Elsa just had a big fight with her sister, Anna. She decides to run away and live her life in exile. As she enters her icy mountain palace, she sings the now well-known song, Let It Go.* It’s one of those memorable songs …once you hear it, it’s hard to get it out of your head. I find myself singing that song in my head when I talk with business owners who have waited too long to sell their company. It breaks my Read More
Selling Your Business, Part 2: Understand Your Business’s Market Before Selling It
Understanding your market is absolutely vital to developing a successful business. Knowing what your customers want will help you create products and tailor services that align closely with your sales strategies and inventory. Knowing your market is also helpful for selling your business. Being able to explain to potential buyers the characteristics of the customers you serve and their potential for growth will be Read More
Perfect Logic for Picking a Spouse, Bad Logic for Picking a Business
“Buying a business because you love it is a terrible reason to buy a business.” Jeff (not his real name) seemed surprised by my comment. “Why’s that?” he asked, “I’ve heard it said if you find your passion you’ll never work a day in your life. Are you telling me that’s not true?” I frequently meet with folks who say they want to leave corporate life and become an entrepreneur. The desire to do your own thing and Read More
Selling Under Duress: Don’t Be a Harvey Weinstein
“My doctor told me yesterday this cancer will likely take me in 6 to 8 months. I need to sell my company now before my crazy ex-wives and kids have a full-blown food fight over my assets.” Andrew (not his real name) wasn’t kidding when he first told me this story. At the time of our first call, I kind of assumed he was exaggerating, but once we started working together I realized he was serious about two things: 1) Read More
Selling Your Business, Part 1: Understand Your Competition
The number of owners interested in selling their business has increased significantly in recent years. As baby boomers near retirement, more and more are considering options to transition out of their companies. A sale is often the best option, but it can be a confusing and seemingly daunting process to someone who for years has had their head down focused on their business. If you are considering selling your Read More
The Gambler Story: When on the Growth Scale Do You Sell?
“Kenny Rogers had it right. You gotta know when to hold ‘em, know when to fold ‘em, know when to walk away and know when to run. That’s great advice for gamblers, and for entrepreneurs. For me now, it’s time to fold ‘em and walk away.” Ross (not his real name) didn’t strike me as the type who would listen to country music. Born and raised in the Northeast, he came to Nashville when his wife took a corporate role Read More
The Earn Out: Painful Stretching to Make a Shaky Deal
“Will I have to take an earn out when I sell my business?” Drew (not his real name) was ready to sell his company but he was scared. “I hear horror stories about business owners selling on an earn out which ends up not being paid. I can’t afford to let that happen.” Not one to mince words, I decided to level with him. “Drew, a good business with a reasonable valuation represented by a capable intermediary will Read More
Plan B: When the Partnership Goes South
“What’s worse, a partnership that goes bad after a few years or after just a few months?” Landon (not his real name) was almost in tears. “Before the launch, it seemed we were on the same page, but it wasn’t a matter of weeks before I could sense we had a different vision. I feel like such a failure.” Sitting at Starbucks with a man who’s about to cry is a bit awkward. I felt terrible, too, not having pithy advice Read More
Entrepreneurial Hubris
Three days after I told him I might be interested in their offer to buy my company, I was sitting across a table from them. We were in a posh conference room at the Loews Vanderbilt Hotel in Nashville. It was one of me, and four of them. They had been calling for the past few months expressing interest in acquiring my business. The publicly-traded company was growing through acquisition, it was just a matter of time Read More
Four Qualities of a Serious Buyer for Your Business
When you are in the market to sell your business, you want to be working with potential buyers that are financially capable and trustworthy. Here are some clues you should watch for: Financial considerations are lined up Serious buyers have funding in place. They are willing to share their financial status to verify their funding capacity. Serious buyers also understand the business will likely need an infusion Read More
