- How2Exit DEEPER dive - SMB M&A Insights and Inspiration
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- From Health & Beauty to Valuations of Websites an E-commerce
From Health & Beauty to Valuations of Websites an E-commerce
What you missed on How2Exit This week
Ronald Skelton
April 30, 2024
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E207: M&A Masterclass: Building and Exiting Businesses in Health & Beauty with Tina Bradley - Watch Here
About the Guest(s):
Tina Bradley is a seasoned entrepreneur with a rich background in various business ventures, starting from her entrepreneurial journey at the age of nine. With hands-on experience in multi-level marketing, building an animal charity, and running approximately 200 monetized websites, Tina's expertise is vast and varied. She later turned her attention to mergers and acquisitions, focusing on the health, beauty, wellness, and self-care industry where she successfully built and exited a group of businesses. Tina's approach intertwines a deep understanding of operations, systematizing, and talent development, particularly in identifying and empowering managers to transition into business ownership.
Episode Summary:
In this episode of How2Exit, host Ronald Skelton invites Tina Bradley to share her entrepreneurial story and insights into the world of mergers and acquisitions (M&A). The conversation reveals the strategic moves that led Tina to success in the health and beauty sector, along with valuable learnings from her exit strategy.
Tina discusses the challenges and triumphs of acquiring multiple hair and beauty salons in and around London. She outlines her methodical approach to foster managerial talent and implement systems that ensure sustainability and scalability—key to preparing businesses for a management buyout. Her journey underscores the importance of rapport-building with sellers, teaching listeners how to engage genuinely and secure deals favorably for all parties involved.
Key Takeaways:
Rapport with potential sellers is critical in business acquisitions. Building genuine connections can lead to advantageous opportunities, such as management buyout deals.
Small businesses in the half-million turnover range can be a strategic focus area for building a portfolio, especially in the health and beauty space.
Empowering managers through meticulous systems and processes can prepare them for ownership, adding value to the business for a successful exit strategy.
Openness to diversified experiences and adaptability is crucial for entrepreneurs at any stage of their career.
Tina's philosophy of never giving up, inspired by her father, shows the resilience needed to succeed in the competitive world of business.
Notable Quotes:
"People sell to people they like and people buy from people they like."
"If you haven't got [rapport] naturally, then try and build up, because it is a skill."
"You don't need to go for these massive big companies...you can build up small ones...and then just build up a few of those."
"At the current climate, banks aren't lending on these businesses...But you know, I'm willing to take some risk. But you're gonna have to take some risk too."
Article:
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E208: What Makes a Website Valuable? Uncovering the Secrets of E-Commerce M&A with Justin Harris - Watch Here
About the Guest(s):
Justin Harris is a seasoned expert in mergers and acquisitions with a strong focus on the website and e-commerce space. With a rich background that includes working for a nonprofit, a large security systems company, and entrepreneurial ventures in software and leadership development, he brings a unique blend of business growth and innovation to the table. Justin is currently associated with Website Closers, where he has impressed many with his professional approach and deep understanding of the market dynamics of website businesses. He is also involved in e-commerce personally, owning brands that cater to specific niches like scented home products.
Episode Summary:
In this episode of the How2Exit podcast, host Ronald Skelton engages in a riveting conversation with Justin Harris from Website Closers, diving into the intricacies of mergers and acquisitions with a keen lens on website-based businesses. The show unfolds Justin's journey from his post-college days to becoming an influential figure in the entrepreneurial and M&A worlds.
Justin shares valuable insights into the challenges and opportunities that come with buying, scaling, and selling online businesses. Focusing on the importance of having well-organized financials, effective systems and processes, and minimal owner dependence, he provides actionable advice for business owners contemplating an exit in the near future.
Justin discusses the entrepreneurial itch that led him from a corporate role to starting his own ventures in recruiting and software.
He reflects on the experience of scaling a business and later selling his shares to step into mergers and acquisitions.
The conversation touches on the state of the market, notably the impact of Amazon on e-commerce businesses and the strategies to safeguard against potential issues.
Justin also considers the role of AI in enhancing business operations, particularly in generating better sales copy and streamlining processes.
The episode rounds off with practical pointers for preparing a business for sale, with a timeline of 12-24 months in mind.
Key Takeaways:
Well-prepared financials are crucial for a successful business sale; they build trust with potential buyers.
Systems and processes should be documented clearly to demonstrate a business that won't require significant buyer involvement.
Owner dependence is a critical factor; a business that can run with minimal owner input is more attractive to buyers.
There's an expected decrease in multiples and buyer activity in today's market, affecting business valuations.
Utilizing AI for generating sales copy and content can be a game-changer for small e-commerce businesses.
Notable Quotes:
"Put yourself in their shoes. What are they (the buyers) trying to buy? They're trying to buy something that's gonna be consistent with cash flow."
"If they (the sellers) can at least just remain consistent, then we can find you a buyer. I guarantee that."
"Don't slow down over the next 12-18 months as you're thinking about exiting."
"If you treat AI the right way, it's gonna set you up from a systems perspective to have all the tools that you need for that new buyer to come in and go, 'Wow, this is a really impressive asset.'"
Article:
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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.
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