Learn how to confidently navigate the diligence process when buying or selling small businesses. Discover the comprehensive diligence checklist, the importance of building a diligent team, and the tools available to help you feel confident during the process.

In this episode, the hosts discuss the importance of assembling a diligence team for investments and M&A deals. They give insights on involving internal team members and hiring external advisors such as lawyers and intermediaries. The podcast also highlights the roles of tax advisors and diligence quarterbacks in selling a business, the significance of an M&A lawyer for emergency acquisitions, and tips for preparing for due diligence and selecting the right advisors.

This podcast episode explores the process of entering into a partnership with Permanent Equity, from the introductory call to closing a deal. The hosts discuss the importance of diligence and demystify the investment process. They also cover topics such as making an offer, due diligence, defining key terms, and the step-by-step process from the first call to final close.

The podcast discusses the importance of due diligence in the investment process and the need for understanding the intricacies of a business. It emphasizes the significance of organization and preparation. Examples of deals falling apart due to discrepancies in information are shared, emphasizing the need for sellers to disclose information and choose advisors wisely. The significance of cleaning up and organizing a business before selling is explored to expedite the due diligence process. The importance of documenting internal operating policies and procedures when selling a business is discussed, emphasizing the value of organization, preparedness, and transparency. Closing the gap in understanding a business during the due diligence process is highlighted for a mutually beneficial transaction, with insights on the steps involved.

Tim Hanson and David Cover of Permanent Equity explain why they have open-sourced their diligence process, aiming to demystify diligence in the investment industry. They emphasize the importance of understanding due diligence and being a fair partner in the process. The goal is to educate others about investing and foster healthy ecosystems for small businesses.

John Marsh (Marsh Collective, Redemptification Podcast) cares deeply about people. It’s behind his obsession with restoring irreplaceable real estate in small towns across the Southeast, helping couples rebuild marriages and lives, and connecting individuals with each other and with work that fulfills them and fits their talents and ambitions. John talks with Brent Beshore about how his deep care for and commitment to people (and the long journey it took to get there) has affected how he thinks about life, relationships, hiring people, planning projects, and building teams.   LINKS & MENTIONS FROM THIS EPISODE Watch John & Ash’s story https://faithandco.spu.edu/film-detail/beauty-out-of-brokenness-marsh/  Marsh Collective https://www.marshcollective.com/  Redemptification Podcast http://redemptification.com/    CONNECT John on LinkedIn https://www.linkedin.com/in/john-marsh-1576069/ Brent on twitter https://twitter.com/BrentBeshore Brent on LinkedIn https://www.linkedin.com/in/brentbeshore  Visit https://www.permanentequity.com/ for more Sign up for our weekly newsletter for operators, Permanent Playbook: https://www.permanentequity.com/newsletter  Sign up for a new daily newsletter from Tim Hanson, Unqualified Opinions: https://www.permanentequity.com/unqualified-opinions    TIMESTAMPS 0:00 Are We About to Get Marshed? 1:39 When Brent Refused to Meet John 4:22 What Is Marsh Collective & Redemptive Real Estate? 12:35 John’s Story: Beauty From Brokenness  23:52 Nuclear Waste in the Basement of Your Marriage 41:59 Signs of Healthy Relationships 49:46 We’re All Addicts In Some Way 54:06 Tools For Better Relationships 1:08:49 Tools For Better Teams 1:15:59 Belly Flops In Business & Lessons Learned 1:21:18 Living With Joyfulness   EPISODE CREDITS Produced by David Cover  Additional editing & mastering by Ryan Lipman Interlude music by David Cover, Andy Freeman, Rhett Johnson, & Andrew Luley Outro music by Jees Guy   WE STEWARD COMPANIES THAT CARE WHAT HAPPENS NEXT  Visit https://www.permanentequity.com/ for more Sign up for Permanent Playbook, our newsletter for operators in the field: https://www.permanentequity.com/newsletter  Sign up for Unqualified Opinions, a new daily newsletter from our very own Tim Hanson: https://www.permanentequity.com/unqualified-opinions  Check out our other podcast episodes here: https://www.permanentequity.com/audio    LEGAL DISCLAIMER This podcast is made available solely for educational purposes, and the information presented here does not constitute investment, legal, tax or other professional advice, and should not be construed as an offering of advisory services, or as a solicitation to buy, an offer to sell, or a recommendation of any securities or other financial instruments. The thoughts and opinions expressed by or through this podcast are those of the individual guests and speakers and do not necessarily reflect the views of Permanent Equity. The discussion on this podcast of any entity, product or service does not imply an endorsement thereof, and the guests may have a financial interest, whether through investment or otherwise, in one or more of any such entities, products or services. This podcast is presented by Permanent Equity and may not be copied, reproduced, republished or posted, in any form, without its express written consent.  

Why did one of the biggest holdco owners & operators sell his holdco? Bill D’Alessandro talks about what led to the decision to sell all but one of his companies, having to let go of being “the Holdco Guy,” advice for entrepreneurs thinking about operating & owning multiple companies, insights on online marketing, & how he sees AI changing the world forever.   LINKS & MENTIONS FROM THIS EPISODE Bill’s Natural Dog Company https://naturaldog.com/ Acquisitions Anonymous podcast https://www.acquanon.com/  Join the list for Main Street Summit https://www.mainstreetsummit.com/ Read the Messy Marketplace (or go to episode 1 of the Permanent Podcast feed to listen) https://www.permanentequity.com/the-messy-marketplace   CONNECT Bill on twitter https://twitter.com/BillDA  Bill on LinkedIn https://www.linkedin.com/in/billda/ Brent on twitter https://twitter.com/BrentBeshore Brent on LinkedIn https://www.linkedin.com/in/brentbeshore  Visit https://www.permanentequity.com/ for more Sign up for our weekly newsletter for operators, Permanent Playbook: https://www.permanentequity.com/newsletter  Sign up for a new daily newsletter from Tim Hanson, Unqualified Opinions: https://www.permanentequity.com/unqualified-opinions    TIMESTAMPS 0:00 Bill Fills Dead Air Time 4:48 HoldCos: A Mailbox Full of Money? 11:19 Letting Go of the HoldCo 16:14 Hitting Rock Bottom & Losing the Plot 25:01 How to Build a Holdco the Right Way 31:54 From HoldCo to OneCo 34:55 When to Go Fast vs. When to Be Patient 41:30 Don’t Buy a Business That’s Too Small 47:50 Handling Layoffs 52:12 Being Vulnerable: Handling Anxiety & Loss 1:08:26 The Additive Effect of Subtracting  1:15:12 Lightning Round: Advice for Small Business Owners & Operators 1:16:16 Lightning Round: Hiring 1:16:38 Lightning Round: Marketing Doesn’t Work 1:18:24 Lightning Round: When to Take on Capital 1:19:13 Lightning Round: How to Sell a Company 1:21:14 Lightning Round: How Much Debt is too Much? 1:21:50 Lightning Round: Stop Using Slack 1:23:51 Lightning Round: Cutting Costs While Increasing Quality 1:24:28 Lightning Round: AI is the Singularity 1:32:26 Advice for Your 25-Year-Old Self: Be Deliberate 1:34:28 Why Brent Can’t Sleep: Main Street Summit   EPISODE CREDITS Produced by David Cover  Additional editing & mastering by Ryan Lipman Intro music by David Cover, Andy Freeman, Rhett Johnson, & Andrew Luley Outro music by Jees Guy   WE STEWARD COMPANIES THAT CARE WHAT HAPPENS NEXT  Visit https://www.permanentequity.com/ for more Sign up for Permanent Playbook, our newsletter for operators in the field: https://www.permanentequity.com/newsletter  Sign up for Unqualified Opinions, a new daily newsletter from our very own Tim Hanson: https://www.permanentequity.com/unqualified-opinions  Check out our other podcast episodes here: https://www.permanentequity.com/audio    LEGAL DISCLAIMER This podcast is made available solely for educational purposes, and the information presented here does not constitute investment, legal, tax or other professional advice, and should not be construed as an offering of advisory services, or as a solicitation to buy, an offer to sell, or a recommendation of any securities or other financial instruments. The thoughts and opinions expressed by or through this podcast are those of the individual guests and speakers and do not necessarily reflect the views of Permanent Equity. The discussion on this podcast of any entity, product or service does not imply an endorsement thereof, and the guests may have a financial interest, whether through investment or otherwise, in one or more of any such entities, products or services. This podcast is presented by Permanent Equity and may not be copied, reproduced, republished or posted, in any form, without its express written consent.  

Brett Halger, Co-Founder & CEO of New Story, discusses disrupting global homelessness with 3D printed homes and experimental tech ventures. Insights on scaling a company, solving complex problems, making big changes, and the limitations of philanthropy.

What’s your hiring process? Kelie Morgan, Director of Talent Acquisition at Permanent Equity, shares the 8-step hiring playbook she developed to find and hire great talent at the firm and our portfolio companies. Learn how to attract talent more efficiently, screen candidates more thoroughly, and conduct interviews most effectively – and why the most important part of the process might be the part you didn’t plan for.   LINKS & MENTIONS FROM THIS EPISODE Connect with Kelie on twitter https://twitter.com/keliemorgan Connect with Kelie on LinkedIn https://www.linkedin.com/in/keliemorgan/ Visit https://www.permanentequity.com for more   TIMESTAMPS 0:00 Intro 0:31 What Would You Say You Do Here? 2:32 Permanent Equity’s Hiring Playbook: 1 - The Job Description 5:01 2 - Resume Screening Process 7:05 3 - Screening Interview 11:55 4 - Competency Interview 13:13 5 - Deliverables & Personality Assessments 18:12 6 - In-Person Interviews & The Time Kelie Wore the Wrong Shoes 25:51 7 - Reference Checks 27:58 (8) - Your Firing Process 28:56 - How Kelie Conducts a Screening Interview 39:18 - 8-Step Recap - Visit permanentequity.com to Read More About Our Hiring Process 40:51 Legal Disclaimer   EPISODE CREDITS Produced by David Cover Additional editing & mixing by Ryan Lipman   WE STEWARD COMPANIES THAT CARE WHAT HAPPENS NEXT  Visit https://www.permanentequity.com/ for more Sign up for our weekly newsletter for operators, Permanent Playbook: https://www.permanentequity.com/newsletter  Sign up for a new daily newsletter from our very own Tim Hanson, Unqualified Opinions: https://www.permanentequity.com/unqualified-opinions  Check out our other podcast episodes here: https://www.permanentequity.com/audio    LEGAL DISCLAIMER This podcast is made available solely for educational purposes, and the information presented here does not constitute investment, legal, tax or other professional advice, and should not be construed as an offering of advisory services, or as a solicitation to buy, an offer to sell, or a recommendation of any securities or other financial instruments. The thoughts and opinions expressed by or through this podcast are those of the individual guests and speakers and do not necessarily reflect the views of Permanent Equity. The discussion on this podcast of any entity, product or service does not imply an endorsement thereof, and the guests may have a financial interest, whether through investment or otherwise, in one or more of any such entities, products or services. This podcast is presented by Permanent Equity and may not be copied, reproduced, republished or posted, in any form, without its express written consent.  

Claire Hughes Johnson (Google, Stripe) discusses her new book Scaling People: Tactics for Management and Company Building. Claire talks about why she thinks vulnerability is so powerful, the pitfalls of transparency in leadership, how to build systems by building trust, and the difference between management and leadership.   LINKS & MENTIONS FROM THIS EPISODE “Scaling People” by Claire Hughes Johnson https://press.stripe.com/scaling-people  Read “The Messy Marketplace” by Brent Beshore https://www.amazon.com/Messy-Marketplace-Selling-Business-Imperfect/dp/0998030007/ref=sr_1_1?crid=188DH4FFMN8IX&keywords=messy+marketplace&qid=1682524629&sprefix=messy+mark%2Caps%2C134&sr=8-1 Listen to “The Messy Marketplace” (episode 1 of the Permanent Podcast feed)  https://www.permanentequity.com/themessymarketplacepodcast/introduction-a-note-from-the-author  Claire mentions “Bury My Heart at Conference Room B” by Stan Slap https://www.amazon.com/Bury-Heart-Conference-Room-Unbeatable/dp/1591843243/ref=tmm_hrd_swatch_0?_encoding=UTF8&qid=1682524772&sr=8-1  David mentions “Raising Emotionally Strong Boys” by David Thomas https://www.amazon.com/Raising-Emotionally-Strong-David-Thomas/dp/0764240714/ref=tmm_hrd_swatch_0?_encoding=UTF8&qid=1682524959&sr=8-1  Sign up for our weekly newsletter for operators, Permanent Playbook: https://www.permanentequity.com/newsletter    CONNECT Claire on twitter https://twitter.com/chughesjohnson Claire on LinkedIn https://www.linkedin.com/in/claire-hughes-johnson-7058/ Brent on twitter https:/https://twitter.com/BrentBeshore Brent on LinkedIn https://www.linkedin.com/in/brentbeshore  Visit https://www.permanentequity.com/ for more Sign up for our weekly newsletter for operators, Permanent Playbook: https://www.permanentequity.com/newsletter  Sign up for a new daily newsletter from Tim Hanson, Unqualified Opinions: https://www.permanentequity.com/unqualified-opinions    TIMESTAMPS 0:00 Intro & Who Is Claire? 2:08 “This One Scales to 11” 4:08 Why Write “Scaling People?” 13:08 One of Claire’s Most Pivotal Moments as a Manager 22:12 Transparency: Virtue or Vice? 28:22 The Challenges of Managing PEOPLE 36:38 The Power of Being Vulnerable 46:42 Why Dachshunds Are the Funniest Dogs 51:26 How Have Your Motivations Changed Over Time? 55:36 The Difference Between a Strong Manager and a True Leader 57:55 Why a Business Stays Small 1:06:35 How to Build Kindness Into Company Culture 1:10:45 Who Would You Send This Podcast To? 1:11:52 Legal Disclaimer   EPISODE CREDITS Produced by David Cover Additional editing & mastering by Ryan Lipman Intro music by David Cover, Andy Freeman, Rhett Johnson, & Andrew Luley Outro music by Jees Guy   WE STEWARD COMPANIES THAT CARE WHAT HAPPENS NEXT  Visit https://www.permanentequity.com/ for more Sign up for Permanent Playbook, our newsletter for operators in the field: https://www.permanentequity.com/newsletter  Sign up for Unqualified Opinions, a new daily newsletter from our very own Tim Hanson: https://www.permanentequity.com/unqualified-opinions  Check out our other podcast episodes here: https://www.permanentequity.com/audio    LEGAL DISCLAIMER This podcast is made available solely for educational purposes, and the information presented here does not constitute investment, legal, tax or other professional advice, and should not be construed as an offering of advisory services, or as a solicitation to buy, an offer to sell, or a recommendation of any securities or other financial instruments. The thoughts and opinions expressed by or through this podcast are those of the individual guests and speakers and do not necessarily reflect the views of Permanent Equity. The discussion on this podcast of any entity, product or service does not imply an endorsement thereof, and the guests may have a financial interest, whether through investment or otherwise, in one or more of any such entities, products or services. This podcast is presented by Permanent Equity and may not be copied, reproduced, republished or posted, in any form, without its express written consent.