Business Exit Stories

After nearly 3 years of doing his podcast, Marvin has been faced with an opportunity to pursue his post-exit dreams. Listen to Marvin explain the importance of having a post-exit plan, his thoughts on the podcast thus far, and his plans for the future of the podcast. While the podcast may be on pause, for […] The post Pursuing Post-Exit Dreams & Hitting Pause On The Podcast. appeared first on Business Exit Stories.

An offer was made on a client's business by a strategic buyer and through the application of both skill and using the strategic buyers own financial metrics convinced the buyer and their advisors that it was to their benefit to pay not two or three, but four times more than their original offer to acquire […] The post How a Sales Price Went From 1X to 4X with the Stroke of a Pen appeared first on Business Exit Stories.

An importer of garden plants and supplies that was growing at an intense rate and making tons of money still couldn't get their business sold or find a buyer until an advisor approached the problem and came up with an interesting solution. A third generation security and door hardware distributor that was the premier value-added […] The post Part Two – Michael Richmond: What Happens When the Owners of a Company Don't Know Why Their Company Was Valuable appeared first on Business Exit Stories.

A company that manufactured orthopedic implants for pets was growing and profitable. However, getting this company positioned for an exit and finding the right acquiring company proved to be an extraordinary challenge that required some insightful thinking. Two women 25 years ago open a small retail bakery that makes sweets in the form of cookies and […] The post Part One – Michael Richmond: Why a Company That Was Growing Exponentially Couldn't Get Sold appeared first on Business Exit Stories.

An importer of garden plants and supplies that was growing at an intense rate and making tons of money still couldn't get their business sold or find a buyer until an advisor approached the problem and came up with an interesting solution. A third generation security and door hardware distributor that was the premier value-added […] The post Part Two – Michael Richmond: What Happens When the Owners of a Company Don't Know Why Their Company Was Valuable appeared first on Business Exit Stories.

A company that manufactured orthopedic implants for pets was growing and profitable. However, getting this company positioned for an exit and finding the right acquiring company proved to be an extraordinary challenge that required some insightful thinking. Two women 25 years ago open a small retail bakery that makes sweets in the form of cookies and […] The post Part One – Michael Richmond: Why a Company That Was Growing Exponentially Couldn't Get Sold appeared first on Business Exit Stories.

A business that was given birth after the breadwinner in the family was laid off. To make ends meet, the breadwinner's wife started cleaning houses. Because she was allergic to many of the chemicals that are commonly used in household cleaning supplies, she began to use organic cleaning supplies and then promoted her organic orientation […] The post Part Two – Linda Bloom: Why a Business Growing By Leaps and Bounds Couldn't Get an SBA Loan appeared first on Business Exit Stories.

A family-owned retail produced market that procured its fruits and produce from local growers. The family had operated the business for 10 years and as the kids got older and started to leave for college, they didn't plan on continuing to work in the business. Which is a common theme for many family-managed businesses these […] The post Part One – Linda Bloom: The One Thing You Can't Forget When Selling a Business – If You Do It Can Cost You Big Time appeared first on Business Exit Stories.

A business that was given birth after the breadwinner in the family was laid off. To make ends meet, the breadwinner's wife started cleaning houses. Because she was allergic to many of the chemicals that are commonly used in household cleaning supplies, she began to use organic cleaning supplies and then promoted her organic orientation […] The post Part Two – Linda Bloom: Why a Business Growing By Leaps and Bounds Couldn't Get an SBA Loan appeared first on Business Exit Stories.

A family-owned retail produced market that procured its fruits and produce from local growers. The family had operated the business for 10 years and as the kids got older and started to leave for college, they didn't plan on continuing to work in the business. Which is a common theme for many family-managed businesses these […] The post The One Thing You Can't Forget When Selling a Business – If You Do It Can Cost You Big Time appeared first on Business Exit Stories.

A fitness business franchisee of a national franchised fitness center accepted an offer from a qualified buyer. While excited to be stepping away from his business as he had other business opportunities he wanted to pursue, he made an interesting terrible decision before the business sale closed escrow. A buyer for a 19-unit fitness business […] The post Why You Shouldn't Buy a $400,000 Ferrari Before Your Business Sale Closes appeared first on Business Exit Stories.

A fitness business franchisee of a national franchised fitness center accepted an offer from a qualified buyer. While excited to be stepping away from his business as he had other business opportunities he wanted to pursue, he made an interesting terrible decision before the business sale closed escrow. A buyer for a 19-unit fitness business […] The post Why You Shouldn't Buy a $400,000 Ferrari Before Your Business Sale Closes appeared first on Business Exit Stories.

A family-owned business that had been successful for decades was turned over to the founder's son. While succession planning was a part of the long-term plan for the founder, the execution of the plan didn't go as planned.  Two companies with similar issues when being positioned for sale and how the two founders handle their […] The post A Success Plan That Took a Business Worth Millions to Zero appeared first on Business Exit Stories.

A family-owned business that had been successful for decades was turned over to the founder's son. While succession planning was a part of the long-term plan for the founder, the execution of the plan didn't go as planned.  Two companies with similar issues when being positioned for sale and how the two founders handle their […] The post A Success Plan That Took a Business Worth Million to Zero appeared first on Business Exit Stories.

A major league baseball team was brought to Denver and the details of how a transaction like this goes forward.  A hyper growth company that was doubling sales every year outgrew the capabilities of some members on their management team. An owner often tries to show loyalty and does everything possible to keep those that […] The post What Is Pre-Due Diligence and How It Can Make You Millions appeared first on Business Exit Stories.

A major league baseball team was brought to Denver and the details of how a transaction like this goes forward.  A hyper growth company that was doubling sales every year outgrew the capabilities of some members on their management team. An owner often tries to show loyalty and does everything possible to keep those that […] The post What Is Pre-Due Diligence and How It Can Make You Millions appeared first on Business Exit Stories.

A partnership business went from a consistent year over year growth rate to a valuation of zero in a few short years. A family owned 30-location retail service business that had passed to the second generation. As it came time for the third generation to decide if they were interested in taking over the business, several […] The post How Two Partners in a Successful and Growing Business Managed to Take It to Zero When They Decided to Sell appeared first on Business Exit Stories.

A partnership business went from a consistent year over year growth rate to a valuation of zero in a few short years. A family owned 30-location retail service business that had passed to the second generation. As it came time for the third generation to decide if they were interested in taking over the business, several […] The post How Two Partners in a Successful and Growing Business Managed to Take It to Zero When They Decided to Sell appeared first on Business Exit Stories.

A medical research company was founded by research PhDs and had a highly complex business model that relied on highly paid professionals which performed and managed the medical research. While the business generated millions in revenues, the cost of the highly paid staff produced an EBITA in the low six figures. A label manufacturer's divorce […] The post How Skillfully Crafting A Story Regarding Your Exit Can Turn Your Biggest Loss Into The Reason Why A Business Is Sold appeared first on Business Exit Stories.

A medical research company was founded by research PhDs and had a highly complex business model that relied on highly paid professionals which performed and managed the medical research. While the business generated millions in revenues, the cost of the highly paid staff produced an EBITA in the low six figures. A label manufacturer's divorce […] The post How Skillfully Crafting A Story Regarding Your Exit Can Turn Your Biggest Loss Into The Reason Why A Business Is Sold appeared first on Business Exit Stories.

An ecommerce business that was two businesses in one and how the lack of understanding and accounting of inter-company transfers not only nearly derailed a deal but almost cratered the entire business. The importance of having a CFO, either a fractional one or full-time one, and how this can make the difference between a successful […] The post Why Certain Types Of Buyers Will Pay More Money For The Same Business appeared first on Business Exit Stories.

An ecommerce business that was two businesses in one and how the lack of understanding and accounting of inter-company transfers not only nearly derailed a deal but almost cratered the entire business. The importance of having a CFO, either a fractional one or full-time one, and how this can make the difference between a successful […] The post Why Certain Types Of Buyers Will Pay More Money For The Same Business appeared first on Business Exit Stories.

A founder of an oil rig manufacturing business started meeting with a buyer on his own and his M&A Advisor cautioned him not to negotiate any of the agreed upon terms. He was also told to follow the plan that had been developed on when to share the sale with his employees. Find out what […] The post How an Entrepreneur's Ego Took a Deal from $30M to $1.2M appeared first on Business Exit Stories.

A founder of an oil rig manufacturing business started meeting with a buyer on his own and his M&A Advisor cautioned him not to negotiate any of the agreed upon terms. He was also told to follow the plan that had been developed on when to share the sale with his employees. Find out what […] The post How an Entrepreneur's Ego Took a Deal from $30M to $1.2M appeared first on Business Exit Stories.

A profitable HVAC company decided to explore selling their business because COVID had escalated valuations in the HVAC sector since more people were staying home and needed more heating and air services. Shortly after deciding to sell, a Private Equity Group approached the company and began their acquisition and due diligence. Financial buyers like a […] The post How To Sell Your Company For Less Money But End Up Putting More Cash In Your Pocket appeared first on Business Exit Stories.

A profitable HVAC company decided to explore selling their business because COVID had escalated valuations in the HVAC sector since more people were staying home and needed more heating and air services. Shortly after deciding to sell, a Private Equity Group approached the company and began their acquisition and due diligence. Financial buyers like a […] The post How To Sell Your Company For Less Money But End Up Putting More Cash In Your Pocket appeared first on Business Exit Stories.

An orthopedic footwear manufacturer was able to weather a series of unexpected events, failed closings, and a complete shutdown during the pandemic to successfully exit the business. A seller went from a DIY mode to engaging a professional advisor to facilitate their exit and this decision made the founder an additional $20M in the process, […] The post How Doing the Right Things Turned a $20M Sale into a $40M Sale appeared first on Business Exit Stories.

An orthopedic footwear manufacturer was able to weather a series of unexpected events, failed closings, and a complete shutdown during the pandemic to successfully exit the business. A seller went from a DIY mode to engaging a professional advisor to facilitate their exit and this decision made the founder an additional $20M in the process, […] The post How Doing the Right Things Turned a $20M Sale into a $40M Sale appeared first on Business Exit Stories.

An e-commerce business where some of the metrics on the financial statements just didn't seem to add up. One of the issues had to do with the gross margins on some of the products sold being north of 75%, which was far above the norm for this business segment. This issue caused the buyer to […] The post When Issues Surface in Due Diligence, You May Wish to Take A 2nd, 3rd, and 4th Look At Other Critical Aspects Of The Business appeared first on Business Exit Stories.

An e-commerce business where some of the metrics on the financial statements just didn't seem to add up. One of the issues had to do with the gross margins on some of the products sold being north of 75%, which was far above the norm for this business segment. This issue caused the buyer to […] The post When Issues Surface in Due Diligence, You May Wish to Take A 2nd, 3rd, and 4th Look At Other Critical Aspects Of The Business appeared first on Business Exit Stories.

A chemist that solves a problem his wife had with some of her hair and cosmetic beauty products line while working full time. His side hustle turned into a business that exploded into a $19M business virtually overnight. Hyper growth when scaling nearly forced an early exit and disaster was averted.  An absentee owner business […] The post From Making Money as a Side Hustle to a $19M Business Losing Money appeared first on Business Exit Stories.

A chemist that solves a problem his wife had with some of her hair and cosmetic beauty products line while working full time. His side hustle turned into a business that exploded into a $19M business virtually overnight. Hyper growth when scaling nearly forced an early exit and disaster was averted.  An absentee owner business […] The post From Making Money as a Side Hustle to a $19M Business Losing Money appeared first on Business Exit Stories.

A specialty heavy equipment company that dominated a highly profitable niche decided to sell. A private equity firm suggested by the M&A advisor expressed interest and made a generous offer. However, the seller's attorney had dealt with this Private Equity from before and had formed some opinions on them. What shouldn't have happened, ended up […] The post Going from a Meager Six Figure Walk Away Exit Offer to Millions Plus a Second Bite of the Apple on a Subsequent Sale appeared first on Business Exit Stories.

A specialty heavy equipment company that dominated a highly profitable niche decided to sell. A private equity firm suggested by the M&A advisor expressed interest and made a generous offer. However, the seller's attorney had dealt with this Private Equity from before and had formed some opinions on them. What shouldn't have happened, ended up […] The post Going from a Meager Six Figure Walk Away Exit Offer to Millions Plus a Second Bite of the Apple on a Subsequent Sale appeared first on Business Exit Stories.

An entrepreneur decided to sell his business, and then when he was at the closing table, backed out. He did this not once but twice. Three partners with equal ownership in a business they ran for decades had different goals and objectives which caused an extended five-year process of getting the business sold. Russian immigrants […] The post How An Entrepreneur Exited Their Business After A Cancer Diagnosis appeared first on Business Exit Stories.

A business owner's lack of transparency with his M&A Advisor ended up taking his business sale from a sure deal to zero and the IRS killed this deal without breaking a sweat. A buyer walked away from a deal allowing the seller to re-sell the business again in a matter of months and keep all […] The post How the IRS Can Kill a Deal Without Breaking a Sweat appeared first on Business Exit Stories.

A business owner's lack of transparency with his M&A Advisor ended up taking his business sale from a sure deal to zero and the IRS killed this deal without breaking a sweat. A buyer walked away from a deal allowing the seller to re-sell the business again in a matter of months and keep all […] The post How the IRS Can Kill a Deal Without Breaking a Sweat appeared first on Business Exit Stories.

An entrepreneur decided to sell his business, and then when he was at the closing table, backed out. He did this not once but twice. Three partners with equal ownership in a business they ran for decades had different goals and objectives which caused an extended five-year process of getting the business sold. Russian immigrants […] The post How An Entrepreneur Exited Their Business After A Cancer Diagnosis appeared first on Business Exit Stories.

Why working capital requirements can often be used strategically by buyers as they are designed to reduce the effective sales price of a business. Unaware sellers can be surprised when they end up with a lot less than they anticipated because they allowed the working capital to be manipulated either by how working capital was […] The post How A Business Went From $50 Million In Sales To Ceasing Operations And Still Got Sold. appeared first on Business Exit Stories.

Why working capital requirements can often be used strategically by buyers as they are designed to reduce the effective sales price of a business. Unaware sellers can be surprised when they end up with a lot less than they anticipated because they allowed the working capital to be manipulated either by how working capital was […] The post How A Business Went From $50 Million In Sales To Ceasing Operations And Still Got Sold. appeared first on Business Exit Stories.

Although a comprehensive tax plan was painstakingly crafted and designed, a client went dark for nearly nine months. Less than a week before the sale was to take place the client called and asked if everything was ready to go. A significant portion of the tax planning strategies that had been crafted couldn't be executed […] The post How A Tax Plan Can Save Millions In A Business Sale appeared first on Business Exit Stories.

Although a comprehensive tax plan was painstakingly crafted and designed, a client went dark for nearly nine months. Less than a week before the sale was to take place the client called and asked if everything was ready to go. A significant portion of the tax planning strategies that had been crafted couldn't be executed […] The post How A Tax Plan Can Save Millions In A Business Sale appeared first on Business Exit Stories.

A transactional story of an infrastructure construction company that was equipment intensive and had accumulated nearly five times more equipment on the books than it needed. While the company has strong free cash flow, the amount of equipment on the books made it a difficult to capture anything above the equipment book value on the […] The post How A Nearly Impossible To Sell Business Sold Quickly For Double Its Value appeared first on Business Exit Stories.

A transactional story of an infrastructure construction company that was equipment intensive and had accumulated nearly five times more equipment on the books than it needed. While the company has strong free cash flow, the amount of equipment on the books made it a difficult to capture anything above the equipment book value on the […] The post How A Nearly Impossible To Sell Business Sold Quickly For Double Its Value appeared first on Business Exit Stories.

A commercial janitorial business dramatically increased their gross margins and profitability the year before it sold. However, the source of the profits wasn't from excellent execution or dramatically increases sales. When the buyers found out why the performance was so good, they sued the seller. A juvenile based sports manufacturing and import company had multiple […] The post How an Entrepreneur Was Able to Jack Up Profits Only to Be Sued After the Business Sold appeared first on Business Exit Stories.

A commercial janitorial business dramatically increased their gross margins and profitability the year before it sold. However, the source of the profits wasn't from excellent execution or dramatically increases sales. When the buyers found out why the performance was so good, they sued the seller. A juvenile based sports manufacturing and import company had multiple […] The post How an Entrepreneur Was Able to Jack Up Profits Only to Be Sued After the Business Sold appeared first on Business Exit Stories.

A highly profitable business services company that has five highly qualified partners in the business handling the key functions of the company. These partners were committed to the business and worked 70-80 hrs. a week for years. Yet even though this company was highly profitable, it turned out to be unsellable. A $35M tortilla company […] The post How to Make a $28M Highly Profitable Company Worth Nothing and Unsaleable in One Easy Step appeared first on Business Exit Stories.

A highly profitable business services company that has five highly qualified partners in the business handling the key functions of the company. These partners were committed to the business and worked 70-80 hours per week for years. Yet even though this company was highly profitable, it turned out to be unsellable. A $35M tortilla company […] The post How to Make a $28M Highly Profitable Company Worth Nothing and Unsaleable in One Easy Step appeared first on Business Exit Stories.

Why the FBI, DEA, and state regulatory agencies descended on a business and why this didn't bother the right buyer. How the wrong business intermediary can create mistrust and derail a deal in the blink of an eye, making it impossible for a buyer to acquire the business, even though it was a great business.  […] The post How Holding on to Your Business Too Long and Not Selling Can Cost Millions appeared first on Business Exit Stories.

Why the FBI, DEA, and state regulatory agencies descended on a business and why this didn't bother the right buyer. How the wrong business intermediary can create mistrust and derail a deal in the blink of an eye, making it impossible for a buyer to acquire the business, even though it was a great business.  […] The post How Holding on to Your Business Too Long and Not Selling Can Cost Millions appeared first on Business Exit Stories.

A family operation with three kids never had a disagreement while mom, the matriarch of the family, was around. However, when she unexpectedly passed away, the kids spent the next 10 yrs. and $5M in legal fees trying to sort out their differences. A rags to riches saga where a family business, again with three […] The post 50/50 Is Not Always Nifty – Partnerships That Don’t Work appeared first on Business Exit Stories.