“I’m looking to buy a good business from a founder who is ready to retire but doesn’t have a succession plan. I can come in, learn the business, then I can buy it over time.” As I read the email from David (not his real name), I could only sigh. If David only knew the number of times I have heard this pitch or received an email like this. Life would be so nice if buying a business was as simple as he described. It’s Read More
Don’t Treat Your Business Like a Dialysis Machine
My Dad spent the last two years of his life attached to a dialysis machine for four hours three times a week. He literally could not live without it. Some business owners face the same dilemma. 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 $750,000 a year the past several years. We sat down recently to discuss her interest in selling. Read More
If This, Then That
Wilson (not his real name) took over management of the company from his father, who founded it in 1978. Over the five years Wilson has been in charge, company revenue has doubled. The company is well known in the community, and Wilson is a respected business leader, much like his father was. Wilson has not retained me to sell his company. At the age of 48, he has no interest in slowing down, much less selling. But he Read More
General Rule: Business Buyers Buy Cash Flow, Not Ideas
It didn’t take long for the meeting to get confusing. Bart (not his real name) started talking about ideas unrelated to the business he wanted to sell. Bart 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
What’s Harder Than Selling a Business? Giving One Away
“I have decided it’s time I step away from my business, and I want to sell it to my employees.” Linda (not her real name) invited me to her plush office to discuss her retirement plan and to show me the awards her professional services company had won over the years. It was impressive, but I was more impressed when she started telling me about her side business, real estate investment. In 2004, Linda and her husband Read More
Selling a Business in Decline, the Empty Bag Syndrome
“After 15 years of work, I 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 walked in, and she seemed Read More
Don’t Buy Without a Why
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 25 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 novice. He had run his family's Read More
The Wimpy Effect
“I’ll gladly pay you Tuesday for a hamburger today.” If you are 60 or older, you probably recognize that comment frequently spoken by J. Wellington Wimpy. This character from the Popeye cartoon series seemed to be a successful businessman (after all, he wore a suit and tie). But curiously, Wimpy never had money in his pocket to buy his favorite lunch. He seemed to always be saying “you can trust me, I’ll have it in Read More
What Does Private Equity Want?
“Do I need to wear a tie to this meeting? Hell, I haven’t had a tie on since Mama died.” Getting fired from Ryder Trucks in 1984 ended up being the best thing to happen to Andy (not his real name). Truck fleet management was all he knew, so he had no choice but to go into business for himself. Fast forward 30 years, Andy was ready to sell the business since both of his children were interested in practicing Read More
Presenting to the Board You Don’t Have, But Probably Need
Mason (not his real name) and I met about six years ago during a men’s Bible conference at the church we both attend. We meet every so often at the church coffee shop to talk about life and family. About a year ago, Mason was telling me about some stresses in his business. I suggested he join a peer networking group or put together an advisory board. I told him my belief that every business owner needs third-party Read More
