Exit Planning Strategy, with David Tobin

7 snips

Aug 7, 2024

David Tobin, a mergers and acquisitions expert specializing in exit planning, shares his journey from a college entrepreneur to the founder of Tobin Leff. He delves into various exit strategies, including management buyouts and sales to strategic buyers, emphasizing the importance of strategic planning. The conversation highlights how current economic conditions affect M&A activity, and the impact of firm performance on equity value. David also stresses the need for a clear growth vision and strategic investments to enhance business value.

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Episode notes

Intro

00:00 • 3min

Navigating Exit Strategies for Business Owners

03:29 • 11min

Understanding Rolled Equity in Exit Planning

14:35 • 2min

Navigating M&A in Today's Economy

16:25 • 18min

Understanding Exit Planning and Business Profitability

34:23 • 3min

Points of Interest

00:01 – 00:36 – Introduction: Marcel Petitpas welcomes David Tobin, a mergers and acquisitions expert, to discuss strategies for successful business exits.
01:09 – 02:52 – David’s Background: David shares his journey from starting his first business in college to founding TobinLeff, focusing on his niche in financial services and exit planning.
04:26 – 06:37 – Exit Strategies: David outlines various exit strategies, including selling to another agency, management buyouts, ESOPs, and financial sponsors.
08:20 – 10:13 – Planning for Exit: David and Marcel discuss how firm owners can think through and plan for their exit, considering different options and what might be most applicable to them.
13:58 – 15:58 – Current Market Conditions: David talks about how current economic conditions, such as interest rates and market performance, are impacting M&A activity in the professional services space.
17:52 – 18:55 – Impact of Performance: Marcel and David discuss how a firm's recent performance can significantly impact its equity value and attractiveness to buyers.
19:37 – 21:54 – Vision for Growth: David emphasizes the importance of having a clear vision for growth and being able to articulate how a company can continue to expand under new ownership.
24:53 – 26:36 – Investments in the Business: Marcel and David talk about the importance of making strategic investments in the business to enhance value and how to manage these investments without negatively impacting EBITDA.
29:04 – 30:20 – Building Relationships: David advises firm owners to build relationships with potential buyers and keep their companies on the radar of industry players to facilitate smoother future transactions.
30:20 – 34:04 – Tax Considerations: David discusses how tax planning should not drive the exit strategy but highlights the importance of efficient tax treatment and managing working capital.

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