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What Does It Take to Close a Deal
What you missed on How2Exit This week
Ronald Skelton
November 19, 2024
Weekly Recap
About the Guest(s):
Jordan Wagner is the CEO and founder of the Exit Group, a firm specializing in assisting private equity firms and large corporations in acquiring businesses. With a career grounded in experience gained from working at a competitor straight out of college, Jordan has established himself as a seasoned professional in the mergers and acquisitions sector. The Exit Group, which he started over a decade ago, has grown to closing 35 to 40 multifaceted deals each year, averaging $40 to $50 million. His expertise lies in savvy deal-making, industry analysis, and curating strategic business acquisitions.
Episode Summary:
In this engaging episode of the How2Exit podcast, host Ronald Skelton sits down with Jordan Wagner, the insightful CEO of the Exit Group, to unravel the complexities of buying, selling, and exiting businesses. Bringing his storied career into focus, Jordan shares his journey from a budding entrepreneur living with his parents to spearheading a firm that concludes dozens of high-value deals annually. A standout theme in their conversation is the power of youthful optimism and resilience in overcoming the early hurdles of entrepreneurship — particularly when deals don't close and finances are tight.
Jordan delves into the varied structures of transactions his firm deals in, ranging from founders selling off entirely to private equity-backed majority buyouts. He explores the importance of recurring revenues and market growth for securing premium payouts during exits. North of typical discussions, Jordan opens a window into the lesser-seen world of unique businesses that thrive by deftly servicing mundane needs, demonstrating the diverse ways companies achieve success. Through shared anecdotes and industry expertise, the episode builds a comprehensive guide to the underpinnings of successful business exits.
Key Takeaways:
Youthful Advantage: Starting a business young comes with the benefit of fewer risks and the ability to endure early failures.
Deal Variety: Majority buyouts are common, with business owners having the opportunity to retain equity and benefit from future growth.
Unique Businesses: Successful companies often thrive on fulfilling everyday needs in niche markets, unnoticed by the average consumer.
Consistent Growth: Premium valuations in company sales hinge on predictable revenue and growth, amid a booming market.
Entrepreneurial Risk: Founders begin businesses with uncertain outcomes, taking chances many would avoid.
Article:
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