Secrets to Selling Your Business

Matt Sharrers, managing partner and co-founder of ETJ and chairman of SBI Growth, brings a wealth of expertise to the complex topic of founder transitions in companies. Drawing from his own experience of stepping into the CEO role at SBI after founder Greg Alexander’s departure, Sharrers emphasizes the emotional and cultural challenges inherent in such transitions. He underscores the need for founders to find new purpose post-leadership and to understand that their identity extends beyond their professional role. Passionate about coaching first-time CEOs, Sharrers advocates for careful planning, self-reflection, and clear communication to ensure a smooth and successful transition, ultimately fostering value creation and organizational growth.

Here’s what to expect this episode:

• Founder transitions can have a significant cultural impact on employees.
• Founder self-awareness and humility are crucial for a successful transition to a second CEO.
• Investors assessing companies with second CEOs should focus on board advisors, value creation, and trust with leadership.
• Founder Equity Roll can help preserve the emotional narrative of a business during acquisitions.

Connect with Matt Sharrers:

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

Connect with Jacob Koenig:

https://woodbridgegrp.com/

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Chris Kampitsis, co-founder of the SKG team at Barnum Financial Group, brings a wealth of knowledge and experience to the realm of business and exit planning. With a foundation in financial planning dating back to 2009, Chris emphasizes the critical importance of aligning a business owner’s personal financial goals with their business objectives. He advocates for a thorough and collaborative approach, involving specialists and third-party experts to craft comprehensive plans that address every aspect of a business’s needs. Moreover, Chris underscores the necessity of protecting and growing business value, highlighting key areas such as management team strength, risk mitigation, and financial transparency to ensure a seamless and successful transition.

Here’s what to expect this episode:

• Collaborative approach to financial planning involving specialists handling different areas of clients’ financial world
• Importance of exit planning for business owners to ensure a smooth transition post-sale
• Seven-step exit planning process that includes quantifying personal and business resources
• Preparing a business for sale involves cleaning up financials, demonstrating growth, and maximizing value to attract premium offers

Connect with Chris Kampitsis:

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

Connect with Jacob Koenig:

https://woodbridgegrp.com/

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Michael Clear, the chair of private client services at Wigan law firm, brings a unique perspective to the field of estate planning and business succession. With a background in counseling and a rich legal career since 2005, Clear specializes in guiding business owners and closely held businesses through the intricacies of estate planning. He emphasizes the importance of timely and proactive planning, structured around foundational, liquidity, and advanced phases to cater to each business’s unique goals. Clear passionately advocates for early action in estate planning to address estate tax implications and to employ strategies like trusts and buy-sell agreements, ensuring smooth transitions and asset protection for future generations.

Here’s what to expect this episode:

• Michael Clear specializes in estate planning and business succession for business owners and closely held businesses.
• Importance of having a revocable trust and proper succession planning tailored to each business’s specific needs.
• Early tax planning strategies can help reduce tax liabilities for business owners.
• Taking early action in creating a solid foundation for future growth and development is crucial.

Connect with Michael Clear:

https://www.linkedin.com/in/michael-clear/

Connect with Jacob Koenig:

https://woodbridgegrp.com/

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Michael Frew, a seasoned serial entrepreneur and the owner of multiple SaaS businesses, has carved a niche for himself in the competitive landscape of online business acquisitions. Leveraging his engineering and development background, Michael transitioned from a long corporate career to focus on acquiring online companies, targeting businesses with owners motivated by reasons beyond just financial gain. He emphasizes the significance of building strong relationships with sellers, ensuring that there’s mutual alignment in mission and customer focus. By utilizing a diverse mix of cash, debt, equity, and earn-outs, Michael remains adaptable and strategic, continuously learning from both successes and challenges to refine his approach and maintain his passion for running these businesses.

Here’s what to expect this episode:

• Importance of mindset, financing, due diligence, and transition planning in acquiring online businesses.
• Significance of aligning businesses with one’s niches and specialties, and having a well-thought-out transition plan.
• The evolving financing approach in online business acquisition by incorporating borrowing, debt, equity, and earn-outs.
• The need to consider compatibility, vision alignment, and working together post-sale in business acquisitions and sales.

Connect with Michael Frew

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

Connect with Jacob Koenig:

https://woodbridgegrp.com/

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Bobby Mascia is a seasoned finance professional with a robust portfolio in business valuation and market dynamics. After building his foundational skills in investment banking and working within asset management firms and hedge funds, His expertise was put to the test when he transitioned into his family’s Dunkin’ Donuts franchise business, growing it from 20 to 40 locations that generated over $50 million in revenue. Bobby’s experiences have shaped his perspective on business valuation and market dynamics, emphasizing the importance of understanding the market’s willingness to pay. He believes in the need for flexibility, a realistic view of a business’s worth, and finding a buyer who aligns with the seller’s goals and values, demonstrating that financial, emotional, and strategic factors are all crucial when valuing and selling a business.

Here’s what to expect this episode:

• Building a strong team and reinvesting profits are crucial for sustainable growth in businesses
• Business succession planning is important for building businesses that can thrive without the owner’s constant presence
• Determining the value of a business involves market demand, strategic partnerships, and realistic expectations when selling
• Negotiation challenges can arise when business owners handle deals themselves, highlighting the importance of having a team to represent their best interests
• Institutionalizing business processes and focusing on the business running efficiently without the owner’s constant presence are key in exit strategy planning
• Considerations for tax implications, legal structuring, and post-transaction life planning are crucial for successfully exiting a business

Connect with Bobby Mascia

https://bobbymascia.com/

Connect with Jacob Koenig:

https://woodbridgegrp.com/

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Episode Summary:

John Frank is a distinguished professional who made a remarkable transition from the bustling sphere of finance to the strategic field of consultancy. Commencing his career in institutional fixed income trading, he further explored varied roles in Arthur Anderson M and A advisory, leveraged finance, and institutional fixed income sales before leaving Wall Street in 2013. John’s perspective on this career shift is underpinned by his belief in embracing change and seizing new opportunities, a mindset which was triggered when he began aiding small to mid-size organizations in the nonprofit sector. His journey into the establishment of his own management consultancy, Third Road Management, underscores the importance of adaptability, risk-taking, and alignment of core values across professional pursuits. With a commitment to empathy, relatability, and integrity, John highlights the significance of personal growth in successfully navigating career transitions.

Here’s what to expect this episode:

• John Frank transitioned from a high-paying Wall Street job to working in the nonprofit sector before founding his consultancy firm in 2014.

• The core principles of Third Road Management focus on personalized client service and continuous value addition, emphasizing genuine relationships and impactful contributions.

• Third Road Management differentiates itself in the financial industry by articulating a clear vision statement, upholding Midwest values, and taking a holistic approach to understanding organizations.

• Financial expertise is crucial in business sales, with an emphasis on quality of earnings analysis, presenting a compelling narrative to buyers, and addressing hidden risks like personnel-related issues.

Connect with John Frank

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

Connect with Jacob Koenig:

https://woodbridgegrp.com/

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Kate Hufnagel is a seasoned professional with a solid background in engineering and an extensive 25-year career in big tech, including a tenure as a federal employee at the Central Intelligence Agency. Her perspective on business continuity and digital legacy planning is profoundly shaped by her professional experiences. Hufnagel emphasizes the critical role of reliable documentation and information storage in a digital format for ensuring operational continuity and security, a lesson she learned during her service at the agency. As the founder of the Digital Wrangler, she leverages her expertise to help solopreneurs and small to medium-sized business owners prepare for potential succession and business sale, focusing on digital aspects such as online accounts and financial records. Her approach is proactive, identifying blind spots in digital legacy planning to ensure a smoother transition and a more confident business owner.

Here’s what to expect this episode:

• Having a comprehensive plan in place is crucial for preparing to sell a business
• Business owners need to organize digital accounts, formalize succession plans, and implement data security measures when selling their businesses
• Consultants play a critical role in guiding owners through the business transition process to ensure a successful outcome

Connect with Kate Hufnagel

https://www.thedigitalwrangler.com/

Connect with Jacob Koenig:

https://woodbridgegrp.com/

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 Stephen Steers is a renowned consultant and author with a notable background in storytelling in sales, a skill honed through his experience working with approximately 1000 companies worldwide following his transition into consulting from the sales industry. Steers considers storytelling as a pivotal aspect of sales, particularly when the objective is to sell a business. Drawn from his extensive experience and insights, he emphasizes the role of narratives in demonstrating systems and processes that prospective buyers would be interested in. He advocates for storytelling that focuses on positive outcomes, such as improved customer acquisition, effectively communicating business value. Steers insists that aligning storytelling with the benefits and outcomes for customers, rather than merely highlighting product features, is instrumental in engaging customers and fostering memorable experiences that can result in referrals.

Here’s what to expect this episode:

• Storytelling is key in sales to sell outcomes rather than products and connect with customers on a deeper level.
• Crafting narratives that resonate with buyers’ aspirations and goals is crucial for engaging and influencing potential customers.
• Using context-driven strategies in sales, such as personalized messages and storytelling, helps establish meaningful connections with customers.
• AI in Sales can personalize customer interactions but should be complemented with storytelling and context selling for sustainable results.

Connect with Stephen Steers

https://www.stephensteers.com/

Connect with Jacob Koenig:

https://woodbridgegrp.com/

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Kim Hegwood, founder of Your Legacy Legal Care, transitioned from a career in litigation to specialize in estate planning with an emphasis on elder law, fueled by her close bond with her grandparents. Hegwood accentuates the importance of incorporating business succession planning into estate planning, recognizing the necessity of planning for incapacity, not just death. Her perspective, informed by experiences in helping families navigate dementia and guardianship issues, emphasizes precautionary measures such as updating business agreements and meticulous documentation to protect business assets. Hegwood’s strategic approach to estate planning includes elements like minimizing tax implications and planning the transition of the business to the next generation without triggering estate taxes. Her unique insight combines her proficiency in elder law and estate planning, offering comprehensive and strategic solutions for business owners aiming to secure their legacy and life’s work.

Here’s what to expect this episode:

• Seeking professional expertise is crucial when selling a business to ensure a successful transition and maximize value.
• Estate planning is essential for asset protection and succession planning for business owners.
• Creating trusts for minor children in estate planning is recommended to avoid unnecessary expenses and court involvement.
• Having a comprehensive succession plan for family businesses is crucial to prevent entitlement issues and family conflicts.
• Conducting meetings, keeping minutes, and documenting decisions are vital steps in safeguarding a business’s assets and future success.

Connect with Kimberly Hegwood

https://yourlegacylegalcare.com/

Connect with Jacob Koenig:

https://woodbridgegrp.com/

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 Andrew Legrand, the founder of the Spira Law group, established the firm in 2011 with a vision to modernize the legal industry. Drawing from his own experiences during the financial crisis, Legrand identified a gap in the market for preventive legal services for business owners. His perspective is that by proactively seeking legal advice, business owners can avoid costly, sometimes irreversible problems. Believing in acting as a general counsel for his clients, he provides services such as contract reviews, brand protection, succession planning, insurance policy reviews, and HR and employment guidance. Legrand’s approach, shaped by the belief that legal problems faced by businesses are either insurable or preventable, emphasizes on practical problem-solving and helping business owners avoid legal pitfalls before they escalate.

Here’s what to expect this episode:

• Proactive legal services aim to prevent legal issues from escalating for business owners by offering contract reviews, protecting intellectual property, creating succession plans, and resolving HR and employment issues.
• Subscription-Based Legal Services provide clear upfront pricing and ongoing support through flat fee and subscription-based models exclusively for business owners, bridging the gap between DIY legal work and high-priced law firms.
• Legal decisions can prevent negative impacts on business operations by considering legal costs before transactions, investing in legal protection like trademarks and contracts, and consulting with a business lawyer to mitigate risks and ensure compliance.
• Considering legal expenses in business decisions is crucial to avoid costly issues like trademark infringements, brand theft, and firing employees without proper legal measures.
• Having legal affairs in order when selling a business is crucial to avoid jeopardizing the transaction, ensuring representation by legal counsel for buyers, addressing issues with licenses and leases, and having the right insurance in place.
• Hiring a good lawyer may incur costs but can save a business money in the long run by proactively addressing legal issues, ensuring contracts are clear, protecting intellectual property, creating succession plans, and obtaining the right insurance coverage.

Connect with Andrew Legrand

https://speralaw.com/about/andrew-legrand/

Connect with Jacob Koenig:

https://woodbridgegrp.com/

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