Eight months after selling his office-services firm to WeWork for $220 million, Dan Teran is raising money to buy Managed by Q back at a fraction of the price. But another interested bidder is threatening his successful takeover.
Eden, a San Francisco-based startup and one of Managed by Q’s biggest competitors, has bid on the sale of the company, people familiar with the matter told The Real Deal. According to those involved, Teran and Eden both put in bids to WeWork two months ago, but talks have stagnated since then.
Teran declined to comment, as did representatives for Eden and WeWork.
Teran founded Managed by Q in 2012, and eventually attracted funding from Google Ventures, RRE Ventures and Kapor Capital before it was acquired by WeWork in April. The firm employs over 100 people, and counts Casper and Staples among its clients.
WeWork put the firm on the chopping block after the office space giant announced it would offload a suite of ancillary businesses to cut costs. That announcement followed a failed bid to go public, and an exodus of staff from the company, as its valuation plummeted 80 percent to $8 billion.
Before WeWork, Managed by Q had competed for business with Eden since the latter launched five years ago, and sources say the rivalry is a bitter one. Both firms provide services to tenants that allow them to manage a range of office services including cleaning, maintenance and IT support.
During a panel at the SALT Conference in Abu Dhabi on Wednesday, Teran said he is raising money to regain control of his company.
“I’m actively working to buy back my company,” he said, according to Bloomberg.
For Eden, acquiring Managed by Q would expand its business significantly. The firm has raised $40 million, including a $25 million raise last month, which was led by Reshape Ventures. It says it services clients including VTS and Convene.