How to Build Maximum Strategic Value in Your Business


About the Episode

The earlier an entrepreneur starts planning for the sale of their business, the longer they have to compound value as it grows. Mac Lackey gives advice for maximizing the strategic value of a business. Mac shares lessons he has learned from starting and selling six companies all for strategic value, including designing a business with prospective buyers in mind, telling a compelling story about competitive advantages, and why planning ahead is critical to selling a business for strategic value.

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“To receive maximum value, the more proactive a business owner is in getting started, the more value they create and the more options they have.”

Mac Lackey

In this Episode

2:17 How did Mac sell six companies based on strategic value, not based on a financial multiple?
6:35 What factors should be considered to determine if VC backing is an option?
9:18 What are alternate sources other than VC firms for raising funds?
11:13 What is the most important lesson Mac has learned from his six exits?
16:10 Why is planning ahead critical in order to sell a business for strategic value? What assumptions will a buyer make if they see a well-prepared company at the beginning of a deal?
20:30 How can owners use the unique features of their business to maximize strategic value?
21:54 What are the challenges in creating strategic value when working with commodity-based businesses?
23:28 How is strategic value defined?
25:28 What role does the buy vs. build decision play in a buyer’s decision-making process?
31:00 How important is it for an owner to quickly communicate a compelling story of the competitive advantage of their business?
34:01 What percentage of companies in the lower-middle market are sold for strategic value?
39:57 Where do sellers go wrong when they receive an unsolicited offer of interest from a buyer?
43:47 What role do investment bankers and M&A advisors play in the exit process?
47:25 Why do some M&A deals fall apart in the eleventh hour of the transaction?
51:38 To what degree can preparation mitigate risks?
53:57 What is one of Mac’s most important personal lessons learned through six exits?
58:35 What are the most important lessons for entrepreneurs wanting to maximize strategic value?

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Acronyms or Terms Used in This Episode

  • VC: Venture capital

Meet Our Guest

Mac Lackey

Mac Lackey

Founder of ExitDNA

Mac Lackey is an American entrepreneur who has started, scaled, and sold six companies, each with a seven or eight-figure exit. Mac and his companies have been featured on CNN and in The Wall Street Journal, Fast Company, Business North Carolina, USA Today, and The New York Times. Notable ventures include KYCK (acquired by NBC Sports), Mountain Khakis (acquired by Remington), and InternetSoccer Network (acquired by a division of News Corp/Sky). He also served as a member of the Board of Directors for Lending Tree (NASDAQ: TREE) for over five years and is currently an angel investor in over 50 companies. Mac is the owner of the Spanish soccer team Algeciras Club de Fútbol.

Location Location: North Carolina
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