Earn Your Way to a Better Exit

When Mayor Johnson (not his real name or title) asked me to meet, I assumed he wanted me to sponsor a table at his next fundraiser. He ushered me into his office, and after looking at pictures on the wall of him with nationally prominent politicians, he got to the point. “I’m not here to talk politics, Jim, I want to talk about selling my business. I know you can help me.” Mayor Johnson has lived in his community Read More

The A of Valuation ABCs

It’s no fun telling a songwriter his song is bad. Telling an author her novel won't sell takes nerves of steel. Telling a business owner his business is overvalued is no way to make a friend, much less gain a client. Marvin (not his real name) was flat P-O’ed at me. When I told him how a buyer would look at his business, he told me in no uncertain terms he was not going to hire me because I didn’t know the market Read More

It’s Worth Pennies and You Expected Dollars

“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 make a decision about the future of the business, well, Read More

The Danger of an LOI

“Let's have a celebration dinner, I want to thank the team for getting us here.” Hugh (not his real name) was rightfully excited. He had just signed a Letter of Intent (LOI) to sell his company for enough cash to take care of his children's children. But I put a stop to the idea of celebrating too soon. I said, “Hugh, signing the LOI is great, and I know it’s taken you a long time to get to this point, but the next Read More

When Buying a Business is Like Being Taken to the Cleaners

“My boss wants to sell the business unit I run. He says he’ll give me a good deal if I can pull the capital together.” Cal (not his real name) was confident as we talked over an expensive lunch at one of Nashville’s finest restaurants. Cal had run the business unit for six years, but his boss, the company’s CEO, decided to exit that vertical. He had approached Cal on the idea of selling it to him. “He tells me he’ll Read More

Why It Can Be Hard to Find the Right Business to Buy

Randy (not his real name) had been trying to buy a business in the Nashville area since early 2015. A few weeks ago, he called to ask if he could retain me to assist his search effort. Though he had met with about 10 business owners over the past two years, Randy had nothing to show for it. He was ready to be more professional and intentional about his search process. Randy was not a neophyte. He had run his Read More

Living Together Before a Business Marriage

She is the perfect buyer for your company and you know there would be great synergy between your companies, but you can’t agree on valuation. Kristen (not her real name) loved his business, and Jim (not his real name) wanted to sell it to her. They met 15 years ago while working for one of the nation’s largest insurance companies. Both were rising stars in the company, yet each had entrepreneurial instincts that Read More

Royalties to Live Like a King & Queen

It didn’t take long for the meeting to get confusing. He started talking about ideas unrelated to the business he wanted to sell. Bart (not his real name) is an accomplished business owner, but years of living on the entrepreneurial edge are taking their toll. “I’m worn out,” he told me during our meeting in his conference room. The large table in the middle of the room was full of gadgets and stuff, from balls to Read More

How Running Your Business Can be Like Swinging on a Trapeze Without a Net

“It sure was good while it lasted, revenue of $9 million generating 35% profit margin, that’s how we afforded our lake house, now we have to sell it, too.” Amanda (not her real name) was telling me about the good old days, which weren’t all that long ago. She and her soon-to-be ex-husband had started the industrial component distribution business right after the ‘09 recession. “We didn’t have anything to lose, she Read More

How Can You Know Your Company’s Value?

“Cumbee, you don’t know what the heck you’re talking about, my company is worth way more than you're telling me.” Mike (not his real name) was about to tell me what to do with the valuation I prepared for his company, and he used a word other than heck. I could appreciate his frustration. Starting his company during the ‘08-’09 recession, Mike had done everything right to build his business to $9 million a year. He Read More