#414: How to Navigate a Third-Party Sale with an Investment Banker with Adam Webb

Demystify what it means to prepare for a third-party sale and how an investment banker can be a game-changer in that process. For owners weighing their exit options, Adam shares insights on how to gauge your business’s market value from a third-party buyer’s perspective—highlighting what you need to know about valuations, strategic buyer selection, and why timing is key. 

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We dive into the importance of building a relationship with an investment banker early, giving you a view of the market and your potential valuation while still focused on growth. Adam discusses the specific criteria buyers consider, how to differentiate between passive and active sales strategies, and why choosing the right intermediary can make or break your outcome. He explains how curated buyer lists, customized marketing materials, and understanding cash flow quality all play crucial roles in positioning your business for maximum value. 

If you’re ready to think strategically about a potential third-party sale—whether that’s next year or five years down the line—this episode will guide you through the details of market preparation, partner selection, and the steps that ensure your hard-earned business value is fully recognized. 

Adam Webb is a Partner at Quazar Capital Corporation, an investment bank specializing in M&A advisory for middle-market businesses. With years of experience and completing over 60 transactions, he helps business owners maximize their exit value selling to third-party buyers (PE Firms and Strategics). Adam has a reputation for bringing a strategic, data-driven approach to the complex M&A landscape. His insights on valuation, timing, and market positioning make him a sought-after advisor for business owners ready to take control of their futures. 

Chapters:  

•  (00:00) Intro to Adam Webb and Quazar, insights into middle market mergers and acquisitions 
• (10:16) Active vs passive buyer sourcing techniques, comparing listing sites with active marketing strategies 
• (18:51) Complexities of deal structuring, buyer-seller expectations and deal structures 
• (30:00) Importance of storytelling in business transactions, proving business value through effective storytelling 
• (40:40) Strategic financial planning for businesses, aligning financial plans with strategic business goals 
• (44:45) Timing considerations for selling a business, analyzing market conditions and personal goals for sales, managing post-sale expectations with different buyer types 
• (53:28) Retirement challenges for baby boomer business owners, addressing realistic business valuations for retirement 
• (1:03:30) Conducting regular financial reviews, importance of regular PE-style financial evaluations, EOS planning meetings 
• (1:09:53) Private equity investment strategies, differences in platform and add-on investment approaches 
• (1:23:24) Closing thoughts, get in touch with Adam 
• Share with the owner/operators you know! 

Ryan Tansom is a seasoned entrepreneur, speaker, and the founder of Independence by Design™, a transformative ownership framework for growth-oriented business owners. After turning around and selling his family business in an eight-figure exit, Ryan spent over a decade dissecting the lessons learned from his journey. His mission is to help other business owners avoid the pitfalls he encountered by providing them with the tools and knowledge to align their business operations with their personal and financial goals.  

With a deep understanding of the challenges faced by owner-operators, Ryan developed Independence by Design™ to empower owner-operators to create sustainable cash flow, grow their company’s equity value, and achieve true independence. He has shared his insights on hundreds of stages, including Vistage, EO, and industry associations, and has reached over 500,000 listeners through his podcast.  

Ryan is passionate about helping business owners get unstuck from the day-to-day grind and design a business that serves their life, not the other way around. 

Resources: 
 
Quazar Capital  https://quazarinc.com/our-team 
Adam Webb on LinkedIn  https://www.linkedin.com/in/adam-webb-831620126/ 
Built to Sell by John Warrillow — Essential reading on creating a business that doesn’t rely on you. 
EOS (Entrepreneurial Operating System) by Gino Wickman — A methodology for structuring and scaling your business. 
The Great Game of Business by Jack Stack — A look at open-book management and understanding business value. 
https://ryantansom.com/independence-by-design-workshop 
Independence by Design™ Ownership Coaching: Ryan Tansom’s Ownership Accelerator programs and coaching https://ryantansom.com/coaching 
Ryan Tansom Website https://ryantansom.com/ 
Ryan Tansom LinkedIn https://www.linkedin.com/in/ryantansom/ 
Ryan Tansom Twitter https://twitter.com/RyanTansom 
Ryan Tansom YouTube https://www.youtube.com/@ryantansom 
Ryan Tansom 30-Minute Ownership Strategy Call https://calendar.app.google/tsKk7z6ohugDchWq8 

Sound Bites: 

“Choosing the right intermediary is make-or-break. The wrong one could cost you up to half the value you’ve worked so hard to build.” – Adam Webb 

"In our market, the difference between a great deal and a missed opportunity can come down to finding the right buyer with the right strategic fit." — Adam Webb 

"As a business owner, make sure the team you hire aligns with your goals and vision; it’s essential to achieving the outcome you want." — Ryan Tansom 

"The value of a business isn't just in its cash flow—it's in the quality of that cash flow and the systems supporting it." — Ryan Tansom