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

Investors and advisors often speak in terms of "multiples." The key question is: a multiple of what? Potential buyers are interested in the true earning power of your business. This episode explores the ins and outs of EBITDA and other methodologies for measuring earnings. Discussion with Brent Beshore and Emily Holdman starts @ 1:38.

Private equity firms, fundless sponsors, search funds, family offices, strategics… the buyers of private businesses vary widely in the way they acquire, operate, and finance their purchases. In this episode, we go deep on each type of potential purchaser and look at their incentives for buying, typical financing structures, operational preferences, and the practicalities of working with each type day to day.

Private Equity Firms

Discussion with Brent Beshore and Emily Holdman starts @ 6:39

Fundless Sponsors

Discussion with Brent Beshore and Emily Holdman starts @ 15:02

Search Funds

Discussion with Brent Beshore and Emily Holdman starts @ 23:11

Family Offices

Discussion with Brent Beshore and Emily Holdman starts @ 29:43

Strategics

Discussion with Brent Beshore and Emily Holdman starts @ 37:06

Private company transactions come in a variety of flavors, but most fit into two major buckets: buyouts and recapitalizations. In this episode, we discuss the differences between the two transactions and provide a helpful and comprehensive list of questions for business owners who are becoming minority owners to help set expectations with their buyer. Discussion with Brent Beshore and Emily Holdman starts @ 3:47.

If there's an unexpected area where we see people stumble, this is it. Making wise decisions about who knows about your transaction and when is critical. In this episode, we step through each group of stakeholders and discuss considerations about the content and timing of your message to each one. Discussion with Brent Beshore and Emily Holdman starts @ 5:42.

Prospective buyers will ask you some of the most challenging and personal questions you've encountered. Can you trust them and answer honestly? In this episode we take a look at the issue of confidentiality and how legally bound mutual trust makes a transaction possible. Discussion with Brent Beshore and Emily Holdman starts @ 1:14.

All businesses have issues and buyers will figure them out eventually. The good news is the vast majority of them can be addressed. In this episode, we lay out the main categories of potential deal killers and how to proactively deal with each one before they derail the sale of your business. Discussion with Brent Beshore and Emily Holdman starts @ 4:09.

Bad news always travels faster and further. The rumor mill tends to exaggerate, but typically contains an element of truth as well. In this episode, we step through five of the most common rumors about the selling process, what their nugget of truth is, and how to avoid the horror stories. Discussion with Brent Beshore and Emily Holdman starts @ 4:48.

All humans are messy and emotional. So it follows that selling your business will be a messy and emotional process. In this episode, we unpack common sources of stress and talk through healthy ways to prepare yourself for the inevitable messiness of doing a deal. Discussion with Brent Beshore and Emily Holdman starts @ 2:24.

In many cases, the wisest financial decision an owner can make is not to sell. In this episode, we try to talk you out of selling your business. Yes, really. Discussion with Brent Beshore and Emily Holdman starts @ 1:29.

Why do you want to sell and what do you want to get out of it? In this episode, we discuss the 7 root motivations for transitioning your business and share a "cheat sheet" to help you lay out your personal priorities as you consider selling your business. Discussion with Brent Beshore and Emily Holdman starts @ 6:14.