Navigating Business Acquisition and Strategic Exits

In this interview with Walker Deibel and Nick Bradley we break down complex topics like business valuations, private equity, and exit strategies into digestible segments, providing valuable insights and practical advice for aspiring entrepreneurs and investors in navigating the intricate landscape of M&A. Through shared experiences and thoughtful analysis, this podcast conversation aims to demystify the realm of M&A and highlight the potential opportunities for owners to create wealth, enjoy work, and make an impact, to truly make owning a company worth it.

Key Takeaways

1. Valuation and Viewing Companies as Assets: The episode emphasizes the importance of accurately valuing companies and viewing them as leverageable assets for wealth and fulfillment. Entrepreneurs are provided with insights to understand intrinsic financial value and avoid common valuation pitfalls.

2. Acquisition Entrepreneurship and Private Equity Dynamics: Walker Deibel highlights acquisition entrepreneurship as a rewarding strategy, and the dynamics of private equity are explored, revealing strategies for negotiations with sophisticated buyers. The discussions shed light on the pressures and incentives for PE firms and their focus on higher success rates.

3. Exit Strategies and True Value of Exits: The podcast offers a comparison between IPOs and private equity exits, exploring the constraints and appeals of each. It elucidates that the real value of exits may not always be wealth accumulation but the strategic advantages brought by the new proprietor.

// Sign up for the Intentional Growth™ Starter Kit: the kit has intro videos on each of the 5 Intentional Growth™ Principles, the Intentional Growth™ Financial Scorecard along with videos reviewing a case study on how to project out the value of your company, and the entire Intentional Growth™ Podcast Library.

//WATCH THE INTERVIEW ON YOUTUBE: Intentional Growth™ Podcast

Interview Quotes:

23:04 - “There’s a figure that your business is worth now, and a figure that your business could be worth.” - Nick Bradley

23:31 - “If your objective is to build a unicorn, you know, a business that's valued over a billion dollars, that's a pretty stupid objective.” - Nick Bradley

34:29 - “Like there's this little lie that's going on out there, which is like, hey, I know you've never bought a business before. However, everything that you've done in your life up until right now has prepared you to buy a business right now.” - Walker Deibel

59:39 - “It's not uncommon for a firm partner to be close to taking home a million bucks a year.” - Nick Bradley

1:01:00 - “We lost out to a private equity firm in Germany was a 36 times on EBITDA.” - Nick Bradley

RESOURCES:

AcquisitionLab

BuyThenBuild

ScaleUp with Nick Bradley

INTENTIONAL GROWTH™ RESOURCES:

• Intentional Growth™ Podcast Archives: Archive of 356+ episodes and counting. Get access to the entire library HERE. We'll be adding a searchable tagging feature later on this year.
• IG Financial Scorecard: Get your Intentional Growth™ Score that grades you on how well you are viewing - and running your business like a financial asset. Get your results and 5 case study videos HERE.
• Intentional Growth™ Academy: 71 Videos, 9.5 hours of content, 20+ exercises. $995 for subscribers [normally $1,495] HERE
• Q4 Nov. 2024 Intentional Growth™ Boot Camp: Two-day workshop with 25 other owners on November 8th and 9th in Minnesota at Bethel University. Learn more HERE.
• Minnesota CEO Exchange: Content + Panel, Networking, and Happy Hour with 100 Entrepreneurs. Mark your calendar, it's September 20th. Topic and location TBD. We'll keep you posted and let you know mid July.
• Q3 2023 Economic and M&A Update: with ITR Economics, ButcherJoseph, and the National Center for the Middle Market HERE