The Emotional Rollercoaster of Buying or Selling a Business

About the Episode

Whether you realize it or not, buying or selling a business is an emotional rollercoaster. Drew Bisping talks about this emotional journey from both sides of the table as a buyer and seller. He discusses the role that emotions play in the sales process and what you can do about it, the importance of using the right advisors, the very real impact that comes from deal fatigue, and why it is critical to be prepared and understand the impact a sale will have emotionally on yourself, your employees, and partners. 

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“Selling a company is like a rollercoaster on fire, with a whole bunch of good and bad. It’s just a crazy ride. You go through all the different dynamics, from financial to team dynamics to “what does this mean for the future?” – it’s just a roller coaster. Even if you’ve done it before, it’s a change moment.” 

Drew Bisping

In this Episode

Learn More About This Episode

• Net Working Capital (NWC) for M&A – A Complete Guide
• M&A Negotiating Tactic #1 – Honesty
• M&A Due Diligence | Checklist & Overview

Resources Mentioned in This Episode

• The Art of the Exit: The Complete Guide to Selling Your Business by Jacob Orosz
• Acquired: The Art of Selling a Business With $10 Million to $100 Million in Revenue by Jacob Orosz3
• Top Seven Issues Today Critical to Understanding Quality of Earnings
• Quality of Earnings in M&A – The Ultimate Guide

Listen to Other Episodes

• Will Selling Your Business Make You Happy?
• Maximizing Profits: Key Insights on Preparing a Company for Sale from an Experienced M&A Attorney
• Managing Personality and Cultural Differences When Selling Your Business

Acronyms or Terms Used in This Episode

• Q of E: quality of earnings report
• LOI: letter of intent
• Net Working Capital (NWC): A financial metric that represents the difference between a company’s current assets and its current liabilities. In the M&A world, net working capital is defined as accounts receivable plus inventory minus accounts payable and accrued liabilities. Net working capital is often included in the purchase price of a business.
• Reps and Warranties: Stands for “Representations and Warranties.” Statements and guarantees by a buyer or seller of a business relating to the assets, liabilities, and contacts of the business that is being acquired or the business that is making the acquisition. Breaches of representations and warranties are addressed in the indemnification section of the purchase agreement. A percentage (usually 10%) of the purchase price is normally held back (known as a holdback) in an escrow account for 6 to 18 months following the closing to fund any indemnification claims. This amount is later released to the seller if no claims are made during this time period.

Meet Our Guest

Drew Bisping

CEO of BluSky Restoration Contractors LLC | Denver, Colorado

Drew Bisping is the Chief Executive Officer of BluSky, a nationwide emergency restoration and renovation company. Drew is responsible for sales, operations, mergers, and acquisitions, helping BluSky grow through 14 acquisitions over the past five to six years and being sold three times to different PR firms. Drew is also a significant driver of employee culture and the BluSky customer experience.

Drew began his career in the construction industry more than 20 years ago with a bachelor’s degree in construction management from the University of Wisconsin Stout. He joined BluSky in 2007 and has led the company’s operations since 2011. He managed the opening of all of BluSky’s national locations and is currently heavily involved in the integration of acquisitions and new service offerings.

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