“You have to understand, Jim, people in this industry have a real attachment to their business. It might just be a thing to you, but for us, it’s our life.” Randy (not his real name) and I recently met at a conference. He came up to me after the session I led on preparing to sell a business and told me he had just started to think about the process. He didn’t tell me his age but I assumed he was past 70, though he Read More
Listening … the Easy Growth Strategy
“Growth is an easy concept to understand,” he told me. “All you have to do is sell more of your existing products to new customers, or get new products to sell to your existing customers.” Allen (not his real name) had not gone to business school. He had not gone to college. I’m not sure he ever graduated from high school. But Allen was one of the smartest men I ever met. Though he had no formal business education, Read More
Sometimes You Just Gotta Let It Go
“After 15 years of work, I just wanted to leave something for my kids and grandkids. But it sounds like that isn’t possible.” Sandra (not her real name) was not in good health. We met at her house because getting to the office was difficult for her. But what she lacked in physical mobility, she more than made up for with mental mobility and attitude. Sandra had a big smile on her face when I Read More
The Business is You and You are the Business
“I’m glad I’m not a doctor, I hate delivering bad news.” I said this to Larry (not his real name) as we met to discuss his interest in selling his business. I was about to deliver some bad news. Larry had been in the business for 15 years. Though it was technically owned by his father, Larry was the main man in making things happen. But when it came time to decide about the future of the business, well, that was left Read More
Don’t Make Your Business a Parking Lot for Your Investor’s Money
“I need $1,500,000 to open a new distribution center in North Carolina. It's a homerun idea, but how much equity will I have to give up raising that much?” Johnny (not his real name) and I have been good friends for seven years. We see each other socially several times a year, and once every 5 or 6 months we sit down to a serious conversation about his growing and vibrant medical supply business. “If I ever sell this Read More
Your Financial Dialysis Machine
Cindy (not her real name) has a good thing going. Her business is growing at a steady pace, and she’s been able to pocket around $500,000 a year the past several years. I recently met with Cindy and her husband to discuss her interest in selling. “I just became a grandmother. My daughter and her husband are going to need more of my time than I can give if I’m still running the company. I’d like to sell it now and Read More
The Deal vs. Life Goals
“They called out of the blue and offered $23 million for my company,” Elizabeth (not her real name) said as we started our meeting. “I’ve only been in business four years, I didn’t think I’d get to this point so soon,” she said, “The way we are growing, if we hold on for few more years, we might get to $50 million. That has a nice ring to it. But hey, I don’t want to look at gift horse in the mouth. What are my Read More
The “Can’t Let It Go” Syndrome
“Everybody knows it’s time he should sell, but he can’t seem to let it go.” Bruce (not his real name) is the head of marketing for a company owned by Philip (not his real name). Bruce called for my advice on structuring an employee-led buyout. He admitted it was a long shot even though Philip is in his late-70s. It seems Philip has heretofore not been willing to even entertain the idea of selling. But Bruce and his Read More
Incompetent or Fraudulent? Sometimes It’s Hard to Tell.
“He says he can get $5 million for my company, but in the spirit of due diligence, I wanted a second opinion.” Bennett (not his real name) had asked me to meet him at Starbucks at the suggestion of a mutual friend who thought he might be rushing too fast to sell his company. Bennett told me he launched his company in 2012, “We started with a basic idea, got a few breaks along the way and made a little bit of money.” Read More
How to Know the Broker Really is on Your Side
“I call you for help selling my business, but you tell me I shouldn’t sell it now. What kind of business broker does that?” Ricardo (not his real name) retained me to help him evaluate an unsolicited offer recently received from one of his top suppliers. During our first call, he said, “I am not looking to sell the company, we’re growing, I love what we’re doing for our customers, and the team I have around me is Read More
