The Exit Plan is for business owners that are interested in learning more about how to sell their business. Each episode Barnaby Cook interviews someone who has bought or sold a business - either a creative agency, or a production company. The conversation gets under the skin of why they wanted to sell, or were looking to acquire, how the deal was structured, how they agreed upon a valuation and what lessons they learnt along the way.
summaryIn this conversation, James Routledge shares his journey as an entrepreneur, focusing on his experiences with Sanctus, a mental health business. He discusses the challenges of navigating failure, the complexities of business growth and investment, and the emotional journey of selling his company. James reflects on the impact of his identity as a founder and the lessons learned through his experiences, ultimately leading to a deeper understanding of himself and his future aspirations.takeawaysJames started Sanctus to address mental health in the workplace.He experienced significant personal growth through his entrepreneurial journey.Failure is a part of the learning process in entrepreneurship.James felt a strong connection between his identity and his business.The transition from founder to board member was challenging for him.He learned the importance of knowing what he wanted in business negotiations.James struggled with feelings of embarrassment after his first business failed.The sale of Sanctus was not something he initially considered.He found it difficult to let go of his past as a founder.James is now exploring new opportunities with a more stable personal life.Connect with Barnaby on LinkedIn: https://www.linkedin.com/in/barnabycook/Join The Exit Plan mailing list: http://eepurl.com/iC8sIY
In this conversation, Andy Day shares his journey from the music industry to founding Capital A, an M&A advisory firm focused on marketing services. He discusses the challenges of business partnerships, his experiences with private equity, and the struggles he faced after exiting his first business. Andy also delves into the evolution of his advisory firm, the creation of platforms like Deal Engines and Agencies.co, and how he leverages digital tools to facilitate M&A transactions. The conversation highlights the importance of adaptability and innovation in the ever-changing landscape of business acquisitions.takeawaysAndy started his career in the music industry, working at MTV.His journey involved navigating complex business partnerships and exits.The experience with private equity was both challenging and educational.Life after exiting a business can lead to feelings of boredom and loss.Finding new opportunities in M&A was a turning point for Andy.Capital A was founded to bridge the gap in M&A advisory for marketing services.Digital platforms like Deal Engines and Agencies.co were developed to streamline M&A processes.The importance of building a strong online presence in the M&A industry.Andy emphasizes the need for a supportive network in business.The future of M&A will rely heavily on digital tools and innovative strategies.Connect with Barnaby on LinkedIn: https://www.linkedin.com/in/barnabycook/Join The Exit Plan mailing list: http://eepurl.com/iC8sIY
summaryIn this conversation, Eric Pierre, CEO of Pierre Accounting, shares his journey from a corporate employee to a successful entrepreneur specializing in tax planning for high net worth individuals. He discusses the importance of tax mitigation strategies, his involvement in M&A deals, and the challenges faced when dealing with the IRS. Eric also emphasizes the significance of proper financial planning for business owners, especially those considering selling their businesses. The conversation concludes with Eric's future plans and insights into his firm's operations.takeawaysEric Pierre transitioned from corporate life to entrepreneurship for greater control over his work.Tax planning is crucial for new millionaires who may not understand their tax obligations.Involvement in M&A deals requires early tax strategy planning to maximize benefits.Understanding the difference between share and asset purchases is vital for business owners.Successful tax mitigation can lead to significant savings for clients.The IRS faces challenges that can complicate communication and resolution of tax issues.Proper record-keeping is essential for business owners preparing for a sale.Eric's firm offers unique asset protection strategies for high net worth clients.Networking and personal connections are key to growing a client base in accounting.Future plans include expanding client services and speaking engagements.Connect with Barnaby on LinkedIn: https://www.linkedin.com/in/barnabycook/Join The Exit Plan mailing list: http://eepurl.com/iC8sIY
summaryIn this conversation, Joe Lopresti, founder of Arlington Wealth Management, discusses the unique financial needs of business owners, emphasizing the importance of planning for the future, particularly regarding exit strategies and achieving personal freedom. He introduces the concept of the 'freedom point,' which allows business owners to live their ideal lives without financial constraints. The discussion covers various aspects of wealth management, including lifetime cashflow planning, the significance of understanding a business's sellability, and the necessity of proactive planning to avoid regrets after selling a business.takeawaysBusiness owners value freedom above everything else.Most business owners have their wealth tied up in their business.Designing an exit on your terms is crucial.The freedom point is living without financial constraints.You need a lifetime cashflow plan for confidence.Your business's sellability score matters.You should think about your exit from day one.Pre-sale planning can prevent regret after selling.Understanding unique concerns is vital for business owners.Planning for the future is essential for business success.Connect with Barnaby on LinkedIn: https://www.linkedin.com/in/barnabycook/Join The Exit Plan mailing list: http://eepurl.com/iC8sIY
summaryIn this conversation, Graham Goodkind shares his journey from working in PR to founding Frank PR, discussing the challenges and triumphs of growing the agency, navigating acquisitions, and ultimately transitioning to employee ownership. He reflects on the lessons learned throughout his career, the importance of creativity in business, and his current role in guiding the agency's future.takeawaysGraham Goodkind's career began with work experience in PR.He founded Frank PR in 2000, celebrating 25 years in business.Growth in the early years was rapid due to bold campaigns.Selling the agency involved navigating complex acquisition processes.The buyback of Frank PR was motivated by a desire for control.Employee ownership was seen as a legacy for the team.Goodkind emphasizes the importance of creativity in PR.He enjoys a balanced work life, focusing on strategic input.The agency's culture has been key to its success.Goodkind continues to mentor and advise other businesses.Connect with Barnaby on LinkedIn: https://www.linkedin.com/in/barnabycook/Join The Exit Plan mailing list: http://eepurl.com/iC8sIY
summaryIn this conversation, Andrew Gazdecki, CEO and founder of Acquire.com, shares his entrepreneurial journey, detailing his experiences with various startups and the emotional aspects of selling a business. He discusses the inception of Acquire.com, aimed at streamlining the startup acquisition process, and emphasizes the importance of preparation for founders considering selling their businesses. The conversation also touches on the integration of AI into business processes and the future of mergers and acquisitions in the tech industry.takeawaysAndrew's entrepreneurial journey began with selling baseball cards.He founded multiple companies before launching Acquire.com.The startup acquisition process is often confusing for founders.Acquire.com aims to simplify the acquisition process for startups.Emotional support is crucial during the selling process.Preparation is key for founders considering an acquisition.AI integration can streamline business processes significantly.The marketplace for startups is growing rapidly.Founders should document processes to prepare for potential buyers.M&A activity is expected to increase in the coming years.Connect with Barnaby on LinkedIn: https://www.linkedin.com/in/barnabycook/Join The Exit Plan mailing list: http://eepurl.com/iC8sIY
summaryIn this conversation, James Stevenson shares his extensive experience in mergers and acquisitions (M&A), fundraising, and business turnarounds. He discusses his journey from construction to technology and marketing, leading to his current role in helping companies prepare for exits. Davidson provides insights into the challenges faced during a turnaround of a marketing services business, the sale process, and the importance of creative deal-making. He emphasizes the need for businesses to focus on fundamentals and strategic planning to maximize their value when preparing for sale.takeawaysJames Stevenson has a diverse background in M&A and fundraising.He emphasizes the importance of strategic planning for business exits.Turnarounds require a focus on cash flow and sales.Creative deal-making can enhance business valuations.Understanding the emotional aspects of business sales is crucial.Good money is preferable to giving away equity.Businesses should focus on fundamentals before selling.A well-motivated team is essential for business success.The sale process can be influenced by internal perceptions.Preparation for sale should start years in advance.Connect with Barnaby on LinkedIn: https://www.linkedin.com/in/barnabycook/Join The Exit Plan mailing list: http://eepurl.com/iC8sIY
In this conversation, John Martinka discusses his journey into the M&A world, the importance of preparation for business owners looking to sell, and the emotional aspects of the selling process. He shares insights from his recent book, 'Exit with Style, Grace, and More Money,' and emphasizes the need for business owners to be ready both financially and emotionally before selling. The discussion also covers current market trends, the impact of AI on businesses, and the challenges posed by the aging baby boomer population in the business landscape. John provides practical tips for maximizing business value and shares real-life case studies to illustrate key points.takeawaysJohn Martinka emphasizes the importance of preparation for business owners looking to sell.Emotional readiness is crucial for both buyers and sellers in the M&A process.Many business owners make impulsive decisions to sell without proper planning.The current market favors sellers with mature and profitable businesses.AI can enhance business operations but won't replace core functions.The anticipated 'silver tsunami' of baby boomer business sales may not happen as expected.Only 10% of businesses are ready to sell for maximum value.Good financial systems are essential for business valuation.Reducing dependency on the owner can increase business attractiveness to buyers.Growth can mask operational issues that need to be addressed before selling.Connect with Barnaby on LinkedIn: https://www.linkedin.com/in/barnabycook/Join The Exit Plan mailing list: http://eepurl.com/iC8sIY
In this conversation, Nicky Hoyland, Chief Innovation Officer at Auspicious, shares her journey from a film and media graduate to a leader in learning technology and business innovation. She discusses her experiences in building DBLX, the challenges of transitioning from bespoke development to a SaaS platform, and the importance of collaboration and networking in business. Nicky also reflects on the impact of AI on the industry and her excitement for the future of technology in enhancing human experiences.TakeawaysNicky's background in film and media shaped her unique approach to technology.Building strong client relationships is crucial for business growth.Networking has been a key factor in acquiring new clients.The transition from bespoke development to SaaS presents unique challenges.Collaboration between teams is essential for successful project delivery.Innovative learning solutions can drive engagement and effectiveness.AI is transforming the way businesses operate and deliver services.Understanding user needs is vital for developing effective SaaS products.The journey of entrepreneurship is filled with lessons and growth opportunities.Nicky values being part of a creative team rather than solely leading.Connect with Nicky on LinkedIn: https://www.linkedin.com/in/nickyhoyland/Connect with Barnaby on LinkedIn: https://www.linkedin.com/in/barnabycook/Join The Exit Plan mailing list: http://eepurl.com/iC8sIY
Summary Jim Hawker, co-founder of 3Pipe, shares his journey of starting and growing the agency over 20 years, including the challenges of mergers, acquisitions, and financial turmoil. He reflects on the evolution of marketing, the importance of strategic growth, and the lessons learned from navigating a significant financial crisis. The conversation culminates in his exit strategy and thoughts on the future of agency growth. Takeaways Started 3Pipe in April 2004, the same month as Facebook. The agency evolved from traditional PR to brand performance work. Merging with a paid media agency was a strategic move to enhance digital skills. Acquisitions were driven by the need to fill gaps in service offerings. Navigating financial turmoil was a significant challenge for the agency. The finance director's gambling addiction led to a major crisis. The sale to a technology consulting firm was a strategic decision. The earn-out period was extended due to COVID-19. Reflections on whether to have continued as a traditional PR agency. Understanding new channels kept Jim motivated in his marketing career. Connect with Barnaby on LinkedIn: https://www.linkedin.com/in/barnabycook/ Join The Exit Plan mailing list: http://eepurl.com/iC8sIY
Summary In this conversation, Saul Cohen, owner of Expert Eye, shares his journey from working in corporate finance to supporting small and medium-sized enterprises (SMEs). He discusses the importance of providing tailored financial advice to entrepreneurs, the impact of personal experiences on his career choices, and the challenges faced by business owners in the current economic climate. The conversation also delves into the implications of recent changes in business taxation, the dynamics of mergers and acquisitions (M&A), and the role of private equity in business sales. Saul emphasizes the need for business owners to plan their exit strategies early and to view their businesses objectively when considering a sale. Takeaways Saul Cohen transitioned from corporate finance to support SMEs. Personal experiences can significantly influence career paths. Many business owners are unprepared for the sale of their businesses. Government policies often overlook the needs of business owners. Tax changes can motivate business owners to sell sooner. M&A requires a different skill set than standard accountancy. Private equity seeks low-risk businesses with strong management. Business owners should plan their exit strategies early. It's crucial to view your business objectively when selling. Building a business provides valuable experience for future acquisitions. Connect with Barnaby on LinkedIn: https://www.linkedin.com/in/barnabycook/ Join The Exit Plan mailing list: http://eepurl.com/iC8sIY
In this conversation, Holly Tennock shares her journey from being a journalist to founding her own PR agency, Journalista, and the challenges she faced as a female entrepreneur. She discusses the growth of her agency, the complexities of navigating leadership, and the eventual sale of her business. Holly reflects on her experiences during the transition post-sale, the impact of COVID on her business, and her insights on leadership and team dynamics. In this conversation, Holly and Barnaby discuss the intertwining of personal health challenges and the pressures of business leadership. Holly shares her experience with a severe spinal injury during a tumultuous time in her career, leading to reflections on burnout and the importance of self-care. They explore the identity shifts that occur after selling a business, the emotional aftermath of such a significant life change, and the necessity of having a support system in place. Ultimately, they emphasize the importance of finding balance and purpose in life after exiting a business, highlighting the need for self-awareness and permission to prioritize personal well-being. Takeaways Holly transitioned from journalism to PR, founding Journalista. The agency focused on making complex issues clear for clients. Being a young business owner presented unique challenges. Burnout was a significant factor in Holly's decision to sell. The sale was initiated through a conversation with a fellow agency leader. Holly emphasizes the importance of team dynamics in leadership. The transition post-sale was challenging, especially during COVID. Feedback on emotional control was difficult for Holly to navigate. Holly's experience highlights the need for better allyship in business. The conversation underscores the importance of mental health in entrepreneurship. Holly experienced significant health challenges during a critical business period. Burnout can cloud judgment and decision-making in leadership roles. Reflecting on joyful moments with a team can enhance leadership satisfaction. Post-sale identity shifts can lead to feelings of inadequacy and confusion. Having a support system is crucial during major life transitions. Self-care and structured breaks are essential for mental health. The emotional aftermath of selling a business can be overwhelming. Finding balance between work and personal life is vital for happiness. Understanding personal needs and giving oneself permission to take breaks is important. The journey of entrepreneurship often involves navigating complex emotional landscapes. Connect with Barnaby on LinkedIn: https://www.linkedin.com/in/barnabycook/ Join The Exit Plan mailing list: http://eepurl.com/iC8sIY
In this conversation, Ben Fitter-Harding shares his entrepreneurial journey, detailing the inception and growth of his first business, Cardboard Fish, a communications technology company. He discusses the challenges and successes of navigating the acquisition process, the emotional impact of selling a business, and the transition to his new venture, Dodgems and Floss, a creative agency. Ben reflects on the lessons learned throughout his journey and the importance of foresight in business planning. takeaways Ben started Cardboard Fish out of curiosity and experimentation. The rise of mobile technology significantly impacted their business model. Acquisition was a natural progression for the business as it matured. The M&A process was organized and facilitated by a specialist. Post-acquisition, the team experienced both growth and challenges. Ben transitioned to consulting after the sale, allowing for flexibility. The new venture, Dodgson and Floss, focuses on bespoke branding and design. Ben values the work-life balance more in his current role. He emphasizes the importance of understanding the exit process early. The journey has been fulfilling, with opportunities for personal growth. Connect with Barnaby on LinkedIn: https://www.linkedin.com/in/barnabycook/ Join The Exit Plan mailing list: http://eepurl.com/iC8sIY
In this conversation, Greg Moyer, CEO of Blue Chalk Media, shares his extensive career journey in the media industry, from his early days in journalism to his pivotal role in launching the Discovery Channel. He discusses the founding of Blue Chalk Media, emphasizing the creative freedom it provided him and the challenges of running a media company. Moyer reflects on the growth of Blue Chalk, the development of his team, and the impact of industry changes on their business. He also delves into his succession planning and the recent sale of Blue Chalk, expressing optimism for the future under new leadership. takeaways Greg Moyer's career began in journalism and evolved into media production. He was part of the founding team of the Discovery Channel. Blue Chalk Media was founded to explore more soulful content. Creativity thrives within constraints, not in a vacuum. The first commission for Blue Chalk came from the Weather Channel. Team development was crucial for Blue Chalk's growth. Industry changes have forced media companies to adapt. Succession planning was a key focus for Moyer before selling Blue Chalk. The integration process with new leadership is seen as an opportunity for growth. Moyer expresses satisfaction with the sale and future prospects of Blue Chalk. Connect with Barnaby on LinkedIn: https://www.linkedin.com/in/barnabycook/ Join The Exit Plan mailing list: http://eepurl.com/iC8sIY
In this conversation, John Hannum, founder of PPS Solutions, discusses his journey in finance, the importance of CFO services for small businesses, and the intricacies of SBA loans. He explains the quality of earnings process, the differences between asset and share purchases, and shares insights on the buy-side perspective in M&A transactions. John emphasizes the significance of clean financial records for business owners preparing for sale and offers practical advice for navigating the complexities of business acquisitions. Takeaways Small businesses often require CFO services during financial challenges. SBA loans are a popular financing option for acquisitions. Seller financing can be creatively structured in deals. Accrual accounting provides better insights for decision-making. Quality of earnings reports validate business financials before sale. Understanding deal structures is crucial for buyers and sellers. Clean financial records can lead to higher business valuations. The transfer of businesses from retiring owners is a growing trend. Buy-side representation is more common in current market conditions. Operational efficiency is key to successful business growth. Connect with Barnaby on LinkedIn: https://www.linkedin.com/in/barnabycook/ Join The Exit Plan mailing list: http://eepurl.com/iC8sIY Learn more about PPS Solutions: http://www.ppsfinance.com/ Connect with John Hannum: john@ppsfinance.com
In this conversation, Lee Bushell shares his extensive entrepreneurial journey, starting from his early ventures in selling clothing at school to his experiences in the nightclub industry and transitioning into law. He discusses his approach to mergers and acquisitions, the strategy behind his investment group, and the importance of focusing on cash flow and ethical business practices. Lee emphasizes the significance of having a solid exit strategy for business owners and provides valuable insights into navigating business turnarounds and building a diverse portfolio. Takeaways Lee Bushell started his entrepreneurial journey at age 15. His first business involved selling Calvin Klein clothing. Transitioning from law to business was a significant turning point. He emphasizes the importance of cash flow in business. Lee prefers investing in 'ugly' businesses with high barriers to entry. Mergers and acquisitions are a key focus for his investment group. He believes in ethical business practices and transparency. Lee advises business owners to have a solid exit strategy. Understanding the market is crucial for setting realistic expectations. The journey and relationships in business are what matter most. Connect with Barnaby on LinkedIn: https://www.linkedin.com/in/barnabycook/ Join The Exit Plan mailing list: http://eepurl.com/iC8sIY
Mike Finger, a small business owner and expert in the transaction space, shares his insights on selling small businesses. He emphasizes the importance of understanding the basics of selling a business and dispels common misconceptions. Mike discusses the challenges faced by business owners in valuing and selling their businesses, including inflated expectations and lack of knowledge. He also shares his own experiences with buying and selling businesses, including turnaround acquisitions. Mike offers advice for business owners, encouraging them to focus on creating desirable results, ensuring the business can operate without the owner, and documenting the results. Takeaways Understanding the basics of selling a business is crucial for small business owners. Many business owners have inflated expectations and lack knowledge about the value and sellability of their businesses. Creating desirable results, ensuring the business can operate without the owner, and documenting the results are key factors in preparing a business for sale. The market for small businesses is complex, and owners should seek professional advice and educate themselves about the process. Waiting too long to tackle the topic of selling a business can lead to missed opportunities and regrets. Connect with Barnaby on LinkedIn: https://www.linkedin.com/in/barnabycook/ Join The Exit Plan mailing list: http://eepurl.com/iC8sIY
Richard Simpson talks about his role in sales and how it helped him access opportunities. He discusses the history and specialisations of Tayburn, the design agency he joined in 2008. Richard also explains how he acquired equity in the business and how his role evolved over time. He then delves into the process of the acquisition by Lewis, including the valuation, deal structure, and integration of the two agencies. Sales experience can provide access to valuable opportunities in the creative industry. Equity ownership in a business can be obtained through options and converted into equity over time. Preparing for a sale or acquisition by getting the company's house in order is crucial. Maintaining business as usual and minimizing disruption to clients and employees during the integration process is important. Combining the strengths and expertise of two agencies can create new opportunities and services for clients. Connect with Barnaby on LinkedIn: https://www.linkedin.com/in/barnabycook/ Join The Exit Plan mailing list: http://eepurl.com/iC8sIY
Nick Morgan, Group CEO of We Group, shares his experience with building and exiting multiple businesses. He discusses his background and the different agencies he has been involved with, including bars, pubs, and a distressed agency. Nick also talks about the three agencies within We Group: The Fair, which focuses on event production and placemaking; Ops, which handles operations within public realm; and We Are the Fair, which serves as the holding company. He emphasizes the importance of transparency and setting benchmarks for growth, as well as the value of building a strong leadership team. Nick also touches on the EMI scheme he has implemented and the potential acquirers for We Group. Nick Morgan has built and exited multiple businesses, including bars, pubs, and a distressed agency. We Group consists of three agencies: The Fair, Ops, and We Are the Fair. Transparency and setting benchmarks for growth are important in building a successful business. A strong leadership team is crucial for managing the day-to-day operations and allowing the CEO to focus on strategic planning. The EMI scheme implemented by We Group incentivizes long-serving employees with vested shares. Potential acquirers for We Group include promoters and large agencies looking to expand their services. Connect with Barnaby on LinkedIn: https://www.linkedin.com/in/barnabycook/ Join The Exit Plan mailing list: http://eepurl.com/iC8sIY
Taylor Christoffel, CEO of Uncubed, shares the story of the company's evolution from HR software to employer branding production. He joined Uncubed in 2016 and eventually acquired the company in 2024. Taylor discusses the value of the company's legacy and the passion he brings to the business. He highlights the expansion of Uncubed Studios into the European market and the opportunity to improve employer branding in Europe. Taylor's background in video production and his dedication to building the company have been instrumental in its success. Uncubed started as an HR software company and evolved into employer branding production. Taylor Christoffel joined Uncubed in 2016 and acquired the company in 2024. The value of Uncubed lies in its legacy, reputation, and production services. Uncubed Studios is expanding into the European market to improve employer branding in Europe. Connect with Barnaby on LinkedIn: https://www.linkedin.com/in/barnabycook/ Join The Exit Plan mailing list: http://eepurl.com/iC8sIY
Cindy Anderson, a certified public accountant and M&A consultant, shares insights on preparing a business for sale and navigating the M&A process. She emphasizes the importance of clean financial records and understanding the buyer's perspective. Anderson recommends working with advisors and creating a clear integration plan to ensure a smooth transition post-sale. She also discusses the challenges of earnouts and the emotional impact of selling a business. Overall, Anderson advises business owners to clarify their goals and seek professional guidance to maximize the value of their business. Takeaways Clean financial records are crucial for preparing a business for sale. Understanding the buyer's perspective and their specific needs is essential. Working with advisors and creating a clear integration plan can facilitate a smooth transition post-sale. Earnouts can be challenging and require a clear strategy and commitment from both parties. Selling a business can have emotional implications, and it's important to be prepared for the transition. Connect with Barnaby on LinkedIn: https://www.linkedin.com/in/barnabycook/ Join The Exit Plan mailing list: http://eepurl.com/iC8sIY
Nicholas Spezio, Director of Transaction Services at Expo Group, discusses the world of private equity and venture capital. Private equity firms invest capital into mature businesses with long-term growth potential, often seeking a controlling stake. Venture capital firms, on the other hand, invest in early-stage companies in exchange for equity. Spezio emphasizes that private equity investors are attracted to recurring revenue-based businesses, while venture capitalists are interested in early-stage investments. He also discusses the timing of selling a business and the challenges that entrepreneurs face when transitioning to being an employee after selling their business. Private equity firms invest in mature businesses, while venture capital firms invest in early-stage companies. Private equity investors are attracted to businesses with recurring revenue streams. The timing of selling a business depends on the owner's future plans and goals. Entrepreneurs should carefully consider their reasons for selling and the long-term implications before making a decision. Integration post-acquisition can be a laborious process, requiring financial and operational due diligence. Working capital calculations can be contentious in deals, and sellers should be prepared for adjustments and negotiations.
Tulips & Company, a corporate film agency, was founded in 2002 by Laure Cousin and Charles Drouin. They started the business in the attic of Laure's house with a focus on creative storytelling. Over the years, they grew the company and gained recognition through awards. In 2018, they decided to sell the company to its employees in a unique way. They created a new company called Ortus, owned by the employees, which gradually buys shares in Tulips using profits from the company. This allows the employees to become shareholders without taking on debt. The transfer of ownership will be complete in 10 years, with the employees owning 65% of the company. Tulips & Company was founded in 2002 as a corporate film agency with a focus on creative storytelling. The founders, Laure Cousin and Charles Drouin, decided to sell the company to its employees in a unique way. They created a new company called Ortus, owned by the employees, which gradually buys shares in Tulips using profits from the company. The transfer of ownership will be complete in 10 years, with the employees owning 65% of the company.
Jacqueline O'Donovan OBE shares her journey of owning and growing a waste management business, O'Donovan Waste Disposal, after her father's passing. She discusses the challenges of taking over the business at a young age and the close-knit dynamic of working with her siblings. Jacqueline highlights the importance of a strong work ethic and cohesion within the family. She also talks about the growth and success of the business, becoming an employer of choice, and leading the industry in sustainability and digitalization. The conversation concludes with the decision to sell the business and the process of finding the right buyer. Jacqueline O'Donovan shares her experience of selling her waste management company and transitioning to a new chapter in her career. She emphasizes the importance of relationships and due diligence in the selling process. Jacqueline discusses the challenges of finding the right buyer and valuing the business. She also talks about her current ventures, including her PR marketing agency. Jacqueline encourages women to be confident and assertive in their careers. Taking over a family business at a young age requires resilience, adaptability, and a strong work ethic. Building a successful business involves continuous learning, innovation, and staying ahead of the competition. Creating a positive work environment and being an employer of choice can attract top talent and contribute to business success. Selling a business requires careful planning, finding the right buyer, and maintaining a good relationship with advisors throughout the process. Building strong relationships and conducting thorough due diligence are crucial when selling a business. Finding the right buyer who understands and appreciates the business is essential. Valuing a business can be a complex process, and it's important to have a clear understanding of the factors involved. Transitioning to a new chapter in one's career can be exciting and challenging, but maintaining a strong work ethic and adaptability is key. Jacqueline O'Donovan's current ventures include a PR marketing agency and investments in various industries. Women in business should be confident, assertive, and supportive of one another. Connect with Jacqueline O'Donovan on LinkedIn: https://www.linkedin.com/in/jacqueline-o-donovan/ Connect with Barnaby on LinkedIn: https://www.linkedin.com/in/barnabycook/ Join The Exit Plan mailing list: http://eepurl.com/iC8sIY
Loreta Tarazaita is a marketing communications consultant and executive coach with a background in news anchoring. She helps business owners and executives improve their on-camera and on-stage presence, particularly in using video as a medium. Loreta emphasizes the importance of personal branding, especially on platforms like LinkedIn, and encourages the use of video to build rapport and trust with the audience. She advises starting with simple videos, such as recording oneself describing the scenery or talking through a cooking process, to get comfortable with being on camera. Loreta also offers coaching on presentation skills for both on-camera and on-stage appearances. Loreta helps business owners and executives improve their on-camera and on-stage presence, particularly in using video as a medium. Personal branding is crucial, especially on platforms like LinkedIn, to build visibility, authority, and trust. Starting with simple videos, such as recording oneself describing the scenery or talking through a cooking process, can help build comfort with being on camera. Loreta offers coaching on presentation skills for both on-camera and on-stage appearances, emphasizing the differences between the two mediums. Connect with Loreta on LinkedIn: https://www.linkedin.com/in/loretatarozaite/ onnect with Barnaby on LinkedIn: https://www.linkedin.com/in/barnabycook/ Join The Exit Plan mailing list: http://eepurl.com/iC8sIY
Mike Silver, the founder of an experiential agency called Stretch, shares his journey of setting up an experiential marketing agency called Stretch in Cape Town, South Africa. We talk about its growth, a merger with another agency in Johannesburg and it's eventual sale to a WPP affiliate. He discusses the challenges, learnings, and post-sale experiences, offering valuable insights for entrepreneurs considering a similar path. Takeaways Invest in growth and take risks to achieve exponential growth Stay focused on the core business and strategy during the acquisition process Prepare for a different dynamic post-acquisition, with a shift in responsibility and accountability Connect with Mike Silver on LinkedIn: https://www.linkedin.com/in/experiencemike/ Connect with Barnaby on LinkedIn: https://www.linkedin.com/in/barnabycook/ Join The Exit Plan mailing list: http://eepurl.com/iC8sIY
Tim Drake, a semi-retired agency owner, shares his journey of building and selling his agency for £20 million. He discusses the various pivots his agency went through, from graphic design to websites to mobile-first business. Tim emphasizes the importance of finding the right business partner and maintaining a ruthless focus on building and selling. He explains the earn-out structure of the deal and how they exceeded expectations. Tim also highlights the significance of culture, agility, and a deep understanding of running a business in achieving success. He encourages agency owners to consider different approaches to achieve their financial goals. Takeaways Pivoting and adapting to new technologies and market demands is crucial for the success of an agency. Finding the right business partner who complements your skills and shares your vision is essential. Maintaining a ruthless focus on building and selling can lead to significant financial success. Culture, agility, and a deep understanding of running a business are key factors in achieving success in the agency industry. Connect with Tim on LinkedIn: https://www.linkedin.com/in/tim-drake-6b41569/ Connect with Barnaby on LinkedIn: https://www.linkedin.com/in/barnabycook/ Join The Exit Plan mailing list: http://eepurl.com/iC8sIY
George Hughes, founder of Small Films, shares his experience of starting and acquiring businesses in the video production industry. He discusses the challenges of transitioning from working in the television industry to running his own company and the importance of understanding the objectives of clients. Hughes also talks about how he acquired Maia Films, an education specialist company, during its liquidation process. He explains the negotiation process, the assets he acquired, and the impact on his business. He concludes by reflecting on the lessons learned and the potential for future acquisitions. Takeaways Transitioning from working in a specific industry to running your own company requires understanding the objectives of clients and adapting to their needs. Acquiring a business during its liquidation process can be a strategic opportunity, but it requires careful negotiation and assessment of the assets and liabilities involved. The acquisition of Maia Films has the potential to significantly increase Small Films' turnover and establish the company as a dominant player in the education content industry. Timing is crucial in business acquisitions, and acting quickly can help secure clients and maximize the benefits of the acquisition. Reflecting on the experience, being more aggressive and proactive in the acquisition process could have yielded even better results. Connect with George on LinkedIn: https://www.linkedin.com/in/georgemhughes/ Connect with Barnaby on LinkedIn: https://www.linkedin.com/in/barnabycook/ Join The Exit Plan mailing list: http://eepurl.com/iC8sIY
Steve James Royal, co-founder of The Yard Creative, shares his journey of building and selling a design agency. The Yard Creative is an evidential design agency that focuses on bringing scientific thinking and research into the design process. Steve discusses the challenges and successes of implementing evidential design, including a case study with World Vision. He also talks about the growth of the business, the sale process, and the transition to working for a new owner. Steve shares insights on the importance of growing up as a business owner, the impact of COVID-19 on the earn-out, and his plans for the future. Takeaways Evidential design brings scientific thinking and research into the design process, allowing for more objective decision-making. Implementing evidential design can lead to successful projects and awards, as demonstrated by the case study with World Vision. Growing up as a business owner involves developing processes, understanding the financials, and taking a more strategic approach. Selling a business requires finding the right buyer who aligns with the company's values and long-term goals. The earn-out period can be affected by unforeseen events, such as the COVID-19 pandemic, but open communication and flexibility can help navigate challenges. Transitioning from a business owner to a non-executive role allows for more free time and the opportunity to pursue new ventures. Connect with James on LinkedIn: https://www.linkedin.com/in/steveroyle/ Connect with Barnaby on LinkedIn: https://www.linkedin.com/in/barnabycook/ Join The Exit Plan mailing list: http://eepurl.com/iC8sIY
Arthur Petropoulos, the managing partner at Hillview Partners, discusses his work in mergers and acquisitions and capital advisory for middle market companies. He shares how he got into this line of work and the process of setting up and growing his own firm. Petropoulos explains the importance of building infrastructure and processes in businesses to reach the one million EBITDA mark, which is a key threshold for attracting buyers. He also highlights the factors that make a business attractive to acquirers, including fundamentals, access, capabilities, people, process, and product. Petropoulos shares his experience working with video production companies and the types of buyers in that industry. Arthur Petropoulos of Hill View Partners discusses the number of transactions his firm works on each year, the current state of the market, and the types of companies they typically deal with. He emphasizes the importance of consistent, profitable businesses that generate cash and provide real-world products and services. Petropoulos also explains the split between strategic buyers and private equity in the transactions he has worked on. He provides an overview of how private equity works, their objectives, and the success rate of private equity deals. Takeaways Mergers and acquisitions and capital advisory firms help companies sell themselves and secure capital. Building infrastructure and processes is crucial for businesses to reach the one million EBITDA mark and become attractive to buyers. The attractiveness of a business to acquirers is determined by fundamentals, access, capabilities, people, process, and product. Video production companies can be attractive to buyers, especially if they have specialized capabilities or access to specific industries. Hill View Partners typically closes around 10 to 12 deals a year, but is aiming to increase that number to 20 as the team grows. While flashy early-stage companies and mega deals may get attention, the majority of the market consists of consistent, profitable businesses that generate cash and provide real-world products and services. Private equity firms typically look for businesses they can buy, improve, and sell within a 5 to 9 year timeframe, aiming for a return of around 20%. The split between strategic buyers and private equity in transactions is roughly 40% each, with the remaining 20% being family offices and search funds. Private equity deals have become more institutionalized and professionalized over the years, with a focus on consistent returns rather than high-risk, high-reward strategies. Connect with Arthur on LinkedIn: https://www.linkedin.com/in/arthur-petropoulos/ Watch his YouTube Channel here: https://www.youtube.com/@HillViewPartners Connect with Barnaby on LinkedIn: https://www.linkedin.com/in/barnabycook/ Join The Exit Plan mailing list: http://eepurl.com/iC8sIY
Alex Price, founder of 93 Digital, shares his journey of building and selling his digital agency. He started freelancing in web design at a young age and eventually grew his agency to a team of 35. The agency focused on WordPress and B2B tech clients, and later expanded into digital marketing services. Alex decided to sell the agency when it was in a position of strength and had attracted interest from potential buyers. The acquisition process involved finding the right cultural fit and structuring the deal. After the sale, Alex stayed with the business for a period of time before deciding to move on and explore new opportunities. Starting a digital agency at a young age can lead to significant growth and success. Focusing on a niche market, such as WordPress or B2B tech, can help differentiate an agency and attract clients. Selling an agency requires careful consideration of cultural fit and deal structure. Integration after an acquisition can be challenging and time-consuming. Reflecting on the experience of selling an agency can provide valuable insights for future endeavors. Connect with Alex on LinkedIn: https://www.linkedin.com/in/alxprce/ Connect with Barnaby on LinkedIn: https://www.linkedin.com/in/barnabycook/ Join The Exit Plan mailing list: http://eepurl.com/iC8sIY
Richard Neve, Executive Creative Director at Cognito, shares his professional journey and the acquisition of his agency by Cognito. Cognito is a global agency focused on financial services and financial technology. Richard started as a journalist and later moved into public relations in the financial services industry. In 2017, Cognito acquired Richard's agency in the Netherlands, and in 2022, they acquired a minority stake in a German agency, which Richard now manages. Shortly after the acquisition, the seller sadly passed away, and Richard talks about what happened in the days and weeks following. The future plans for Cognito include expanding their footprint in other countries through similar acquisitions. Takeaways Cognito is a global agency focused on financial services and financial technology. Richard Neve's agency in the Netherlands was acquired by Cognito in 2017. Cognito later acquired a minority stake in a German agency, which Richard now manages. The future plans for Cognito include expanding their footprint in other countries through similar acquisitions. Get in touch with Richard Neve: https://www.linkedin.com/in/richardneve/ Join The Exit Plan mailing list: http://eepurl.com/iC8sIY
In this episode of The Exit Plan, Barnaby Cook interviews Gabe and Jack, co-founders of The Shoots Group, a video agency. The twins share their journey of starting the business, scaling it, and eventually deciding to go their separate ways. They discuss the challenges of running multiple brands, the importance of alignment in business partnerships, and the process of negotiating and finalizing their buyout agreement. Gabe is now focused on growing the Finance Shoots brand, while Jack is exploring new opportunities in the video agency space. Takeaways Starting a business with a partner can be a rewarding experience, but it's important to regularly reassess and align on long-term goals. Scaling a business requires careful delegation and a clear vision for the future. Negotiating a buyout agreement can be a complex process, but it's important to find a mutually beneficial solution. Personal relationships and communication are key to navigating the challenges of running a business with a partner. Finding alignment between the work you want to do, the business model, and your clients is crucial for long-term success. Thanks to Forever Audio for hosting us - check out their facilities here: https://foreveraudio.com/ Get in touch with Gabe Whitehead: https://www.linkedin.com/in/gabrieljwhitehead/ Get in touch with Jack Whitehead: https://www.linkedin.com/in/jack-whitehead-%F0%9F%8E%AC-894ba6150/ Join The Exit Plan mailing list: http://eepurl.com/iC8sIY
Andy Maher, founding partner of Endeavour, shares his career journey and the work his firm does in business advisory and M&A. He discusses the partnerships between Endeavour and Green and Purple, as well as Keystone Lawyers. Andy explains the criteria for taking on a business and the process of identifying potential buyers. He also highlights the motivations that trigger the idea of selling a business and the emotional toll it can take. Andy shares some pitfalls and challenges in M&A deals and discusses the future plans for Endeavour. Takeaways Endeavour is a business advisory and M&A firm that works with global SMEs, agencies, startups, and scale-ups. Partnerships with firms like Green and Purple and Keystone Lawyers help Endeavour provide comprehensive support to clients. When taking on a business, Endeavour looks for founders who have the hunger, grit, and openness to collaborate. Due diligence is crucial in M&A deals to avoid surprises and ensure a smooth process. Motivations for selling a business vary, from wanting to grow with a larger organization to feeling burnt out or wanting to pursue new opportunities. Emotional challenges and personal dynamics can impact the success of a deal. Endeavour is expanding its reach globally and focusing on nurturing clients through the growth phase. Integration is an important aspect of M&A deals, and Endeavour has a partner dedicated to ensuring successful integration for buyers. Get in touch with Andy here: https://www.linkedin.com/in/andywilliammaher/ Join The Exit Plan mailing list: http://eepurl.com/iC8sIY
SummaryIn this conversation, Jordi Pujol, an expert in investment banking and valuation, discusses the process of valuing a business. He highlights the importance of value markers, such as brand and customer list, as indicators of a company's value. Pujol also emphasizes the significance of process in creating value and scaling a business. He advises business owners to focus on attracting, servicing, and retaining customers, as well as attracting and retaining talented employees. By managing for value and implementing effective processes, businesses can increase their long-term value. This conversation explores key strategies for scaling and increasing profitability in a business, as well as preparing it for sale. It emphasizes the importance of outsourcing non-core functions, managing for value, and avoiding value detractors. The discussion also covers the role of the founder in the business and the process of valuation and industry benchmarking. Overall, the conversation provides valuable insights for entrepreneurs looking to maximize the value of their businesses. Takeaways Value markers, such as brand and customer list, are important indicators of a company's value. Process is crucial for creating value and scaling a business. Business owners should focus on attracting, servicing, and retaining customers. Attracting and retaining talented employees is essential for long-term value. Scaling a business involves adding resources that increase revenue exponentially. Outsourcing non-core functions can improve efficiency and profitability. Managing for value involves focusing on revenue, sales strategies, and eliminating time-wasting activities. Avoiding value detractors, such as cutting costs without considering customer experience, is crucial for business success. Streamlining meetings and processes can save time and improve productivity. Founders should work on the business, not in the business, to ensure its sustainability without their constant involvement. Preparing a business for sale requires creating a forecast and establishing its future cash flows. Valuation is determined by multiples based on industry benchmarks and future profit projections. Connect with Jordi Pujol on LinkedIn: https://www.linkedin.com/in/jpujol1/ Join The Exit Plan mailing list: http://eepurl.com/iC8sIY
Trenton, the founder of a UX agency, shares his experience of selling his business. He discusses the background of his agency and the type of clients they worked with. Trenton talks about the growth and turnover of the agency, as well as the ownership structure and share options. He explains the reasons behind his decision to sell, including a difficult financial year. Trenton shares the process of finding potential buyers and negotiating the deal. He discusses the integration and transition period after the acquisition. Finally, Trenton talks about his next steps and the launch of his new business. In this conversation, Trenton reflects on his experience of selling his agency and the pride he felt in overcoming challenges. He also discusses the importance of taking time to appreciate and reflect on achievements Takeaways Selling a business can be an emotional journey, and it's important to consider the fear of what comes next and the impact on the team. Building a strong and attractive business is crucial for a successful sale, and focusing on client relationships and revenue growth can make a business more appealing to potential buyers. Integration after an acquisition can be challenging, and it's important to consider the cultural fit and the impact on the existing team. Leaving a business and transitioning to a new phase can be daunting, but it can also open up new opportunities for personal and professional growth. Reflecting on the experience and learning from the process can help inform future decisions and improve future outcomes. Overcoming challenges can lead to a sense of pride and accomplishment. Business owners often struggle to appreciate their achievements while they are in the midst of running their businesses. Taking time to reflect and appreciate accomplishments can help business owners gain perspective and satisfaction. Join The Exit Plan mailing list: http://eepurl.com/iC8sIY Connect with Trenton: https://www.linkedin.com/in/trentonmoss/
Caroline Johnson, co-founder of the Business Model Company, discusses the importance of transforming business models to stay relevant and profitable in the face of changing market dynamics. She emphasizes the need for businesses to recognize the decline of legacy service-based models and adapt to more scalable and innovative models. Caroline shares case studies of businesses that have successfully transformed their models and achieved significant growth and valuation. She also highlights the role of AI in driving the need for business model change and the importance of cultural transformation within organizations. Overall, Caroline provides a positive outlook on the opportunities and choices available to businesses in transforming their models. Recognize the decline of legacy service-based business models and adapt to more scalable and innovative models. Understand the importance of cultural transformation within organizations to support business model change. Explore different revenue models, such as hybrid models or project-based models, to monetize services effectively. Engage in a business model transformation program to create a playbook and operationalize the new model. Join The Exit Plan mailing list: http://eepurl.com/iC8sIY
In this edition of the Exit Plan podcast, Barnaby participates in a live conversation taped at the Riding House Cafe in Fitzrovia. The panellists are Lisa Paasche, former CEO of Verve Search, Nick Berry, partner and M&A advisor at Green Square, and Joe Lewin, CEO of Foundy, an M&A marketplace. The episode begins with insights into the panellists' experiences selling enterprises, which shed light on the complexities of the exit process. The conversation begins with Lisa Paasche's story of selling her SEO agency to Omnicom Media Group, focusing on the financial motives and hurdles she encountered. Nick Berry discusses his entrepreneurial pursuits and the intricacies of building and selling a production firm, Taylor James. Joe Lewin provides a technical perspective, emphasising the Foundy's role in modernising the business acquisition process through technology and artificial intelligence. The discussion focuses on the motivations for selling firms, which range from financial aims to personal reasons such as family time or overcoming burnout. The panellists discuss the importance of timing, the influence of recurring revenue, and the obstacles encountered during the negotiating and earnout phases. As they share their experiences and perspectives, the audience obtains insight into the complex process of quitting a business. Stay tuned for Part 2 of this conversation in the upcoming episode. Join The Exit Plan mailing list: http://eepurl.com/iC8sIY
In this edition of the Exit Plan podcast, Barnaby participates in a live conversation taped at the Riding House Cafe in Fitzrovia. The panellists are Lisa Paasche, former CEO of Verve Search, Nick Berry, partner and M&A advisor at Green Square, and Joe Lewin, CEO of Foundy, an M&A marketplace. The episode begins with insights into the panellists' experiences selling enterprises, which shed light on the complexities of the exit process. The conversation begins with Lisa Paasche's story of selling her SEO agency to Omnicom Media Group, focusing on the financial motives and hurdles she encountered. Nick Berry discusses his entrepreneurial pursuits and the intricacies of building and selling a production firm, Taylor James. Joe Lewin provides a technical perspective, emphasising the Foundy's role in modernising the business acquisition process through technology and artificial intelligence. The discussion focuses on the motivations for selling firms, which range from financial aims to personal reasons such as family time or overcoming burnout. The panellists discuss the importance of timing, the influence of recurring revenue, and the obstacles encountered during the negotiating and earnout phases. As they share their experiences and perspectives, the audience obtains insight into the complex process of quitting a business. Stay tuned for Part 2 of this conversation in the upcoming episode. Join The Exit Plan mailing list: http://eepurl.com/iC8sIY
The co-founder of Studio Blup, DINES®, tells a gripping story about the agency's path from acquisition to independence in this episode. The discussion provides a thorough examination of the highs and lows they encountered while working for a larger group. At first, Studio Blup was lured in by the prospect of pooling resources and strength as a group, but now they struggle with the tension between corporate demands and their initial creative vision. In order to underscore the internal struggle of striking a balance between financial success and creative integrity, the debate dives into the critical moments when financial demands led to sacrifices in pursuing innovative ventures. The unexpected offer to purchase the entire group after just two years forces Studio Blup to reassess their objectives and consider the real reason for their company as the story develops. The subsequent acquisition's failure turns into a pivotal event that prompts them to decide to regain their freedom. The significance of coordinating professional objectives with personal ambitions is emphasized by DINES®, which offers insights into the negotiating process and the workings of repurchasing the majority stake. The difficulty encountered, the lessons discovered, and the tenacity needed in entrepreneurship are all discussed in this episode. Audience members acquire invaluable knowledge regarding the workings of acquisitions, the effects they have on creative firms, and the need to strike a balance between pursuing one's passion projects and achieving financial success. For company owners traversing the uncertain path of creating and maintaining their creative ventures, the story eventually inspires Join The Exit Plan mailing list: http://eepurl.com/iC8sI
Welcome to The Exit Plan, a podcast for business owners interested in learning more about selling their business. In this episode, the director and co-founder of Green and Purple, Katie Bent, talks with Barnaby about her career path and the distinctive course of Green and Purple. Starting with her early career in accounting, Katie describes her corporate experience and her partnership with Pete, which resulted in the founding of a company that provides flexible financing options for creative sectors. The conversation reveals the M&A trajectory of Green and Purple, starting with their 2019 acquisition by a London-based company, followed by the spin-off of their Cambridge office, and ending with a full management buyout in 2020. Katie goes into great detail about the buyout's financial details, highlighting the need of individual financing and making all of the payments at once. The topic of possible exit strategies is also discussed, as well as the significance of culture and trust in their decision to stick together. We talk about Green and Purple's growth goals for 2024, which centre on internal process optimisation and consolidation, as well as their latest purchase in the life sciences industry. Katie portrays a dynamic path for Green and Purple by demonstrating her dedication to ongoing progress while remaining open to individual directors' specific aspirations. Join The Exit Plan mailing list: http://eepurl.com/iC8sIY
The topic of roll-up deals, the target market for BizCrunch, and the value of acquirer community development are all discussed. Gareth highlights the distinct perspectives that professionals like Jonathan Jay and Jeremy Harbour offer in the field of business acquisition. In closing, Gareth encourages listeners to check out BizCrunch, highlighting the platform's free launch strategy and range of premium plans to improve outreachWelcome to The Exit Plan, a podcast for business owners interested in learning more about selling their business. We are joined today by Gareth, a seasoned businessman and co-founder of BizCrunch. He has extensive knowledge of business purchase and ownership succession. His observations hold the potential to simplify the intricacies of data-driven tactics and SME financing. Watch this space for an exciting discussion! To learn the keys to a smooth ownership transfer, keep listening. Gareth and Barnaby talk about their businesses and the generational shift in SME ownership. While Gareth offers insights into the valuation arbitrage game and the difficulties of effectively accumulating data, Barnaby discusses his approach to buying small video production companies. There is a discussion of ideas such as Sellers Discretionary Earnings (SDE), and Gareth explains how BizCrunch helps buyers find possible acquisition prospects by gathering and evaluating data. Plans to extend services, including support for due diligence, are mentioned, as well as the algorithmic method that BizCrunch uses to estimate turnover from balance sheets. Join The Exit Plan mailing list: http://eepurl.com/iC8sIY Come along to The Exit Plan Live event: https://www.eventbrite.co.uk/e/the-exit-plan-live-tickets-765231597307
Punctuation's co-owner Jonathan Baker discussed the company's function as an adviser focusing on small to mid-sized marketing services organizations on this episode of "The Exit Plan" podcast. During the interview, Jonathan discussed their twin strategy of offering M&A activities, including buy-side and sell-side searches, valuations, and advising services encompassing positioning and lead generation. Baker emphasized the difficulties in valuing companies, especially those with revenues between $1 and $10 million, and stressed the significance of owner wages and the enterprise's long-term viability after a sale. The discussion also included internal transfers, where Punctuation helps customers negotiate sales with staff members and look into innovative deal arrangements. Using a sizable newsletter subscriber list, cold emailing, referrals, and careful research were among the market outreach tactics described. Baker recognized the M&A market's cyclical character and the importance of timing in locating qualified purchasers. The session ended with some insights into typical transaction arrangements, including an earn-out term of two to three years, contingent on performance measures, and an upfront payment of forty to fifty percent. Baker emphasized innovative transaction strategies for purchasers with tight budgets, looking at possibilities like seller-funded working capital and future profit-based payments. In 2024, Punctuation intends to rebrand, launch a digital benchmarking tool, and remain dedicated to offering its customers high-quality service. Emphasizing sound financials and a unique market positioning, the conversation offers insightful guidance to entrepreneurs preparing for a potential sale. Join The Exit Plan mailing list: http://eepurl.com/iC8sIY Come along to The Exit Plan Live event: https://www.eventbrite.co.uk/e/the-exit-plan-live-tickets-765231597307
Nikki Wheeldon, a versatile entrepreneur with a background in acting, shared her journey from a struggling actor to the founder of Jam Pot, a flourishing business providing freelance operational support. Initially managed solely by Nikki and her husband, Jam Pot's unique business model, devoid of retainers, offered flexible operational services across admin, HR, finance, and more. The company expanded, boasting a team of 40 and serving 40-50 clients monthly. The sale decision emerged when Nikki discovered Foundy, a platform facilitating anonymous business listings. Foundy garnered significant interest despite initial skepticism, leading to conversations with potential buyers. The sale posed challenges, forcing Nikki to consider deal structures, terms, and the post-sale impact on her life. Eventually, a buyer aligning with her conditions emerged on Foundy, resulting in Jam Pot's successful sale. Nikki's journey underscores adaptability, resilience, and strategic decision-making in entrepreneurship. In the continuation, Nikki delves into the sale process, emphasizing the importance of understanding one's objectives and setting clear boundaries. The negotiation intricacies, buyer details, and the one-month collaborative handover period are discussed. Nikki shares her plans, considering temporary employment elsewhere and exploring her interest in speaker coaching. She offers valuable advice for aspiring entrepreneurs, highlighting the significance of early preparation and business decisions that enhance appeal to potential buyers. Join The Exit Plan mailing list: http://eepurl.com/iC8sIY Come along to The Exit Plan Live event: https://www.eventbrite.co.uk/e/the-exit-plan-live-tickets-765231597307
In this episode, join Andrew on a riveting narrative spanning nine years as he unveils the dynamic trajectory of Origins of Motion. This video production venture began in the quiet corners of Cambridge. The exit, a management buyout by two videographers, followed Andrew's decision due to remote management challenges. The valuation prioritized mutual affordability, ensuring a smooth transition. Andrew ventured into health and wellness tech, addressing mental health needs after exit. Simultaneously, he found fulfillment consulting for business owners. This shift highlights Andrew's adaptability, transitioning from video production to diverse ventures. His commitment to mental health aligns with contemporary needs. As he navigates, Andrew's journey exemplifies entrepreneurial evolution. The conversation explores financial and legal facets. The somewhat opportunistic sale stemmed from Andrew's desire for a new challenge. Two videographers took over in a management buyout. Valuation focused on mutual affordability, involving upfront cash and deferred payments. Andrew benefited from Business Asset Disposal Relief for tax efficiency. Legal considerations adopted a simple joint process, minimizing costs. The timeline from the selling conversation to the key handover spanned three and a half months. Post-sale, Andrew coaches remotely, exploring e-commerce ventures. Reflecting on selling, he emphasizes upfront planning and understanding the selling process's intricacies. Join The Exit Plan mailing list: http://eepurl.com/iC8sIY Come along to The Exit Plan Live event: https://www.eventbrite.co.uk/e/the-exit-plan-live-tickets-765231597307
Mike Craddock, co-founder and CEO of Kairos Group, underwent a unique journey, transitioning from a successful career as a YouTuber to leading a social creative agency. Established in 2015, Carros Group, with offices in London, Manchester, and New York, specializes in social media and influencer marketing. Mike's strategic approach includes acquisitions, such as Horizon, an esports organization, and an aqua-hire in the U.S. talent management sector. The latter acquisition, while ambitious, faced challenges, highlighting the complexities of navigating growth in the competitive agency landscape. In this episode of The Exit Plan Podcast, hosts Barnaby and Mike Craddock engage in a candid conversation exploring various facets of Mike's entrepreneurial journey and the growth of Carros Group. The discussion unfolds chronologically, starting with Mike's background as a YouTuber, leading to the establishment of Carros Group in 2015. The hosts delve into the evolution of the company from a social creative agency to a major player in influencer marketing, highlighting key milestones such as office expansions and team growth to 110 people. The episode takes a deep dive into Carros Group's acquisition strategy, focusing on the successful integration of an esports organization named Horizon. Mike provides valuable insights into the negotiation process, the structure of the deal, and the subsequent integration of the acquired business. Another acquisition attempt is explored, revealing the challenges and lessons learned, emphasizing the complexities of aggressive growth in the agency landscape. The hosts address financial aspects, including revenue figures and the revenue-sharing model with creators. Mike details the valuation exercise undertaken by Carros Group, involving traditional accountants, brokers, and benchmarking against publicly listed companies. The discussion sheds light on the operational readiness and cultural alignment challenges post-acquisition, offering a nuanced perspective on the importance of thorough assessments. Mike reflects on the cultural clashes that arose, leading to the eventual decision to part ways with the acquired business. The hosts touch upon legal and financial considerations during the unwinding process, providing practical insights into the associated costs. Looking ahead, Mike shares Carros Group's current strategy, emphasizing organic growth in the evolving market landscape. The episode concludes with insights into prospective offers, future plans, and Mike's open stance towards potential future acquisitions. The interview offers a comprehensive exploration of the triumphs and challenges associated with acquisitions, contributing valuable lessons for businesses navigating growth and integration complexities. What We Will Learn: Entrepreneurial Evolution: Explore Mike Craddock's journey from YouTuber to founding Carros Group and navigating its evolution into a major influencer marketing agency. Acquisition Strategies: Gain insights into Carros Group's acquisition approach, including successful integrations, negotiation tactics, and lessons learned from challenges. Financial Dynamics: Understand revenue-sharing models with creators, revenue figures, and the valuation exercise undertaken by Carros Group for strategic decision-making. Operational Readiness: Delve into the challenges of post-acquisition integration, including cultural clashes, operational shortcomings, and the importance of meticulous assessment processes. Strategic Growth: Learn about Carros Group's current strategy, emphasizing organic growth and navigating the ever-changing landscape of social media, influencer marketing, and agency dynamics. Connect With Mike Craddock: https://www.linkedin.com/in/mike-craddock/ Join our mailing list: http://eepurl.com/iC8sIY Come to The Exit Plan Live on the 31st January 2024: https://www.eventbrite.co.uk/e/the-exit-plan-live-tickets-765231597307
Entrepreneur Peter Kemp, MD of Global 3 Digital, has navigated the dynamic landscape of digital corporate communications. With the establishment of his agency in 1999, Kemp successfully led the company through significant growth, culminating in its strategic sale in 2014. Kemp's journey unfolds with insights into the acquisition process, emphasizing a streamlined due diligence period. Beyond the sale, Kemp ventured into a new endeavor, Flint, showcasing his resilience and adaptability in the evolving realm of digital ventures. In this episode Peter Kemp is engaged in a discussion with Barnaby about his journey in establishing, growing, and eventually selling his digital corporate communications agency. Founded in 1999, the agency addressed a market gap by providing websites for quoted companies. Kemp shared insights into the intricacies of negotiating the sale with a larger competitor backed by private equity. The acquisition, which took place in 2014, involved an all-cash deal. Kemp highlighted the critical aspect of a streamlined six-week due diligence process, despite the challenges it posed. The integration phase, while presenting some differences in technological approaches, proved successful, with the acquiring company retaining many of Global 3 Digital's clients seamlessly. Kemp reflected on the impact of personal health considerations on the decision to sell. Post-acquisition, Kemp faced constraints due to a three-year non-compete clause but eventually launched a new venture named Flint with two former colleagues. Flint, a platform built on a proprietary SAS platform, enables the creation of corporate websites for listed companies without the need for web development. The focus is on scalability and a non-immediate plan for sale, showcasing lessons learned from the previous venture. The conversation also touched on Kemp's advice for business owners considering a sale, emphasizing the importance of maintaining open relationships with competitors and keeping meticulous records for due diligence. The episode provided a comprehensive exploration of Kemp's entrepreneurial journey, shedding light on the strategic decisions and challenges inherent in building and selling a digital agency. Join our mailing list: http://eepurl.com/iC8sIY Come to The Exit Plan Live on the 31st January 2024: https://www.eventbrite.co.uk/e/the-exit-plan-live-tickets-765231597307
Welcome to The Exit Plan, a podcast for business owners interested in learning more about selling their business. In this episode, we welcome John Starr, a business owner, mentor and co-founder of PR agency Clairville. Clairville began in 1989, emerging from a publishing company. Facing challenges, they sold the design agency, focusing on PR. With no clients initially, they secured the first within weeks. John discussed their growth, deliberately maintaining a manageable size for 20 years. The decision to sell arose from a desire for tech focus, seeking a partner. Failing to find one, John explored selling and engaged brokers, facing valuation misalignment. Simon Rine Tut, from Relationship Audits, connected John with a buyer, initiating a year-long negotiation. The deal involved selling the business, not the limited company, for tax reasons. The structure included a third upfront, and the rest was an earn-out based on fee income over three years. John explained the importance of a balanced earn-out, aligning downside and upside. Post-sale, integration faced challenges. Clairville's strengths in communication clashed with a "not invented here" sentiment. Cultural fit was good, but the top-down approach from the new owners created difficulties. John shared past acquisition experiences, emphasizing the need to swiftly replace top management to ensure successful integration. John Starr delved into the intricacies of selling his PR agency, providing valuable insights for potential sellers. One notable aspect was the common practice of overpaying founders during acquisitions for a smoother transition, although this strategy didn't yield success for John due to his disposition and the earn-out structure tied to performance. The three-year earn-out coincided with the onset of the pandemic, resulting in a significant 40% loss in fee income within a month. Despite the challenging circumstances, John highlighted the buyer's flexibility, which involved a temporary payment pause to navigate the financial uncertainties. Post-departure, John faced challenges as his former agency struggled to replace a major client. Nevertheless, he continued his professional journey through consulting, specifically running press centers for global exhibitions. Notably, he shared his involvement with a space company, Spacebit, working on an innovative project involving art being sent to the moon aboard a SpaceX NASA rocket. Imparting valuable advice for prospective sellers, John emphasized the importance of engaging with multiple brokers for accurate valuations. He urged sellers to maintain meticulous records from the outset of considering a sale, streamlining the process when negotiations begin. John stressed the significance of the disclosure letter, a tool for sellers to protect themselves from unforeseen liabilities post-sale. John advised sellers to secure legal counsel with experience in deals of a similar size, cautioning against unnecessary legal complexities that might inflate costs. Finally, he underscored the necessity of time management during the deal process, reminding sellers to balance their efforts between negotiating the sale and continuing the smooth operation of their businesses to avoid potential downturns. Tune in for a deep dive into the world of selling and buying businesses, with practical insights from John Starr's wealth of experiences. What You Will Learn: Selling Strategies: John Starr shares insights on selling a PR agency, discussing strategies, challenges, and post-sale integration nuances. Earn-Out Dynamics: Explore the intricacies of a three-year earn-out structure, its importance, and balancing downsides and upsides. Pandemic Impact: Learn how the pandemic affected the agency's fee income, and the buyer's flexibility during uncertain times. Post-Departure Challenges: Understand the challenges post-sale, including integration difficulties, top management replacements, and client transitions. Valuable Advice: Gain practical advice from John on engaging brokers, maintaining records, crafting disclosure letters, and effective time management Get your ticket to The Exit Plan Live event: https://www.eventbrite.co.uk/e/the-exit-plan-live-tickets-765231597307 Sign up to The Exit Plan mailing list: http://eepurl.com/iC8sIY
Welcome to The Exit Plan, a podcast for business owners interested in learning more about selling their business. Hasan Fadlallah is the founder & CEO of Brand Lounge, the region's leading and award–winning branding consultancy. He is also the Co-Founder & Director of Fullmoon Experiments, a socially driven incubator that develops and grows purposeful startups in the region. Embodying the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum to improve the Arab world through empowering communities, spreading knowledge and nurturing entrepreneurship and innovation. In this episode, Hasan shares his background in marketing and advertising where he contributed to legacy brands like Dmbnb, Darcy, Masseus, Benton, and Bowls, later acquired by Become Three. He then founded the started Brand Lounge in 2006 as a strategy-led company focused on brand creation and development. Hasan shares the roller coaster events happened within the development span of the company due to crises. The turning point was on the 2008 financial crisis, which led to a pivot in their business model, where they decided to expand the business area to Saudi Arabia. During the development stage, he incorporate their services to purpose and culture, explaining that there is no point in building a brand that resonates in people's minds if purpose isn't figured out while culture serves as a byproduct of the strategy. Hasan mentions that they became a part of a network of almost 24 operations across the globe of around 5000 people. This works by having no equity within the local operations, and no financial arrangement as well, but it's a knowledge transfer and support mechanism as a specialty. He also shares that they focus on two key elements: distinctive philosophy and growth strategy, explaining that their philosophical views are what set them apart. Brand Lounge recently acquired a small talent management firm that specializes in culture from a brand perspective, called People Mina, then integrated as Brand Lounge becoming a culture practice. The acquisition is focused on talent rather than brand names. Hasan also shares that the IP value was determined by client interest and the valuation in the acquisition was determined by considering client willingness to pay for specific IPs. It is also crucial to consider the value of cultural fit and strategic alignment when making deals. Want to know more about partnership, networking, and how to grow your business? Listen, be inspired, and be literate on how to expand a business. WHAT YOU WILL LEARN: The journey to business expansion How to deal with crises Thriving not only surviving after success of your business Building internal components and methodology for brand development How does partnership and networking works globally The importance of Philosophy and Culture in integrating to business services Determining IP valuation Learnings and realizations about Hasan's journey CONNECT WITH HASAN: LinkedIn | www.linkedin.com/in/hasanfadlallah Website | www.brandloungeme.com Twitter | @hfadlallah Instagram | @hfadlallah THE EXIT PLAN The Exit Plan is for business owners that are interested in learning more about how to sell their business. Each episode Barnaby Cook interviews someone who has bought or sold a business - either a creative agency, or a production company. The conversation gets under the skin of why they wanted to sell, or were looking to acquire, how the deal was structured, how they agreed upon a valuation and what lessons they learnt along the way.
Welcome to The Exit Plan, a podcast for business owners interested in learning more about selling their business. Doug Austin is the Author of Permission to Win, he spent most of his career building, growing, and selling ad agencies until he founded the Austin Amplifies which specializes in helping independent agencies find their next level. In this episode, Doug Austin shares how, in 2008, he helped to build a successful agency network in Missouri supporting the food service industry. It grew into three ad agencies and a product development firm including an Employee Stock Ownership Plan (ESOP) and acquisition in 2015, Doug left in 2016. He also shares how he decided to be a consultant focusing on growth, innovation, and organizational culture as he enjoys connecting with agency professionals without the pressure of agency leadership. During his leadership, three competing agencies thrived with a strategy that balanced growth and operational independence. Doug also touches on his role in growing three competing agencies that focused on certain verticals which allowed separate leadership teams consisting of creative, account, and digital to lead authentically under a holding company umbrella. He also explains the meaning of The Employee Stock Ownership Program (ESOP) on which it enables business owners to slowly sell their business to employees. Furthermore, he shares how he does his job as a consultant, where he helps businesses prepare for sale by improving operations through focusing on management instead of selling. Regarding valuation, he assesses the business' financial health, operations, and profitability, and works closely with the client to determine a fair and accurate valuation using industry benchmarks and financial analysis. Doug shares what he focuses on in his consultant career which are cultural, positioning, and experiential aspects of agencies. He specializes in understanding an agency's true selling proposition, value proposition, and factors influencing loyalty. He provides insights on necessary changes before selling by observing, asking targeted questions, and assessing market presence. Doug also emphasizes the importance of embracing Artificial Intelligence for traditional agencies. Adopting AI is vital for competitiveness, as those lagging behind risk commoditization of their services. Adaptation and collaboration with AI specialists are crucial for agencies to thrive in this evolving landscape. AI-specialized agencies, currently managing tools, could quickly transform into full-fledged agencies with strategic hires, requiring just a few key additions. Learn more on how to widen your business, making it profitable and how a marketing consultant works. Sign up to The Exit Plan mailing list: http://eepurl.com/iC8sIY WHAT YOU WILL LEARN: How a consultant works and processes done in a business industry Understanding Employee Stock Ownership Plan (ESOP) How Artificial Intelligence affect businesses in this time era How proper positioning affects selling process Cybersecurity as an evaluation metrics Assessing and evaluating factors before selling CONNECT WITH DOUG: LinkedIn | www.linkedin.com/in/doug-austin Company LinkedIn | www.linkedin.com/company/austin-amplifies Company Website | www.austinamplifies.com Book | Permission To Win THE EXIT PLAN The Exit Plan is for business owners that are interested in learning more about how to sell their business. Each episode Barnaby Cook interviews someone who has bought or sold a business - either a creative agency, or a production company. The conversation gets under the skin of why they wanted to sell, or were looking to acquire, how the deal was structured, how they agreed upon a valuation and what lessons they learnt along the way.
Welcome to The Exit Plan, a podcast for business owners interested in learning more about selling their business. Claire Daniels, who has a background in strategic in-house marketing roles, took on the role of CEO at Trio Media's Digital Marketing Agency in 2020. She became part of the company in 2018 with a strong emphasis on prioritizing customer satisfaction, making it the central focus of all her endeavors. In this episode, Claire Daniels, the CEO of Digital Marketing Agency of Trio Media, shares her journey of how she became involved in the business. Following the passing of her brother and her sister-in-law's pregnancy, Claire chose to contribute to the company while navigating her own aspirations. As her sister-in-law became pregnant again, the business underwent changes, leading to conflicts upon her return from maternity leave. Owing to divergent decisions and objectives between the two owners, they eventually opted to buy out the company. Claire eventually took over as CEO and bought out her sister-in-law's shares. Claire also shares the process of acquiring the company, managing a legal dispute involving her sister-in-law, and securing the transfer of her shares to resolve the issue. Despite initial dissatisfaction from her husband, Claire mentions that things have since settled with her sister-in-law and assures that everything is going well with their personal relationships. Further, she shares outlines of their future objectives that include rebranding and integrating AI into their operations. While contemplating expansion and potentially acquiring other companies, Claire is uncertain about seeking external funding. Although not a venture she initiated outright, Claire acknowledges the significant effort and emotional investment she has dedicated to the company, emphasizing its pivotal role in the business's success. Expressing contentment with her current role, Claire conveys her enjoyment of every aspect of the journey. Be inspired as we listen to this episode of winning your goals, enjoying your journey while setting up proper communication to maintain good relationships with other people. Sign up to The Exit Plan mailing list: http://eepurl.com/iC8sIY WHAT YOU WILL LEARN: Managing a business while experiencing business-related relationships and co-founders departure Handling financial problems to maintain a business How to properly communicate with business partners and how to deal with inside work conflicts Resolving legal matters such as shares and company related issues CONNECT WITH CLAIRE: LinkedIn | www.linkedin.com/in/claire-daniels-trio-media Website | www.trio-media.co.uk Twitter | @triomediaclaire Instagram | @mrsclairedaniels THE EXIT PLAN The Exit Plan is for business owners that are interested in learning more about how to sell their business. Each episode Barnaby Cook interviews someone who has bought or sold a business - either a creative agency, or a production company. The conversation gets under the skin of why they wanted to sell, or were looking to acquire, how the deal was structured, how they agreed upon a valuation and what lessons they learnt along the way.
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