Permanent Podcast: Real Talk About Private Equity and Buying, Selling, and Operating Small Businesses

Permanent Equity Managing Directors Emily Holdman and Mark Brooks discuss an operator's framework -- fat, muscle, and bone -- for thinking through cost cutting. Published during the Covid-19 pandemic, the discussion takes into account rapidly changing economic circumstances for small businesses.

We wrote The Messy Marketplace to make sure you, the seller, are prepared and equipped for the opportunities and challenges of selling your business. In this discussion, Brent Beshore and Emily Holdman briefly summarize the resources contained in the book and invite you to connect with adventur.es to continue the conversation!

Congratulations, you've sold your business! The day after you close, you'll be waking up in a brand new world. This episode covers what you can expect - how to communicate your transaction, what it feels like to have "a boss," and even how to deal with seller's remorse. Discussion with Brent Beshore and Emily Holdman starts @ 6:32.

There's a joke in private equity that each deal is won and lost at least three times during due diligence. In fact, in the part of the market we cover, the ratio of companies that close after Letter of Intent is reported to be less than 25%! Why is this part of the process so fraught and difficult? In this episode we unpack the practical and emotional components of the due diligence process, including a helpful list of questions to ask your prospective buyer to gauge their ability to diligence well. Discussion with Brent Beshore and Emily Holdman starts @ 6:29

You've generated some interest in your business from prospective buyers. What will their next steps be? In this episode, we walk through the typical process a buyer will follow between the initial expression of interest and the draft of an official Letter of Intent. Discussion with Brent Beshore and Emily Holdman starts @ 5:08.

You've decided on a buyer or group of buyers to whom you'd like to pitch your company. How do you kick-off the process? And once you do, how should you think about rejection if they decide to pass? In this episode, we give you very practical steps on how to reach your potential buyers of choice and how you should think about a buyer passing on your business. Discussion with Brent Beshore and Emily Holdman starts @ 3:47.

Now that you've pulled together your marketing materials, it's time to find a buyer. While there are multiple ways to build a market for your company, they each come with tradeoffs. In this episode, we take a look at broad market auctions to hyper-targeting as well as solutions in between and discuss the key considerations for each method. Discussion with Brent Beshore and Emily Holdman starts @ 3:37.

There are many ways to market a product or service and the same is true for your business. But what does marketing a business look like and what can you do to be prepared for the process? In this episode, we give you a comprehensive checklist of the descriptions, documents, and numbers you'll need to pull together to present your company in the best light possible. Discussion with Brent Beshore and Emily Holdman starts @ 8:29.

If you're used to spending a minimal amount on legal and accounting issues, transaction fees can be a real shocker. But resist the temptation to drive fees as low as possible - the best intermediaries and advisors will often command a higher fee but save you money in the final accounting. In this episode we set expectations on ranges of fees and the levels of service you should expect based on what you pay. Discussion with Brent Beshore and Emily Holdman starts @ 6:03.

Continuing from our prior episode, we dissect another set of deal documents and how they impact you as an owner. Discussion with Brent Beshore and Emily Holdman starts @ 5:16.