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
An Affair is Always a Bad Idea
Randy (not his real name) was about to make a life-altering decision. He had a need, and he wanted to fulfill it. The long term consequences were of less concern than getting what he wanted, right now. He called me, I suppose, wanting me to tell him it was a good idea. But with years of experience advising men and women in this situation, all I could do was tell Randy the truth from my heart. “Bringing in a minority Read More
September 12, The Day After
Today is the day after September 11, another day that will live in infamy. Ironic that September 11 this year came on the day after Hurricane Irma created historic havoc in my adopted home state of Florida, and one week after unbelievable hurricane devastation in Houston. It seems appropriate today to stop and remember those incredible first responders who go into the face of danger during the hurricanes, be it the Read More
Indifference as a Style of Negotiation
“They have called several times over the past 18 months. Their offer is getting closer to what I want for the company.” Tom (not his real name) called me on the recommendation of his sister who I knew from church. He owns a medical services company that he started in 2005. The company has been profitable from its second year of operation, but the past three years the company has been growing at double-digit Read More
Key Question When Raising Equity: “If This, Then What?”
“I need $1,500,000 to open a new distribution center in North Carolina. It's a home run idea, but how much equity will I have to give up to raise that much?” Johnny (not his real name) and I have been good friends for seven years. We see each other socially several times a year, and once every 5 or 6 months we sit down to a serious conversation about his growing and vibrant medical supply business. “If I ever sell Read More
The Downside of Low Interest Rates
“I’m looking to buy a business, but I'm having the devil of a time doing it. Can you help?” Frank (not his real name) sold his profitable medical supply company three years ago, and is eager to get back to creating value through business ownership. He doesn’t have to work, the money he put in the bank after the sale of his company provides more than enough to take care of his family. But just 42-years old, Frank said Read More
Three Keys to Effective Succession Planning
Whether you plan to sell the business or pass it on to a family member, you want to be proactive to ensure the business will survive and thrive in your absence. This calls for thoughtful and intentional planning. What is Business Succession Planning? Succession planning is a simple concept, though it has many moving parts. The essence of the idea is deciding who you want to leave in charge of the business and Read More
A Funeral, Fried Chicken and Valuable Lesson
Little did I know I'd learn something at a funeral to help me appreciate an important lesson regarding the successful sale of a professional services business. I had returned to Orlando, where I spent the first half of my business career, to attend the funeral of a dear family member. After the funeral, the church hosted a covered dish dinner for family and friends. While going through the food line, I bumped into Read More
Selling to Private Equity … Losing Control
“Please, Jim, you have to help me unwind this disaster. The private equity firm’s pitch was so convincing, but those guys don’t know what they’re doing.” I had never met Geoff (not his real name), but he was referred to me by his cousin who is a family friend. Geoff described his dilemma during our first call. “I sold my company four years ago. This PE group from Chicago made me an offer that was too good to be Read More
Is It OK to Pay Too Much for a Business? (hint: yes, and it might even be a smart thing)
When he walked into Starbucks with a big red notebook under his arm, I figured the meeting might not go as planned. I had worked with Robert (not his real name) for almost four months. We had met through a mutual friend who knew Robert and his wife were looking to leave corporate life and buy a business they could run together. Robert had contacted me to see if I had any companies he might be interested in buying. I Read More
