An Expert’s Tips on Getting the Sale of Your Business Across the 50-Yard Line

About the Episode

Managing expectations and understanding what potential buyers look for is critical to selling a business successfully. Jason Hullender offers tips on how to get the sale of your business across the fifty-yard line and into the end zone. He discusses the top areas where buyers and sellers have unrealistic expectations, the importance of a company’s valuation, understanding EBITDA, how customer concentration and competitive advantages fit into the mix, and why you should be prepared for the due diligence process. 

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“Preparation is very important to getting more for your business and being successful. Be prepared and work with good advisors who can act as a quarterback for the deal and work as part of a team to sell your business.” 

Jason Hullender 

In this Episode

1:45 What does a business owner need to know about managing their expectations when selling their company?
4:19 What are some of the main reasons that a deal may die? How can misaligned expectations impact the sale of a business?
7:05 Should a business owner hire an appraiser to determine their business’s value?  
10:35 How can a seller identify a good offer from an unrealistic offer?  
14:44 Is it advisable to seek opinions from multiple professionals, like M&A advisors, investment bankers, brokers, and appraisers, to determine the value of a business?  
15:30 What role does the auction process play in selling a business?
17:05 What common issues lead a seller to misalign their expectations on how the sales transaction will progress?
19:45 How important is EBITDA to buyers looking for a business to purchase?
22:27 Why is the management team of a business important to potential buyers?
24:02 What are some of the main value drivers that buyers consider?  
28:45 How important is due diligence in setting the right expectations for sellers?
33:26 Can a seller expect to close a transaction once an LOI has been accepted?
37:55 How does personality play a role in selling a business?
40:46 How important is it to be prepared for due diligence before starting the sales process? Can this affect whether a business sells or not?
43:2 What are the key points to consider in order to sell a business successfully?

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Resources Mentioned in This Episode

Terms Mentioned in This Episode

  • CPA: Certified Public Accountant
  • Due Diligence: The thorough verification and investigation of a business after a letter of intent is accepted to determine if the parties wish to proceed with the transaction. Due diligence typically lasts between 30 and 60 days for most transactions.
  • EBITDA: EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is an indicator for gauging a company’s financial performance and is often used to determine its profitability.
  • LOI: Letter of Intent – a preliminary agreement that outlines the essential terms of an acquisition and signifies the parties’ commitment to start due diligence and begin working toward a purchase agreement.

Meet Our Guest

Jason Hullender

Jason Hullender

M&A Advisor

Jason Hullender is currently the Managing Director and co-founder of IAG M&A Advisors located in Addison, Texas. Jason is a Certified Merger and Acquisition Advisor and IAG’s lead deal maker. After co-founding IAG in 2009, Jason quickly grew it into one of North America’s premier M&A advisory firms. He is passionate about helping other entrepreneurs receive the exit they deserve. He and his team have assisted hundreds of sellers in valuing and eventually exiting their businesses.

Prior to starting IAG, Jason led the marketing division of another M&A firm and proudly served in the United States Marine Corps. For over 20 years, Jason and his team have assisted owners across almost every industry in navigating through the exit process with over $3 billion in transferred value for their clients. .

Location Location: Addison, Texas, USA

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