“Do you think we will ever get this deal done? Maybe I should pull back and wait another year or two to sell the company. I could sell it for more, right?” Rhonda (not her real name) is frustrated, and for good reason. The buyer had scheduled closing for April 30, and things were moving along nicely until the pandemic hit. The buyer’s due diligence team flew back to their home office on March 12, and nothing has Read More
Preparing a Board Presentation, Even If You Don’t Have a Board?
“That might be the most insightful thing I’ve heard during this awful pandemic.” Mason (not his real name) and I were recently discussing his interest in making an acquisition. He is not a client; he isn’t looking to sell his Nashville business any time soon. We met four 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 Read More
Time to Ditch Your Investors?
“I have so many plans to grow my company, but my investors won’t let me do anything that jeopardizes their quarterly dividends.” Sarah (not her real name) didn’t strike me as a hard-charging entrepreneur, but in just four years, she had turned an idea into a seven-figure profit-producing machine. To launch her idea, Sarah needed capital which she raised from three individuals, each of whom bought 20% of the company. Read More
Stuck in Place
“I can’t afford to sell my business ... what am I going to do, work ‘til I die?” I hear this way too often. Here’s the scene, a business owner is ready to retire and calls me about selling their business. I’ll review three to five years of financial statements and tour the business. In the course of this I’ll learn about the company’s product/services, its customers and organization. It's not rocket science, it Read More
Beware the Guy With a Shotgun
“I get calls, emails and letters all the time from people telling me they want to buy my company, or that they represent someone who wants to buy my company. How can I know who’s for real or not? I’d like to sell my company, but I also have to keep running it and I can’t afford to waste time on somebody's wild goose chase.” Felix (not his real name) heard me speak at a recent conference and came up to me afterwards. Read More
The Importance of Accountability When Selling to Key Employees
Rob and Randy have a successful 22-year business relationship. While they are not ready for retirement, they have asked me to help them plan to sell their professional services business in four to six years. Instead of selling their business in the open market where they’d likely be bought by a competitor, Rob and Randy want to sell to their three key employees. However, those employees don’t have the financial Read More
Lessons From the Last Decade That Will Affect This Decade
In recent days, you’ve likely seen a number of news reports reviewing highlights of the last decade. 2010 seems like yesterday to me, maybe because that was the year I started my business brokerage firm, Tennessee Valley Group. Although it’s a cliché, the past ten years have flown by for me. I’ve made many new friends while shepherding deals with total value of about $250 million. I've completed deals in healthcare, Read More
Is Your Business Your Dialysis Machine?
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 $500,000 a year the past several years. We sat down recently to discuss her interest in selling. “I just became a grandmother. My daughter and her husband are going to need more of my time than I can give if I’m still running the company. I’d like to sell it now and live off the Read More
What You Don’t Learn Investing in Real Estate
“You know what they say, you make money as long as you can buy right. No way I’m paying more than five times earnings for that business.” Sean (not his real name) is a real estate investor who has done exceedingly well the past decade. We recently had lunch to discuss his interest in redeploying some of his investment dollars into an operating business. “I still love opportunities in real estate, but I want to be Read More
The Buyer’s Stretch Marks
“We were told if our revenue was greater than $5 million, we’d be an attractive acquisition target. We got there, but we’ve had to sacrifice profitability.” I met Charlie (not his real name) at the office of his wealth planner. They were developing a retirement plan for Charlie and his wife. They asked me to help them determine his company’s market value and discuss timing to sell it for maximum value. Charlie was Read More
