Episódios
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When a business owner sells their company, they are selling the “economic engine” that has been providing the cashflow to support their family’s lifestyle for the past many years. Now the question is “will the proceeds, after taxes and expenses, be enough to fund the future?” In this episode, Walt drills down with a real world example that challenges business owners to think and answer some key questions BEFORE selling their business.
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Business sellers are intently focused on the valuation multiple they are getting for their business. In this episode, Walt discusses 5 key value drivers that increase both the salability of your business and its value. Every business owner can benefit from incorporating these “drivers” into their business whether ready to sell soon or in 5+ years from now, so take a few minutes to listen and prosper.
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Results from the Q4 2021 Market Pulse Report indicate its still a seller’s market with transaction terms and valuation multiples near all time highs. Join host Walt Lipski in this timely podcast to learn about the underlying drivers that are supporting this market and some of the potential challenges for business sellers on the horizon.
Click here to view today's companion slide deck.
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As a Seller in the current market and for the foreseeable future, you may very well see an Earnout as a component of the deal structure in offers you receive for your business. Why? Because of the uncertainty about the future of the economy, the pandemic, the political climate, lockdowns etc.
In simple terms, an Earnout is a risk allocation structure that generally favors the Buyer. Basically, it is contingent purchase consideration paid by the Buyer to the Seller based on the future performance of the business. It’s akin to a bet.
Your takeaway from this episode should be an understanding of when, why and how an Earnout is used and learning some of the pitfalls for a Seller. We will explore some examples of actual Earnouts, look at some key negotiation points to minimize Seller risk and discuss strategies the Seller can use to possibly gain additional purchase consideration on the sale of their business. So, let’s get started.
Follow along with the podcast using these slides as your reference.
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When it comes to selling your business, or any financial transaction for that matter, multiple offers create choices and leverage, and it follows, that choices and leverage beat fairness 9 out of 10 times.
This Episode is not about selling your business today, but rather about a strategy designed to gain leverage and advantage when the time comes to consider selling or recapitalizing your business, raising capital to buyout a partner or successfully completing an acquisition.
We are going to discuss the strategy and results from two recent competitive processes run on two different companies. The companies were in completely unrelated industries, were different in terms of revenue and earnings size and each seller had different goals and objectives they wanted accomplished through a transaction.
Your takeaway from this episode should be an understanding of how a competitive process is run and acquiring some insights on how different buyers see price and terms. Remember, total value to you, in any transaction, is a combination of both “price and terms”, not just price alone!
View the slides for this episode here.
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Today I want to explore and explain the different types of buyers for privately held businesses, how they buy and what they are looking for in an acquisition.
When it comes time to sell your business, it should go without saying, you need a buyer who can buy the way you need or want to sell. A buyer who can structure a deal that will allow you to achieve your personal goals and objectives, which is most probably the basis for your decision to sell in the first place.
There are a lot of groups, companies and individuals who represent themselves as qualified buyers, but in reality, they have no money, no contacts, have no clue how to buy or run a business and turn out to be a “Waste of Time”, a WOT. By the same token, there are many great, motivated, financially capable buyers on the hunt for good fit acquisitions.
In this Episode, we are going to discuss the types of buyers, some of their more important and meaningful characteristics in the way they approach deals, delve into why they buy and how they buy.
So, let us learn how to tell the WOT’s from the Good Guy’s.
View the slides for this episode here.
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Today I want to Discuss the Barriers to Success in Closing a Business Sale Transaction.
Were you aware the success rate for selling a business is very low? Data from BizBuySell, which has the largest inventory of businesses for sale on its website with 45-50,000 listings at any time, shows that in any given year only 16-18% sell.
The Exit Planning Institute recently came out with an estimate that 90% of the businesses that will sell in the next 20 years do not have adequate records and are not prepared to go to market.
The 3 top reasons for this dismal success record are all seller self-induced yet easily fixable, so let’s get started.
View the slides for this episode here.
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Entrepreneurs are generally a positive thinking lot, and as such, often view their business ownership through a lens of “immortality” thinking they will run their business forever.
Intellectually, we all know eventually all business owners will face a transition out of their business at some point down the road. But discussing it today can often be difficult, emotional, uncomfortable and cause negative feelings, so most business owners tend to put it off.
Today’s topic is “Hope is not an Exit Strategy”.
This is about NOT leaving your eventual Transition to Chance. In today’s episode, you will be introduced to some insights and action steps you can start implementing now, so when the time comes, you will be prepared personally and your business will be prepared financially for a Successful Transaction that will secure your and your family’s financial future.
View the slides for this episode here.
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Monetizing your Business is a podcast for business owners seeking capital to stay and grow or maximizing value when it’s time to sell and go. Your host, Walt Lipski shares over 30 years of real life deal experiences and strategies from helping business owners create the liquidity they need for: making an acquisition, taking a large dividend for personal financial diversification, buying out a partner and much much more all while keeping majority control of their business.
We explore minority recapitalizations, sourcing private equity and institutional capital, working with strategic buyers, understanding M&A deal structures and negotiating strategies, and initiatives you can take to maximize the overall value in your business, so when it’s time for a Transition, you can truly say, “I did it my way.”