Mills Snell (@thegeneralmills) is joined by Clint Fiore (@ClintFiore), to talk about 2 War Stories where we get the broker's perspective. We have an aging owner, health issues, family dynamics, and Key operators involved. Then we have a second Deal where there’s some creative financing that must happen in order for the Deal to come through.
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(0:00) - Introduction to Weird & wonderful War Stories with Clint Fiore
(1:07) - Our sponsor is Cloudbookkeeping.com
(3:39) - 1st story: The owner has a terminal illness & wants to sell
(7:30) - Walk us through a normal valuation process: How many sellers agree with it?
(8:00) - A seller’s perspective on minority owners: Avoid these mistakes.
(11:35) - There’s a systemic risk: General Manager needs to be involved in the Deal
(14:01) - Is it possible to use Equity instead of cash? Did you need third-party appraisals?
(19:25) - What is special about management buyouts?
(22:35) - 2nd story: Winning through a creative earn-out
(25:34) - How to identify your low-hanging fruit for businesses on sale
(28:22) - What did you turn around to add that value?
(33:30) - What makes a seller pull out after LOI
(40:09) - How did you establish an earnout scheme?
(46:02) - Begin with the end in mind is my biggest advice
Past guests on Acquanon include Nick Huber, Brent Beshore, Aaron Rubin, Mike Botkin, Ari Ozick, Mitchell Baldridge, Xavier Helgelsen, Mike Loftus, Steve Divitkos, Dzmitry Miranovich, Morgan Tate and more.
Additional episodes you might enjoy:
#96 From W-2 to Business Owner - Patrick Dichter tells us how to cold reach seller and we discuss 2 Deals
#92 Wait... what? You laid-off 90% of your staff?!? - Pete Erickson joined us for an exciting WarStories episode!
#75 SBA Loan Secrets with Heather Endresen, expertise from a Billion-Dollar Loaner