Secrets to Selling Your Business

Chris Tatge, founder and president of DC Materials, has transformed his journey from a struggling high school student to a self-made entrepreneur disrupting the construction industry. DC Materials, known for its innovative approach to framing labor and materials in multifamily construction, ranks as the 539th fastest-growing private company in the US and third in Wisconsin on the 2023 Inc 5000 list. Tatge’s unique business model, combining material and labor services, strategic wholesale purchasing, and value engineering, has fueled the company’s exponential growth and positioned it as a leader in the industry. Despite challenges like fluctuating material costs during the pandemic, DC Materials thrived by leveraging agility and adaptability. Tatge’s insights into the construction labor market, plans for expansion with a larger lumberyard and office space, and a focus on off-site construction underscore his vision for continued innovation. His involvement with the National Framework Council and experience with professional framing contractors inspired a shift in focus toward material profit, driving the company’s success and influence in the evolving construction landscape.

Here’s what to expect this episode:     

• Innovative Business Model: DC Materials stands out in the Wisconsin market for its unique approach of combining both labor and material provision in the construction of multifamily wood apartment buildings.

• Adaptability During the Pandemic: Navigating the challenges of the COVID-19 pandemic, particularly in dealing with fluctuating material costs.

• Professional Growth and Industry Influence: Tatge’s personal journey from a hands-on carpenter to an industry innovator is highlighted.

• Future Expansion and Industry Trends: insights into broader industry trends, such as significant mergers and acquisitions in the lumber space and the increasing venture capital interest in construction innovation.

• Commitment to Quality and Labor Relations: The importance of quality in their projects and maintaining good relationships with subcontractors.

Connect with Chris Tatge:

https://www.linkedin.com/in/chris-tatge-38007a72/

Connect with Jacob Koenig:

https://woodbridgegrp.com/

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Purdeep Sangha, strategic advisor and co-founder of Sell Wealthy, is renowned for his expertise in guiding business owners through successful sales by harmonizing the personal, business, and family aspects of their lives. He emphasizes the significance of early preparation and structured introspection to facilitate emotional and mental readiness for a smooth transition post-sale. Sangha highlights common challenges such as emotional attachment to the business and its impact on personal relationships, advocating for a solid financial plan and a mindset shift to address these issues effectively. By focusing on self-discovery and core value alignment, Sangha aims to empower business owners to create a meaningful legacy and ensure a successful exit strategy that transcends mere financial gain.

Here’s what to expect this episode:

• Emotional readiness, as well as personal and family alignment are crucial steps before selling a business.
• Misconceptions about selling a business include the belief that it is easy and the timing will be perfect.
• Legacy in family businesses involves navigating the impact on the next generation and avoiding passing on unsustainable work habits.
• Exit planning for a business requires intentional strategy, proper timing, and emotional readiness.

Connect with Purdeep Sangha:

https://www.linkedin.com/in/purdeepsangha/

Connect with Jacob Koenig:

https://www.linkedin.com/in/jacobkoenig/

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Michelle Orr is a seasoned professional with an impressive 25 years of experience in the SBA lending space, beginning her career at Textron Business Credit and later becoming the vice president of lending at Live Oak Bank. Orr’s perspective on SBA financing and prequalification is heavily influenced by her extensive experience in this field, particularly in business buyouts. She believes that SBA financing, especially the seven a loan, plays a crucial role in the lending process as it provides a 75% guarantee for banks which allows them to approve loan requests they would otherwise reject. Orr stresses the importance of buyer prequalification early in the process, arguing that a well-prepared buyer stands a higher chance of not only executing a deal successfully but also of being taken seriously. She emphasizes the need for consistent cash flow revenue trends and profitability when evaluating loan requests and underscores the importance of maintaining open lines of communication and providing exceptional customer service throughout the financing process.

Here’s what to expect this episode:

• Insights from a specialist in franchise lending, general lending, and business buyouts.
• SBA financing policies now allow for partial change of ownership opportunities, adjustments in equity injections, and seller involvement in financing.
• ESOP financing offers a flexible and creative solution for financing diverse potential acquisition targets.
• The M&A market’s future looks promising with expectations of strong acquisition activity, potential decrease in interest rates, and increased focus on deal specifics.

Connect with Michelle Orr:

 https://www.linkedin.com/in/michelleaorr/

Connect with Jacob Koenig:

https://woodbridgegrp.com/

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Joseph Gitto, a seasoned entrepreneur and founder of Blue Sky Advisory Services, brings over 25 years of expertise in business sales across various industries. A CPA by training, Gitto underscores the importance of maintaining clean financial records and having a strong team as foundational elements for a successful business sale. He advises business owners to initiate sale preparations at least 36 months in advance to align with personal financial goals and ensure tax efficiency. Emphasizing the value of professional guidance, Gitto highlights the need for strategic planning and transparent communication to manage the risks and emotional complexities involved in selling a business.

Here’s what to expect this episode:

• Organized financial records are crucial to avoid complications during a business sale.
• Having a competent team can enhance the value of a business being sold.
• Strategic planning over a 36-month period is essential to align personal and business financial goals for a smooth sale process.
• Preparing for life after selling a business is critical, including defining new purposes and navigating emotional transitions.
• Engaging with professionals like M&A advisors is crucial during a business sale to manage emotional aspects, planning, and non-monetary factors.

Connect with Joseph Gitto:

https://www.linkedin.com/in/josephgitto/

Connect with Jacob Koenig:

https://www.linkedin.com/in/jacobkoenig/

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Sid Mohasseb, a seasoned entrepreneur and venture investor, offers a unique perspective on business evaluation, emphasizing the transformative power of experiential insights over

traditional analytical methods. With his extensive background in mergers and acquisitions, Sid underscores the importance of firsthand entrepreneurial experience, highlighting how it provides a deeper understanding of the inherent challenges and risks. He believes that entrepreneurship should be viewed as a dynamic exchange for higher value, advocating for decisions fueled by personal growth rather than mere financial gain. Through initiatives like the Anabasis Academy, Sid is dedicated to equipping aspiring entrepreneurs with the resilience and leadership skills necessary to navigate their journeys, fostering a focus on personal growth and stakeholder satisfaction.

Here’s what to expect this episode:      

• Understanding the real challenges faced by entrepreneurs is crucial for evaluating businesses.
• Transitioning from episodic value to streaming value can increase a business’s overall worth.
• Separating oneself from the business identity is important when passing on a business as a legacy.
• Entrepreneurship involves making choices and taking risks in different aspects of life, not just chasing money.
• Focusing on the reasoning behind buyers in business transactions can lead to securing better deals and success.

Connect with Sid Mohasseb:

https://www.linkedin.com/in/mohasseb/

Connect with Jacob Koenig:

https://www.linkedin.com/in/jacobkoenig/

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Brian Samson, the founder and CEO of Plugg Technologies, is a prominent figure in the tech startup ecosystem of San Francisco, leveraging his extensive experience in nearshore staffing to connect Latin American talent with U.S. companies. Having navigated the dynamic landscape of tech startups through various economic cycles, Samson recognizes the unique challenges and abundant opportunities that the city offers, particularly during periods of economic recovery. He understands the importance of resources such as funding and infrastructure in fostering the growth of successful startups and emphasizes creating predictable revenue for small businesses to attract potential buyers. Through his work and investments, Samson remains committed to supporting founders who demonstrate integrity, creativity, and a strong work ethic, believing these qualities are essential for a company’s success in an ever-evolving market.

Here’s what to expect this episode:      

• San Francisco provided a favorable ecosystem for tech startups with resources, capital, and lower costs.
• Transitioning from pre-IPO to post-IPO involves a shift towards a more serious culture and focus on compliance. 
• Companies are exploring capital efficiency through near shoring and AI tools to boost competitiveness.     
• Near Shoring Strategies for Enhanced Competitiveness and Success    
• Investment decision-making focuses on founder qualities like integrity, work ethic, creativity, and vision.

Connect

with Brian Samson:

https://www.linkedin.com/in/briansamson/

Connect with Jacob Koenig:

https://www.linkedin.com/in/jacobkoenig/

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Marilyn Garcia is a seasoned professional in transaction advisory services, currently serving as a partner at Citrin Cooperman’s transaction advisory services department. With a solid background in auditing and over 200 transactions to her credit, Garcia holds a positive perspective on transaction advisory services, viewing them as a significant value-add compared

to audit. She underscores the importance of being well-prepared, educated, and knowledgeable about one’s business and product to attract buyers and maximize both financial and emotional gains. Her career has seen the evolution of transaction advisory services, from a focus on private equity to encompassing a broader client base, including small businesses. Garcia also notes an increased demand for these services post-COVID-19, and remains optimistic about the future of the industry.

Here’s what to expect this episode:

• Marilyn Garcia is a partner in CitrinCooperman’s transaction advisory services department.
• She primarily works with sell-side clients, helping them understand the value of having their own quality of earnings done prior to any potential transactions and educating them on the terms and processes involved.
• Marilyn adds value to the transaction process and assists clients in achieving better outcomes.
• Being prepared, educated, and knowing your business and numbers is crucial when entering into a transaction.

Connect with Marilyn Garcia:

https://www.linkedin.com/in/marilyn-garcia-1a1a3120/

Connect with Jacob Koenig:

https://woodbridgegrp.com/

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Steve Wampold is an innovator and entrepreneur known for bringing joy through creative product design. As the founder of BigMouth Inc., he revolutionized the novelty pool float market, achieving multi-million-dollar success and earning Target’s “Vendor of the Year” in 2016. In an interview with Jacob Koenig, Steve reflects on his entrepreneurial journey, from selling practical jokes online to founding BigMouth in the early 2000s, where he grew the company significantly by selling to major retailers. After seeking advice from Woodbridge and Larry Reinhart, Steve sold BigMouth through a competitive process that exceeded his expectations. Now, as CEO of Bouncy Bands and Punchkins, Steve continues to create joy-driven products while enjoying the freedom of working with a small, tight-knit team.

Here’s what to expect this episode:

• Entrepreneurial Evolution: Steve’s story is a testament to how entrepreneurial vision, when coupled with creativity and persistence, can lead to substantial growth and success.
• Strategic Decision-Making in Business Sales: The decision to explore the market through a sell-side engagement, highlights the importance of understanding market dynamics and being open to opportunities that may reshape a business’s future.
• The Emotional Aspects of Selling a Business: They discuss the period of adjustment post-sale and the mix of excitement, uncertainty, and nostalgia that business owners often face during and after the transition.
• Life After a Major Business Transaction: Steve talks about his ventures post-Big Mouth, specifically Bouncy Bands and Punchkins, emphasizing the importance of continuing to pursue one’s passion and the joy of creating new products without the intense pressures of his previous role.
• The Importance of the Right Partnerships and Advice: The episode underscores the value of expert advice, thorough market exploration, and strategic positioning in achieving favorable outcomes in business transactions.

Connect with Steve Wampold:

https://www.linkedin.com/in/steve-wampold-002a5547/

Connect with Jacob Koenig:

https://woodbridgegrp.com/

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Chandler Lyles’s journey is a testament to resilience and adaptability, tracing a path from his early days in the Air Force to becoming a co-founder of High Beam Marketing. Reflecting on his experiences, Chandler notes the pivotal role that encounters with entrepreneurs played in inspiring his own business ventures. Despite setbacks, such as a failed restaurant venture, the knowledge and insights he gained while working for Dave Ramsey significantly enriched his marketing acumen. Today, Chandler leverages his diverse background to help clients excel in digital marketing, underscoring the importance of emotional appeal and storytelling in creating effective paid ad campaigns.

What to Expect This Episode:

• Perseverance and learning from failures are crucial for success in the world of business
• High Beam Marketing specializes in digital marketing services, focusing on helping clients run paid ads to boost sales
• Having a strong online presence through marketing, branding, and advertising is essential for business growth
• Utilizing creative content and targeted ads on platforms like Google and Facebook can effectively reach potential customers
• Incorporating video content in investment materials is important for businesses seeking investors, building trust and credibility

Connect with Chandler Lyles:

https://www.linkedin.com/in/chandlerlyles/

Connect with Jacob Koenig:

https://www.linkedin.com/in/jacobkoenig/

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Dan Nicholson is a serial entrepreneur with a diverse background in finance, accounting, and software, bringing a wealth of experience to small business owners. As the author of “Rigging the Game,” he emphasizes the importance of achieving financial certainty and managing risk for entrepreneurs. Nicholson advocates for optimizing financial strategies to align with individual goals and needs, rather than simply maximizing shareholder value. By implementing a structured financial operating system, including a cash flow protocol and 15 key financial rules, Nicholson helps business owners reduce uncertainty and make more informed decisions, ultimately aligning their business goals with their personal values for sustainable growth.

Here’s what to expect this episode:

• Financial certainty and risk management are crucial for small business owners
• Optimizing for the life they want is more important than just maximizing shareholder value
• Implementing financial rules and protocols can enhance ROI and overall business performance
• Aligning business with personal values is key to avoiding unnecessary risks and regrets

Connect with Dan Nicholson:

https://www.linkedin.com/in/dan-p-nicholson/

Connect with Jacob Koenig:

https://woodbridgegrp.com/

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