Business Exit Stories

An acquisition of a firm where the founder had a long-term strategic vision and how they wanted to exit. Because of this vision, he turned down a cash buyer. While most of the episodes on this podcast place price as an important consideration but not the only consideration, it’s rare to have a cash deal turned down and to accept 80% carry back plus an earnout.

A blockbuster deal where a firm could have acquired a billion-dollar company that was over three times the size of his firm and why it didn’t work out.

Walking away from a deal that was months in the making and where there was a lot of hard work and due diligence expense and time invested into the deal. Everything pointed to this being great fit for an acquisition but there was just one thing that wasn’t quite right.

One of his smallest acquisitions turned out to be one of the best and by far the most profitable.

Tom Hine
Capital Wealth Management, LLC
Glastonbury, Connecticut
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The post Why an Earnout Turned Out to Be Nearly 40% Better Than a Cash Deal appeared first on Business Exit Stories.

In a transaction that involved a Private Equity group, the deal was structured in a way that the seller was very focused on getting his price for the sale of his business. Sophisticated buyers pick up on this and structure a deal to play to this emotional need and then build in other terms that may well take away the upfront give on the price.

A transaction that involved a different type of buyer known in the industry as a Search Fund Buyer. How search funds are structured and some of the good and bad elements of dealing with this type of buyer. 

How a lack of inventory control can raise havoc on the sale of a business as well as how buyer and seller trust in another transaction made for a sweetheart deal.

Carol Shin
Inbar Group Inc.
Greenwich, Connecticut
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The post What to Be Aware of with Private Equity and Search Fund Buyers appeared first on Business Exit Stories.

A second-generation family owned business started in the 1950’s where there was no succession plan in place had a sales price number that they needed to get for the sale of the business. Fear surrounding being able to get that number dictated how decisions were made in trying to sell the business. 

A Medical Billing company where the partners had disagreements that landed them in court and where the judge, through a court order, forced the business to be sold as a way to resolve their dispute. Their company had figured out a way to build a better mouse trap that was highly valued in the market. A strategic buyer entered the picture and what happened during the negotiations and how the actual business was not what the buyer was primarily looking to buy. 

An electrical contractor was able to head off attempts by a buyer to drive down the price of business.

A buyer’s big vision was in alignment with a seller’s willingness to help the buyer achieve this vision and why this concept of alignment is so important for buyers and sellers to understand. 

Eric Gall
Edison Business Advisors
Tampa Bay, Florida
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The post How a Medical Billing Company Was Able to Generate over 500 Interested Parties Creating a Feeding Frenzy to Buy the Business appeared first on Business Exit Stories.

Terry became a business intermediary because of his experience as a business owner when he bought, scaled up, and sold a manufacturing business.

An almost unbelievable story of a business listed for five years, one that generated over 5,000 inquiries of interest in the business, primarily because the business was a solid business with a long track record; however, the business’ big problem was that it had a vendor and revenue concentration issue. It persevered and finally got an excited and motivated buyer to the closing table. But the outcome is surprising. 

A thirty-year business that was a cash machine was listed for sale because the owner was burnt out. Yet, with multiple buyers ready to pull the trigger and make offers on the business, greed took over and lost the seller $5 million dollars. 

A transaction where a business was able to get multiple offers at a much higher valuation than expected.

Terry Altman
Florida Business Exchange, Inc.
Orlando, Florida
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The post 5 Years, 5,000 inquiries, 5 Full Price Offers, and a Deal at the Closing Table, and Guess What Happened? appeared first on Business Exit Stories.

A large development property that a physician purchased out of bankruptcy during the Great Recession for pennies on the dollar. After investing an additional $20M in preparing the property for market as a turnkey real estate development, the commercial realtors missed a key component in their marketing of the business which had a proposed sales pricing in the $500,000,000 range of a proposed fully developed value of nearly $2B.

How brothers of a second-generation business were making money hand over fist and how this cash flow from the business distracted them with a result of the business being driven into the ground.

A first responder and part time entrepreneur showed his moxie in being able to conceptualize a business idea from what he noticed on the job and grew it into a phenomenal business success even pivoting the business from a wholesaler to a direct to consumer model worthy of a Shark Tank Episode. 

Two Silicon Valley tech entrepreneurs built a subscription based business in the Health IQ space and hire the right talent that enabled them to differentiate their company in a crowded health field, and then position their company to sell to a strategic acquirer that valued not only their tech but their customer list.

Adam Maoz
M&A Business Advisors
Los Angeles, California
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The post The Devil Is in the Details – Why a $500,000,000 Deal Didn’t Close appeared first on Business Exit Stories.

A founder was so focused on his product and making it the Lamborghini in his market niche that he ignored what the market looks for when acquiring a business. While he was able to make his product really powerful, this didn’t do him a lot of good because what was important to him wasn’t necessarily what buyers were looking for in his type of business.

An entrepreneur too focused on tax avoidance and deferral costs more money than saved in taxes.

Two founders increased the value of their business over $16M in net proceeds simply because they asked for advice and then they followed that advice.

Three partners that were at different ages and over time their goals and objectives changed, but were still able to resolve this and get what they needed when selling the business.

Hank Nelson
Monadnock Advisors
Quincy, Massachusetts
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The post How Focusing Too Much on Tax Avoidance Cost One Family Their Inheritance appeared first on Business Exit Stories.

A minority shareholder who had his own agenda attempted to sideline a deal that was ready to be closed.

A seller was able to protect himself from the decrease in the acquiring company’s stock price.

A chance meeting at an industry conference took a business from a highly commoditized business into becoming a specialty player that grew the value of the business ten times and was eventually sold well into the 8 figures.

A pharmaceutical company was assisted in properly valuing the company’s intellectual property and leveraged strategic buyers interested in that IP to turn a $50M valuation into a $200M sale.

Chris Wagner
Strategic Wealth Partners
Ohio & California
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The post How Valuing A Company’s IP And A Strategic Buyer Turned A $50M Valuation Into A $200M Sale. appeared first on Business Exit Stories.

A transaction began to fall apart early in the due diligence process but was held together because the buyer was motivated, remained engaged, and really wanted to close the deal.

A family business with a long history of profitability was listed for sale and five buyers were ready to make offers to acquire the business, but the business ending up not being sold.

A sale with a number of buyers that made offers and for one reason or another they decided not to proceed. An axiom to live by: Some will, some won’t, so what, what’s next. A number of qualified buyers came and went but the last buyer ended up being the best one. 

A business had an offer pre-COVID and when COVID hit, the deal fell apart. However, even in uncertain times there are buyers that will make decisions and close deals.

Susan Rosner
Calder Associates
Newton, Pennsylvania
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The post Time Kills Deals appeared first on Business Exit Stories.

A commercial sign company that had two main types of customers. One customer segment was in the tradeshow, convention, and event market vertical. The other was for companies that needed exterior signs for their buildings and locations. A co-founder had 44% of the business, and an angel investor was a silent partner for 5% that provided the capital for the startup of the business. The client had 51% of the business and still didn’t have control or the final say when and how to sell the business. 

A pharmaceutical company with two 50/50 partners. One partner was mid-career and the other at the end of his career. The difference in life stages made a huge difference when it came to their exit. 

A business established in 1877 was sold when there was no viable successor because none of the four kids of the current generation were involved in the business, and even during Covid with the tons of economic uncertainty the buyer moved forward with the purchase in May of 2020 at the peak of the Covid shutdown with no contingencies, all cash, and a short escrow.

An entrepreneur took care of his four kids, when only one could run the business but the other three worked in the business and was able to treat them all equitably. He provided for his wife who had no business sense and no ability to budget or control her spending habits and yet owned 100% of the business when he unexpectedly passed away.

Matt Carbray
Ridgeline Financial Partners
Avon, Connecticut
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The post How One Business Covid-Proofed His Business Before Covid-19 Hit appeared first on Business Exit Stories.

A client that had a machine shop and how an environmental impact report on new building, which shouldn’t have had any environmental issues, ending up being a major factor in cratering a deal. 

An equipment manufacturer that had a single supplier for his product that had an unexpected outcome.

An owner wanted to sell his business because he was convinced that he was going to die soon. Remarkably he continued running his business for another six years and increased the value of his business from $750,000 to $5M. 

An unsolicited offer went from $6M to a incredible $14.5M sale in less than eight weeks.

Doug Robbins
Robbinex Consulting Intermediaries
Ontario, Canada
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The post How a $6M Unsolicited Offer Turned Into a $14.5M Sale In Eight Weeks appeared first on Business Exit Stories.