“It doesn’t work that way. You don’t value a business then add asset values to it. The market value of your assets is embedded in your business’ valuation.” Henry (not his real name) was one disappointed guy. But our conversation didn’t start that way. We were talking about his interest in taking his business to market in early 2023. As we walked through his manufacturing plant, I surmised most of his equipment was Read More
I Have a Buyer (insert eye roll here)
“He said he had a buyer for my company, but he wouldn’t give me any details until I gave him my financials. I should have known he was just fishing.” Zoe (not her real name) reached out to me on the recommendation of her financial planner. A few weeks earlier she received an unsolicited call from a local business broker who told her he had a buyer for her company. The broker’s call came at an interesting time, as Read More
When Family Legacy is a Boat Anchor to Decision Making
She could barely hold back the tears. Wanda (not her real name) was telling me how her grandfather started the business after World War II. Her dad took it over in 1974 when her grandfather was diagnosed with Parkinson’s disease. Wanda started in 2002, and her dad poured his heart and soul into training her to take over the company. Unfortunately, he had a rare heart disease and died in 2007. “I wasn’t ready to take Read More
How to Find the Right (Best) Strategic Buyer
“I don’t know, Jim, I think it’s time to sell. I just can’t seem to pull the trigger.” I met Jack (not his real name) a few months ago because our grandsons play on the same baseball team. We’ve never talked business, but recently Jack casually asked, “How's the market, Jim, are you staying busy?” That opened the door to talk about the current market for private businesses, at which point Jack opened up about his Read More
The Risk of Waiting
“At the rate I am growing, shouldn’t I wait a couple of years to sell my business? I’m bound to sell it for more if I wait.” Colin (not his real name) owns a fantastic business. He bought it 17 years ago with no idea it would become as successful as it is today. “I was just tired of my job in an office building, I didn’t become an entrepreneur to get rich,” he said as he told me how he got into the business. But by Read More
Can You Be Making Too Much Money?
Adam (not his real name) is an easy-going hard charger. Yes, that sounds like an oxymoron, but Adam is the kind of business owner who looks like a duck floating smoothly, but he’s paddling like crazy below the waterline. He is a second-generation owner, he took over a business his dad started and made it much better. But, the pandemic of 2020 hit Adam very hard. His business was not considered “essential,” so he was Read More
Beware the Valuation Mirage
I’m glad I never had to compete against Randy (not his real name). He is one tough bird. Introduced to him by his wealth planner, I am working with Randy to sell his company to a competitor who is in an aggressive consolidation mode. But before we could make much progress, I had to get some bad information out of Randy’s head. In fairness to Randy, it’s common that a business owner comes into the process to sell Read More
Can You Afford to Watch It Go Up in Smoke?
Covid has wrecked his business. Paul (not his real name) owns a company that is a leading player in Nashville's trendy food scene. As everyone knows, the restaurant sector has been decimated by pandemic-driven shutdowns. To raise cash, Paul asked me to help him sell a minority interest he owns in a business in Texas. Paul was hoping the proceeds from selling that minority interest could be reinvested back into his Read More
Balancing Risk and Reward
I met Wayne (not his real name) through an introduction from his financial planner. Wayne owns a successful business in Mississippi that he had taken over after his dad's death nine years ago. Long hours and employee management issues were taking a toll on him and resultantly, his family. In early 2020, he promised his wife he’d consider selling his business. Wayne started the process by asking his Memphis-based Read More
Don’t Expect an Outlier Valuation
Frank and Wanda (not their real names) are avid golfers. Members at one of Nashville’s finest country clubs, they play at least once a week. They even take an annual golf vacation, sometimes to the home of golf in Scotland. I recently met Frank and Wanda via a Zoom call on the recommendation of their wealth planner. They are interested in selling the company they started in the late ‘90s. They told me they decided Read More
