The Confusing Logic of the Wisdom of Overpaying

When he walked into Starbucks with a big red notebook under his arm, I figured the meeting might not go as planned. I had worked with Robert (not his real name) for almost four months. We had met through a mutual friend who knew Robert and his wife were looking to leave corporate life and buy a business they could run together. Robert had contacted me to see if I had any companies he might be interested in buying. I Read More

“We make pretty good money here but it’s time for me to sell. But understand this, if a buyer won’t commit to preserve my culture, I’m not interested at any price.” I met Mason (not his real name) at a luncheon in Clarksville sponsored by a local ministry with which we were both involved. I wasn’t there soliciting business and he was not there to talk about selling his. But as we casually talked over lunch, he asked Read More

Image of an empty basketA couple years ago my wife Emily and I were preparing for a covered-dish dinner with friends from church.  As she was pulling the casserole out of the oven, she said, “Can you bring me the Longaberger basket in the cabinet above the refrigerator?” I pulled the basket out, thinking the last time I had seen it was about the same time last year. She carefully placed the hot casserole dish into Read More

“I’ve got to get out of Dodge before it’s too late.” Joey (not his real name) had already met with his financial advisor to plan for allocation of the money he would receive when he sold his company. The Letter of Intent was signed three weeks earlier, and the buyer had started due diligence. Everything looked like we were on track to a successful closing in seven to eight weeks. “We have a problem,” I said to Joey, Read More

“What do you mean you don’t want to sell my business? I thought that’s what you did for a living?” Reggie (not his real name) would have been the ideal client. His business was growing and extremely profitable, EBITDA of $3.57 million last year and forecasted to be $4.25 million this year. Reggie called me a couple months ago after returning from an industry conference in Orlando where he met several private equity Read More

“My partner and I have grown apart. He isn’t the same guy today that he was when I offered him a full partnership in 2007. His arrogance has created a toxic environment. He plays favorites with the employees, and he comes and goes as he pleases. I’m afraid it’s going to affect the company’s survival. Can you help?” Archie (not his real name) asked me to meet he and his wife at their home to assure full confidence in Read More

  Randy (not his real name) and I were sitting in a coffee shop across the street from his office. As soon as we sat down to enjoy our overpriced lattes, he got right to the point, “My exit from the tech company was way beyond my expectations, but I’m getting anxious to get back in the game. Do you know of any businesses that would appeal to me?” I had heard rumors about the successful sale of Randy’s business (hey, Read More

“I get calls, emails and letters all the time from people telling me they want to buy my company, or that they represent someone who wants to buy my company. How can I know who’s for real or not? I’d like to sell my company, but I also have to keep running it and I can’t afford to waste time on somebody's wild goose chase.” Felix (not his real name) heard me speak at a recent conference and came up to me afterwards. Read More

An image of two Navy Seals standing in water with guns in hands.Navy Seals know a thing or two about building productive teams. A key principle of their productivity is the “buddy system.” But what works for our Navy Seals can cause problems in a business setting.  Mike (not his real name) and I had been good buddies since high school. He graduated from pharmacy school the same year I graduated from law school. Read More