There is a small (minuscule, really) fraction of entrepreneurs that build their company with the end in mind. Then there is everyone else. The problem is no one tells you about the financial and emotional ramification the lack of planning has on your satisfaction and happiness in a life after business.
Think about all the things that could potentially impact your decision to maintain ownership of your business. A triggering event can come from anywhere at any time.
Of course, there are the typical business environment factors that lead the triggering point, competition, decreasing margins, employee issues, growth problems, financial struggles, etc.
Even more common are the wide variety of personal tragedies that can trigger the want or need to sell a business: divorce, death, disability, family conflicts, child issues, being burnt out, or one of the worst—boredom.
One of the most unexpected, and most welcome, triggering events is an offer you just can’t refuse.
If you are like most entrepreneurs you are thinking to yourself, “I am good at chaos, I can handle the situation as it arises.” You are probably right. You are most likely very good at handling the unknown as it is thrown at you. That is how you have succeeded in the past, no?
There are many more factors to selling than to get the best price.
The challenge of transitioning out of a business is that it is not just a technical process but an emotional journey as well. Owners that do not focus on who they are and what makes them happy prior to selling their business have a significant chance of being unhappy after the exit of their business.
If you are too busy doing there is no time to reflect.
With no time to reflect on what you want from your company and why the chances of unintended consequences are huge. Once the sale is complete and you are fully transitioned out of your business there is no way to redo any of your actions.
You will have a long time to ponder what you wish you had done differently.
Wouldn’t it be great to leave with a huge smile on your face because you were in control of the process, dictated the outcome, and excited for what was next to come?
How and when do you decide to sell you business? Will it be a result of some external factor or will it be of your own choosing—guided by the plan you have put in place.
My guest today is Peter Lehrman the Founder and CEO of Axial, and we’re going to be talking about the market of buying and selling privately held companies, the inefficiencies as well as the progress. Peter is CEO and founder of Axial, responsible for delivering the company’s vision to become the trusted platform where private companies and their trusted advisors connect with capital. Prior to Axial, Peter worked in private equity at SFW Capital Partners and was part of the founding team at Gerson Lehrman Group, where he helped to build the company’s global technology platform for on-demand business expertise. He earned his undergraduate degree from the University of Virginia and received his MBA from Stanford Business School. He lives in New York with his wife Eve and their four children. If you’re a business owner thinking about selling for the first time, and you have no idea where to start, this episode is for you. There’s a ton of information out there about how and when to sell your company, but not all advice is weighted equal. Bad advice goes a long way to souring your view on selling your company. Let’s turn to a market expert who will share how to find and assess M&A advisors that align with your goals. Peter Lehrman is the Founder and CEO of Axial — a marketplace where small businesses can find their next M&A advisor, investor or buyer — and he’ll help clarify what areas you need to educate yourself in and how best to achieve that education in time to make a positive difference in the sales process. On today’s show, we talk about inefficiencies between the buyer and seller, ...
On today’s show, we have David Hauser, former founder of Grasshopper — a virtual telephone service — which sold for $165 million in cash and $8M in stock to Citrix. David is a metric master and shares with us some of the marketing and operational strategies that enabled them to grow from zero to $30 million in 12 years. He breaks down how to leverage key metrics like client acquisition costs (CAC) and the lifetime value of a customer (LTV) to exponentially scale a business. We talk about goals, failures and opportunities met along the way as David became a serial entrepreneur and how his ability to keep his learning high and wide-lens helped him stay strong in new markets as an angel investor. What You Will Learn In Today's Podcast Interview Why David says running a good business is the most valuable — and value-building — thing you can do The missing piece of advice when it’s time to sell your business How to attract business just by acting with integrity and following through on what you say you’ll do The value of doing each job yourself before you hire for the role Why Grasshopper used paid marketing, how much they put into doing it and how they evaluated the outcome The power of routine How David achieved 30% of his business from referrals The way David funded Grasshopper’s growth, the company he took from zero to 30 million, and sold after 12 years Why you should see business profits as growth capital rather than income What blended client acquisition costs (or CAC) are and how to evaluate their efficiency The difference between marginal and total CPA How much can (and should) you spend to catch up on churn Our success ...
We’ve got a seriously wise man on the show this week. Not only did he sell his business for way more than the original offer, he then strategically mapped out the framework for his second half and he is having a blast doing it! Rob’s goal for his life after business was to go into another venture, but despite feeling restless while working for the company he sold to, he only took the plunge once he had identified an opportunity that met the five strict criteria he’d devised. He is a great example of how good planning can set you up to succeed in a life after business, which of course is exactly why we’re here! How was the business valued when Rob first bought it? His investor used a multiple on the company’s net income and arrived at a figure. It was then agreed that whatever percentage of the figure Rob was able to pay would ultimately equal the share of the business he would receive. Rob eventually ended up hitting 100% and took full control of the business. How did he grow the business? The business was strictly grown out of profits. After the initial investor was out of the equation, there was no external financing. What was the key decision that made his first business a success? They hired a management consultant that forced them to really get a hold of their metrics. In his words: “that was the most transformational thing as CEO – it had the greatest impact”. The increased accountability for all staff made results improve immediately. One of my favorite things that Rob said was that the metrics and data got him and his employees all working in the same ...