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
A Brief Summation of Valuation
The true value of a business is like a stew: each ingredient on its own would not amount to much but, when all the ingredients are added, the sum of the whole is greater than the parts. If you are a business owner, you have probably wondered what the true value of your business is. Valuing your business is a process that considers both tangible assets (inventory, equipment, real estate, etc.) and intangible assets 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 led 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
Breaking the News: When and How to Tell Your Employees You are Selling the Business
While selling a business can be a great financial move for owners, it also has a huge impact on the livelihood of employees. Announcing that you are selling your business, if done incorrectly, can cause shockwaves that can threaten profits and destabilize the work environment. The following 4 tips can help your business ownership transition go smoothly as possible, for yourself and for your employees. 1) Timing As Read More
Does the Entrepreneur Know More Than the Corporate Titan?
“Who knows more about business, the corporate executive or the entrepreneur?” I didn’t expect to hear a question like this while in the Harvard Business School faculty dining room, but when Faith (not her real name) posed the question, I could tell she had a point to make. “Each role requires a unique skill set” I replied, “there are things a corporate CEO needs to know that isn’t necessary for an entrepreneur, yet Read More
A Great Business That’s a Non-Starter
I wasn’t about to say it out loud, but this place sort of gave me the creeps. Ben (not his real name) was showing me where they hid the weapons, a few handguns and baseball bats. Though the business was perfectly legal, the nature of their clientele required they think in advance about protective measures. Under these kind of conditions, Ben’s ability to make money was especially impressive, but it wasn’t the kind of Read More
5 Steps to Selling Your Nashville Business
Leading one of Nashville’s most successful business brokerage practices, I am always asked, “how do I sell my business?” Whenever I hear that question I have to remind myself that just because I do this everyday and find these steps self evident, selling a business in Nashville (or anywhere else) is a complete mystery for those not in the business of selling businesses. So today I lift the curtain and reveal to you Read More
