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Nate Lind’s Guide to Smart Business Exits: Preparation, Valuation, and Success

Podcasts

Nate Lind’s Guide to Smart Business Exits: Preparation, Valuation, and Success

By , June 2, 2023
nate lind

 

 

Nate Lind, an experienced entrepreneur and business broker, shares his expertise in buying and selling businesses in this podcast. He started his journey by creating a technology business selling vitamins globally, which led to his first exit when a shopping cart company took notice of his unique reporting system. Nate’s passion for mergers and acquisitions eventually led him to become a business broker, where he now helps other entrepreneurs maximize their business value and exit on their own terms.

When starting and selling a technology business, it’s important to focus on factors that add value and make it attractive to potential buyers. Strategic planning is crucial, considering financial performance, industry trends, and competition. Nate shares his personal experience of selling his technology business, highlighting the unexpected valuation of his vitamin e-commerce business, which he initially considered more of a cash flow business than an asset with exit value.

Factors like financial performance, growth potential, and market demand significantly influence business valuation. Nate advises against relying solely on industry multiples and suggests using seller discretionary earnings as the base number, making adjustments for specific factors that impact the business’s value. Predictability is key, as buyers seek businesses with growing cash flow and low risk.

Preparing a business for sale requires attention to detail, including systems and processes to ensure predictability, addressing customer satisfaction, and resolving any reputation issues. Nate recommends finding an experienced broker for an accurate valuation and emphasizes the importance of online businesses having multiple revenue streams and scalability. Ensuring a successful transition from seller to buyer involves solid planning, maintaining customer satisfaction, and having a transition team and support system in place. Flexibility in negotiations and working with a qualified mergers and acquisitions lawyer also contribute to a successful transition. By focusing on these factors, entrepreneurs can maximize their business value and achieve a successful exit.

Watch episode here:

If you would like to learn more about how to start preparing your business, then you can get more information here: It All Begins with Insights.

Darryl Bates-Brownsword

Darryl Bates-Brownsword

CEO | Succession Plus UK

Darryl is a dynamic, driven Business Mentor and Coach with over 20 years of experience and passion for creating successful outcomes for founder-led businesses. He is a great connector, team builder, problem solver, and inspirer – showing the way through complexity to simplicity.

He has built 2 international multi-million turnover businesses; one now operating in 16 countries. His quick and analytical approach cuts through to the core issues quickly and identifying the context. He challenges the status quo and gets consistent, repeatable and reliable business results.

Originating in Australia, Darryl’s first career was as an Engineer in the Power Industry. Building businesses bought him to the UK in 2003 where he quickly developed a reputation for combining systems thinking with great creativity to get results in challenging situations.

A keen competitive cyclist, he also has a B Eng (Mech) Engineering and an MBA.