Why I Sold – Acquisition Stories with Jack Gordon, WebRecon

We had the pleasure of connecting with Jack Gordon, founder of WebRecon, a leading litigation tracking and consumer risk screening service for the credit and collections industry. Jack shared how Jonas Software and CORA Group approached him, the acquisition process, and what life has been like for WebRecon post-acquisition. From founding the company to joining us in 2023, Jack reflects on the journey, the transition, and more! Don’t miss this insightful conversation below.

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Podcast Transcript

Tell us about WebRecon’s origin story and give us a brief history of the company.

I started WebRecon in 2009, right as the economy was crashing. But the story really goes back further. Before that, I spent 16 years in the movie theater industry, where I built a business that used showtime and movie data to help theaters communicate better with their audiences. That was my first experience with online data tools. I sold that business in 2004 and started looking for my next project.

That search eventually brought me into the collections space. I acquired a small agency, my first “acquisition”, and it was a nightmare to run and to sell five years later. But there was one silver lining: in my last couple of years operating it, consumer litigation exploded. I was personally hit three times in 2008. Once I exited, I realized this was a new problem affecting many companies. With my background in building database-driven software, I thought I could create something to help address it.

The timing forced my hand, jobs were disappearing everywhere, and I didn’t have a Plan B. So I launched WebRecon, and it gained traction quickly. Sixteen years later, I’ve had the honor of growing it organically to the point where it became an acquisition target itself.

How did you discover Jonas?

For years, I’d had exploratory conversations with potential acquirers, but nothing felt right. Around March 2023, I got serious and received three offers. Two were from companies in my industry, which initially gave them an edge. But when we dug into the details, all three offers valued the company about the same. The difference was in the structure, Jonas’s approach was far simpler and clearer than the others.

As I got to know the Jonas team, it quickly became clear they were the right partner. We had weekly calls during due diligence, and the professionalism and expertise stood out. It became obvious that Jonas was the right choice.

At Jonas, we often talk about our ABCs model. Based on your experience with us, how have you seen the model in action?

We’ve started to really see the value of the Jonas network. For example, just yesterday we met with Maria’s AI team to explore enhancements for our services. Having that kind of resource and guidance is a big advantage, and we’re just starting to tap into it.

Culturally, it’s also been a great fit. The portfolio connections, the access to expertise, it all reinforces that we made the right decision.

What was your experience with Jonas post-acquisition?

A lot of credit goes to Terry, our GM. She is incredibly competent and detail-oriented, and she really shouldered the integration process. What could have been painful went smoothly.

Our team felt respected throughout the transition. Everyone received raises, one of our key contractors became an employee, and the organizational structure shifted in a positive way. We’re a small company so every person matters. Jonas handled the transition with care and professionalism.

Also,  Dennis Brosnan, our leader post-acquisition, has been excellent. Jonas does a lot of acquisitions, but they still give each company the attention it needs. That’s been reassuring.

To close, what advice would you give to owners considering selling their business?

Selling was a deeply personal decision for me. I wrestled with it for five years before finally having the clarity to move forward, and once I did, the deal closed in about six months.

One big piece of advice: clean up your EBITDA before you start. I love to travel, and I pushed more travel expenses through the business than I probably should have. Had I cleaned that up, it would have translated into a higher multiple.

Beyond the financials, I’d say: make your peace with the decision. Once you’re ready, commit. The process goes much smoother when you know it’s the right time.

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