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Exit Planning Mistake 2 - Going Alone

By Generational Equity

going alone

Last week we started a blog series examining some of the critical exit planning “miscues” that we frequently encounter when we meet with business owners. Our first piece discussed the critical need to ensure that you maintain focus on operating the company while at the same time negotiating with buyers. Because if you don’t, it will only hurt your negotiations with buyers if the business begins to miss its forecasted revenue and earnings.

In that article we made reference to the second exit planning mistake, which is what we will cover in greater detail today: not using professional exit planning advice.

Certainly businesses are bought and sold every day without the use of M&A professionals. And if you are a serial entrepreneur and have successfully sold a couple of businesses already, you most likely have the experience necessary to do so again.

However, most business owners will sell only one company in their entire career. This is definitely not something you want to learn the hard way by learning from your mistakes. Without M&A guidance from a professional, you need to budget at least 8-14 months and 1,000 hours of your time. In addition, you need to be financially savvy and have thick skin to avoid taking hard questions from buyers personally.

By and large our clients tell us two things after we close a deal for them:

  1. I had NO idea due diligence would be so painful.
  2. There is NO way I could have closed the same deal without your help.

Keep in mind that each of the clients in the videos above is an extremely talented CEO and owner. Many are recognized experts in their particular industries. But each of them was wise enough to realize that when you are trying to monetize your greatest asset, you need to do it right, and if you want an optimal deal with a premium buyer, you will need help finding them and negotiating with them.

This is the real benefit that our firm and our deal teams bring to clients.

Make the Investment to Avoid Mistakes

Mistake No. 2 is simply making the assumption that in order to save some money, you are going to spend a year or more plus a 1,000 hours of your time finding a buyer. And, by doing this, in many cases, you will also make mistake No. 1 and take your eyes off the daily operations of the company.

Do you see how circular these two mistakes are and how they feed off of each other? One naturally leads to the other. And before you know it, not only have you not sold your company, odds are good your revenue is down 25%, your confidentiality has been breached, your key employees are upset, and rumors are flying.

Not the way you want to go!

Here is the alternative: Hire a reputable, experienced firm like Generational Equity to represent you. Our track record speaks for itself. 

To learn more about how we can represent you, please reach out to me, Carl Doerksen, Director of Corporate Development, at 972-342-0968 or cdoerksen@genequityco.com and I will get you in touch with the appropriate folks to discuss your next steps.

And because most business owners have no idea what the M&A process really looks like, we offer complimentary exit planning seminars that walk you through the system from A to Z. We find that it is far better for our clients to understand what will be occurring over the next several months than to enter our system blind.

Reach out to us and we will help you out as well!

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The process was much more involved than I expected and your help, experience and advice was a big factor in making the negotiations go as smoothly as possible.
Terry D. Wickman, President, Keytroller
I couldn’t have asked for a better team than Michael and Deborah. We couldn’t have done it without them.
Robert Evans, President and CEO of Mealtracker Dietary Software
Thank you again for all your guidance and support. Any company will achieve what they intend, if they have you on their team!
Rick Nowak, President/CEO, Kurz Electric Solutions, Inc.
We knew it would be a difficult task to have someone really understand our business and our market, prior to researching a possible buyer, so it was imperative that we found someone of your caliber, with definite proven experience in this area.
Rick Nowak, President/CEO, Kurz Electric Solutions, Inc.
Bruce and I wanted to take this opportunity to thank Generational Equity for assigning Musa Jagne to our transaction. In Bruce’s words, “Musa did one hell of a job for us!”
Karen S. Williams, CFO, BW Manufacturing
We are very happy with the end result, and are very happy to be able to move forward with all of our future growth plans.
Rick Nowak, President/CEO, Kurz Electric Solutions, Inc.
The help you provided us during each step of this process made us feel very comfortable and confident we were selecting the right approach to transition our Company.
Andy Graham, Vice President, Modern Heating & Plumbing
Thanks again Phil and feel free to have a future client call me if they would like a referral. You are a true professional!
Andy Graham, Vice President, Modern Heating & Plumbing
We were happy to see the interest in our company and what we cherished has not just a valuable company but an important company to the communities we served in.
Larry Moore, Owner, A Company Portable Restrooms
I must say that I have never worked with a more driven, competent and focused individual as Don Ho.
Jay Dinnison, Owner of Sharpe Mixers
We will highly recommend Generational Equity and Musa Jagne to any business owner about to embark on the same process.
Karen S. Williams, CFO, BW Manufacturing
I need to say an immense thank you to Don Ho for his stellar work ethic, attention to detail, and tireless effort. Also thank you to the whole crew at GE! Without you, Don could not do such a phenomenal job. We were shooting for closing and funding before the end of 2020, due to the uncertainty of the political landscape and taxes. I am happy to report we closed last week and will be funding tomorrow.
Dr. Caty J. Catron PhD, RN, VA-BC – Owner, Vic The Picc, LLC
I wanted to write you a quick letter to express our appreciation and our delight on the outcome of helping us through the process of our recent sale. We are very happy with the end result, and are very happy to be able to move forward with all of our future growth plans.
Terry D. Wickman, President, Keytroller
I am pleased that I was able to work with Andrew Byrd throughout this experience. From the first meeting we had in Minneapolis I felt that I was in good hands. His knowledge and expertise is second to none. He guided the process consistently throughout. I feel lucky that I was pared with Andrew and could not be happier that I chose Generational Equity to handle this major life event. Thank you Andrew and GenEq for everything!
Eric Erlandson, Owner, Action Fastenings, Inc.
We are extremely pleased with the way Generational Equity handled the sale of our company. Your associates, Tom and Chris, did an outstanding job of getting us (me) through the process.
Michael J Polarek, President, Paragon Packaging
We thank you Eric and Generational Equity making our dream come true.
Larry Moore, Owner, A Company Portable Restrooms
Greetings Mike. Thank you for the captivating and compelling presentation you made at the Phoenix presentation last week. Over many years in business yours was the most informative and well-presented presentation, on any subject, that I have ever attended! Your energy and enthusiasm combined with your concise and captivating support of your positions with easily understood examples and data was compelling.
Pete L.
Generational Equity educated and informed us – so that we could be on the upside of a good decision (to sell).
Bil MacLeslie, CEO, ipHouse
Your wisdom and experience were invaluable to me during this once-in-a-lifetime transaction.
Ralph Noblin, President of Noblin & Associates
Dear Chris and Andre, I just wanted to say thinks for all your help. Even though this process was not an easy one, it was comforting to know that I had a capable team standing beside me. As I said before you made me feel like we were almost your only client or at least the most important one. Thanks again, and I will recommend your service in the future.
Shenille Engelhart, Owner – CLS Technology
I would like to thank you and your firm, Generational Equity, for being our valued advisors in our journey.
Bil MacLeslie, CEO, ipHouse
Michael worked tirelessly, He followed every lead meticulously and urgently to make sure nothing was missed.
Robert Evans, President and CEO of Mealtracker Dietary Software
T.D., thank you so much! You are a great leader! I love how you are using your gifts and talents to better others. You are clearly a GREAT COACH! This 3 day session undoubtedly changed the future of our business, and very well may have been the sole catalyst to save my company, my health and my marriage! A genuine “thank you” from the bottom of my heart.
Bryan D. Horn, Owner, Over Under Clothing
Tom Staszak is one of the most professional people I have dealt with in my last forty years of business. You’ve got a great group of people and you have built a truly professional organization.
Michael J Polarek, President, Paragon Packaging
Generational Equity’s assistance was invaluable in compiling and marketing our business.
Bil MacLeslie, CEO, ipHouse
I quickly recognized that Don was working for Sharpe Mixers above all else, and held our interests above others.
Jay Dinnison, Owner of Sharpe Mixers