, and mergers and acquisitions, and in 2019 successfully scaled Wellin5 from concept to $1 million in ARR in two years. The company has since expanded its team, network, and market presence across Canada and the US. In 2020, he led the acquisition of Therachat, a Silicon Valley-based startup that had raised $7 million in equity and had a network of 7,500 therapists. This marked Wellin5’s entry into the US market. In 2024, the company is rolling out its second product, which will help therapists track a client’s progress in between sessions and take the client-therapy relationship to the next level.

Location Location: Carlsbad, California
Website Website: www.wellin5.ca

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