Built to Exit; Help for Small Deals: A DEEPER Dive: Identifying Potential Growth Opportunities

Together with ITX M&A Marketplace - click here to sell your MSP Company (Sponsor)

E115: Serial Entrepreneur And Author Jeff Wald Discusses Path To Successful Exits - How2Exit

Summary/Abstract

Jeff Wald is the chairman and co-founder of multiple tech startups, a bestselling author, speaker, and investor. He grew up in a fortunate family and began his career at JP Morgan as an M&A banker, working 120 hours a week. Jeff is passionate about living life to the fullest and encourages others to do the same. He has had a varied career spanning multiple industries, including textiles, music videos, and TV films. Jeff believes that everyone has one turn in life, and encourages others to make it count.

Jeff Wald is an entrepreneur who was not always interested in the field. He started out working in M&A banking and had an analytical approach to his work. He eventually developed an entrepreneurial spirit and began starting companies. Although his analytical approach can be a handicap, it can also work to his advantage as it allows him to think through the different exit options and he is able to make better decisions. Ronald Skelton agrees, saying that Jeff's chances of success on the companies he chooses are higher due to his analytical approach.

This conversation between two entrepreneurs discusses the risk versus reward of starting a business. Jeff Wald explains that he chose to start his own company, despite the low chances of success, because he wanted to be able to take ownership of his own project. Ronald Skelton further explains that this risk-taking attitude is what makes America great, allowing for innovation and rewarding those who succeed. The two entrepreneurs conclude that this is one of the many reasons why the United States is the greatest country in the world.

Jeff Wald is an entrepreneur based in Manhattan, New York City, who has founded and exited multiple tech companies. When he first started his first startup in 2006, New York City was not a tech hub and he has taken pride in helping to grow the tech ecosystem there. He believes in the importance of bringing people together in order to create a powerful hub, and cites people like Steve Case and Dan Gilbert as examples of those who have successfully built tech hubs in other cities. The conversation then shifts to how COVID has had a positive impact on remote working, as people no longer need to be in a tech hub to work for tech companies. Jeff Wald also emphasizes the importance of talking about failure, as most startups fail and when you are facing that kind of public failure, it is important to know that you are not alone.(57:20) Listen Here

Check out the new AI Ask This Episode Anything tool and our written article about what we learned here: 

11 Concepts We Can Learn About Starting Business You Plan to Exit on How2Exit's Interview W/ Serial Entrepreneur And Author Jeff Wald

For an Awesome source of information and great articles on buying, growing, and selling a business, check out: Acquisition Aficionado Magazine’s Latest Issue (Sponsor)

E114: Eric Grafstrom Helps Small Businesses with Selling Strategies and Valuation Tools - How2Exit

Summary/Abstract

Eric Grafstrom has had a long and varied career in the internet space, having been involved with the early webcasting industry and later working for Yahoo in Europe. Now, he focuses on assisting smaller mid-market companies with mergers and acquisitions, having led successful exits and asset purchases in the past. He is creating tools and resources to help these companies buy and sell companies, as well as helping them with the challenges that come with these transitions.

Ron Skelton and Eric Grafstrom discussed their backgrounds in venture-backed companies and software engineering. Eric discussed how he wanted to use his skillset to create a product that would allow traditional Main Street business owners to go through the exit process on their own or with very limited support from an attorney or a CPA. 

Eric Grafstrom and his team are focused on helping small business owners who are often overlooked by investment bankers and advisors. They have helped thousands of sellers in the process of selling their business. They provide a free assessment to determine the value of the business, which is typically between a few hundred thousand dollars to one-million-five. About 50% of them already know the buyer, such as a family member, business partner, or employee. The assessment they provide helps them price their business and they can then move forward with the sale of their business.

In this conversation, the speaker is discussing the steps needed to buyout a small business. The first step is to automate the pricing process. Next, the business owner needs to package their business up into a prospectus or business summary. Finally, they need to walk the buyer through the information necessary to engage in the process and create a data room. The speaker then goes on to ask how the evaluations are conducted. They mention that the two most common methods for valuing a brick-and-mortar business are a seller's discretion, earnings, or EBITDA multiple model, and discounted cash flow.  Watch here: (54:44)

Check out our article about this episode, complete with an AI-backed Ask the episode anything tool:

12 Concepts We Can Learn About Small Business M&A Deals on How2Exit's Interview W/ Eric Grafstrom CEO of ExitGuide.com

—SPONSOR—

Attention Business Brokers, Advisors, Acquisition Entrepreneurs, and SMB Owners!

Do you want to stay ahead of the game in the SMB M&A market? The Hub is the solution you need! This curated newsletter brings you the best highlights from blogs, podcasts, YouTube, and news sources, all in one place. The HUB

Founding Member Shout-Out

Thanks to Sweetview Partners, an Acquisitions company looking to buy Texas-based B2B companies in the $1MM - $30MM revenue range. Click on the logo to check them out. 

This week’s “DEEPER” Dive:  How to Identify Potential Growth Opportunities When Buying or Selling a Small Business: Identifying Untapped Markets or Expansion Opportunities

A Step-by-Step Guide with Examples

Often when looking at deals, especially when the owner has been slowly checking out, it’s important or critical to figure out its real potential. That said, As I look at new opportunities, I wanted to have some structure to help me identify untapped markets or potential in any company I consider purchasing. I created this for myself but realized many of us need this.

Let’s dive in.

Read the full article by the Author, Ronald Skelton, with a paid account, click the share below and tag me in your share to get a paid account for a week, refer 3 people (DM me on Linkedin who you got to sign up), and get a paid account for 90 days. Get 10 signups - FREE FOR A YEAR.

FROM THE Editor:

Disclaimer: This newsletter is provided for informational & educational purposes only, and should not be relied upon as legal, business, investment, or tax advice. We are not attorneys, tax, or financial advisors and not qualified to give any such advice. 

Subscribe to Premium to read the rest.