Before You Buy or Sell a Business

Customer Due Diligence in Action: Ivy Millman on Revenue Sustainability, Customer Stickiness, Anonymous Feedback, and Better B2B Acquisitions

Tue, 24 Mar 2026 06:00:00 -0500

Jared Johnson sits down with Ivy Millman, CEO of WHIZDOM, to explore a missing piece in many lower middle market acquisitions: customer due diligence. Ivy shares how her background in accounting, Stanford, Apple, and decades of business-customer research led her to build a firm focused on helping buyers, investors, and operators understand what financial, legal, and technical diligence often miss. The conversation breaks down how independent customer interviews can uncover risks around retention, churn, concentration, loyalty, product issues, and transition vulnerability before a deal closes. Ivy explains her process, why customers often reveal more to a neutral third party than to sellers or buyers, and how these insights can shape valuation, confidence, and post-close growth plans. Jared also shares what he is seeing in SBA acquisition lending, including higher defaults, tighter scrutiny, and the growing need for real diligence before buyers commit to multimillion-dollar deals.

Main Takeaways:

- Customer due diligence fills a major gap left by financial, legal, quality of earnings, and technical diligence

- For B2B acquisitions, revenue sustainability depends heavily on retention, loyalty, stickiness, and switching risk

- Customers are often more candid with an independent third party, especially when they want feedback kept anonymous

- Seller-protected customer relationships do not have to block diligence if the process is structured correctly

- Independent customer calls can uncover hidden risks that materially affect valuation and deal confidence

- Customer insights can help buyers decide whether to move forward, renegotiate price, or build a stronger post-close plan

- High customer concentration becomes even riskier when relationships sit primarily with the founder or seller

- What buyers learn pre-close can become a practical roadmap for post-acquisition growth and retention

- Sellers can use the same kind of customer work before exit to improve enterprise value, loyalty, and retention

- SBA acquisition buyers should not rely on lenders, brokers, or sellers alone to validate a deal

Connect with Jared:

If you have questions for Jared, visit: https://jaredwjohnson.com

https://www.linkedin.com/in/jaredwjohnson/

Connect with Ivy:

https://www.linkedin.com/in/ivymillman/

ivy.millman@gmail.com

DISCLAIMER:

The views and opinions expressed in this program are those of the guests and host. They do not necessarily reflect the views or positions of my employer.

Keywords:

customer due diligence, B2B acquisitions, lower middle market, ETA, entrepreneurship through acquisition, SBA loans, quality of earnings, QofE, customer retention, customer stickiness, customer loyalty, customer churn, revenue sustainability, founder dependency, seller transition risk, customer concentration, post-acquisition growth, valuation risk, M&A diligence, independent third party diligence

When Acquisitions Go Wrong: Christine McDannell on a Failed Deal, Hidden Costs, Working Capital Risk, and the Reality Behind “Easy” ETA

Tue, 24 Feb 2026 06:00:00 -0500

Jared Johnson sits down with M&A advisor and serial entrepreneur Christine McDannell, founder of The Magnolia Firm, to unpack a deal that did not go as planned. Christine shares how an acquisition of a dance and fitness studio moved from seemingly profitable to cash-flow negative once she took over operations. They walk through what she missed because of speed, compressed diligence, and incomplete financial visibility, including licensing costs, seasonal revenue swings, and marketing spend that lived outside the books. Christine explains why raising pay and funding upgrades early created unintended expectations, how customer and operational pressures compounded the situation, and why working capital is the difference between surviving a rough stretch and being forced to shut the doors. The conversation challenges the idea that buying businesses is easy and highlights how even experienced operators can misstep when timelines are rushed and the full expense picture is not visible.

Main Takeaways:

Speed compresses diligence and increases the odds of missing material risks
A business that looks profitable can become unprofitable quickly once all true expenses hit the buyer’s books
Working capital determines whether a downturn becomes temporary or fatal
Marketing spend and other costs can be obscured when accounts sit outside the primary P&L
Immediate raises and visible capital improvements can create entitlement and escalating demands
Seasonality can materially impact revenue and must be stress tested before closing
Customer service businesses carry emotional and operational volatility that buyers often underestimate
Not every concept is best acquired; some are better built from scratch with rent and unit economics designed correctly
Transparency about failures helps reset expectations and protects new buyers from unrealistic narratives

Episode Highlights:

Christine’s background: 22 years as an entrepreneur, 10 startups, acquisitions, roll-ups, and turnarounds
Launching The Magnolia Firm in 2021 and advising sellers while continuing to acquire businesses personally
The trigger: seeing a studio opportunity and moving quickly after the seller shut it down
Operating under LOI: taking over operations immediately while still finalizing purchase terms
Reactivating customers after a sudden closure and attempting to stabilize revenue
Underestimating licensing, regulatory, and operating costs that surfaced post-close
Early missteps: raising pay immediately and funding upgrades without validating margin stability
Discovering hidden marketing expenses and incomplete financial visibility
Realizing the business was running a material monthly loss and funding the burn personally
The decision point: when to stop financing losses and close the business
The broader lesson: why speed, ego, and optimism can override discipline in acquisitions

Connect with Jared:

If you have questions for Jared, visit: https://jaredwjohnson.com

https://www.linkedin.com/in/jaredwjohnson/

Connect with Christine:

https://www.linkedin.com/in/christinemcdannell/

https://themagnoliafirm.com

DISCLAIMER:

The views and opinions expressed in this program are those of the guests and host. They do not necessarily reflect the views or positions of my employer.

Keywords:

entrepreneurship through acquisition, ETA, business acquisition, due diligence, working capital, cash flow, seasonality, hidden expenses, marketing spend, financial statements, seller disclosure, post-close execution, integration risk, employee retention, compensation strategy, customer service operations, M&A advisory, boutique brokerage, deal failure, acquisition lessons, operator mindset, unit economics, rent burden, distressed operations, business risk management

Inside the Broker’s Playbook: Greg Kovsky on Valuation Integrity, Buyer Fit, and Retirement-Driven Deal Flow | Ep. 60

Tue, 20 Jan 2026 06:00:00 -0500

In today’s M&A market, the difference between a clean transaction and a painful one often comes down to pricing discipline, seller integrity, and how prepared the buyer is before the first call.

In this episode of Before You Buy or Sell a Business, Jared Johnson sits down with Greg Kovsky, President and CEO of International Business Associates (IBA), the Pacific Northwest’s largest and oldest business brokerage firm. Greg has spent more than 30 years in the industry and has personally facilitated over 300 transactions. He shares what he’s seeing in the last 12–18 months, why buyer demand is the strongest he’s seen, and how retirement-driven transitions will continue to fuel deal volume for years.

Greg also explains IBA’s paid-on-performance model, why they only take about one out of three potential listings, and the three reasons they will refuse to represent a seller. On the buyer side, he breaks down exactly how to stand out in competitive processes, why relevant experience matters for SBA-backed acquisitions, and why full financial transparency is non-negotiable. Finally, Greg gives a practical take on where AI helps and where it can mislead, especially when valuing businesses without local and state-level context.

Main Takeaways:

Buyer demand is the strongest Greg has seen, driven by a growing “buy and build” culture
Retirement-driven ownership transitions are expanding supply, but quality sellers still have options
Paid-on-performance brokers have built-in incentives to price honestly and only take sellable deals
IBA only lists about 1 out of 3 businesses: unrealistic value expectations, weak business model, or lack of seller integrity
Due diligence should “follow the money”: verify deposits, review bank statements, and drill into expense detail
Buyers stand out by being ready early: resume/bio, personal financial statement, banker pre-qual, CPA and attorney
Relevant experience matters, especially under SBA guidelines, because you cannot sell “management ability”
AI can support marketing and education, but valuation still requires local knowledge and tax context

Episode Highlights:

[00:00] Intro: Greg Kovsky and IBA’s transaction footprint

[03:05] What’s changed in the last 12–18 months and why demand is so high

[06:10] The rise of buyer demand from “buy and build” entrepreneurs

[09:20] Why retirement-driven transitions will keep deal flow strong long-term

[12:10] Exit cycles: why entrepreneurs often sell and move on within 7–8 years

[14:35] Immigrant buyers and the Pacific Northwest tech corridor

[17:15] What sellers care about: protecting employees, customers, vendors, and legacy

[19:40] Paid-on-performance vs. upfront fees: incentives, pricing, and sellability

[23:15] Why overpricing hurts sellers and can cost years of exit timing

[25:40] IBA’s screening: the three reasons they refuse a listing

[29:10] Integrity red flags: moving expenses across entities and why diligence matters

[34:10] “Follow the money”: bank statements, QuickBooks detail, and full disclosure

[37:30] Training brokers: why this job requires legal, tax, finance, real estate, and psychology

[41:50] How buyers stand out: preparation, financial strength, and a built deal team

[46:05] Fit matters: examples of niche alignment that wins deals

[49:40] Veterans as strong operators and underutilized SBA programs

[53:10] Bilingual support and making complex deal terms understandable

[56:40] AI limits in valuation: state tax differences and local demand change pricing

[01:01:20] Mentors, motivation, and why entrepreneurship keeps Greg engaged

[01:04:30] How to reach IBA and where to find their educational resources

Inside the Marketplace: How Empire Flippers Screens Listings, Matches Buyers, and Closes Online Business Deals

Tue, 16 Dec 2025 06:00:00 -0500

Jared Johnson sits down with Andy Allaway, CEO of Empire Flippers, one of the largest marketplaces for buying and selling online businesses. Andy shares how the company built a global platform that lists only 5 percent of submitted businesses, vets every seller, verifies every buyer, and has facilitated thousands of acquisitions ranging from high five figure deals to eight figure exits.

Andy explains why the online business market has matured significantly in the last decade, how valuation expectations shifted after the zero interest rate era, and why today’s buyers are far more sophisticated in due diligence. He breaks down Empire Flippers' internal valuation methodology, their strict criteria for accepting a listing, and how their engineering and sales teams use technology and human oversight to efficiently match buyers to opportunities.

Jared and Andy walk through what is actually happening behind the scenes of a digital marketplace. They discuss creative deal structures, the rise of SBA financing for online businesses, the normalization of quality of earnings reports, buyer behavior trends, the impact of AI on different business models, and why co brokering high quality listings is becoming a meaningful expansion channel for Empire Flippers.

Andy also shares why he believes e commerce remains one of the most resilient acquisition categories in a world increasingly shaped by AI and why productized, transferable businesses like faceless YouTube channels are becoming a fast growing asset class among buyers.

Main Takeaways:

- A highly selective vetting process means only about 5 percent of businesses submitted to Empire Flippers are accepted

- Strong financials, clean books, realistic valuations, and stable trends are critical to a seller’s eligibility

- Many sellers remain psychologically anchored to inflated valuations from the 2020 to 2022 period

- Buyers today are more sophisticated and expect clean financials, organized records, and clarity on trends

- Due diligence has matured and exclusive due diligence periods, quality of earnings reports, and buyer side advisors are now common

- Empire Flippers verifies buyer identity and liquidity before granting access to listings in their price range

- AI enhances buyer matching by analyzing thousands of historic CRM notes to surface relevant opportunities

- Co brokering is expanding the marketplace by bringing in high quality listings from a select group of trusted brokers

- E commerce continues to perform strongly because AI enhances rather than replaces the business model

- SaaS valuations remain high but are more vulnerable to disruption from rapid AI advancements

- Sellers should have accurate books, a true understanding of profitability, and realistic valuation expectations before going to market

- Buyers benefit when marketplaces maintain strong vetting so they are not wasting time on stale or overpriced listings

- Market cycles influence both valuation expectations and the creativity of deal structures

- Remote first companies can build strong global teams and attract diverse buyer and seller pools

- Leadership, culture, and flexibility are powerful motivators for teams in digital first organizations

Episode Highlights:

[00:00:40] Empire Flippers overview and how the online business marketplace has evolved

[00:01:36] What types of online businesses qualify for the platform

[00:03:22] Why only 5 percent of submitted businesses pass the vetting process

[00:04:14] Common reasons listings are rejected and how sellers can better prepare

[00:05:22] How Empire Flippers validates financials, builds P and Ls, and packages listings for buyers

[00:08:07] Seller psychology and the lingering impact of inflated 2020 to 2022 valuations

[00:10:00] How valuation ranges are established and why realistic pricing matters for sellability

[00:11:49] What buyers expect today and why due diligence has become far more rigorous

[00:14:23] Buyer verification, liquidity checks, and the role of human led sales outreach

[00:17:00] AI driven buyer matching using thousands of historic CRM notes in HubSpot

[00:20:32] Why the market shifted in 2023 and how buyer and seller expectations reset

[00:22:20] Creative deal structures, earn outs, and the rise of financing on larger deals

[00:25:37] Empire Flippers' changing view of SBA lending for online businesses

[00:26:54] The normalization of quality of earnings reports and their effect on timelines

[00:28:10] Co brokering as a new strategic growth path and the first 6.5 million dollar agency success story

[00:31:31] What types of brokers and deals are ideal for co broker partnerships

[00:34:25] Trends in e commerce acquisitions and why diversified channels beyond Amazon are attractive

[00:38:44] The rapid rise of faceless YouTube channels as turnkey, productized acquisition targets

[00:40:31] AI’s impact on SaaS valuations and why e commerce remains resilient as an asset class

[00:41:05] The realities of seller expectations, market cycles, and valuation resets

[00:41:56] Remote culture, leadership, and Andy’s personal motivation to build a flexible global team

Connect with Empire Flippers:

Website: https://www.empireflippers.com

LinkedIn (Andy Allaway): https://www.linkedin.com/in/andyallaway

Connect with Jared:

If you have questions for Jared, visit: https://jaredwjohnson.com

LinkedIn: https://www.linkedin.com/in/jaredwjohnson/

DISCLAIMER:

The views and opinions expressed in this program are those of the guests and host. They do not necessarily reflect the views or positions of my employer.

Keywords:

online business acquisition, digital business marketplace, SBA loan, e commerce acquisition, SaaS valuation, due diligence, quality of earnings, buyer vetting, seller vetting, business valuation, marketplace M and A, remote business, co brokering, AI in acquisitions, deal sourcing, financial verification, buyer matching, main street acquisitions, online business trends, acquisition strategy

Saying Yes to a 48-Year Legacy: Jordan Hood’s Journey from Art School to Bridal Shop Owner

Tue, 02 Dec 2025 06:00:00 -0500

Jared Johnson sits down on location with Jordan Hood, the new owner of Low’s Bridal, a regionally known 48-year bridal institution in rural Arkansas. Jordan shares how a childhood on a Mississippi farm, an art and photography degree from Parsons, early digital marketing work in New York, and five years raising money for St. Jude all shaped the way she eventually stepped into owning a historic 22,000 square foot bridal shop she first joked about buying at age 19. She explains how she found the deal through her best friend’s family, what it took to win the trust of sellers who saw their staff as family, and why saving, buying her first home, and years of work across multiple industries positioned her for a successful SBA loan.

Jordan and Jared break down the real transition process inside a legacy business. They discuss hiring managers to replace two founders, navigating vendor account transfers, ordering a phase one environmental report early, using working capital to bridge delays, and learning everything from market trips to seven circuit breaker panels in a 30-day sprint. Jordan also shares the operational and customer experience changes she made on day one, including modernizing the check-in process, rewriting sales scripts, and improving the flow for today’s bride while protecting the magic that has defined Low’s Bridal for nearly five decades.

Main Takeaways:

A nontraditional background can prepare a buyer more than they realize
Deals often originate from long-standing relationships and small conversations
Asking a seller if they would ever sell is a simple but powerful first step
Sellers of legacy businesses often value the right buyer more than maximum price
Building genuine trust with the seller and long-tenured staff creates stability during transition
Buying a home or establishing savings can strengthen a buyer’s SBA profile
Ordering environmental reports and key third-party items early can prevent last-minute delays
Working capital is essential during the early weeks of account transfers and vendor approvals
A defined transition period helps the buyer learn daily operations and uncover hidden processes
Legacy owners often do everything themselves and successors may need to build a management team
Improving customer flow and experience can increase conversion without losing the brand’s essence
Today’s customers expect faster processes, guided appointments, and a modern check-in experience
Sales scripts should create connection and trust, not pressure
Mentors and industry coaches provide valuable support through a steep learning curve
Loving the mission and the day-to-day work sustains owners through demanding seasons

Episode Highlights:

[00:00:40] Meet Jordan Hood and the origins of Low’s Bridal

[00:01:36] Growing up in rural Mississippi and discovering a creative path

[00:03:22] Early digital marketing work in New York during the rise of social media

[00:04:14] From floristry and fashion to AI behavioral advertising

[00:05:22] Five years at St. Jude and the business efficiency lessons of nonprofit fundraising

[00:08:07] The college conversation where Jordan first joked she would buy Low’s one day

[00:10:00] How the deal file landed on Jared’s desk and why this SBA loan looked different

[00:11:49] Being a “normal person” buyer and how saving and buying a home made the deal possible

[00:14:23] Advice to searchers: be willing to ask owners if they might sell

[00:17:00] Winning the trust of the sellers and staff in a multi-generation bridal business

[00:20:32] Replacing two founders with one owner and hiring managers quickly

[00:22:20] What Jordan would do differently and what she wishes she knew up front

[00:25:37] Ordering the full phase one environmental report early and why it mattered

[00:26:54] How working capital bridged delays in vendor account transfers and tax IDs

[00:28:10] Making the most of a 30-day transition period and learning daily operations fast

[00:31:31] The hidden workload of transferring designer, accessory, and service accounts

[00:34:25] Redesigning the appointment journey and shortening check-in from 13 minutes to seconds

[00:38:44] Rewriting scripts to support customer experience instead of controlling customer movement

[00:40:31] The value of having mentors and a bridal-industry coach

[00:41:05] Jordan’s motivation: creating generational memories and helping brides say yes to the dress

Connect with Jordan:

Website: https://www.lowsbridal.com

Instagram: https://www.instagram.com/lowsbridal

Connect with Jared:

If you have questions for Jared, visit: https://jaredwjohnson.com

LinkedIn: https://www.linkedin.com/in/jaredwjohnson/

DISCLAIMER:

The views and opinions expressed in this program are those of the guests and host. They do not necessarily reflect the views or positions of my employer.

Keywords:

bridal shop acquisition, SBA loan, small business purchase, legacy business succession, operational transition, environmental due diligence, vendor account transfer, customer experience design, bridal retail operations, multi generation business, sales process, appointment flow, business ownership journey, main street acquisitions

Digital Asset Transfer, AI Ownership, and Cleaning Up Your Tech Stack with Paige Wiese

Tue, 11 Nov 2025 06:00:00 -0500

Jared Johnson sits down with Paige Wiese, founder of Tree Ring Digital, a 16-year full-service digital marketing and web agency, to unpack the part of buying or selling a business that almost nobody plans for: digital asset transfer. Paige explains why domains, hosting, email, social accounts, analytics, third-party tools, brand files, and even AI/GPT logins often sit in personal inboxes or with old vendors—and how that can stall or even devalue a transaction. She walks through her two-step approach (digital asset assessment, then a 300+ point audit), why buyers should ask earlier for logins and proof of marketing performance, how sellers can show up more prepared, and what can go wrong when a domain expires or the recovery email is deleted. They also get into the new issue of employees training GPTs on company data under personal accounts, and why companies need standards now: one company-owned AI account, clear rules on what data can go in, and a plan for what happens when an employee leaves.

Main Takeaways:

- Most businesses cannot produce logins on demand and access is scattered across staff, vendors, and old emails

- Digital assets (domains, hosting, email, website, social, analytics, third-party tools) are business assets and should be part of the deal

- A two-step process works best: identify gaps, then audit and recover everything before close

- There are far more digital data points in a modern business than owners realize, often 300+

- Expired domains, deleted recovery emails, and vendor deaths can take 1–2 weeks to unwind

- Sellers who package digital assets cleanly reduce friction and protect valuation

- Buyers should ask early for proof of marketing performance and actual ownership of key platforms

- Key employees should not be single points of failure for website SOPs, renewals, or platform access

- Use a single company-controlled email (webmaster@ / marketing@ / info@) for all third-party tools and renewals

- AI/GPT tools introduce new risk when staff train models with company data under personal accounts

- Companies should provide the AI account, define what can be uploaded, and make it portable on exit

- Auditing tools also surfaces unused SaaS/AI expenses and can save money while organizing assets

Episode Highlights:

[00:00:21] Why digital asset transfer is an overlooked part of ETA and small business deals

[00:02:05] Paige’s background, 16 years running Truing Digital

[00:04:12] “Do you have the login?” and why clients rarely have everything in one place

[00:08:17] Preparing to sell in 6–12 months: start with a digital asset assessment

[00:10:43] The 300+ digital data points behind a business

[00:15:48] Extreme case: developer dies, everything was on reseller accounts, legal recovery required

[00:20:22] Standards of practice: one shared email for renewals and third-party tools

[00:26:14] Post-transaction integration: re-running the checklist once the buyer owns the business

[00:28:32] The “website is down six months after close” call and why it happens

[00:31:40] AI complication: personal GPTs trained on company data

[00:33:27] Policy solution: company-provided AI accounts and data rules

[00:37:25] Document everything before IT wipes a departing employee’s machine

Connect with Paige:

Website: https://www.treeringdigital.com/beforeyoubuyorsellabusiness

LinkedIn: https://www.linkedin.com/in/paigewiese/

Facebook: https://www.facebook.com/TreeRingDigital/

Instagram: https://www.instagram.com/treeringdigital/

Tree Ring Digital LinkedIn: https://www.linkedin.com/company/treeringdigital/posts/?feedView=all

YouTube: https://www.youtube.com/@treeringdigital

Connect with Jared:

If you have questions for Jared, visit: https://jaredwjohnson.com

https://www.linkedin.com/in/jaredwjohnson/

DISCLAIMER:

The views and opinions expressed in this program are those of the guests and host. They do not necessarily reflect the views or positions of my employer.

Keywords:

digital asset transfer, ETA, small business acquisition, website ownership, domain recovery, hosting and SSL, marketing ops, AI account governance, GPT workplace policy, third-party tools, renewals management, post-transaction integration, seller preparedness, buyer due diligence, SOPs for logins, SaaS sprawl, data security

Niche Wins: Broker Relationships, Working Capital Reality, and Operating a Legacy Window Restoration Business with Tahir Zaman Hussain and Neilab Rahimzada | Ep. 56

Tue, 28 Oct 2025 06:00:00 -0500

Jared Johnson sits down with husband and wife operators Tahir Zaman Hussain and Neilab Rahimzada to unpack an 18-month search that started in London and New York, survived a failed first deal, and ended with the acquisition of a hyper niche window restoration company with decades of brand equity. They explain why calling brokers directly beat scrolling listings, how a prior LOI on a fire sprinkler company fell apart over working capital, and what changed when they found a seller who was transparent and responsive. The pair walk through pricing, a structured transition that kept the seller away from staff, and why even a negative working capital model still demanded real cash at close for insurance and early costs. They share role reversals once they took the keys, the expected J curve, discovering demand that exceeded capacity, and the plan to professionalize operations while hiring to remove themselves as the bottleneck.

Main Takeaways:

Calling brokers and building relationships beats passively browsing listings
Seller fit and transparency are early signals of post close reality
Working capital is a must have topic, if the seller cannot grasp it, walk away
Even firms with negative net working capital need cash at close for early bills
Weekly seller calls and a living data room keep diligence moving and cut surprises
A tailored transition can work if the seller is kept away from employees and authority
Expect role shifts after close, divide by aptitude rather than the original plan
The J curve is real, track project efficiency early or you give margin away
A strong and aligned deal team keeps emotions in check and momentum toward close
Growth needs capacity and systems, hire to free owners for tools, process, and scale

Episode Highlights:

[00:00:28] Backgrounds, London and Long Island roots, careers in finance and capital markets
[00:03:06] Why ownership, investment returns and the itch to operate
[00:04:47] What they bought, a hyper niche window restoration company with outsized reputation
[00:07:37] How they sourced it, broker outreach over listing sites and why that worked
[00:10:18] Search timeline, education in mid 2023, close in October after about 18 months
[00:11:45] The first LOI that died, fire sprinkler company and a breakdown on working capital
[00:14:06] Context on working capital in lower middle market deals, shifting norms and lessons learned
[00:18:20] The right seller, transparency, fast document turns, weekly calls, clean diligence cadence
[00:20:11] Transition design, seller support for two months without interacting with staff
[00:23:05] Deal structure at a high level, SBA senior debt, standby seller note, modest buyer cash
[00:24:55] Why they still needed working capital, insurance costs and early cash needs in New York
[00:27:01] The value of an aligned deal team, keeping emotions steady through closing
[00:29:35] Day one, the speech, then role reversal, Tahir on sales, Neilab on operations
[00:32:42] Performance, an initial dip then trending toward the best year in company history
[00:33:30] What is next, systematize operations, add headcount, prepare to handle more demand
[00:36:13] Mentorship, leaning on entrepreneurial family and the search for a mentor
[00:38:44] Motivation, stewardship of a legacy brand and showing up even when it is hard

Connect with Jared:

If you have questions for Jared, visit: https://jaredwjohnson.com

https://www.linkedin.com/in/jaredwjohnson/

DISCLAIMER:

The views and opinions expressed in this program are those of the guests and host. They do not necessarily reflect the views or positions of my employer.

Keywords:

entrepreneurship through acquisition, ETA, SBA loans, working capital, broker outreach, seller diligence, window restoration, niche services, transition planning, negative working capital, first 100 days, project tracking, J curve, operations professionalization, demand management, deal team, seller note, DSCR awareness, small business ownership, capacity planning

Building Better Deals: Adam Markley on Supporting Searchers, Seller Dynamics, Post-Close Support, and the Importance of Site Visits | Ep. 55

Tue, 14 Oct 2025 06:00:00 -0500

Jared Johnson sits down with investor and operator Adam Markley to trace a winding path from nearly failing out of college to building and backing small businesses. Adam shares how a pivot into accounting and finance opened doors to hands-on work with small companies, a corporate run standing up deal-driven divisions, and ultimately his own acquisitions in the U.S. and U.K. He talks candidly about painful lessons (from paying loans out of pocket to a partner emptying accounts), why seller behavior is a leading indicator of post-close reality, and how his team now invests with a heavy emphasis on in-person site visits and back-office execution. Adam explains his four-pillar support model for new owners, common pitfalls in lender relationships, and where he thinks ETA is headed as underwriting tightens and off-market search professionalizes.

Main Takeaways:

Curiosity and repetition win: reviewing dozens of deals monthly builds judgment you cannot shortcut
Seller character and the buyer–seller relationship are core drivers of post-close success
Site visits late in diligence provide a critical gut check before funding and close
The first 6–12 months are won by focusing on four buckets: people, operations, sales, and processes
Outsourcing or wrapping expert back-office support can save hundreds of hours during transition
Investor fit matters: clear expectations on equity step-ups, preferred returns, and long-term horizons
Off-market search is professionalizing; few individuals can excel at every part of the search lifecycle alone
Expect tighter SBA underwriting (e.g., DSCR definitions, post-close liquidity) to favor better-capitalized buyers
Personal financial discipline signals readiness to operate and builds lender and investor confidence
Under-levering and adding real balance-sheet cash can improve outcomes and optionality post-close

Episode Highlights:

Background reset: from almost failing out to finishing an accounting/finance degree early and working with small-business clients
Early exposure: regional public accounting, seeing owners scale and realizing business + real estate wealth patterns
Corporate chapter: building deal-led divisions (JVs, partial acquisitions), then buying and spinning out an education company on acquisitions
Hard lessons: U.K. operating partner empties accounts; replacing a non-owner president post-close; paying loans personally
Portfolio today: eight active businesses, four acquired with SBA loans; shifting from primary acquirer to minority investor
Investment approach: won’t invest without a site visit; observe seller–buyer dynamics as a final diligence gate
Back-office leverage: running or wrapping accounting/finance/admin to free operators for customers, people, ops, and sales
The four-pillar support model: inner circle (family/peers), peer groups, strategic investor sounding board, and day-to-day back office
Working with lenders: create a real feedback loop; understand how banks calculate DSCR and post-close liquidity
Market outlook: more competition, more specialization in off-market sourcing, and likely stricter SBA expectations
Motivation: be the resource he wished he had—review deals freely, build community (Denver meetup; Rocky Mountain ETA efforts)

Connect with Jared:

If you have questions for Jared, visit: https://jaredwjohnson.com

https://www.linkedin.com/in/jaredwjohnson/

Connect with Adam: https://www.linkedin.com/in/adammarkley/

DISCLAIMER:

The views and opinions expressed in this program are those of the guests and host. They do not necessarily reflect the views or positions of my employer.

Keywords:

entrepreneurship through acquisition, ETA, SBA loans, DSCR, deal sourcing, off-market search, seller diligence, site visits, back-office integration, first 100 days of ownership, small business operations, minority investing, equity step-ups, preferred return, post-close liquidity, investor alignment, buy-and-build, small business portfolio, lender relationships, transition planning

Partners in the Process: Sushant Bharadwaj on Building Trust, Strength in Networks, and E-Commerce Acquisitions | Ep. 54

Tue, 30 Sep 2025 06:00:00 -0500

First-time buyers often worry about what they do not know, but success comes from focusing on fundamentals and building strong relationships.

In this episode of Before You Buy or Sell a Business, Jared Johnson talks with Sushant Bharadwaj, a former technology consultant who transitioned into entrepreneurship by acquiring two e-commerce businesses. Sushant shares how his consulting background in ERP systems and supply chain management shaped the way he evaluated deals, why he treated banks and sellers as partners, and how he built trust by answering questions with transparency.

He explains the criteria he used to filter opportunities, the leap of faith behind his first acquisition, and why clean financials, repeat customers, and seller credibility mattered more than industry knowledge. Sushant also breaks down his approach to due diligence in e-commerce, from spot-checking customer data and ad spend to verifying traffic patterns. Finally, he reflects on transition challenges, including moving inventory across the country and navigating the rough first 30 days after closing.

Main Takeaways:

Banks and sellers can be valuable partners when approached with transparency and trust
Clean books and reasonable add-backs create confidence in small business acquisitions
E-commerce due diligence should focus on spot-checking key metrics, not perfect certainty
Transition planning for the first 30 days is critical to smoothing operations post-close
A strong network of advisors and peers helps overcome the steep learning curve of ownership

Episode Highlights:

[03:55] From technology consulting to exploring business ownership during COVID

[11:20] Searching hundreds of listings on BizBuySell and narrowing down opportunities

[16:40] Why seller trust and financial clarity shaped Sushant’s acquisition decisions

[23:05] Buying a women’s apparel brand without industry experience by focusing on fundamentals

[31:15] Negotiating a fair price and taking a leap of faith with his first LOI

[39:20] Due diligence in e-commerce: customer lists, ad spend, and traffic verification

[47:00] Treating banks and sellers as true partners, not just transaction counterparts

[54:25] Transition challenges: moving inventory, planning day one, and surviving the first 30 days

[01:02:10] Confidence gained from the first deal and the path to a second acquisition

Connect with Jared:

If you have questions for Jared, visit: https://jaredwjohnson.com

https://www.linkedin.com/in/jaredwjohnson/

DISCLAIMER:

The views and opinions expressed in this program are those of the guests and host. They do not necessarily reflect the views or positions of my employer.

Keywords:

entrepreneurship through acquisition, ETA, buying an e-commerce business, SBA acquisition financing, seller trust, business valuation, due diligence process, clean financials, transition planning, moving inventory, first 30 days of ownership, consulting background, small business acquisition strategy, building networks, buyer-seller relationships

Owning the Outcome: Jacob Hall on ETA, SBA Rules, and Operator Success | Ep. 53

Tue, 16 Sep 2025 06:00:00 -0500

Closing on a business is only the beginning. Success depends on how you manage the first years of ownership, the capital you bring to the table, and the partners you choose.

In this episode of Before You Buy or Sell a Business, Jared Johnson talks with Jacob Hall, Founder and Managing Partner of Kando Capital, about the realities of Entrepreneurship Through Acquisition (ETA).

Jacob shares how his career as an engineer and operator shaped his approach to investing in self funded searchers and independent sponsors. He explains why search is a double edged sword, what makes alignment between investors and operators essential, and how his firm structures equity to support both short term liquidity and long term ownership.

The conversation covers SBA rule changes, the risk of ignoring the J curve, and why working capital is often underestimated in the first year of ownership. Jacob also discusses quarterly reporting, portfolio diversification, and why he now teaches ETA at the University of Texas to prepare the next generation of operators.

Main Takeaways:

ETA is a promising path but requires commitment, maturity, and resilience
Investor and operator alignment sets expectations and avoids future conflict
The J curve is common in the first year and must be planned for
Working capital is critical for payroll, vendor terms, and unexpected expenses
Equity partners provide strategy, networks, and growth support beyond funding
Mentorship and transparency build a stronger ETA community

Episode Highlights:

[02:10] Jacob’s career path from engineering and corporate operations to small business COO

[09:45] Discovering ETA in 2020 and shifting from searching to investing

[14:22] Building Kando Capital and raising from accredited investors and family offices

[20:35] Structuring equity, hold periods, and aligning with entrepreneurs

[29:10] Independent sponsor compared to self funded search and what sets them apart

[36:50] SBA rule changes and how they impact investors and operators

[47:28] Alignment as the foundation for long term operator and investor success

[55:40] Common post close mistakes including the J curve and underfunded working capital

[01:07:05] What Jacob looks for in operators before writing a check

[01:15:20] Why mentorship shaped Jacob’s career and why he now teaches ETA at UT Austin

[01:21:44] Motivation and why Jacob enjoys supporting entrepreneurs and building small business value

Connect with Jacob: https://www.linkedin.com/in/jacobhall01/

Website: Kando Capital

More from Jared:

If you have questions for Jared, visit: https://jaredwjohnson.com

Connect with Jared on LinkedIn

DISCLAIMER:

The views and opinions expressed in this program are those of the guests and host. They do not necessarily reflect the views or positions of my employer.

This podcast is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any securities. Any discussion of target returns or investment strategy is illustrative and subject to change. Investments are open only to verified accredited investors under SEC Rule 506(c). Listeners should consult their own legal, tax, and financial advisors before making any investment decisions.

Keywords:

entrepreneurship through acquisition, ETA investing, self funded search, independent sponsor, SBA rules, equity partners, working capital in acquisitions, J curve in small business, investor operator alignment, accredited investors, small business acquisition strategy, post close challenges, mentorship in ETA

Concrete Lessons: Munashe Makava on Family, ETA, and Building Businesses | Ep. 52

Tue, 02 Sep 2025 06:00:00 -0500

At the heart of entrepreneurship is the responsibility to create value. Not just for yourself, but for employees, customers, and the community.

In this episode of Before You Buy or Sell a Business, Jared Johnson sits down with Munashe Makava, an NYU MBA graduate who began his career at Deloitte and Goldman Sachs before stepping into entrepreneurship through acquisition.

Born and raised in Zimbabwe, Munashe shares how his parents instilled an entrepreneurial mindset early on, why the birth of his first child was the push to finally buy a business, and what he learned transitioning from Wall Street to owning two concrete companies in the U.S.

Munashe breaks down how he evaluated opportunities, why geography mattered more than industry, and what he wishes he had done differently during negotiation. He also talks about team building, mentorship, and why the hardest part of being an entrepreneur is people—not the numbers.

Main Takeaways:

Entrepreneurship isn’t only startups: ETA reduces some risk but still demands leadership
Geography can guide your search just as much as industry
Build your deal team early, including tax strategy support, to avoid missed opportunities
Strong seller and broker relationships can unlock deal structures others overlook
Employees who think like owners are the key to long-term success
Mentorship and networks multiply opportunities and help overcome self-doubt

Episode Highlights:

[03:42] Growing up in Zimbabwe, working at Deloitte, and moving to the U.S. for an MBA
[09:25] How becoming a father pushed Munashe to pursue entrepreneurship
[15:17] Why entrepreneurship isn’t the “holy grail” for everyone and the difference between being an entrepreneur vs. entrepreneurial
[22:04] Narrowing a search by geography and being industry-agnostic
[28:40] Finding two concrete businesses on BizBuySell and spotting hidden value
[36:55] Negotiating the deal structure, seller note, and lessons on tax allocation
[43:28] Raising capital through classmates, friends, and crowdfunding platforms
[51:02] Transition challenges: losing operators and rebuilding the team quickly
[57:41] Discovering more value post-acquisition and surpassing year-one expectations
[01:04:30] The importance of people, culture, and creating ownership mentality among employees
[01:12:05] Why mentorship matters, building a pay-it-forward network, and revamping mentors as your stage evolves
[01:19:15] Purpose as the ultimate motivator: enabling others through entrepreneurship

Connect with Munashe:

https://www.linkedin.com/in/munashe-makava-fcca-2728372a/

More from Jared:

If you have questions for Jared, visit: https://jaredwjohnson.com

https://www.linkedin.com/in/jaredwjohnson/

DISCLAIMER:

The views and opinions expressed in this program are those of the guests and host. They do not necessarily reflect the views or positions of my employer.

Keywords:

entrepreneurship through acquisition, ETA, buying a construction business, concrete pumping business, asset sale vs stock sale, SBA acquisition financing, seller notes, raising capital for acquisitions, building an entrepreneurial team, immigrant entrepreneurship, mentorship networks, employee ownership mindset, small business transition, growth after acquisition, business acquisition strategy

From Startup to Acquisition: Sathya Ramanathan on Selling, Buying, and Growing a Business | Ep. 51

Tue, 19 Aug 2025 06:00:00 -0500

What’s the difference between starting a business from scratch and buying an existing one?

In this episode of Before You Buy or Sell a Business, Jared Johnson talks with Sathya Ramanathan, a former tech founder who grew and exited a software company before acquiring a light construction equipment dealership in the Dallas-Fort Worth area.

Sathya shares what he learned from selling his first business, working alongside new management during a two-year transition, and then moving into acquisition entrepreneurship. He explains why buying an established company can be less risky than starting one, the due diligence steps he followed, and how he evaluates deals for fit, financial health, and growth potential.

Jared and Sathya cover how to build trust with employees after a takeover, why vendor and customer relationships matter during closing, and the operational improvements Sathya is making to grow his new business. Sathya also offers candid advice on who should (and shouldn’t) buy a business, and how to match your skills with the right opportunity.

Main Takeaways:

Buying a business can reduce risk compared to starting from scratch, but still requires careful planning
Fit matters: match your skills to the business’s needs to add immediate value
Strong relationships with the seller, vendors, employees, and customers smooth the transition
Key diligence items include working capital, customer concentration, and recurring revenue
Avoid rushing into changes before understanding the existing operation
Flexibility on location, deal structure, and operations increases acquisition options

Episode Highlights:

[02:14] Selling a tech startup and working through a two-year transition with new management

[07:42] Why buying an established business can be less risky than starting one

[10:15] Defining location, sector, and business characteristics before searching

[13:50] The importance of customer concentration and churn in deal evaluation

[17:26] Why Sathya prefers going through brokers rather than sourcing off-market

[19:18] Asset sale vs. stock sale: flexibility in LOI and tax considerations

[21:30] Setting and negotiating a working capital target in the LOI

[28:11] What made a light construction equipment dealership the right fit

[35:03] Managing vendor, customer, and employee relationships before and after closing

[42:50] The value of patience before making operational changes

[46:12] Growth plans: marketing, digital transformation, and potential expansion

[51:04] Who should and shouldn’t buy a business

Connect with Sathya: https://www.linkedin.com/in/sathyaramanathan/

More from Jared:

If you have questions for Jared, visit: https://jaredwjohnson.com

https://www.linkedin.com/in/jaredwjohnson/

DISCLAIMER:

The views and opinions expressed in this program are those of the guests and host. They do not necessarily reflect the views or positions of my employer.

Keywords:

how to buy a small business, buying vs starting a business, working capital in acquisitions, asset sale vs stock sale, business due diligence, customer concentration risk, vendor relationships, small business transition, employee trust after acquisition, entrepreneurship through acquisition, ETA, light construction equipment business, small business growth strategy, operational improvements, acquisition search strategy

Who Should Buy a Business? David Barnett on Picking the Right Deal and Becoming an Operator | Ep. 50

Tue, 05 Aug 2025 06:00:00 -0500

What kind of person should actually buy a business, and who should not?

In this episode of Before You Buy or Sell a Business, Jared Johnson talks with David Barnett, former business broker, author, and small business advisor, about what buyers need to know before stepping into business ownership.

They cover who should and shouldn’t buy a small business, how the acquisition landscape has changed, and the mistakes new buyers make by relying on online content instead of real experience. David explains why he left the brokerage world, what many buyers get wrong about business financials, and how to approach deals with clarity, caution, and the right strategy.

David shares his background in finance and brokerage, how online hype has led to a wave of underprepared buyers, and the red flags they often miss, like ignoring balance sheets, underestimating CapEx, and failing to plan for operating capital. He breaks down the risks of over-leveraging, why not all boomer-owned businesses are good targets, and gives practical advice for new buyers: build capital, get experience, and avoid rushing into the wrong deal.

Main Takeaways:

Buying or selling a business requires experience and due diligence
Most first-time buyers underestimate risk and overestimate deal quality
Financial understanding must go beyond the profit and loss statement
Not all listings are good opportunities
Mistakes can be avoided with the right guidance and preparation

Episode Highlights:

[03:13] The realities of working as a business broker

[12:10] Red flags in financials, including missing balance sheets and CapEx

[13:08] Why operating capital is often ignored during valuation

[15:46] The CapEx trap: why SDE and EBITDA don’t tell the whole story

[17:07] How to budget for equipment replacement

[22:24] What to watch for with deferred maintenance

[24:59] Why understanding what you're buying is more important than price

[27:37] Risk varies with the buyer; no one-size-fits-all deal

[32:21] Why there’s no such thing as a risk-free acquisition

[39:40] Who should actually buy a business

Connect with David:

https://www.businessbuyeradvantage.com/

https://www.linkedin.com/in/davidbarnettmoncton/

More from Jared:

If you have questions for Jared, visit: https://jaredwjohnson.com

https://www.linkedin.com/in/jaredwjohnson/

DISCLAIMER:

The views and opinions expressed in this program are those of the guests and host. They do not necessarily reflect the views or positions of my employer.

Keywords:

how to buy a small business, buying a business with SBA loan, David Barnett, business buyer advice, entrepreneurship through acquisition, ETA, SDE vs EBITDA, CapEx planning, business due diligence, small business acquisition, buying vs starting a business, operating capital, over-leveraging risk, small business finance, business valuation, search fund, business acquisition strategy, red flags in buying a business

From Venture Dreams to Business Ownership: How Today’s Founders Are Rethinking the Path to Wealth | Ep. 49

Tue, 22 Jul 2025 06:00:00 -0500

In this episode, Jared Johnson sits down with Nadav Ben-Chanoch, a former tech operator turned small business acquirer, to unpack why more founders are skipping startups and choosing to buy real businesses instead.

Nadav shares how his experience in Silicon Valley shaped his approach to deal-making, why he walked away from the traditional venture path, and what he’s learned transitioning from building software to operating a brick-and-mortar business. Whether you’re exploring search, planning your first acquisition, or just trying to understand where the market is headed—this conversation offers a grounded look at what it really takes to own and operate outside the startup bubble.

Episode Highlights

[00:06:15] — Why Nadav left tech to pursue small business ownership

[00:11:45] — What operators misunderstand about buying brick-and-mortar

[00:18:20] — How misalignment around working capital can derail deals

[00:25:10] — Why buying a business isn’t the shortcut people think it is

[00:32:00] — Advice for tech founders considering acquisition entrepreneurship

[00:37:40] — What Nadav looks for in deals—and what he avoids

[00:41:15] — The mindset shift from “builder” to “owner”

Connect with Nadav

Follow Nadav on LinkedIn linkedin.com/in/nadavbc

More from Jared

Got a question for Jared or want to work together?

Visit: https://jaredwjohnson.com

linkedin.com/in/jaredwjohnson

DISCLAIMER: The views and opinions expressed in this program are my own and/or those of my guests. They do not necessarily reflect the views or positions of my employer.

Scaling With Heart: How a Pet Industry CEO Built Purpose, Profit & 200+ Franchise Locations | Ep. 48

Tue, 08 Jul 2025 06:00:00 -0500

In this episode, Jared Johnson sits down with Michael Seitz, CEO & Chairman of EarthWise Pet, for a wide-ranging conversation on entrepreneurship, franchising, M&A strategy, and what it really takes to build and scale a brand in a mission-driven industry.

Michael shares how growing up in a family business shaped his values, how almost becoming a dentist led him back to his entrepreneurial roots, and the hard-earned lessons behind buying 42 stores in a single day. Whether you’re a first-time buyer, seasoned operator, or just curious about franchising from the inside out—this one is packed with insight.

Episode Highlights

[00:07:30] — The power of asking better questions early in your career

[00:13:00] — Why unit-level economics are the heartbeat of franchising

[00:23:00] — Why buyers need to focus on trailing 12 months, not just historical EBITDA

[00:29:00] — What EarthWise looks for in new franchisees (hint: it’s not just the money)

[00:33:30] — Advice to 20-somethings considering their first acquisition

[00:36:00] — The #1 mistake most sellers make—and how to avoid it

[00:38:00] — What really keeps a founder going after decades in the game

Connect with Michael

Learn more about EarthWise Pet: earthwisepetfranchise.com
Find Michael on LinkedIn: Michael Seitz, CEO

More from Jared

If you have questions for Jared, visit: https://jaredwjohnson.com

DISCLAIMER: The views and opinions expressed in this program are my own and/or those of my guests. They do not necessarily reflect the views or positions of my employer.

From Wall Street to Main Street: How a Trader Became a Business Acquisition Specialist | Ep. 47

Tue, 24 Jun 2025 06:00:00 -0500

In this episode of the Before You Buy or Sell a Business podcast, host Jared Johnson welcomes Mark Fleming, a specialist in business acquisitions and co-founder of Owner Actions.

Mark shares his journey from a background steeped in finance and trading to becoming an essential guide for investors at the critical 'search' stage of business acquisition. He emphasizes the challenging yet crucial initial phase of the acquisition process, a step often overlooked by many who are eager to jump straight to the deal-making stage.

The conversation delves into pivotal topics including the significance of selecting the right business based on industry experience, the unforeseen hurdles in business acquisition, and Mark's strategic use of reps and warranties insurance to mitigate risks.

They also explore the current economic climate, touching on the implications of tariffs and interest rates on small businesses. Mark underscores the importance of persevering through economic fluctuations and maintaining focus on core business values like customer service and cash management. The dialogue culminates in forward-looking insights on what buyers should anticipate in the evolving landscape of business acquisition.

HIGHLIGHTS

The search stage in business acquisition is the most challenging yet vital, demanding more diligence than the deal-making phase.
Specialized industry skills and management experience significantly determine success in business acquisition.
Implementing strong accounts receivable practices and managing cash flow are crucial in the initial months post-acquisition.
Reps and warranties insurance can safeguard against misrepresentations during business acquisitions.
Tariffs and economic policies can impact interest rates and business dynamics but can be navigated with focused strategies.

You can get in touch with Mark at https://www.owneractions.com/

______________________________________________________________________

If you have questions for Jared, visit https://jaredwjohnson.com/

DISCLAIMER: The views and opinions expressed in this program are my own and/or those of my guests. They do not necessarily reflect the views or positions of my employer.

Leveraging Your Skills: How an Engineer Found Double Success in the HVAC Industry | Ep. 46

Tue, 25 Feb 2025 06:00:00 -0500

In this episode of the "Before You Buy or Sell a Business Podcast," host Jared Johnson welcomes Jason Boehning, an HVAC industry professional who has successfully acquired two businesses over a short period.

The discussion delves into the intricacies of acquiring businesses, highlighting Jason's strategic mindset and the unique competitive advantage he enjoys due to his engineering background. This episode offers listeners invaluable insights into the pragmatic approach Jason adopted, which not only involved leveraging his skills but also focusing on relationship-building and effective transition management.

Jason's journey started from a small Texas town and led him to Texas A&M University, where he studied mechanical engineering. His diverse career path in the HVAC industry served as a solid foundation when he made the decisive move to business ownership. Through engaging dialogue, this episode presents a comprehensive look at his process of acquiring and managing HVAC businesses.

Key themes explored include the importance of having a solid plan, the advantages of maintaining good relationships with employees during acquisitions, and the strategic insights driving successful business growth in a competitive market.

Key Takeaways:

Jason leveraged his HVAC design and engineering knowledge to strategically acquire two businesses, positioning himself effectively in a competitive market.
Key factors in successful acquisitions include having a solid operational and financial plan and maintaining focus on long-term goals amidst a dynamic business environment.
The importance of maintaining key employees during a business transition, as these employees often hold valuable customer relationships and operational knowledge.
Acquiring existing customer bases through business purchases can be a more effective growth strategy than relying on extensive digital marketing efforts.
Managing working capital efficiently is critical in the HVAC sector due to varying cash flow cycles, especially when dealing with commercial clients.

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If you have questions for Jared, visit https://jaredwjohnson.com/

DISCLAIMER: The views and opinions expressed in this program are my own and/or those of my guests. They do not necessarily reflect the views or positions of my employer.

The Secret to Seamless Business Sales: Insider Tips on Navigating the Buying Process | Ep. 45

Tue, 11 Feb 2025 06:00:00 -0500

Navigating the intricate world of buying and selling businesses can be challenging. Understanding due diligence, valuations, and the right mindset is crucial.

In this episode of the "Before You Buy or Sell a Business" podcast, host Jared Johnson engages Rosco Graves from Polaxis in a deep dive into the nuances of buying and selling businesses.

They discuss the pertinent steps necessary for a successful business acquisition or sale, including crucial due diligence phases. With Jared’s experience as a lender and Rosco’s corporate and entrepreneurial background, the episode exposes valuable strategies to enhance transaction success rates.

Rosco shares his journey from the high echelons of corporate finance to his role in supporting small and medium-sized business owners. This transition equipped him with practical insights into the diligence, financial modeling, and strategic planning required for business transactions.

Rosco and Jared then explore the importance of conducting a quality of earnings report in determining the true value of a business. They outline how even seemingly small improvements in a business's operation or financial status can significantly affect its sale price and buyer interest.

Key Takeaways:

Conducting thorough due diligence can prevent costly errors in business transactions.
A quality of earnings report is crucial for accurately assessing a business’s financial health.
Sellers should proactively prepare their businesses to attract quality buyers and higher valuations.
Understanding your personal capabilities in business operations can guide a more successful acquisition.
Building a reliable team of advisors is essential for navigating the complexities of business transactions.

For more information about Rosco, visit: https://polaxis.co/

This episode of the "Before You Buy or Sell a Business" podcast delivers a wealth of information for prospective buyers and sellers aiming to navigate the market efficiently and effectively. For more in-depth insights and practical advice, don't miss listening to the full episode, and subscribe to our series for more valuable content.

🔴YouTube

🟣 Apple Podcasts

🟢 Spotify

______________________________________________________________________

If you have questions for Jared, visit https://jaredwjohnson.com/

DISCLAIMER: The views and opinions expressed in this program are my own and/or those of my guests. They do not necessarily reflect the views or positions of my employer.

Aligning with Strategic Partners for Business Success | Ep. 44

Tue, 28 Jan 2025 04:30:00 -0500

"The more parties you get investing in your deal, the less of a chance you're going to buy a bad deal."

In Part 2 of this two-part episode of the Before You Buy or Sell a Business podcast, I talk with SBA loan borrowers about the business they end up buying: an HVAC business.

From initial deal discovery to negotiating terms and finalizing the purchase, this episode provides a thorough examination of each step potential buyers should consider.

This detailed discussion underscores the importance of due diligence and strategic partnership in acquiring a business. Key topics include the evaluation of working capital, understanding the seller's perspective, and leveraging relationships with financial backers like the Search Investment Group.

Pete candidly shares lessons learned, emphasizing the immense value of patience and discipline when analyzing potential acquisitions. Garrett adds depth with his focus on maintaining a conservative approach to financial evaluations, ensuring any deal remains sustainable in long-term.

Key Takeaways:

✅ Involve multiple stakeholders in your deal-making process to avoid poor investments.

✅ Due diligence is crucial in understanding the nuances of potential acquisition, including financial and operational dynamics.

✅ Building relationships with experienced mentors or strategic investors can provide crucial guidance and support.

✅ Negotiating working capital is essential to ensure a smooth transition and stability post-acquisition.

✅ Approach acquisitions with a mindset of adaptability and readiness to tackle operational challenges.

CHAPTERS

0:00 | Introduction

4:52 | Balancing Fairness and Satisfaction in Real Estate Transactions

12:54 | Navigating Working Capital and Cash Flow in Small Businesses

16:17 | The Importance of Due Diligence in Business Acquisitions

17:30 | Deal Structuring Challenges

20:27 | The Importance of Fair Bidding and Building Lender Relationships

23:14 | Building Trust and Navigating Investment Challenges in Business Ventures

27:05 | The Challenges and Rewards of Acquiring and Operating a Business

31:21 | The Adventure of Owning an HVAC Business

Navigating Entrepreneurship Through Acquisition | Ep. 43 Part 1

Tue, 14 Jan 2025 04:30:00 -0500

In this two-part episode of the @beforeyoubuyorsellabusiness I sit down with my borrowers, Peter Hucal and Garrett Johnson, two dynamic entrepreneurs from Wharton who embarked on a journey of Entrepreneurship Through Acquisition (ETA).

Their diverse backgrounds across engineering, project management, social impact, and consultancy have uniquely positioned them for success in the acquisition space. Tune in as they share authentic insights into their professional path and elaborate on the intricacies of navigating such an acquisition in today's market.

Embarking upon a 13-month journey, Peter and Garrett discuss their extensive search for the right business, sharing the trials, errors, and eventual triumphs they encountered along the way. By focusing on core business fundamentals rather than specific industries, they outline how their open mindset towards geographical and sector-based opportunities guided their success. Alongside key strategies for maintaining broker relationships and insights on necessary interpersonal skills, the duo candidly dissects the realities of acquisition, dispelling myths of ease perpetuated by various online narratives.

Stay tuned for part two of this episode for what business Peter and Garrett settled on and the strategic partners they sought out.

Key Takeaways:

Adopting a flexible strategy in ETA, being open to any industry or geography, can enhance the success rate.
Building strong relationships with brokers is crucial and can lead to greater success in finding suitable deals.
The process of finding and acquiring a business is complex and often requires resilience in face of numerous setbacks.

🔴YouTube

🟣 Apple Podcasts

🟢 Spotify

______________________________________________________________________

If you have questions for Jared, visit https://jaredwjohnson.com/

DISCLAIMER: The views and opinions expressed in this program are my own and/or those of my guests. They do not necessarily reflect the views or positions of my employer.

Finding and Securing Off-Market Business Deals Simplified w/ Conner Young

Tue, 01 Oct 2024 06:00:00 -0500

In this episode of "Before You Buy or Sell a Business," host Jared Johnson welcomes Conner Young, co-founder of Kairo Data. The conversation centers around Kairo Data's innovative platform, designed to streamline the process of finding and acquiring small to medium-sized businesses. Conner shares his team's journey from traditional wealth management to solving complex acquisition challenges through proprietary databases and off-market deals.

Conner provides an in-depth tour of Kairo Data's features, explaining how they aggregate business listings from various sources into a single, convenient platform. Users can refine their searches to match their specific acquisition criteria, create custom alerts, and even manage campaigns for off-market leads.

For those looking to outsource the initial stages of their search, Kairo Data offers comprehensive campaign services. The discussion also delves into key considerations for both buyers and sellers, emphasizing transparency and strategic engagement.

Key Takeaways:

Efficient Acquisition Tools: Kairo Data aggregates listings from multiple sources, streamlining the search process for potential buyers.
Custom Alerts and Filters: Users can set up detailed alerts and customized buy boxes to focus their searches more effectively.
Campaign Services: Kairo Data offers an end-to-end solution for buyers, handling outreach and initial vetting of potential sellers.
Transparent Engagement: Both buyers and sellers are encouraged to be transparent and organized during the negotiation process to ensure a smoother transaction.
Affordable Access: The platform provides valuable tools at a competitive price, making it accessible to a broad range of buyers.

Resources:

Kairo Data Website
Email: team@kairodata.com

Enjoy this insightful episode to explore how Kairo Data is revolutionizing the acquisition!

______________________________________________________________________

If you have questions for Jared, visit JaredWJohnson.com

DISCLAIMER: The views and opinions expressed in this program are my own and/or those of my guests. They do not necessarily reflect the views or positions of my employer.

From Tech Rep to Trades: Buying a Stairlift Business | Ep. 41

Tue, 17 Sep 2024 06:00:00 -0500

Before you buy or sell a business, perhaps you've read "Buy Then Build."

Today's podcast guest, Matt Crowder, talks about how that book set him further down the entrepreneurial path.

Matt, a borrower I worked with, recently acquired Western Stairlifts, a business specializing in home mobility equipment. We explore his transition from a traditional career in the tech industry to full-time entrepreneurship. The guest shares the pivotal moments, challenges, and learnings from both their vending machine business and the acquisition of Western Stairlifts.

From selling snowflakes to technology, from managing a vending machine route to buying a business, Matt provides valuable insight for fellow entrepreneurs.

______________________________________________________________________

If you have questions for Jared, visit JaredWJohnson.com

DISCLAIMER: The views and opinions expressed in this program are my own and/or those of my guests. They do not necessarily reflect the views or positions of my employer.

______________________________________________________________________

CHAPTERS

0:00 | Introduction

9:32 | Helping Utah's Elderly and Disabled with Home Mobility Solutions

12:43 | Acquiring Western Stairlifts and Overcoming Initial Business Challenges

25:51 | Navigating Google Business Profile Challenges and Address Discrepancies

29:58 | Challenges and Triumphs of Running a Small Business

Customer-First Growth Strategies: Secrets from a Two-Time Business Buyer | Ep. 40

Tue, 03 Sep 2024 06:00:00 -0500

Before You Buy or Sell a Business, be prepared.

That's what today's guest would tell anyone who is looking to buy a business like he did.

I am happy that I got to sit down with George Ayomide, a two-time borrower of mine. George is an ambitious entrepreneur who has made significant strides in the business world. From his early business experience in Nigeria to his successful ventures in the United States, George shares his insights on acquiring and transforming businesses, maintaining effective customer relations, and ensuring seamless transitions.

In this podcast episode, George discusses his first business acquisition, a window tinting and graphic design company in Dallas, detailing the steps he took to evaluate and smoothly transition the company. He elaborates on the importance of preparation and listening to customers, which led to innovative improvements in the business.

A year later, George then moves on to his second acquisition, a well-established company in the automotive industry. He emphasizes the value of having a dedicated team and the significance of setting clear expectations during the business transition.

This episode is filled with practical advice and inspiration for aspiring entrepreneurs and seasoned business owners alike.

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If you have questions for Jared, visit JaredWJohnson.com

DISCLAIMER: The views and opinions expressed in this program are my own and/or those of my guests. They do not necessarily reflect the views or positions of my employer.

Former Educator Turned Entrepreneur Teaches What to Really Expect When Buying a Laundromat | Ep. 39

Tue, 20 Aug 2024 04:00:00 -0500

Before you buy a business, ask the seller this question, "What are some problems you've dealt with in the last month?"

Keira Hamilton asked that question to the seller before she bought the laundromat that she now owns.

Join me in this captivating conversation with Keira Hamilton, a former educator turned entrepreneur.

We'll delve into the nuances of due diligence, the realities of owning a laundromat, and the transition from real estate to business acquisition. Discover insights on validating business operations, managing employee relationships, and the significance of understanding seller motivations.

Keira shares her personal journey and the learning curve involved in running a successful business. Perfect for aspiring entrepreneurs and those curious about business ownership, this episode is packed with invaluable advice and practical tips!

You can follow Keira on:

LinkedIn | https://www.linkedin.com/in/keirahamilton/

YouTube | https://www.youtube.com/@Keira_Hamilton

______________________________________________________________________

If you have questions for Jared, visit JaredWJohnson.com

DISCLAIMER: The views and opinions expressed in this program are my own and/or those of my guests. They do not necessarily reflect the views or positions of my employer.

How This Entrepreneur Sold His Home-based Business for Millions | Ep. 38

Tue, 06 Aug 2024 04:00:00 -0500

Selling a business is no small feat, and it requires astute planning, risk-taking, and timely decisions. Thomas Perkins, a seasoned entrepreneur, recently shared his wisdom on the "Before You Buy or Sell a Business" podcast.

His journey from being a self-employed barber to a successful business owner of a company grossing $3.5 million annually carries valuable lessons for anyone considering embarking on this path.

In this podcast episode, I talk with Thomas about the highs and lows he faced, from managing finances and credit lines to navigating the complexities of selling a business.

Discover invaluable advice for both buyers and sellers, including the significance of long-term financial planning and the importance of ensuring a smooth transition for business continuity. If you're exploring the world of business acquisitions, Perkins' story offers critical insights and practical tips.

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If you have questions for Jared, visit JaredWJohnson.com

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CHAPTERS

0:00 | Introduction

1:49 | From Barber to Business Owner: A Journey of Self-Discovery

8:36 | The Freedom and Challenges of Self-Employment in Sales

9:30 | Overcoming Financial Challenges to Build a Successful Business

13:11 | Becoming the Go-To Vendor for Property Management Needs

26:06 | Ensuring Smooth Business Transition Through Early Collaboration and Financial Support

35:37 | Self-Motivation and Finding Purpose Through Projects

38:28 | The Importance of Ethical Business Handoffs

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DISCLAIMER: The views and opinions expressed in this program are my own and/or those of my guests. They do not necessarily reflect the views or positions of my employer.

The Ultimate Playbook for Scaling HVAC and Plumbing Businesses | Ep. 37

Tue, 23 Jul 2024 04:00:00 -0500

Buyers and sellers can be friends, right? Well, what about business partners that work together to scale HVAC businesses?

In this episode of the Before You Buy or Sell a Business podcast, I sit down with Marc Chard and Spencer Satorie of Apex Services dive into their journey of expanding HVAC companies, sharing insights on acquisitions, systems implementation, and management across multiple locations.

From their initial partnership to acquiring multiple companies, they reveal strategies for overcoming challenges, the importance of a solid system, and their growth plans, including adding plumbing services.

Discover how they effectively manage diverse operations and hear their advice for aspiring business owners.

If you're interested in the intricacies of business acquisitions and roll-ups, you won't want to miss this.

📢If you are interested in sponsoring the podcast, reach out to me at Jared@JaredWJohnson.com

CHAPTERS

0:00 | Introduction

5:05 | Business Acquisition and Transition Period Challenges

7:54 | Navigating Business Partnerships and Growth Strategies

11:47 | Challenges and Successes in Acquiring Underperforming Businesses

25:06 | Challenges and Strategies in Managing Multiple Acquisitions

31:19 | Empowering Managers with Trust and Control in Franchise Operations

38:45 | The Challenges and Rewards of Scaling a Business

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If you have questions for Jared, visit JaredWJohnson.com

DISCLAIMER: The views and opinions expressed in this program are my own and/or those of my guests. They do not necessarily reflect the views or positions of my employer.

Searching is Becoming a Completive Sport with Josh Levine | Ep. 36

Tue, 09 Jul 2024 04:00:00 -0500

Before you buy or sell a business, hear Josh Levine on the nuances and evolving trends in the business acquisition landscape.

In today’s podcast episode, I am joined again (see episode 5) by Josh Levine of Private Market Labs where we talk about:

Importance of Focus: Presenting a clear and specific investment thesis helps you stand out to brokers and streamlines the decision-making process.
Role of Brokers: Using brokers can expedite the acquisition process and increase the likelihood of closure, although the quality of brokers can vary.
Market Dynamics: The increase in searcher activity and higher interest rates are significantly shaping the current business acquisition environment.
Economic Impact: Covid-19 and interest rate changes have introduced new challenges but also opened up opportunities in the market.
Mentorship and Support: Engaging with mentors and support networks is crucial for navigating the complexities of buying and running a business.

Listen in for valuable perspectives on navigating the acquisition process, industry trends, and the future outlook for buyers and sellers.

Keep up with Josh on X (Twitter)

More about Private Market Labs

Check out the Private Market Labs Podcast

Diving into the Unknown: How This Couple Bought Their First Business | Ep. 35

Mon, 24 Jun 2024 06:00:00 -0500

In this episode of the Before You Buy or Sell a Business podcast, host Jared Johnson sits down with long-time friends and now business owners, Brandt and Danielle Badouin.

The couple shares their journey from their respective corporate careers to purchasing a nail salon, highlighting the challenges and triumphs they experienced along the way. Jared and the Badouins delve into the nuances of transitioning from being employees to business owners, offering invaluable insights and advice for anyone considering a similar path.

The episode kicks off with Brandt and Danielle's backgrounds, outlining their extensive experience in their respective fields—Brandt's in telecommunications and fitness, and Danielle's in health insurance and project management.

Their transition into business ownership wasn't planned, as Jared introduced the opportunity to them unexpectedly. This serendipitous event set off a chain of decisions and actions that culminated in them owning a profitable nail salon. Throughout the episode, Brandt and Danielle discuss the importance of researching, assessing risks, and maintaining a balance between their existing careers and new responsibilities as business owners.

Key Takeaways:

Preparation and Research: The importance of thoroughly researching and understanding the business you're planning to buy cannot be overstated.
People Management: Retaining and understanding the existing workforce is crucial for a smooth transition.
Working Capital: Having sufficient working capital helps in managing unexpected expenses and stabilizing the business during the initial months.
Mentorship and Guidance: The value of having mentors and trustworthy advisors to guide you through the process of buying and running a business.
Balancing Act: How to maintain a balance between your existing job and new business responsibilities for initial stability and long-term success.

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If you have questions for Jared, visit JaredWJohnson.com

DISCLAIMER: The views and opinions expressed in this program are my own and/or those of my guests. They do not necessarily reflect the views or positions of my employer.

Surviving the First 90 Days: Mistakes & Lessons from Buying a Business | Ep. 34

Tue, 11 Jun 2024 04:00:00 -0500

Welcome back to another episode of the "Before You Buy or Sell a Business" podcast, host Jared Johnson engages in an insightful conversation with Jeanise Hatcher, a dynamic entrepreneur who transitioned from a corporate career to owning a Pilates studio in Austin, Texas.

Initially stumbling upon Pilates during her recovery from a dance injury, Jeanise found a new passion that she decided to transform into a business venture. She candidly shares her journey of acquiring the studio, the challenges she faced, and the lessons she learned along the way.

Jeanise details the rigorous process of buying a business, from exploring Best Buy's listings to working closely with a lawyer and broker to navigate due diligence effectively. She emphasizes the importance of understanding the business operations, engaging with the community, and preparing financially for the acquisition.

Her honesty about power struggles with the previous owner and the unexpected challenges she encountered provides a realistic perspective on purchasing and running a business. This episode is a goldmine for aspiring entrepreneurs, especially those looking to invest in the fitness industry.

Key Takeaways:

Preparation is Key: Jeanise stresses the importance of thorough due diligence and preparing financially before taking over a business.
Understand Seasonality: Recognizing and planning for the seasonal nature of fitness businesses can help manage cash flow and ensure sustainability.
Navigating Power Dynamics: Handling the power transition smoothly, especially when the previous owner stays involved, is crucial for maintaining business operations.
Blending Passions: Jeanise talks about integrating her interests in holistic wellness and motivational speaking into her Pilates studio to create a unique business model.
Professional Guidance: The indispensable role of having a knowledgeable lawyer and a supportive broker during the acquisition process.

Resources

Zenergy Pilates - Jeanise's Pilates Studio
Boutique Fitness Solutions - Mentioned by Jeanise for mentorship and consulting

For more on Jeanise's journey and valuable advice on buying and managing a business, tune in to the full episode.

Stay tuned for more enlightening content from "Before You Buy or Sell a Business" podcast!

In this episode:

0:00 | Blending Spiritual Readings with Pilates and Motivational Speaking

3:08 | The Overlooked Physical Toll of Dance Compared to Other Sports

7:02 | Supply Chain Management at Major Tech Companies

8:07 | From Dance Studios to Pilates: A Journey of Diversification

10:35 | The Importance of Due Diligence When Buying a Business

15:22 | Navigating Business Purchase Agreements and Lease Negotiations

21:38 | Challenges of Taking Over a Pilates Studio

26:48 | The Reality of Buying and Running a Business

27:42 | Transitioning Leadership and Overcoming Challenges in Business Ownership

30:21 | Navigating Power Struggles During Business Transitions

33:22 | Integrating Sound Healing and Spirituality into Pilates

35:18 | Jeanise Hatcher's Journey to Business Success and Future Aspirations

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If you have questions for Jared, visit JaredWJohnson.com

DISCLAIMER: The views and opinions expressed in this program are my own and/or those of my guests. They do not necessarily reflect the views or positions of my employer.

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The Power of Peer Groups: How Rand Larsen is Bringing the SMB Community Together | Ep. 33

Tue, 28 May 2024 04:00:00 -0500

Welcome back to another episode of the Before You Buy or Sell a Business podcast.

Recently, I sat down with Rand Larsen and he shared his journey from startup adventures to carving out a niche in the entrepreneurial through acquisition (ETA) space. The discussion unfolds with an exploratory look into Rand's foray into starting his own company and the lessons learned from its quick demise due to external factors like the pandemic. His pivot to buying businesses and his current focus on crafting peer groups provide a rich tapestry of insights for both budding and seasoned entrepreneurs.

Rand's candid recount of his experiences illuminates the challenges and rewards of embarking on entrepreneurial ventures. With an engaging narrative, he dives into the intricacies of building a business from the ground up, transitioning to buying established companies, and creating a supportive community through events and peer groups. The conversation touches on topics such as the feasibility of buying small businesses, the power of mentorship, and the potential of innovative marketing strategies in the digital age.

Takeaways:

Adaptability is Key: Rand's career path emphasizes the need for adaptability, showcasing a readiness to pivot and leverage new opportunities.
The Power of Community: Building peer groups and organizing events foster camaraderie and knowledge sharing among entrepreneurs.
Buying Credibility: Acquiring a smaller business can serve as a stepping stone for building credibility in the market and securing more substantial deals.
Understand Employee Dynamics: Post-acquisition, understanding and navigating the complexities of employee management is crucial for business success.
Innovative Marketing for Growth: Rand's unique approach to promoting his peer groups through road trips and potential RV branding exemplifies creative marketing techniques.

IN THIS EPISODE

0:00 | Introduction
6:15 | Building Community Through Local Entrepreneurial Events
13:14 | Rand Larsen's RV Adventure for Entrepreneurial Networking
17:11 | Pitching to Marcus Lemonis on Twitter
24:23 | Balancing Authenticity and Positivity in Business Storytelling
27:12 | Evolving Strategies in Small Business Acquisitions
34:37 | Delegating Leadership to Transform Business Operations
37:33 | Employee Challenges in Post-Acquisition Business Management
44:48 | Mentorship, Motivation, and Meaningful Impact in Entrepreneurship
48:08 | Rand Larsen Discusses Online Presence and Future Collaborations

Resources:

Follow Rand Larsen on his journey and discover more about peer groups for business owners:

Twitter: @RandLarsen (As mentioned, Rand's life and knowledge about business are documented on Twitter)

Listen to Rand's story and learn from his experiences by tuning into the full episode. Stay connected for more episodes that shed light on the real-world aspects of buying, selling, and managing businesses. Don't miss out on valuable advice that could help catapult your ventures to new heights.

From Mechanical Engineer to Entrepreneur: Derek Croft's Journey to Buying a Unique Business | Ep. 32

Tue, 14 May 2024 04:00:00 -0500

Welcome back to another episode of Before You Buy or Sell a Business.

Today, I am happy to introduce a past borrower, Derek Croft, whose recent venture into business ownership presents a unique and fascinating case study for aspiring entrepreneurs.

Derek opens up about his transformative journey, beginning with his engineering background, MBA pursuit, and foray into consulting at a top-tier firm. Realizing that his true calling lay in growing and running a business, he embarked on a meticulous search for the ideal company to acquire, laying out the nuances of his strategic shift from small to larger ventures and detailing his partnership with Search Investment Group (SIG) that led him to a rather interesting business.

As Derek navigates the initial challenges and triumphs of business ownership, listeners gain valuable insights into the critical role of due diligence, establishing operating agreements, and formulating high-impact strategic priorities.

Immerse yourself in Derek Croft's fascinating story of business acquisition and discover essential strategies for entrepreneurial success by listening to the full episode. Stay tuned for more inspiring and educational content to guide your own business journey!

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If you have questions for Jared, visit JaredWJohnson.com

DISCLAIMER: The views and opinions expressed in this program are my own and/or those of my guests. They do not necessarily reflect the views or positions of my employer.

Finding and Financing the Right Business Acquisition | Ep. 31

Tue, 30 Apr 2024 05:00:00 -0500

Welcome back to another episode of Before You Buy or Sell a Business. Today, I talk with Erik Fike as he shares his experience of buying a business while still working in his current role.

He discusses how he found the right business, the challenges he faced during the transaction, and the lessons he learned along the way. Erik provides valuable insights into the due diligence process, the importance of finding the right lender, and the need for mentorship and guidance in the acquisition process. He also highlights the significance of having experience in running a company and the motivation behind his decision to pursue business ownership.

Key Takeaways:

Finding the right business: Erik emphasizes the importance of defining specific criteria for the type of business you want to buy, such as remote operation, B2B services, and revenue margins.
Negotiating the LOI: Erik shares his experience of going through multiple revisions of the LOI with the seller, ensuring that all key aspects of the deal were addressed and agreed upon.
The challenges of bank financing: Erik discusses the difficulties he faced in securing bank financing and the importance of finding a lender who understands the business and can provide the necessary support.
The value of working capital: Erik highlights the importance of having sufficient working capital to navigate unexpected challenges and maintain stability in the business.
Lessons learned: Erik advises considering forgivable seller notes to mitigate risks and protect against potential contract pauses or cancellations.

Notable Quotes:

"You really should have a mentor. I definitely have, and I also recommend peer groups for that same kind of thing. It's been great too." - Erik Fike

"The best-case scenario with a bunch of recurring revenue is awesome. This is not one of those businesses. This is a big project-based business." - Erik Fike

Erik Fike's LinkedIn

IN THIS EPISODE

00:00:00:00 | Introduction, Erik Fike's Background

00:04:02:10 | Emerging ETA Space & Social Media

00:17:37:01 | LOI, 9 Revisions, and Addressing Key Issues Upfront

00:20:11:13 | Experienced Lender vs Unexperienced Lender

00:27:06:20 | Unexpected budgetary issue in California affecting contracts

00:31:03:08 | Seller Note Forgiveness and Customer concentration

00:36:04:12 | Stability and Experience with Project-based Revenue

00:38:05:04 | Erik Fike Answers: Do You Have a Mentor?

00:39:30:02 | Erik Fike Answers: What Motivates You?

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If you have questions for Jared, visit JaredWJohnson.com

DISCLAIMER: The views and opinions expressed in this program are my own and/or those of my guests. They do not necessarily reflect the views or positions of my employer.

Navigating Legal Considerations in Small Business M&A Deals | Ep. 30

Tue, 16 Apr 2024 06:00:00 -0500

In this episode, host Jared Johnson interviews Eric Pacifici, an attorney specializing in small and medium-sized business (SMB) mergers and acquisitions (M&A).

Eric shares valuable insights and advice for buyers and sellers in the acquisition process. He emphasizes the importance of having legal representation and discusses key contractual terms such as indemnity and non-compete clauses. Eric also addresses the cost of legal services and the benefits of a fixed fee model.

He highlights common challenges in SMB M&A deals, including issues with quality of earnings and seller disputes. Eric provides practical strategies for mitigating risks, such as addressing customer concentration and involving investors in the deal. Throughout the conversation, Eric's passion for SMB M&A shines through, as he offers valuable guidance for navigating the complexities of these transactions.

Key Takeaways:

Treat your bank as an ally, not an adversary. Your interests are aligned, and the bank can help identify potential issues such as customer concentration.
The three most important contractual terms in an SMB M&A deal are indemnity, non-compete, and a strong letter of intent.
Quality of earnings is a crucial aspect of due diligence. Hiring a quality of earnings provider can help uncover potential issues and protect your investment.
Customer concentration is a common challenge in SMB deals. Mitigate this risk by including contingent compensation in the purchase agreement or promissory note.
When bringing in investors, consider their control rights, objectives for the business, and potential impact on governance.

Notable Quotes:

"You're risking your financial life. You're taking multimillion-dollar personally guaranteed debt. You need to have a checklist of things that you need in your deal."
"Don't be a jerk, but you don't need to walk on eggshells. You're risking your financial life, and you can always pull the plug and go do another deal."
"Find smart money people who can serve as strategic advisors. It's better to have strategic alignment than just generic dollars."

Resources:

SMB Law Group
Eric Pacifici on Twitter
Eric Pacifici on LinkedIn

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If you have questions for Jared, visit JaredWJohnson.com

DISCLAIMER: The views and opinions expressed in this program are my own and/or those of my guests. They do not necessarily reflect the views or positions of my employer.

From Tech to Trees: Tommy Speigner's into the Forestry Industry | Ep. 29

Mon, 01 Apr 2024 05:00:00 -0500

In this episode of Before You Buy or Sell a Business, host Jared Johnson welcomes back Tommy Speigner to share his journey and lessons learned from acquiring a business in an industry he had never explored before. Tommy discusses the process, challenges, and triumphs he experienced in finding and buying a company. The conversation dives into the nuances of engaging with investors and the strategic approaches for buying and growing a business successfully.

From the decision-making strategies to the realization of purchasing a forestry and vegetation management service company, this episode unpacks the details of identifying viable business opportunities and the role of investor relationships. Tommy's experience demonstrates the importance of adaptability and keen business acumen.

Key Takeaways

Tommy Speigner explains the differences between his initial solo venture and his recent team-backed approach.
The episode delves into the intricacies of searching for and acquiring a business outside one's typical industry.
Key discussions on leveraging relationships, networking, and utilizing different types of funds for business acquisition provide valuable insights.
Tommy shares his firsthand experience with the SBA loan process, exposing both challenges and triumphs.

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If you have questions for Jared, visit JaredWJohnson.com

DISCLAIMER: The views and opinions expressed in this program are my own and/or those of my guests. They do not necessarily reflect the views or positions of my employer.

Innovation and Adaptation: Thriving in the Entrepreneurial World

Tue, 19 Mar 2024 06:00:00 -0500

In this episode of, host Jared Johnson interviews Daniel Cox, a serial entrepreneur who recently purchased a restaurant.

Daniel shares his background and journey from construction to law enforcement to the mental and behavioral health industry. He discusses how he found the listing for the restaurant and the due diligence process he went through before making the purchase. Daniel also provides insights into the challenges and opportunities he faced during the transition and the importance of having working capital.

He emphasizes the value of mentors and the need for careful planning and preparation when applying for an SBA loan. The episode concludes with Daniel discussing his plans for the future, including growing the restaurant and continuing his coaching work.

Key Takeaways:

Daniel Cox emphasizes the importance of having working capital when buying a business, as unexpected expenses and regulatory requirements can arise during the transition phase.
Conducting thorough due diligence, including spending time at the physical location and talking to staff members, is crucial to understanding the business and identifying any potential red flags.
The SBA loan process requires careful planning, understanding the eligibility criteria, and preparing comprehensive financial statements. Having a mentor and organizing personal finances can also facilitate the loan application process.
Daniel highlights the significance of an operating system and technology in managing and growing a business. Implementing efficient systems and staying adaptable are key to success.
Holistic success, including personal fulfillment, the well-being of the team, positive community impact, and innovation, motivates Daniel in his entrepreneurial journey.

Daniel Cox's TED Talk: Elevating Expertise - How Skill Synergy Shapes Success

Listen to the full episode to gain valuable insights from Daniel Cox's entrepreneurial journey and learn about the challenges and opportunities of buying and growing a business. Stay tuned for more enlightening content from the Before You Buy or Sell the Business podcast.

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If you have questions for Jared, visit JaredWJohnson.com

DISCLAIMER: The views and opinions expressed in this program are my own and/or those of my guests. They do not necessarily reflect the views or positions of my employer.

From Searcher to Seller: Lessons Learned in the Acquisition Process | Ep 27 | Before You Buy or Sell

Tue, 05 Mar 2024 06:00:00 -0500

In this episode of Before You Buy or Sell a Business, host Jared Johnson interviews August Felker, an entrepreneur with experience in buying and selling businesses, particularly insurance brokerages.

August shares his journey from starting a search fund to acquiring his first business, the challenges he faced during the negotiation process, and the emotions he experienced as a seller.

He also discusses his transition into supporting others in the acquisition process and provides insights into the importance of insurance diligence when buying a business.

Key Takeaways:

🔹Starting a search fund allows aspiring entrepreneurs to buy an existing business and become an entrepreneur without starting from scratch.

🔹The negotiation process when buying a business can be emotional, and it's important to be prepared for the different waves of emotions that come with it.

🔹Building a relationship with the seller is crucial, both during the negotiation process and after the sale, to ensure a smooth transition and ongoing success.

🔹Conducting insurance diligence before buying a business is essential to identify any coverage problems or surprises that may arise after the acquisition.

🔹Cold calling and building relationships with potential sellers can be an effective way to find proprietary deals and stand out from competitors.

In this episode:

00:00:00 | Introduction

00:01:10 | August Felker discusses his background and experience in buying businesses

00:03:04 | What is a Search Fund?

00:06:05 | August Felker on finding and acquiring his first business

00:14:07 | Deciding to sell

00:16:38 | Advice for sellers

00:20:11 | Transition from a traditional search fund model to a self-funded model

00:25:10 | Consider the seller's needs to stand out as a buyer

00:31:08 | Insurance is often at the bottom of the client's list, but they still have to deal with it

00:37:04 | August Felker on what motivates him

00:39:09:02 Closing remarks

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If you have questions for Jared, visit JaredWJohnson.com

DISCLAIMER: The views and opinions expressed in this program are my own and/or those of my guests. They do not necessarily reflect the views or positions of my employer.

The Truth About Business Valuation: Debunking Common Myths and Misconceptions | Ep. 26

Tue, 20 Feb 2024 07:00:00 -0500

In this episode, Jared Johnson interviews Ryan Hutchins, the founder of Peak Business Valuations. They discuss Ryan's background and journey into the world of business valuation, as well as the services provided by his firm. Ryan explains the different approaches used to value a business, including the asset approach, market approach, and income approach.

He also shares insights on the importance of accurate financials, the role of inventory and equipment in valuation, and the challenges of valuing small businesses.

Key Takeaways:

Valuing a business involves assessing its cash flow, perceived risk, and comparable transactions in the market.
The asset approach is typically used for businesses with significant tangible assets, while the market approach looks at comparable transactions in the industry.
The income approach focuses on the cash flow generated by the business and uses a cap rate to determine its value.
Accurate financials are crucial in valuing a business, and hiring a bookkeeper can help ensure that the financials are in order.
Personal expenses and inventory should be carefully considered in the valuation process.

Notable Quotes:

"The value of any business is what a willing buyer and a willing seller hypothetically transact at, known as fair market value." - Ryan Hutchins
"Your financials will impact not only the value of your business but also how long the process takes to sell your business." - Ryan Hutchins

Resources:

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If you have questions for Jared, visit JaredWJohnson.com

DISCLAIMER: The views and opinions expressed in this program are my own and/or those of my guests. They do not necessarily reflect the views or positions of my employer.

Jesse Carlson’s Journey to Buying a “Recession-Proof Business” | Ep. 25

Tue, 06 Feb 2024 00:00:00 -0500

In this episode, host Jared Johnson interviews Jesse Carlson, the owner of a FedEx business. Jesse shares his journey from working in the entertainment industry to becoming a business owner.

He discusses the challenges he faced during the acquisition process and the importance of thorough due diligence.

Jesse also highlights the key factors that attracted him to the FedEx business model and the lessons he has learned since taking over the business. This episode provides valuable insights for anyone considering buying or selling a business.

Key Takeaways:

Jesse's transition from the entertainment industry to the lending industry and eventually to owning a FedEx business showcases the importance of adaptability and the willingness to explore new opportunities.
Thorough research and due diligence are crucial when buying a business. Jesse's extensive research and guidance from experienced individuals helped him make an informed decision.
The FedEx business model offers stability and recession-proof potential, making it an attractive option for aspiring business owners.
Building strong relationships with drivers and taking care of their needs is essential for the success of a FedEx business.
Owning a business requires continuous learning and adaptability. Jesse emphasizes the importance of staying informed and being open to new challenges.

Quotes:

"I wanted to get something that was more stable, reliable, and recession-proof."

Resources:

Maximizing Business Value: Unpacking the Fractional CFO | Ep. 24

Tue, 23 Jan 2024 06:00:00 -0500

In this episode of Before You Buy or Sell a Business, host Jared Johnson interviews John Hannum, the founder of PPS Solutions, about the importance of having a fractional CFO for small and growing businesses.

John shares his insights on the biggest mistakes business owners make, the key things to focus on when selling a business, and the trends he has observed in the small to medium business market. He also provides valuable advice for buyers looking to acquire a business and discusses the role of a fractional CFO in improving a company's financial health and maximizing its value.

For more information or to contact John, visit: https://www.ppsfinance.com/

In this episode:

00:00:00 | Introduction

00:03:41 |John Hannum on starting PPS Solutions, fractional CFO services

00:06:04 | Fractional CFOs offer operational expertise and act as financial partners to entrepreneurs.

00:08:55 | Biggest mistake in finance: not using clean accounting information

00:09:11 | Importance of cleaning up accounting and looking at accrual accounting

00:11:35 | Importance of budgeting and cash flow forecasting

00:14:20 | Importance of planning for business exit and maximizing value

00:17:35 | Setting goals in the first year of a three-year period

00:20:26 | Creating a good story for the business sale

00:22:00 | Dealing with cash sales and creative ad backs

00:23:46 | Educating business owners on the implications of tax fraud

00:27:09 | Advice for buyers looking to buy a business

00:31:45 | Motivation to help others achieve their vision

00:33:21 | Closing remarks, contact information for John Hannum

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If you have questions for Jared, visit JaredWJohnson.com

DISCLAIMER: The views and opinions expressed in this program are my own and/or those of my guests. They do not necessarily reflect the views or positions of my employer.

The Art of Transition: How Eric and Joy Rose Successfully Took Over a Restaurant | Ep. 23

Tue, 09 Jan 2024 21:30:00 -0500

In this episode of Before You Buy or Sell a Business, Eric and Joy Rose share their journey of buying a sushi restaurant in Salt Lake City. They discuss their backgrounds, including their experience working for the federal government and living overseas. They explain how they decided to buy a restaurant and why they chose a sushi restaurant. They also talk about the negotiation process and the challenges they faced in securing financing. Despite the obstacles, they were able to successfully close the deal and are now running the restaurant.

About The Guest(s):

Eric and Joy Rose are the owners of a sushi restaurant in Salt Lake City. Eric has a background in international relations and Russian language, and has worked for the federal government for nearly 20 years. Joy has a background in humanities and English secondary education, and is a licensed acupuncturist.

Key Takeaways:

Eric and Joy had a desire to own their own business and found a sushi restaurant that aligned with their interests.
They had to navigate the negotiation process and secure financing to purchase the restaurant.
The seller was willing to work with them to restructure the deal and make it more favorable for both parties.
Building relationships and trust with the seller and the staff was crucial in the transition process.

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If you have questions for Jared, visit JaredWJohnson.com

DISCLAIMER: The views and opinions expressed in this program are my own and/or those of my guests. They do not necessarily reflect the views or positions of my employer.

Oil and gas industry professional buys meat market in Magnolia, Texas | Ep. 22

Tue, 12 Dec 2023 04:00:00 -0500

In this episode of Before You Buy or Sell a Business, Scott Fournier shares his experience of buying a meat market business in Magnolia, Texas. He talks about his background, the process of finding and evaluating the business, and the financing and closing process. He also discusses the transition period and his plans for the future, including expanding the business and implementing new systems.

Business | Ainsworth Meat Market

Key Takeaways:

➡️ Scott's motivation for buying a business was to provide additional income for his family and have a project for his wife.

➡️ He found the business online and was attracted to it because of his wife's interest in healthy eating and the potential for growth.

➡️ The cash flow and potential for expansion were the main factors that influenced his decision to make an offer on the business.

➡️ Scott advises spending time on due diligence and ensuring that the financials are accurate before making an offer.

➡️ The transition period involved training with the previous owners and implementing new systems, which sometimes met with resistance from employees.

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If you have questions for Jared, visit JaredWJohnson.com

DISCLAIMER: The views and opinions expressed in this program are my own and/or those of my guests. They do not necessarily reflect the views or positions of my employer.

Acquiring a Landscape Business: Challenges and Successes

Tue, 12 Sep 2023 06:00:00 -0500

Mark Basile, a CPA with a background in mergers and acquisitions, shares his experience of buying a landscape business. He discusses his background, the process of finding and acquiring the business, and the challenges he faced during the transition. Mark emphasizes the importance of due diligence and having a clear exit plan when buying a business.

Key Takeaways:

Mark's background in mergers and acquisitions gave him the necessary skills and experience to buy a business.
He looked for a business with good bones and room for growth, focusing on commercial landscaping.
Mark emphasizes the importance of financials that tie out to tax returns and having a clear exit plan when buying a business.

Quotes:

"I wanted to buy an annuity, a non-sexy B2B business that was scalable." - Mark Basile
"Your exit plan should be known when you buy the business." - Mark Basile

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If you have questions for Jared, visit JaredWJohnson.com

DISCLAIMER: The views and opinions expressed in this program are my own and/or those of my guests. They do not necessarily reflect the views or positions of my employer.

Journey of a Restaurant Buyer: Lessons in Business and Growth

Tue, 29 Aug 2023 06:00:00 -0500

In this episode of the Before You Buy or Sell a Business podcast, Jeptune Lupiter shares his journey of buying a restaurant and the challenges he faced during the process. He talks about his background in the restaurant industry and how he decided to look for a business to buy.

Jeptune discusses the importance of properly managing finances and being transparent with lenders. He also emphasizes the need for focus and determination in running a business. His goal is to grow the restaurant brand and potentially acquire more businesses in the future.

About The Guest:

Jeptune Lupiter is a restaurant owner and entrepreneur based in Las Vegas. He has a background in computer science and international business and has worked in the restaurant industry for several years. Jeptune is passionate about growing businesses and is focused on expanding his restaurant brand.

Key Takeaways:

Season your money and ensure it is properly documented before buying a business.
Be transparent about any personal or financial issues that may affect the acquisition process.
Laser focus and determination are essential for success in business.
Building relationships with employees and maintaining a positive work environment is crucial.
Consider expanding your business and acquiring additional locations to grow your brand.

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If you have questions for Jared, visit JaredWJohnson.com

DISCLAIMER: The views and opinions expressed in this program are my own and/or those of my guests. They do not necessarily reflect the views or positions of my employer.

Acquisition of Art Framing Business Falls Through

Tue, 15 Aug 2023 06:00:00 -0500

About The Guest:

Tommy Speigner is an experienced IT professional with a background in sales and technical knowledge. He has worked in various industries and has a passion for entrepreneurship. Tommy is currently based in Las Vegas and is actively looking to buy a business.

Summary:

Tommy Speigner, an IT professional with a background in sales, shares his experience of trying to buy an art framing business in Las Vegas. He discusses his background, how he ended up in the business world, and his decision to buy a business instead of starting one from scratch.

Tommy talks about the art framing business he was interested in and the potential for growth in the industry. He explains the negotiation process, due diligence, and the challenges he faced when the deal fell through. Despite the setback, Tommy remains optimistic and is looking forward to finding the right business opportunity in the future.

Key Takeaways:

Tommy Speigner decided to buy a business instead of starting one from scratch, realizing the potential for growth and the benefits of acquiring an established business.
He identified opportunities for growth in the art framing business, such as offering delivery and installation services and expanding into digital art.
The negotiation process involved adjusting the valuation based on updated numbers and the impact of the lease on expenses.
Due diligence was a learning experience for Tommy, as he gathered and analyzed information to understand the business's financials and operations.
The deal fell through due to a significant increase in expenses, including labor costs and lease terms, which affected the business's profitability.

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If you have questions for Jared, visit JaredWJohnson.com

DISCLAIMER: The views and opinions expressed in this program are my own and/or those of my guests. They do not necessarily reflect the views or positions of my employer.

Choosing the Right Escrow Company for Business Transactions

Tue, 01 Aug 2023 06:00:00 -0500

About The Guest:

Ron Quinn is the founder of Accelerated Law Group, a law firm that specializes in business transactions. With over 22 years of experience, Ron has handled thousands of transactions, ranging from small businesses to multimillion-dollar chains. He is known for his expertise in business law and his commitment to providing excellent service to his clients.

Summary

In this episode, host Jared Johnson interviews Ron Quinn, the founder of Accelerated Law Group. Ron shares his journey into the world of business transactions and discusses the services his firm provides. He emphasizes the importance of choosing an escrow company that understands the intricacies of business transactions and offers advice for buyers and sellers. Ron also explains the differences between asset purchases and stock purchases and highlights the need for due diligence and careful consideration of tax liabilities. He concludes by sharing some of the craziest experiences he has had in his career.

Key Takeaways

When choosing an escrow company, it is crucial to find one that specializes in business transactions and understands the unique challenges they present.
Due diligence is essential for buyers and sellers to ensure they are aware of any potential liabilities or issues with the business.
Stock purchases and membership interest purchases can be more complex than asset purchases and require careful consideration of contracts and tax liabilities.
Buyers should be cautious about making significant changes to a business immediately after acquiring it, as this can disrupt operations and alienate employees and customers.
Communication is key in business transactions, and all parties involved should stay in touch and keep each other informed throughout the process.

If you have questions for Jared, visit JaredWJohnson.com or connect with Jared on LinkedIn.

DISCLAIMER: The views and opinions expressed in this program are my own and/or those of my guests. They do not necessarily reflect the views or positions of my employer.

Navigating the Acquisition Process: Lessons from a Failed Deal w/ Jarryd Osborne | Ep. #18

Tue, 18 Jul 2023 06:00:00 -0500

Jarryd Osborne shares his experience in searching for a business to buy and the challenges he faced along the way.

He emphasizes the importance of building rapport with sellers, finding the right lender for financing, and conducting thorough due diligence.

Jarryd also discusses his transition from searching for a business to becoming a business advisor.

Key Takeaways:

➡️Building rapport with sellers is crucial in the acquisition process.

➡️Finding the right lender is important for securing financing.

➡️Thorough due diligence is necessary to ensure a successful acquisition.

➡️Transitioning from searching for a business to becoming a business advisor can be a natural progression.

To connect with Jarryd Osborne, you can find him on Twitter at SMBKapital or on LinkedIn as Jarryd Osborne.

If you have questions for Jared, visit JaredWJohnson.com

DISCLAIMER: The views and opinions expressed in this program are my own and/or those of my guests. They do not necessarily reflect the views or positions of my employer.

Lessons Learned in Business Acquisition with Alina Joseph

Tue, 04 Jul 2023 06:00:00 -0500

About The Guest:

Alina Joseph is a business owner and entrepreneur who has acquired two businesses and is in the process of selling one. She has a background in finance and law, with an MBA and JD degree. Alina has experience in mergers and acquisitions and has a passion for helping others navigate the business acquisition process. Currently, Alina is the owner and CFO at MunchPak, a snack delivery service.

Summary:

Alina Joseph, a business owner with experience in acquiring and selling businesses, shares valuable insights in this podcast episode. She emphasizes the importance of thoroughly evaluating a business before buying, understanding the financials, and managing people effectively. Alina also highlights the need for transparency and thorough review of documents during the acquisition process. For buyers, she advises evaluating if the business is a good fit and aligns with their financial goals. For sellers, she recommends keeping clean books and staying on top of financial records. Alina's experiences and advice provide guidance for both buyers and sellers in the business acquisition process.

Key Takeaways:

Evaluate a business based on its profitability and growth potential.

Understand the financials and key players in the industry.

Be patient and wait before making significant changes to a newly acquired business.

Thoroughly review all documents and contracts before signing.

Be prepared to manage people and their expectations.

Quotes:

"Just because you have high revenue doesn't mean your cash flow is healthy." - Alina Joseph

"Wait before making changes and get people's buy-in." - Alina Joseph

"Do your own homework and evaluate the business properly." - Alina Joseph

"Be transparent and thorough in your due diligence." - Alina Joseph

"Stay engaged and keep working at it even when you're ready to sell." - Alina Joseph

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If you have questions for Jared, visit JaredWJohnson.com

DISCLAIMER: The views and opinions expressed in this program are my own and/or those of my guests. They do not necessarily reflect the views or positions of my employer.

Understanding Buyer & Seller Motivations with SBA veteran Jim Ely

Tue, 20 Jun 2023 06:00:00 -0500

In this episode of the Before You Buy or Sell the Business podcast, host Jared Johnson interviews Jim Ely, an expert in SBA lending and a NAGGL instructor. Jim has been in the lending industry for over 39 years and has a wealth of knowledge about the acquisition process and recent transactions.

Overview

In this interview, Jim shares his experiences in the lending industry and provides insights on the SBA loan process. He discusses the development of the secondary market product, his background in bread and butter, and how he became an instructor for NAGGL. Jim also talks about his upbringing in Southern California, his time at UCLA, and how he got into lending. Additionally, he shares his experiences owning and operating businesses and emphasizes the importance of understanding the motivations of sellers when buying a business. Jim also sheds light on the State of California Infrastructure and Economic Development Bank's loan guarantee program, which complements the SBA loan program.

If you have questions for Jared, visit JaredWJohnson.com

DISCLAIMER: The views and opinions expressed in this program are my own and/or those of my guests. They do not necessarily reflect the views or positions of my employer.

Prioritizing Quality Over Cost, Restaurant Entrepreneurship with Jeff Solomon

Tue, 06 Jun 2023 04:30:00 -0500

Jeff Solomon, a successful entrepreneur who has acquired multiple businesses, shares his journey into restaurant entrepreneurship, the importance of prioritizing quality over cost, and offers advice for potential buyers.

In this episode of the Before You Buy or Sell a Business Podcast, host Jared Johnson interviews Jeff Solomon on his experience from running casinos to sushi restaurants. Solomon emphasizes the importance of thoroughly researching the industry and the specific business they are interested in and building a strong team of advisors. He stresses the importance of learning from past experiences and taking calculated risks in entrepreneurship.

Having worked on a deal together, Jared and Jeff discuss the experience of negotiating with the seller of Jeff’s first restaurant business, who was initially stubborn about the purchase price. Jeff highlights the importance of due diligence when acquiring a business and recommends focusing on labor, marketing, overhead, and revenue numbers. Solomon and his team use a software program to track food costs and adjust prices accordingly. He advises buyers to look beyond the financial statements and dig deep into the business to uncover potential issues.

Solomon stresses the importance of keeping a close eye on costs and finding ways to take out expenses that are not adding value. He suggests that taking calculated risks and constantly examining costs can lead to success in entrepreneurship. Solomon also believes that driving enough revenue can cure most issues in a business.

In addition, Solomon discusses the importance of customer experience and quality in his restaurants. He does not sacrifice quality for short-term cash flow and believes that fixing issues now will save money in the long run. He advises buyers to look for brokers who are honest and have high standards.

Solomon's experience as an entrepreneur highlights the importance of research, due diligence, and calculated risk-taking in the world of entrepreneurship. He stresses the importance of keeping a close eye on costs, finding ways to add value, and prioritizing customer experience and quality.

Not only does Solomon emphasize the need to stay up-to-date with industry trends but also the ability to be open to new opportunities for growth. Furthermore, he suggests that potential buyers consider involving friends and family as investors, but cautions that it can be more complicated without these connections.

If you have questions for Jared, visit JaredWJohnson.com

DISCLAIMER: The views and opinions expressed in this program are my own and/or those of my guests. They do not necessarily reflect the views or positions of my employer.

Oldest Glass Company In Las Vegas – Turnaround Proves Successful For Nevada Buyer

Mon, 22 May 2023 06:00:00 -0500

In this episode of the podcast "Before You Buy or Sell the Business," host Jared Johnson interviews Eric Hooiman, the now-owner of the oldest glass company in Las Vegas, on how he turned around the business to become successful.

Eric was a long-time gold miner with experience in designing and installing fire suppression systems. The conversation is casual and friendly, with Jared expressing his admiration for Eric's recent deal. They discuss Eric's background and career in the industry, including his college experience playing midfield for Coos Bay on a Fulbright scholarship.

The podcast aims to help buyers and sellers learn more about the acquisition process. Eric Hooiman found a glass company on BizBuySell that he and Jared decided to acquire. The company was the oldest glass company in Las Vegas and had an unlimited contractors license. Although the company had gone through three generations inside a family and was sold outside the family, the owner passed away from COVID, and his daughter inherited the company. Eric was interested in the deal because of its distressed situation, and the seller had dropped the price.

The conversation also touches on the negotiation process and the initial pricing of the company. Jared Johnson and Eric Hooiman discuss their due diligence process when considering a company for acquisition. Hooiman emphasizes the importance of seeking advice from professionals and staying in one's lane. He shares that he consulted with his CPA and financial advisor, as well as conducting his own research on the company's financials to determine areas where they were losing money.

Eric Hooiman provides more advice on acquiring a business, including the importance of transparency and utilizing employees as a resource. He also emphasizes the significance of implementing changes one step at a time and getting buy-in from employees. The conversation also touches on the difficulty of finding good employees and the importance of company culture in retaining them.

Hooiman also talks about his future plans, which include stabilizing his current business and buying another one. Eric believes in the importance of having mentors and attends Tony Robbins events. He emphasizes the importance of adding value when seeking a mentor or learning from someone. To Eric, people are willing to give advice and help as long as the person seeking advice listens to them.

Overall, Eric Hooiman's experience in gold mining and fire suppression system design, as well as his personal relationships and determination, have helped him successfully acquire a distressed business and turn it around. His emphasis on company culture and adding value to others provides valuable lessons for anyone looking to acquire and run a successful business.

If you have questions for Jared, visit JaredWJohnson.com

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DISCLAIMER: The views and opinions expressed in this program are my own and/or those of my guests. They do not necessarily reflect the views or positions of my employer.

Professional CPA Shares His Experience Acquiring & Running 3 Different Businesses

Tue, 09 May 2023 06:00:00 -0500

In this podcast episode, host Jared Johnson, welcomes Ken Kirkpatrick, a business acquirer who has acquired multiple businesses and is always on the lookout for more.

First Steps

Ken graduated from UNLV with an accounting degree and worked for Citibank before joining KPMG, where he got certified as a CPA. After three years with KPMG, he was approached by a small group of casinos looking for a comptroller/CFO and decided to take the plunge into the casino business, where he worked for 15 years. Ken describes himself as cautiously optimistic and always looking for new opportunities to acquire businesses.

In this continuation of the conversation, Ken Kirkpatrick talks about his work experience, which includes working in the gaming industry and trying different industries, including consulting and manufacturing. He worked for an individual who owned about 15 locations in town, bars and restaurants, and one main casino and hotel. He was treated very well and acted as the owner's personal CPA, ensuring that the financials were sound. Ken also discusses the intense nature of the gaming industry and the control standards that must be met to keep everyone happy on the Gaming Control Board side.

Running a Non-medical Home Care Franchise

Ken discusses how he transitioned from working for someone else to buying his own business, a non-medical home care franchise in South Texas. He also talks about the impact of COVID-19 on the home care industry and the challenges of being a private pay business. Kirkpatrick shares advice for anyone looking to buy a business, emphasizing the importance of buying receivables and having working capital. He also discusses his plans to relocate to South Texas before ultimately deciding to commute between Texas and Las Vegas.

Manufacturing Laboratory Devices

The conversation continues with Jared and Ken discussing the process of appraising businesses and the importance of not overpaying. Kirkpatrick shares his experience of buying another business, MSI Products, after feeling bored in Las Vegas and looking for a small business to work on when he's in town. The company sells laboratory devices and had been owned by a family in San Diego who put it up for sale after the previous owner passed away from cancer. Kirkpatrick quickly responded to the ad and was one of the first to look at it, eventually buying it. Negotiations for this company were straightforward, and the buyer paid almost the full asking price while also obtaining an SBA loan and a small owner's loan held back. The quality of the product is superior, making it difficult to get knocked off in China. The conversation also emphasizes the importance of understanding accounting and finances for small business owners.

Acquiring a Live Pet Store

Seeing the potential for growth, Ken acquired a live pet store franchise that was located near his home. Despite the high price, he recognized the store's outstanding numbers and potential for growth, especially during COVID, which saw a rush in pet purchases. Ken also mentions that the Southern California market does not have a real-life pet store due to state law, and he plans to expand his business to cater to that underserved market. He emphasizes his desire to serve the community and provide a trustworthy source for people to get healthy, well-bred puppies for their families.

Ken’s Outlook on His Entrepreneurial Journey

As a successful entrepreneur, Ken revealed that his motivation to succeed and provide for his family stems from growing up poor and wanting to create a better life for himself and his loved ones. He also shared that his experiences in the casino business taught him the importance of hiring the best people and treating them with respect and that he tries to create a family-like atmosphere in his own businesses. Kirkpatrick emphasized the need for humility and valuing the opinions of his employees, who have a better understanding of the day-to-day operations.

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If you have questions for Jared, visit JaredWJohnson.com

DISCLAIMER: The views and opinions expressed in this program are my own and/or those of my guests. They do not necessarily reflect the views or positions of my employer.

Expert M&A Attorney Scott Oliver Discusses Legal Aspects of Buying or Selling a Business

Tue, 25 Apr 2023 06:00:00 -0500

Thank you for listening to the Before You Buy or Sell a Business podcast.

In this episode, host Jared Johnson sits down with M&A attorney Scott Oliver. Scott is an attorney with the Lewis Kappes law firm. Jared and Scott discuss the legal aspects of buying and selling a business, specifically with SBA lending. They also touch on Oliver's background, including his education at Purdue and IU law school, and how he ended up at Lewis Kappes. The conversation is lighthearted, including a bit of banter about the pronunciation of the firm's name.

Scott talks to Jared about legal considerations when buying or selling a business. He advises buyers to hire an attorney experienced in M&A transactions and in SBA lending, cautioning against hiring a large law firm or an attorney unfamiliar with the specific type of acquisition. Additionally, Scott emphasizes the importance of building a deal team with the right expertise to ensure a smooth transaction.

This episode also touches on the nuances of a stock vs. asset purchases, including liability considerations and tax implications. Scott Oliver explains that in an asset sale, the buyer is purchasing equipment, machinery, and goodwill, but the seller usually retains liabilities such as debt and lawsuits.

In contrast, a stock sale involves acquiring the company as it exists, along with all its issues and employees. Jared Johnson asks about how to determine which type of sale to pursue, and Oliver advises consulting with attorneys and tax professionals. They also discuss the importance of lenders considering whether stock certificates are involved and taking them as collateral if necessary. Overall, Oliver emphasizes the need for a customized checklist to ensure all necessary steps are taken for each specific deal.

We hope you enjoy this episode.

To contact Scott: SOliver@lewiskappes.com

For questions, visit https://jaredwjohnson.com/

DISCLAIMER: The views and opinions expressed in this program are my own and/or those of my guests. They do not necessarily reflect the views or positions of my employer.

Rob Lichfield on Acquiring Businesses and the FedEx Independent Service Provider Model

Tue, 11 Apr 2023 06:00:00 -0500

In this podcast episode, host Jared Johnson interviews business acquisition expert, Rob Lichfield, where they share insights and tips about what to consider when acquiring a business. The conversation primarily centers around their experiences in the FedEx industry, but they also cover other topics such as due diligence, managing employees, and the SBA loan process. So, whether you're a first-time buyer or an experienced business owner, this blog will provide valuable information that can help you navigate the world of business acquisition.

Rob Lichfield’s Background

Rob Lichfield grew up in southern Utah. He’s been on a Mormon mission to Massachusetts, and worked in a commercial bank with his dad. Lichfield also talks about living on the beach in Puerto Penasco, Mexico, which he describes as a cool and inexpensive place for American expats to live.

The Challenges of Owning a FedEx business

Rob Lichfield discusses his attraction to the FedEx independent service provider model, which is highly competitive and has undergone many changes over the years. But Rob shares his insight on the challenges of owning a FedEx route and how the company has made it difficult for owners to make a profit. Jared and Rob also touch on the SBA's approval of FedEx as a licensing agreement rather than a franchise, which opened doors for SBA loans. Overall, Rob advises that someone looking to invest in a FedEx business should consider being an owner-operator rather than a semi-absentee owner.

Buying a Winning Business

The conversation continues with Rob Lichfield discussing the importance of buying a winning business and not making too many changes. He compares it to a relay race where one must not drop the baton. Rob talks about the risks of making changes when buying a business, as it can lead to a loss of culture and status quo, resulting in the business going out of business. Having acquired multiple businesses, Rob emphasizes the importance of learning the business before buying and mentions how his brother learned through delivering with his crew for six weeks.

Conclusion

Finally, Jared and Rob briefly discuss a restaurant acquisition that Rob found through BizBuySell.com when he was looking to get out of the FedEx space. The business Rob acquired, Protein Source, is a healthy, fast casual restaurant that serves protein shakes and healthy protein-based meals, mostly meat-based, with vegetarian and vegan options. They have repeat customers who are into fitness and healthy lifestyle. The business averages about $7,000 in sales a day and $50,000 a week between its two locations.

Rob enjoys being a good employer and that’s what drives him to keep going.

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If you have questions for Jared, visit JaredWJohnson.com

or connect with Jared on LinkedIn or Instagram.

DISCLAIMER: The views and opinions expressed in this program are my own and/or those of my guests. They do not necessarily reflect the views or positions of my employer.

Market Price Analysis for Small Businesses with Business Broker Lyndsey Davino

Tue, 28 Mar 2023 06:00:00 -0500

In this podcast episode of Before You Buy or Sell a Business, host Jared Johnson interviews Lyndsey Davino, a business broker based in Las Vegas. Davino shares how she got into business brokerage, starting with her background in commercial real estate and property management. She discusses the challenges and excitement of the industry, and how it never gets boring.

Johnson and Davino discuss the recent transaction of a pest control business as an example of market price analysis and how a lender evaluates it for financing. Lyndsey explains the concept of a market price analysis (MPA) and how it helps determine the value of the business based on financial performance, operations, and comps. Jared goes through the numbers of a closed loan for a pest control business in southern Nevada and explains the difference between accrual and cash basis accounting.

They go over the top-line revenue and net income for 2020 and 2021 and discuss the bankers' add-backs, including depreciation, amortization, and officers' salary. Johnson mentions auto expenses as an example of a typical add-back, and Davino talks about the difficulty of proving some add-backs and the need to be more conservative in some cases. They also mention some unusual add-backs, such as family members' salaries and household food from restaurant suppliers. Johnson emphasizes the importance of looking at the cash flow to determine whether the numbers work for a loan.

The conversation continues with Lyndsey Davino emphasizing the importance of pricing a business competitively and realistically, based on the analysis of the provided numbers and details about the business. She advises against relying on internet rules of thumb and emphasizes the need to work with a professional broker. Pricing the business right the first time is key. Ultimately, the goal is to find a buyer who is reasonable and willing to pay a fair price for the business.

Lastly, Lyndsey Davino advises business owners to plan their exit strategy as soon as possible to prepare for any unforeseen circumstances that may arise. She also mentions that not every business is sellable, and business owners must educate themselves and talk to a business broker to make their business sellable. Lyndsey also advises potential buyers to assess their financial situation and get pre-qualified for an SBA loan before approaching a business broker.

To contact Lyndsey, email her at: Lyndsey@FCBB.com or call her at (702) 772-7542.

If you have questions for Jared, visit JaredWJohnson.com

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DISCLAIMER: The views and opinions expressed in this program are my own and/or those of my guests. They do not necessarily reflect the views or positions of my employer.

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This conversation covers:

Property Management
Listing a Business for Sale
Market Price Analysis for Small Businesses
Add Backs and Cash Flow Analysis for Business Valuation
Valuation of a Pest Control Business: Using Comparable Sales and Multiple Adjustments
Analysis of Tax Returns and Seller's Discretionary Earnings for Business Loan Approval
Lease Agreements
Being a Woman in the Brokerage Industry
Dealing with Landlords in Commercial Real Estate Transactions

Expert In Multi-Skilled Maintenance Management Acquires Diverse Business

Tue, 14 Mar 2023 06:00:00 -0500

In this episode of “Before You Buy or Sell a Business,” host Jared Johnson talks with Michael Johnson; the two have no immediate family relation.

Michael Johnson was a multi-skilled maintenance and integrated facility services worker for fifteen years. During that time, he worked his way up to a management position, helping to design and construct vinyl windows for a window extrusion company. Michael then decided to pursue a college education and earned an engineering degree. A conversation with Michael’s boss during an annual review eventually led him to make the decision to buy a business in the same industry.

When it comes to management, Michael has a philosophy of: seek first to understand, then to be understood. With Michael’s previous experience, he looked for a business to acquire that was connected to his management skills. Ultimately, Michael’s wealth of experience and knowledge helped him navigate the process of taking over a new business.

If you have questions for Jared, visit JaredWJohnson.com

DISCLAIMER: The views and opinions expressed in this program are my own and/or those of my guests. They do not necessarily reflect the views or positions of my employer.

SD Business Advisor's Mitch McGinley Transforms Boutique Hotels And Fitness Studios For Profit

Tue, 28 Feb 2023 06:00:00 -0500

In this episode, host Jared Johnson welcomes Mitch McGinley from SD Business Advisors. The two discuss how Mitch got into a niche market of the business brokerage field: fitness studios.

Mitch McGinley started his career in the hotel industry but got tired of being yelled at. While still managing hotels, Mitch started night school to get his MBA in accounting. This opened his eyes to a realization: managers don’t make money, owners do.

So, Mitch talked with his General Manager about how he wished to become a hotel owner. His GM, who had become a mentor at this point, connected him with John Pani. John Pani had gone out on his own and was buying and selling boutique hotels. Mitch found this to be an exciting opportunity and began working with John as his only employee. They operated two hotels; and Mitch elevated one to become the number one ranked hotel in San Diego on Booking.com.

But being the only employee got tiresome; the hours were long and Mitch’s cell phone number was taped to the front door. Mitch and his wife had a dream to own a yoga studio and they finally had the confidence to pursue it when they were approached by the owner of their favorite studio. Mitch took advantage of the offer and was able to make a six-figure profit from the sale in their third year. This experience would lead him down the path of business brokerage in a niche market.

Not long after the sale, Mitch was then offered a job with two young, professional, and humble leaders. Having gone through the buying and selling process himself, Mitch is able to have a deep understanding of his clients, helping him build a reputation in the yoga and fitness studio market.

If you have questions for Jared, visit JaredWJohnson.com

DISCLAIMER: The views and opinions expressed in this program are my own and/or those of my guests. They do not necessarily reflect the views or positions of my employer.

Owner of Multiple Businesses Acquires a Business During COVID

Tue, 14 Feb 2023 06:00:00 -0500

This week, Jared sits down with Isaac Saucedo, owner of Quick-Dry Flood Services. The previous owner was retiring and offered the business to Isaac and his business partner. Isaac took the offer seriously, saving money to make it happen.

Isaac Saucedo grew up in San Diego and got into the construction industry through his father, who was a building inspector and eventually became a general contractor.

In 2009, Saucedo started a construction and building company, right when the real estate market was collapsing. They had zero work going around, so people might have thought they were crazy. But word of mouth advertising led to jobs and success for the company.

Overall, Saucedo has had a successful experience in owning businesses and has advice to offer other buyers and sellers.

If you have questions for Jared, visit JaredWJohnson.com

DISCLAIMER: The views and opinions expressed in this program are my own and/or those of my guests. They do not necessarily reflect the views or positions of my employer.

Lessons from the IBBA Top Individual Deal Maker 3 Years Running

Tue, 31 Jan 2023 06:00:00 -0500

This week Jared interviews Trent Lee, and they discuss much more than buying and selling businesses.

Trent was the International Business Brokers Association (IBBA) Top Individual Deal Maker in 2019, 2020, and 2021, and in 2019 was also awarded the Outstanding Producer award. He should also win in 2022. He also holds his business appraiser license. Trent provides some great insight into his background and how he sold multiple businesses before getting into the business and brings a great perspective to the selling process. They touch on many topics, from the current industry climate to what he looks for in a listing to what buyers should do to be ready for the purchase.

Trent provided outstanding advice for both buyers and sellers and walked us through the listing process. Jared, of course, asks about his motivation and mentorship and his answers may surprise you.

Trent can be reached at sellbusinessinlasvegas.com.

The views and opinions expressed in this program are my own and/or those of my guests. They do not necessarily reflect the views or positions of my employer.

Are There Really 42 Steps To Buying a Business?!

Tue, 17 Jan 2023 06:00:00 -0500

There are 42 steps to buying a business, let’s talk about it

While attending the Texas Association of Business Brokers conference Jared sits down with Josh Levine who is the Co-Founder and CEO of Private Market Labs. Jared and Josh discuss a lot of different subjects surrounding business acquisitions and the process. Josh shares what Private Market Labs is all about

and what he’s been working on. Together, they identify the challenges that come with buying a business and what they feel needs to be changed. The topic of search funds comes up many times and

Josh covers how Private Market Labs is helping them.

Josh provides some great information about the full industry and goes into detail about his own challenges with building his business.

Josh Levine can be reached at www.privatemarketlabs.com and is very active on Twitter: @levinejm

The views and opinions expressed in this program are my own and/or those of my guests. They do not necessarily reflect the views or positions of my employer.

Learn From a 2-Time Buyer and 1-Time Seller

Tue, 03 Jan 2023 06:00:00 -0500

This week Jared interviews Keith Kahn who has acquired 2 different restaurants and sold one. Keith and Jared talk about the process of buying 2 different businesses and provide a lot of valuable information.

Each acquisition was very different and had its own challenges. They discuss the need for a good non-compete agreement. Keith discusses the transition period for each purchase and what he would’ve done differently. Jared and Keith also talk about the business that Keith sold and what took place from the listing to after the sale.

Keith covers what it takes to be a great restaurant owner and his future plans all while providing some great motivation to future and existing entrepreneurs.

The views and opinions expressed in this program are my own and/or those of my guests. They do not necessarily reflect the views or positions of my employer.

Business Transactions Over $10,000,000

Tue, 20 Dec 2022 06:00:00 -0500

Are you looking to buy or sell a business with a price tag over $10,000,000?

On this episode Jared speaks with two very successful business brokers; Sean Seaman and Dustin Sigall who are the founders and owners of SD Business Advisors. They discuss the topic of larger transactions and how these deals are different. Sean and Dustin answer the questions you’ve likely been asking

while providing some exceptional advice. Jared, Sean, and Dustin talk about Private Equity Group and what exactly that means and what a seller should be looking out for when they could have a PEG buyer.

The conversation has some excellent insight into the economy, the current M&A environment, and we learn what makes these highly sought-after brokers different.

To find out more about SD Business Advisors, visit: https://www.sdbiz.com.

If you have questions for Jared, visit JaredWJohnson.com

An Inside Look Into a Business Purchase

Tue, 06 Dec 2022 06:00:00 -0500

Have you ever wondered what it’s like to buy a business that encompasses your experience and skillset?

This episode covers a lot! Jared interviews Tom Gonzalez, who bought a dog daycare in sunny San Diego, CA with his wife Pam. Jared and Tom discuss the full transaction and provide great insight into what it’s like to buy a business with real estate. This deal had many twists and turns including dealing directly with the seller, fluctuating emotions, and negotiations all the way to the very end. Jared and Tom talk about using ROBS for the down payment, SBA loans, and how to handle prepaid contracts.

They cover what happened after the purchase and Tom’s advice to a potential buyer is outstanding, very insightful, and provides some valuable guidance.

If you have questions for Jared, visit JaredWJohnson.com

DISCLAIMER: The views and opinions expressed in this program are my own and/or those of my guests. They do not necessarily reflect the views or positions of my employer.

What You Should Know About Selling a Business

Tue, 22 Nov 2022 06:00:00 -0500

If you’re considering selling your business, what should you have in place to ensure you’ll get top dollar?

In this episode, Jared is joined by Alan Horwitz, one of Vegas’ top Business Brokers with Sunbelt Business Brokers. Alan discusses how he became a business broker after retiring early from a successful run as a business owner. Plus he talks about the process he uses to assess and onboard new buyers, deals he will and won't do, and how his process has enabled him to be successful in this industry for over twenty years.

They talk about why finding the right broker is essential when you’re getting ready to sell, and why all brokers are not created equal. They also discuss, why getting a listing for the most money isn’t always the best option. Plus they cover what every seller should do within their business before they even approach someone about listing.

Alan also talks about how he typically works with buyers, and the simple things they can do to set themselves apart from other offers when buying a business.

Want to connect with Alan? Visit: https://www.vegasbusinessbroker.com/

To connect with Jared, visit: JaredWJohnson.com

DISCLAIMER: The views and opinions expressed in this program are my own and/or those of my guests. They do not necessarily reflect the views or positions of my employer.

Before You Buy or Sell a Business

Wed, 16 Nov 2022 06:00:00 -0500

Welcome to Before You Buy or Sell a Business a podcast that will give you an inside look into of buying and selling businesses.

DISCLAIMER: The views and opinions expressed in this program are my own and/or those of my guests. They do not necessarily reflect the views or positions of my employer.