In The Trenches
Lessons Learned From 400+ Post-Exit Entrepreneurs: John Warrillow, Host of Built to Sell Radio
Jul 22, 2023
John Warrillow, host of Built to Sell Radio, shares lessons from 400+ post-exit entrepreneurs. Topics include navigating forecasts and due diligence, struggles faced by post-exit entrepreneurs, and challenges of employee communication during a business exit.
53:43
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Quick takeaways
- Valuation disparities in M&A are common, and entrepreneurs should not dismiss lower offers as negotiating room exists.
- When planning an exit, it's recommended to inform senior managers first and delay notifying rank-and-file employees until after the deal is closed to minimize disruption.
Deep dives
Valuation Disparity in M&A
Valuation disparities, like a 471% difference between the highest and lowest bids received, are not uncommon in M&A. The value of a business is subjective and can vary based on different acquirers' perspectives or strategic goals. Entrepreneurs should not immediately dismiss a lower offer, as there may be room for negotiation or incentives for the acquirer to increase their bid. For example, Tyler Smith successfully convinced an acquirer to raise their offer from $40 million to $83 million. Working with an experienced M&A advisor can help navigate valuation disparities and maximize deal outcomes.
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