“Why should I sell? The way we are growing we’ll double our value in no time!” Though we were meeting at 6:30 that morning, he didn’t need coffee. Randy (not his real name) lived a caffeinated life. He ran at a fast pace, the success of his company was evidence of that. But Randy seemed ready to slow down, maybe take some chips off the table. A few weeks earlier, I had reviewed Randy’s business and told him how much Read More
Retaining a Lawyer Just on Price, Bad Advice
“My brother-in-law knows a lawyer who charges $250 an hour. The guy you recommended charges $450 an hour. Why would I pick the lawyer you recommended when I can pay almost half the rate for the same service?” David (not his real name) had retained me to sell his company. After many discussions with several interested buyers, he settled on a company like his, though much larger, from the upper Midwest that wants to Read More
Don’t Walk That Road Alone
“I want to sell my company to them, but I don’t think I need a business broker. On the other hand, I’m pretty sure I need help getting through this. Is that what you do?” Linda (not her real name) started her business in 2005. She describes some “dark times” going through the recession of 2008-2009. But in the past five years she has flourished, and now has thirty employees and dozens of regular clients. I met Linda Read More
Private Equity, What Kind of Offers Are in Those Expensive Briefcases?
The room was full of men and women wearing expensive suits, carrying brand-name leather briefcases and purses. You could land from Mars and guess you were at a conference of private equity professionals. I was invited, along with about fifty other investment bankers/business brokers, to meet with dozens of private equity firms from around the country to brainstorm and network over pending and future deals. Over the Read More
Three Benefits of Exit Planning
You know the ins and outs of your business like the back of your hand. In fact, you might be one of your business’ most essential assets. If that is the case, you may not maximize your value when you exit. That’s why we encourage owners to plan for their exit long before they are ready to exit, and here’s why…. 1. You identify your goals Creating an exit plan allows you to think about what you want out of the Read More
Why Mediation Works!
Mediation is a process where parties in a dispute mutually agree to talk in hopes of finding a solution to their dispute. The process requires an impartial and respected third-party to facilitate the discussion. This person is called a “mediator.” Having no stake in the outcome, the mediator can help each party understand the point of view of the other, and move the parties in the direction of an agreement. More Read More
It’s Just an LOI, Let’s Sign It and Move On
“Hell’s bells, Jim, it’s just a non-binding LOI, please get him to sign it and let’s get on with this thing.” Bart (not his real name) was unhappy with me. My first clue was this call came in at 6:30am. “You told me our LOI was going to be signed three days ago, what’s the hold-up? I have bankers and investors waiting to hear.” I explained to Bart that my client liked the deal he had on the table and that I was 90% Read More
Don’t Be So Smart That You Kill the Goose That Lays Your Golden Eggs
I’ve never seen a strategy so brilliantly described. Bret (not his real name) was showing me a colorful graphic of how his business worked. The graphic showed six entities revolving around the core business he started about 20 years ago. “Yeah, I’m pretty proud of how it looks,” Bret said to me. “Everybody I show it to immediately gets what I do. You think I can get a 10X deal on my company?” As he nears 60, Bret is Read More
Potential is a Terrible Way to Describe a Business You Want to Sell
Though happily married for almost 33 years, I have some memories of my experiences dating. I once had a friend say “I have somebody you should meet” to which I said, “well, tell me about her.” The response was “she has potential.” I politely declined. Potential is a terrible word to use when describing a potential date, and it’s a terrible word to describe why someone should buy your business. When a business owner Read More
Quasi-Shameless, Yet Highly Relevant Plug
“You are dead wrong if you think I’m gonna be laying in a hospital bed two months after I retire. Hell, I’m not gonna sell or retire.” Two months ago, John (not his real name) retained me to sell his electronics distribution business. He was one of those instinctively-good business owners, he just seemed to do a lot of things right. Look no further than his financial statement for proof, annual revenue of $8 million Read More
