In today's episode, I'm talking to Cliff Spolander, who helps entrepreneurs to maximize the value of their business ready for sale. Cliff has spoken to more than 1,000 business owners looking to exit their business. We talk about what he's learned from those 1,000 business owners. We also talk about how he helps business owners to maximize the value of their business and finding the problems and flaws that could put off a potential buyer.
Key Highlights
[02:08] Cliff’s conclusions after speaking to so many business owners
[03:40] What are the main types of business exit?
[06:17] How business liquidation works
[10:00] Strategies for selling to private equity-backed buyers
[12:07] Cliff’s views on owners using brokers to exit
[13:08] Alternative ways to exit
[14:38] Key things an owner needs to get ready to sell the business for the best value
[16:40] Why one should not rely on one or two individuals
[20:48] What speeds up the process of selling a business
[22:35] Quick wins business owners can implement to get the best chance of a successful exit
[25:21] How business buyer hedges against the risk of workers failing to show up at work after acquisition
[28:54] Advice to potential business buyers
[30:14] Connect with Cliff
Notable Quotes
- I think the biggest takeaway from my speaking with these owners is that they are not prepared for the exit process.
- I think unplanned liquidation is, yeah, a failure. Whereas if you don't see it coming, yeah.
- I think if there's open, honest communication mentioned, it's perfectly legit and a good way of doing things, but it goes around how the owner deals with that internally and making sure that the staff is happy and motivated.
- I think the owner needs to get proper operating procedures and training manuals, get everything out of the employee's head onto paper, and document the process because things change and evolve.
- As a consultant myself, I think it's very important to be able to prove your value. And so if you can show the client that you've increased the business value by X 1000s of pounds, you've reduced their wealth gap by X 1000s of pounds, you reduce the risk profile in the business, you can prove and show your worth as a consultant.
- There's more to business then than the numbers. And although they are important, but I think now the fact that comes in is to making sure that it's a fit for both people.
- Go for it, there's nothing holding you back; look for a good fit. Also, understand what your exit plan is, as well as know the purpose of your doing this.
Resources
If you are looking for a lawyer in the UK to help you get the deal over the line, then use my guy, John Andrews. You can phone his office at (0345) 2412494 or email him at johnandrews.deallawyer@jmw.co.uk.
If you would like to take the next step to learn the best ways of buying a business, without risking your own cash, you can access my free training at: https://www.dealmakersvideo.co.uk
Watch my Webinar Training Video: https://www.dealmakerspodcast.co.uk
You can also request a free copy of my book at: https://www.thedealmakersacademy.com/free-book-giveaway/
If you want to jump straight to my live Zoom FastTrack course, please go to: https://www.thedealmakersacademy.com/fast
Connect with Jonathan Jay at: Website: https://www.thedealmakersacademy.com/ LinkedIn: https://www.linkedin.com/in/jonathan-jay-3556b230/ YouTube: https://www.youtube.com/c/TheDealmakersAcademy
