Business Exit Stories: Recent Episodes
Marvin L. Storm
Hosted by Marvin L. Storm, the Business Exit Stories Podcast shares dramatic success as well as unfortunate horror stories of business exits, and in collaboration with BxAdvisors assists Founder/Business Owner CEOs in creating enterprise value in their companies by as much as 100%. Not only is business value enhanced, but the company is positioned for a high-value monetization event without wasting time and money through the application of time tested value creation strategies.
After nearly 3 years of doing his podcast, Marvin has been faced with an opportunity to pursue his post-exit dreams. Listen to Marvin explain the importance of having a post-exit plan, his thoughts on the podcast thus far, and his plans for the future of the podcast. While the podcast may be on pause, for […]
The post Pursuing Post-Exit Dreams & Hitting Pause On The Podcast. appeared first on Business Exit Stories.
An offer was made on a client’s business by a strategic buyer and through the application of both skill and using the strategic buyers own financial metrics convinced the buyer and their advisors that it was to their benefit to pay not two or three, but four times more than their original offer to acquire […]
The post How a Sales Price Went From 1X to 4X with the Stroke of a Pen appeared first on Business Exit Stories.
An importer of garden plants and supplies that was growing at an intense rate and making tons of money still couldn’t get their business sold or find a buyer until an advisor approached the problem and came up with an interesting solution. A third generation security and door hardware distributor that was the premier value-added […]
The post Part Two – Michael Richmond: What Happens When the Owners of a Company Don’t Know Why Their Company Was Valuable appeared first on Business Exit Stories.
A company that manufactured orthopedic implants for pets was growing and profitable. However, getting this company positioned for an exit and finding the right acquiring company proved to be an extraordinary challenge that required some insightful thinking. Two women 25 years ago open a small retail bakery that makes sweets in the form of cookies and […]
The post Part One – Michael Richmond: Why a Company That Was Growing Exponentially Couldn’t Get Sold appeared first on Business Exit Stories.
An offer was made on a client’s business by a strategic buyer and through the application of both skill and using the strategic buyers own financial metrics convinced the buyer and their advisors that it was to their benefit to pay not two or three, but four times more than their original offer to acquire […]
The post How a Sales Price Went From 1X to 4X with the Stroke of a Pen appeared first on Business Exit Stories.
An importer of garden plants and supplies that was growing at an intense rate and making tons of money still couldn’t get their business sold or find a buyer until an advisor approached the problem and came up with an interesting solution. A third generation security and door hardware distributor that was the premier value-added […]
The post Part Two – Michael Richmond: What Happens When the Owners of a Company Don’t Know Why Their Company Was Valuable appeared first on Business Exit Stories.
A company that manufactured orthopedic implants for pets was growing and profitable. However, getting this company positioned for an exit and finding the right acquiring company proved to be an extraordinary challenge that required some insightful thinking. Two women 25 years ago open a small retail bakery that makes sweets in the form of cookies and […]
The post Part One – Michael Richmond: Why a Company That Was Growing Exponentially Couldn’t Get Sold appeared first on Business Exit Stories.
A business that was given birth after the breadwinner in the family was laid off. To make ends meet, the breadwinner’s wife started cleaning houses. Because she was allergic to many of the chemicals that are commonly used in household cleaning supplies, she began to use organic cleaning supplies and then promoted her organic orientation […]
The post Part Two – Linda Bloom: Why a Business Growing By Leaps and Bounds Couldn’t Get an SBA Loan appeared first on Business Exit Stories.
A family-owned retail produced market that procured its fruits and produce from local growers. The family had operated the business for 10 years and as the kids got older and started to leave for college, they didn’t plan on continuing to work in the business. Which is a common theme for many family-managed businesses these […]
The post Part One – Linda Bloom: The One Thing You Can’t Forget When Selling a Business – If You Do It Can Cost You Big Time appeared first on Business Exit Stories.
A fitness business franchisee of a national franchised fitness center accepted an offer from a qualified buyer. While excited to be stepping away from his business as he had other business opportunities he wanted to pursue, he made an interesting terrible decision before the business sale closed escrow. A buyer for a 19-unit fitness business […]
The post Why You Shouldn’t Buy a $400,000 Ferrari Before Your Business Sale Closes appeared first on Business Exit Stories.
A family-owned business that had been successful for decades was turned over to the founder’s son. While succession planning was a part of the long-term plan for the founder, the execution of the plan didn’t go as planned. Two companies with similar issues when being positioned for sale and how the two founders handle their […]
The post A Success Plan That Took a Business Worth Millions to Zero appeared first on Business Exit Stories.
A major league baseball team was brought to Denver and the details of how a transaction like this goes forward. A hyper growth company that was doubling sales every year outgrew the capabilities of some members on their management team. An owner often tries to show loyalty and does everything possible to keep those that […]
The post What Is Pre-Due Diligence and How It Can Make You Millions appeared first on Business Exit Stories.
A partnership business went from a consistent year over year growth rate to a valuation of zero in a few short years. A family owned 30-location retail service business that had passed to the second generation. As it came time for the third generation to decide if they were interested in taking over the business, several […]
The post How Two Partners in a Successful and Growing Business Managed to Take It to Zero When They Decided to Sell appeared first on Business Exit Stories.
A medical research company was founded by research PhDs and had a highly complex business model that relied on highly paid professionals which performed and managed the medical research. While the business generated millions in revenues, the cost of the highly paid staff produced an EBITA in the low six figures. A label manufacturer’s divorce […]
The post How Skillfully Crafting A Story Regarding Your Exit Can Turn Your Biggest Loss Into The Reason Why A Business Is Sold appeared first on Business Exit Stories.
An ecommerce business that was two businesses in one and how the lack of understanding and accounting of inter-company transfers not only nearly derailed a deal but almost cratered the entire business. The importance of having a CFO, either a fractional one or full-time one, and how this can make the difference between a successful […]
The post Why Certain Types Of Buyers Will Pay More Money For The Same Business appeared first on Business Exit Stories.
A founder of an oil rig manufacturing business started meeting with a buyer on his own and his M&A Advisor cautioned him not to negotiate any of the agreed upon terms. He was also told to follow the plan that had been developed on when to share the sale with his employees. Find out what […]
The post How an Entrepreneur’s Ego Took a Deal from $30M to $1.2M appeared first on Business Exit Stories.
A profitable HVAC company decided to explore selling their business because COVID had escalated valuations in the HVAC sector since more people were staying home and needed more heating and air services. Shortly after deciding to sell, a Private Equity Group approached the company and began their acquisition and due diligence. Financial buyers like a […]
The post How To Sell Your Company For Less Money But End Up Putting More Cash In Your Pocket appeared first on Business Exit Stories.
An orthopedic footwear manufacturer was able to weather a series of unexpected events, failed closings, and a complete shutdown during the pandemic to successfully exit the business. A seller went from a DIY mode to engaging a professional advisor to facilitate their exit and this decision made the founder an additional $20M in the process, […]
The post How Doing the Right Things Turned a $20M Sale into a $40M Sale appeared first on Business Exit Stories.
An e-commerce business where some of the metrics on the financial statements just didn’t seem to add up. One of the issues had to do with the gross margins on some of the products sold being north of 75%, which was far above the norm for this business segment. This issue caused the buyer to […]
The post When Issues Surface in Due Diligence, You May Wish to Take A 2nd, 3rd, and 4th Look At Other Critical Aspects Of The Business appeared first on Business Exit Stories.
A chemist that solves a problem his wife had with some of her hair and cosmetic beauty products line while working full time. His side hustle turned into a business that exploded into a $19M business virtually overnight. Hyper growth when scaling nearly forced an early exit and disaster was averted. An absentee owner business […]
The post From Making Money as a Side Hustle to a $19M Business Losing Money appeared first on Business Exit Stories.
A specialty heavy equipment company that dominated a highly profitable niche decided to sell. A private equity firm suggested by the M&A advisor expressed interest and made a generous offer. However, the seller’s attorney had dealt with this Private Equity from before and had formed some opinions on them. What shouldn’t have happened, ended up […]
The post Going from a Meager Six Figure Walk Away Exit Offer to Millions Plus a Second Bite of the Apple on a Subsequent Sale appeared first on Business Exit Stories.
An entrepreneur decided to sell his business, and then when he was at the closing table, backed out. He did this not once but twice. Three partners with equal ownership in a business they ran for decades had different goals and objectives which caused an extended five-year process of getting the business sold. Russian immigrants […]
The post How An Entrepreneur Exited Their Business After A Cancer Diagnosis appeared first on Business Exit Stories.
A business owner’s lack of transparency with his M&A Advisor ended up taking his business sale from a sure deal to zero and the IRS killed this deal without breaking a sweat. A buyer walked away from a deal allowing the seller to re-sell the business again in a matter of months and keep all […]
The post How the IRS Can Kill a Deal Without Breaking a Sweat appeared first on Business Exit Stories.
Why working capital requirements can often be used strategically by buyers as they are designed to reduce the effective sales price of a business. Unaware sellers can be surprised when they end up with a lot less than they anticipated because they allowed the working capital to be manipulated either by how working capital was […]
The post How A Business Went From $50 Million In Sales To Ceasing Operations And Still Got Sold. appeared first on Business Exit Stories.
Although a comprehensive tax plan was painstakingly crafted and designed, a client went dark for nearly nine months. Less than a week before the sale was to take place the client called and asked if everything was ready to go. A significant portion of the tax planning strategies that had been crafted couldn’t be executed […]
The post How A Tax Plan Can Save Millions In A Business Sale appeared first on Business Exit Stories.
A transactional story of an infrastructure construction company that was equipment intensive and had accumulated nearly five times more equipment on the books than it needed. While the company has strong free cash flow, the amount of equipment on the books made it a difficult to capture anything above the equipment book value on the […]
The post How A Nearly Impossible To Sell Business Sold Quickly For Double Its Value appeared first on Business Exit Stories.
A commercial janitorial business dramatically increased their gross margins and profitability the year before it sold. However, the source of the profits wasn’t from excellent execution or dramatically increases sales. When the buyers found out why the performance was so good, they sued the seller. A juvenile based sports manufacturing and import company had multiple […]
The post How an Entrepreneur Was Able to Jack Up Profits Only to Be Sued After the Business Sold appeared first on Business Exit Stories.
A highly profitable business services company that has five highly qualified partners in the business handling the key functions of the company. These partners were committed to the business and worked 70-80 hours per week for years. Yet even though this company was highly profitable, it turned out to be unsellable. A $35M tortilla company […]
The post How to Make a $28M Highly Profitable Company Worth Nothing and Unsaleable in One Easy Step appeared first on Business Exit Stories.
Why the FBI, DEA, and state regulatory agencies descended on a business and why this didn’t bother the right buyer. How the wrong business intermediary can create mistrust and derail a deal in the blink of an eye, making it impossible for a buyer to acquire the business, even though it was a great business. […]
The post How Holding on to Your Business Too Long and Not Selling Can Cost Millions appeared first on Business Exit Stories.
A family operation with three kids never had a disagreement while mom, the matriarch of the family, was around. However, when she unexpectedly passed away, the kids spent the next 10 yrs. and $5M in legal fees trying to sort out their differences. A rags to riches saga where a family business, again with three […]
The post 50/50 Is Not Always Nifty – Partnerships That Don’t Work appeared first on Business Exit Stories.
A business card in a shirt pocket that was visible to others, helped dramatically increase the value of a deal when one of the buyer’s realized that their major competitor was bidding on their deal. Within 24 hours after they realized this, an offer was submitted that was substantially higher than anticipated. How Covid has […]
The post How a Competitor’s Business Card Dramatically Increased the Value of an Acquisition appeared first on Business Exit Stories.
A 4th generation business started in the 1890’s. As you listen to this deal story you will learn how the new owner was able to double the business in less than a year. A lower valuation on a business appraisal can dramatically change the economics of a deal, but how, if you understand the reasons […]
The post How a 4th Generation Business Doubled Their Sales After It Was Sold appeared first on Business Exit Stories.
A family run business with decades of a history with an elite clientele that provided cleaning concierge service for Broadway theaters by cleaning stage garments and costumes for all of the theaters in the Broadway Theater district. The family grew the business to a nearly 8-figure a year business and was flying high until COVID […]
The post From Flying High to Bankruptcy to a Successful Exit appeared first on Business Exit Stories.
A founder who was selling his business had the absolute criteria that he did not want to remain working in the business after it was sold. He was burnt out and wanted to move on. So, what do you think happened and what you should be prepared for when you sell your business? How important […]
The post What Do You Mean My Business Is Not Worth This? appeared first on Business Exit Stories.
How buyers will often research a market segment to identify companies in a specific industry or niche that is under served or has consolidation opportunities and then decide to create a platform. Building a platform is a strategy that is becoming more popular today for buyers as they seek out companies to acquire. Small insignificant […]
The post How Partners that Couldn’t Stand Each Other Managed to Sell Their Business appeared first on Business Exit Stories.
An entrepreneur in a service sector identified a need where the sales, operations, and finance departments of his clients always seemed to be relatively inefficient. He conceptualized a customized solution that could revolutionize the service and hospitality industry. Little did he realize how perfectly his company would be positioned when COVID hit. A young husband […]
The post People Get Funny When It Comes To Money appeared first on Business Exit Stories.
A financial services company that was a few weeks away from being sold. As the final draft of the Letter of Intent was being reviewed, after all of the terms and conditions had been agreed to by the buyer, there was just one more term to discuss with the client – a term the client […]
The post How Does a Deal Go From $20M to $120M Without Breaking a Sweat? appeared first on Business Exit Stories.
A transaction involving a successful residential HVAC company, which is one of those industries that hasn’t been impacted a lot by the pandemic because people still need their furnaces and air conditioners. The business had a number of offers but when it came time to close, the seller had a change of heart. A great idea […]
The post Are You a Seller or a Seller? How to Know Which You Are. appeared first on Business Exit Stories.
An acquisition of a firm where the founder had a long-term strategic vision and how they wanted to exit. Because of this vision, he turned down a cash buyer. While most of the episodes on this podcast place price as an important consideration but not the only consideration, it’s rare to have a cash deal […]
The post Why an Earnout Turned Out to Be Nearly 40% Better Than a Cash Deal appeared first on Business Exit Stories.
In a transaction that involved a Private Equity group, the deal was structured in a way that the seller was very focused on getting his price for the sale of his business. Sophisticated buyers pick up on this and structure a deal to play to this emotional need and then build in other terms that […]
The post What to Be Aware of with Private Equity and Search Fund Buyers appeared first on Business Exit Stories.
A second-generation family owned business started in the 1950’s where there was no succession plan in place had a sales price number that they needed to get for the sale of the business. Fear surrounding being able to get that number dictated how decisions were made in trying to sell the business. A Medical Billing […]
The post How a Medical Billing Company Was Able to Generate over 500 Interested Parties Creating a Feeding Frenzy to Buy the Business appeared first on Business Exit Stories.
Terry became a business intermediary because of his experience as a business owner when he bought, scaled up, and sold a manufacturing business. An almost unbelievable story of a business listed for five years, one that generated over 5,000 inquiries of interest in the business, primarily because the business was a solid business with a […]
The post 5 Years, 5,000 inquiries, 5 Full Price Offers, and a Deal at the Closing Table, and Guess What Happened? appeared first on Business Exit Stories.
A large development property that a physician purchased out of bankruptcy during the Great Recession for pennies on the dollar. After investing an additional $20M in preparing the property for market as a turnkey real estate development, the commercial realtors missed a key component in their marketing of the business which had a proposed sales […]
The post The Devil Is in the Details – Why a $500,000,000 Deal Didn’t Close appeared first on Business Exit Stories.
A founder was so focused on his product and making it the Lamborghini in his market niche that he ignored what the market looks for when acquiring a business. While he was able to make his product really powerful, this didn’t do him a lot of good because what was important to him wasn’t necessarily […]
The post How Focusing Too Much on Tax Avoidance Cost One Family Their Inheritance appeared first on Business Exit Stories.
A minority shareholder who had his own agenda attempted to sideline a deal that was ready to be closed. A seller was able to protect himself from the decrease in the acquiring company’s stock price. A chance meeting at an industry conference took a business from a highly commoditized business into becoming a specialty player […]
The post How Valuing A Company’s IP And A Strategic Buyer Turned A $50M Valuation Into A $200M Sale. appeared first on Business Exit Stories.
A transaction began to fall apart early in the due diligence process but was held together because the buyer was motivated, remained engaged, and really wanted to close the deal. A family business with a long history of profitability was listed for sale and five buyers were ready to make offers to acquire the business, […]
The post Time Kills Deals appeared first on Business Exit Stories.
A commercial sign company that had two main types of customers. One customer segment was in the tradeshow, convention, and event market vertical. The other was for companies that needed exterior signs for their buildings and locations. A co-founder had 44% of the business, and an angel investor was a silent partner for 5% that provided […]
The post How One Business Covid-Proofed His Business Before Covid-19 Hit appeared first on Business Exit Stories.
A client that had a machine shop and how an environmental impact report on new building, which shouldn’t have had any environmental issues, ending up being a major factor in cratering a deal. An equipment manufacturer that had a single supplier for his product that had an unexpected outcome. An owner wanted to sell his […]
The post How a $6M Unsolicited Offer Turned Into a $14.5M Sale In Eight Weeks appeared first on Business Exit Stories.
Most business owners don’t fully appreciate how important it is to know who is buying your company and what their motivations are. How a transaction can get thrown out the window when the key people and both the buyer and seller get along well and build a lot of trust during the due diligence process. […]
The post How Things Getting Personal Can Cost You Millions appeared first on Business Exit Stories.
A company walks away from an offer of $35M and months later is forced to accept a $2M offer. A niched business is not necessarily always a good thing, and not being able to forecast trends may be the difference between an exit or having no exit at all. Why properly positioning a company in […]
The post How an Entrepreneur Took a Business from a $35M Offer Down to $2M in a Few Months and What You Can Learn From This. appeared first on Business Exit Stories.
A transaction which took place during the height of the Covid Pandemic Lockdown. While delayed by a few months, it was able to be closed while most of the country was still under lockdown restrictions. Two companies which had similar issues during the sales process which resulted in neither of these transactions closing. Both sellers […]
The post Why a Manufacturing Business Was Able to Be Sold to a Strategic Buyer During the COVID Pandemic Lockdown appeared first on Business Exit Stories.
A transaction that involved a nationally based multi-unit weight lost franchisee that had accepted a multi-million dollar offer on its business only to have the franchisor kill the deal by restricting the new buyer from opening up more new franchise locations. A transaction of when even though you have an accepted offer how an appraisal can […]
The post A Buyer Paid $1M More for a Business Than Other Offers and Why They Thought the Business Was a Steal. appeared first on Business Exit Stories.
A founder of an IT based company had an unrealistic expectation on the valuation of his business solely based on his internet research. The business was most likely overvalued as much as 75% to 100%. How this potentially deal breaking fact was negated when buyer/seller chemistry created a situation where 1 + 1 actually equaled […]
The post How Buyer and Seller Chemistry Created the Deal Dynamics where 1 + 1 = 3 appeared first on Business Exit Stories.
How a $35,000 decision ended up costing a business owner $2,000,000 in cold hard cash at closing. Customer concentration cost a seller a $7,000,000 deal that was almost across the finish line. How positioning a company with strategic buyers can create a buyer’s auction that can dramatically increase the value of a business. Sam shares […]
The post How an Avoidable $35,000 Mistake Cost $2,000,000 Loss in Cash appeared first on Business Exit Stories.
This episode is being recorded shortly after the Covid – 19 worldwide shut down of businesses in the US and countries around the world. Deals that couldn’t have been closed without a keen understanding of how to properly use owner financing in structuring the transaction that benefited both buyer and seller. Why businesses need to […]
The post How Seller Financing Can Save Deals in Uncertain Times and Reap Sellers Millions appeared first on Business Exit Stories.
A CEO that sold a business becomes a director of an investment bank and show how understanding both sides of an acquisition can teach you how to better position your business for a successful exit. A cautionary tale of a self funded company that utilized Facebook as its main marketing platform and the risks involved […]
The post Why a Founder Went from Having Over 50M Website Visitors to Zero and Having to Close Up Shop appeared first on Business Exit Stories.
A transaction involving a lighting equipment rental company that provides to the entertainment industry for companies involved in movie and TV production. However, when the bank’s appraiser valued the business 50% less than the sales prices the deal fell apart.
A primary care physician who was nearing retirement and wanted to sell his practice to an associate had to engage a tax specialist to restructure the transaction to make it feasible for the doctor to sell. All because he had a C corporation and the adverse tax consequences of selling a C corp such as double taxation.
A nutrition manufacturing company that was very marketable due to fast growth. The first buyer that surfaced was a Search Fund which can come with downsides.
An office specialty equipment manufacturer was able to structure a deal with a strategic acquirer. The seller was able to completely eliminate a large owner carry back. The acquirer was willing to do a cash deal after making an offer that included a 20% owner carry back.
Adriana Smith & Lana Hout
First Choice Business Brokers
Los Angeles, California
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The post What Happens When the Bank Appraisal Comes in at 50% of the Sales Price? appeared first on Business Exit Stories.
How forty years of hard work all went down the drain when the business was sold with seller financing. After the business sale closed there was an equipment failure which allowed the buyer to stop making payments on the promissory note that seller had financed.
A lifestyle business that had been around for more than 30 years and was one of the most well known in the area disappears because the owner didn’t plan a head which destroyed his opportunity for survival.
A company that lost nearly half of its business because of a hasty decision by the owner. The owner was able to pivot and quickly recover from the loss of the sales revenue and turned it into the best thing that could have happened.
A business that has been around since Abraham Lincoln was president finally stumbled and had to be sold before it when out of business after six generations for reasons that were totally avoidable.
Gregg Kunz
Rocky Mountain Business Advisors, Inc.
Denver, Colorado
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The post Six Generation Family Business Are Rare – Why This One Bites the Dust appeared first on Business Exit Stories.
An immigrant from Eastern Europe came to the US with $200 to his name and eventually became an all-American success story.
Not thinking about how a sales model based on relationship-based referral of one of the partners caused a business to literally become unsellable.
A family-owned and managed logistics company had a family council to decide on what to do with the business since the son, although he worked in the business, didn’t want to take over the business from his father.
Three partners of a 60 year old large commercial landscaping company made the decision to exit their business early for a very surprising reason.
Les Veil
Next Level Business Advisors
Schaumburg, Illinois
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The post Starting With $200 and Growing to $10M in Sales Cashes Out appeared first on Business Exit Stories.
A multi-unit franchisee in a national retail chain acquires a large local franchise location. The day before the sale was set to close, an employee got into an altercation with a customer. The incident was captured on video and posted on social media. This cost the seller hundreds of thousands of dollars.
A buyer threatens to sue the seller one year after a sale because of alleged misrepresentation of revenue.
How selling a business to a key employee can be a win for both the employee and the business owner.
A father can sell a business to his son but if this isn’t done right, can result in major pitfalls.
Peter Hanna
Hopler, Wilms, & Hanna PLLC
Durham, North Carolina
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The post How a Social Media Post Cost the Seller Hundreds of Thousands of Dollars appeared first on Business Exit Stories.