Sean McKenna launched DataFuZion HCM in the middle of a pandemic with a new baby at home, and just nine months later, Ceridian (now Dayforce) called with an offer to buy. Sean turned it down. Then the offer doubled. Then it tripled.

In this episode, Sean shares the full story with Exitwise Managing Partner Todd Sullivan: why he tried (and failed) to buy his former employer first, how he built an MVP that changed the HR tech integration space, and the moment he realized his seven-client startup had something a public company desperately wanted; not revenue, but software and people.

Sean also breaks down how bringing in a specialist investment banker moved the valuation from 2x to 6x, how he structured an earn out that created multi-generational wealth, and why five of his team members walked away as millionaires.

Whether you're building toward an exit or just curious what it really feels like to sell your company, this one's full of real talk on negotiation, the emotional rollercoaster of M&A, and how to protect yourself on the other side of a deal.

Learn more about Sean and connect with Exitwise: https://exitwise.com/founders/sean-mckenna

Thinking about selling your business? Visit https://exitwise.com

Welcome to The Exited Founder Podcast, a production of Exitwise!

This show is built on one simple idea: founders helping founders. Every episode features a successful Exited Founder who has been through the highs, the lows, and the life-changing moment of selling their business, and is now paying it forward by sharing everything they learned along the way.

You'll hear first-hand exit stories from founders across dozens of industries, what they wish they did differently during the M&A process, their takes on current trends, and how they're using their experience to help the next generation of business owners navigate their exit strategy and maximize the value of their company.

Every guest is an Exited Founder who now works as an M&A advisor with Exitwise, bringing deep industry expertise and real networks to help founders like you get the exit you deserve. Whether you're thinking about selling your business, preparing for an acquisition, or just starting to explore what an exit could look like, this podcast is for you.

Meet our incredible experts and explore the Exited Founder Marketplace at exitwise.com/exited-founders

Listen wherever you get your podcasts.

Summary:

Nathan Hirsch, a serial entrepreneur, shares his journey of building and selling his company, FreeUp, which utilized remote workforces. He discusses the importance of having clean books and financials, as well as the value of virtual assistants and outsourced labor. Nathan emphasizes the need to hire the right level of talent, whether they are followers, doers, or experts. He also highlights the significance of building trust and relationships with your team and the importance of finding the right buyer who will treat your employees well. Overall, Nathan provides valuable insights into the M&A process and the benefits of remote workforces in business sales.

Takeaways:

• Having clean books and financials is crucial when selling a business.
• Hiring the right level of talent, whether followers, doers, or experts, is essential for success.
• Building trust and relationships with your team is important for a smooth transition during a sale.
• Finding the right buyer who will treat your employees well is crucial.

Chapters:

00:00 - Introduction

01:24 - Nathan's Background and Entrepreneurial Journey

09:47 - M&A Process and Due Diligence

23:13 - Outsourced Labor and Hiring Levels

32:22 - M&A Expertise and Considerations

36:16 - Key Takeaways

About The Nathan Hirsch:
Twitter (X)
LinkedIn
TrioSEO
EcomBalance
AccountsBalance
OutsourceSchool

The Wise Exit is an Exitwise Production. Are you a business owner looking to sell your business faster, for more, and with less complexity? Learn how Exitwise's founder-led team helps you maximize your exit value and simplifies the M&A process: https://exitwise.com/ 

Summary:

In this episode, Todd Sullivan interviews Meighan Newhouse, the co-founder and former CEO of Inspirant Group, a management consulting firm that was acquired by 10 Pearls. Meighan shares her journey as an entrepreneur and the decision-making process behind selling her business. She emphasizes the importance of understanding the why and the end goal of the sale, as well as finding a buyer that aligns with the company's culture and values. Meighan also discusses the challenges and considerations during the due diligence process and the post-acquisition experience.

Takeaways:

• Before embarking on the journey of selling your business, pause and reflect on your why and the end goal of the sale.
• Find a buyer that aligns with your company's culture and values, and consider strategic acquisitions that can help accelerate growth.
• Prepare for the sale process by organizing your documentation and seeking advice from experienced M&A advisors.
• During due diligence, focus on maintaining confidentiality and consider the impact on your team and their day-to-day work.
• Negotiate the deal structure, including earnouts, to align incentives and ensure a smooth transition post-acquisition.

The Wise Exit is an Exitwise Production. Are you a business owner looking to sell your business faster, for more, and with less complexity? Learn how Exitwise's founder-led team helps you maximize your exit value and simplifies the M&A process: https://exitwise.com/ 

George Sandmann shares his thoughts on: 

• Creating business engines that deliver predictable profits, cash flow, and sustainable growth
• Driving predictable, transferable value and a more lucrative M&A transaction

GUEST BIO:
George Sandmann is an entrepreneur turned growth advisor.  An attorney by training, George is an entrepreneur with almost 30 years experience starting and growing companies. After a lifetime of startup success and challenges, George founded his current company, Growth Drive, to deliver tools and technological support to advisory business delivering client wins and M&A success.

George's professional vision is for Growth-Drivers to increase Strategic Capacity for $1 Trillion worth of middle and pre-middle market businesses.

George is a speaker, board member, and author of a Forbes #1 New Release Book. 

LinkedIn
X (Twitter)
The Growth-Driving Advisor: Proven Strategies for Leading Clients from Stuck to Best-in-Class (Forbes 2023 Book by George Sandmann)

The Wise Exit is an Exitwise Production. Are you a business owner looking to sell your business faster, for more, and with less complexity? Learn how Exitwise's founder-led team helps you maximize your exit value and simplifies the M&A process: https://exitwise.com/ 

Mike Finger highlights the three elements all small business owners should focus on when building a company for a future M&A exit:

• Are your business results desirable?  Will an acquirer see value and opportunity in what you have built?
• Can a buyer duplicate your results?  Can the buyer run the business without you?
• Can you document your results?  Is there a playbook written that can be followed once you are gone?

GUEST BIO:
Mike Finger is a serial entrepreneur and business advisor who's built and sold four companies.

His first exit was not for the faint of heart and provided expensive lessons for the rest of his entrepreneurial career. Mike built his first company to 50 people, and after ten years of growth, he decided to sell. However, after several attempts to work out deals with multiple buyers, Mike's investment bank told him that his business was just not in a position to sell.

Although this is something any decent investment bank or M&A Advisor should know before taking a company on as a client, Mike spent the next four years fixing the mistakes in his business and eventually sold the company.

Resigned to not letting other small business owners go through his pain, today, Mike shares with us how to position small businesses for successful exits at Exit Oasis.

We hope you enjoy the conversation with Mike Finger.

WHERE TO FIND MIKE FINGER:
LinkedIn

The Wise Exit is an Exitwise Production. Are you a business owner looking to sell your business faster, for more, and with less complexity? Learn how Exitwise's founder-led team helps you maximize your exit value and simplifies the M&A process: https://exitwise.com/ 

EPISODE 64: THIS WEEK'S GUEST - CHRIS WISE
In this episode, Chris talks about:

• Asking for help when building your company for the future
• Coaching founders on how to remove themselves from their businesses to create transferable value
• How taking care of yourself as a founder or business owner can significantly increase productivity and prevent burnout

GUEST BIO:
Chris Wise is a seasoned business advisor with over 30 years of experience and the founder of Wise Profits.

With a notable track record that includes 14 successful exits, 34 M&A transactions, and 2 IPOs, Chris and his team at Wise Profits have consistently delivered exceptional outcomes for their clients. Specializing in guiding $1M - $20M revenue companies, Wise Profits excels in scaling businesses, preparing them for optimized exits, and providing comprehensive M&A operational and integration services.

WHERE TO FIND CHRIS WISE:
LinkedIn
X (Twitter)
YouTube

EPISODE REFERENCE AND READING MATERIALS:
Four Hour Workweek (book), Timothy Ferriss

The Wise Exit is an Exitwise Production. Are you a business owner looking to sell your business faster, for more, and with less complexity? Learn how Exitwise's founder-led team helps you maximize your exit value and simplifies the M&A process: https://exitwise.com/ 

EPISODE 63: THIS WEEK'S GUEST - ROBB GREEN
In this episode, Robb talks about:

• His evaluation criteria for starting eCommerce brands
• How he decides when it's time to sell a business
• How he brings his teenage kids into these companies and exposes them to the highs and lows of the life of an entrepreneur

GUEST BIO:
Robb Green is the owner and visionary behind the formulation and execution of strategies aimed at mastering the art of e-commerce brand establishment. Solving Alpha has founded 9 total brands with a focus on e-commerce.

Robb has a real passion for business, putting deals together and is always looking for business to buy, optimize, and grow. He helps owners of e-commerce focused brands exit their business while preserving their brands.

Robb utilizes his skills and time as an investor & advisor to help others in the industry continue to learn and grow.

WHERE TO FIND ROBB GREEN:
LinkedIn
I'm The One Podcast
I'm The One Podcast (YouTube)
Twitter

The Wise Exit is an Exitwise Production. Are you a business owner looking to sell your business faster, for more, and with less complexity? Learn how Exitwise's founder-led team helps you maximize your exit value and simplifies the M&A process: https://exitwise.com/ 

EPISODE 62: THIS WEEK'S GUEST - WAYNE PARRISH

In this episode, Wayne talks about:

• His early beginnings as a student journalist at the University of British Columbia
• Becoming the CEO of Canada Basketball and his relationship with Jerry Colangelo
• A history lesson of SPORT Magazine, Sports Illustrated, Sports Insider, and ESPN The Magazine
• How he purchased the most significant collection of images related to 20th century sport anywhere in the world
• Finding the next owner for The Sport Collection

GUEST BIO:
Wayne Parrish is an award-winning reporter, editor and digital media leader with a passion for sports and journalism.   Wayne, who has won two National Newspaper Awards as a sports reporter at the Star in the early 1980s, has held executive leadership positions at Postmedia Network, Quebecor and Sun Media.

He was CEO of Canada Basketball for eight years. And most recently, he worked on digital transformation and merger-acquisition media projects in the U.S., Puerto Rico and Australia with FTI Consulting Inc.

Parrish’s digital experience includes launching CANOE, which became Canada’s premiere internet network-portal and top news and information site for more than a decade.

He launched Postmedia’s digital subscription program, consulted on a sports-only digital subscription business in the U.S., and developed the new media unit of Quebecor.

Wayne and partner, Marc Appleman, also own The Sport Collection, the largest collection of images related to 20th century sport anywhere in the world.

WHERE TO FIND WAYNE PARRISH:
LinkedIn

EPISODE REFERENCE AND READING MATERIAL:
The Air Up There: How Canadian basketball has grown and where it’s headed
The Sport Gallery (Toronto Location)
SPORT Media Entertainment

The Wise Exit is an Exitwise Production. Are you a business owner looking to sell your business faster, for more, and with less complexity? Learn how Exitwise's founder-led team helps you maximize your exit value and simplifies the M&A process: https://exitwise.com/ 

EPISODE 61: THIS WEEK'S GUEST - CHRISTINE NICHOLSON
In this episode, Christine talks about:

• The three things that every founder needs to focus on when building their business
• The difference between exit planning and succession planning
• What a perfect succession plan look like

GUEST BIO:
Christine Nicholson is a serial entrepreneur with multiple exits under her belt, who has now turned her attention to helping fellow business owners with succession planning before the sale of their businesses.

Christine sold her first business just 12 months after launching. She then helped a client sell a distressed business, which led her to help a family office sell off over 40 businesses. Christine knows a thing or two about the exit process and believes the number one piece of advice for business owners preparing to exit is to hire people to take over each of the business owners tasks over time.  This will leave the business owner in a place to oversee the growth of the business and walk away when it's sold.

WHERE TO FIND CHRISTINE NICHOLSON:
LinkedIn
Get Exit Ready - Business Mentor

EPISODE REFERENCE AND READING MATERIALS:
How To Sell A Business Using An ESOP (Exitwise blog)
Are You Prepared to Sell Your Business? (Exitwise blog)
Selling 1-800 Hansons | Brian Elias (Cashing Out podcast)

The Wise Exit is an Exitwise Production. Are you a business owner looking to sell your business faster, for more, and with less complexity? Learn how Exitwise's founder-led team helps you maximize your exit value and simplifies the M&A process: https://exitwise.com/