Before You Buy or Sell a Business Jared W. Johnson

Welcome back to another episode of the Before You Buy or Sell a Business podcast.
Recently, I sat down with Rand Larsen and he shared his journey from startup adventures to carving out a niche in the entrepreneurial through acquisition (ETA) space. The discussion unfolds with an exploratory look into Rand's foray into starting his own company and the lessons learned from its quick demise due to external factors like the pandemic. His pivot to buying businesses and his current focus on crafting peer groups provide a rich tapestry of insights for both budding and seasoned entrepreneurs.

Rand's candid recount of his experiences illuminates the challenges and rewards of embarking on entrepreneurial ventures. With an engaging narrative, he dives into the intricacies of building a business from the ground up, transitioning to buying established companies, and creating a supportive community through events and peer groups. The conversation touches on topics such as the feasibility of buying small businesses, the power of mentorship, and the potential of innovative marketing strategies in the digital age.

Takeaways:Adaptability is Key: Rand's career path emphasizes the need for adaptability, showcasing a readiness to pivot and leverage new opportunities.The Power of Community: Building peer groups and organizing events foster camaraderie and knowledge sharing among entrepreneurs.Buying Credibility: Acquiring a smaller business can serve as a stepping stone for building credibility in the market and securing more substantial deals.Understand Employee Dynamics: Post-acquisition, understanding and navigating the complexities of employee management is crucial for business success.Innovative Marketing for Growth: Rand's unique approach to promoting his peer groups through road trips and potential RV branding exemplifies creative marketing techniques.
IN THIS EPISODE
0:00 | Introduction6:15 | Building Community Through Local Entrepreneurial Events13:14 | Rand Larsen's RV Adventure for Entrepreneurial Networking17:11 | Pitching to Marcus Lemonis on Twitter24:23 | Balancing Authenticity and Positivity in Business Storytelling27:12 | Evolving Strategies in Small Business Acquisitions34:37 | Delegating Leadership to Transform Business Operations37:33 | Employee Challenges in Post-Acquisition Business Management44:48 | Mentorship, Motivation, and Meaningful Impact in Entrepreneurship48:08 | Rand Larsen Discusses Online Presence and Future Collaborations
Resources:Follow Rand Larsen on his journey and discover more about peer groups for business owners:
Twitter: @RandLarsen (As mentioned, Rand's life and knowledge about business are documented on Twitter)

Listen to Rand's story and learn from his experiences by tuning into the full episode. Stay connected for more episodes that shed light on the real-world aspects of buying, selling, and managing businesses. Don't miss out on valuable advice that could help catapult your ventures to new heights.

Welcome back to another episode of Before You Buy or Sell a Business.
Today, I am happy to introduce a past borrower, Derek Croft, whose recent venture into business ownership presents a unique and fascinating case study for aspiring entrepreneurs.
Derek opens up about his transformative journey, beginning with his engineering background, MBA pursuit, and foray into consulting at a top-tier firm. Realizing that his true calling lay in growing and running a business, he embarked on a meticulous search for the ideal company to acquire, laying out the nuances of his strategic shift from small to larger ventures and detailing his partnership with Search Investment Group (SIG) that led him to a rather interesting business.

As Derek navigates the initial challenges and triumphs of business ownership, listeners gain valuable insights into the critical role of due diligence, establishing operating agreements, and formulating high-impact strategic priorities.

Immerse yourself in Derek Croft's fascinating story of business acquisition and discover essential strategies for entrepreneurial success by listening to the full episode. Stay tuned for more inspiring and educational content to guide your own business journey!
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If you have questions for Jared, visit JaredWJohnson.com

DISCLAIMER: The views and opinions expressed in this program are my own and/or those of my guests. They do not necessarily reflect the views or positions of my employer.

Welcome back to another episode of Before You Buy or Sell a Business. Today, I talk with Erik Fike as he shares his experience of buying a business while still working in his current role.
He discusses how he found the right business, the challenges he faced during the transaction, and the lessons he learned along the way. Erik provides valuable insights into the due diligence process, the importance of finding the right lender, and the need for mentorship and guidance in the acquisition process. He also highlights the significance of having experience in running a company and the motivation behind his decision to pursue business ownership.
Key Takeaways:
Finding the right business: Erik emphasizes the importance of defining specific criteria for the type of business you want to buy, such as remote operation, B2B services, and revenue margins.Negotiating the LOI: Erik shares his experience of going through multiple revisions of the LOI with the seller, ensuring that all key aspects of the deal were addressed and agreed upon.The challenges of bank financing: Erik discusses the difficulties he faced in securing bank financing and the importance of finding a lender who understands the business and can provide the necessary support.The value of working capital: Erik highlights the importance of having sufficient working capital to navigate unexpected challenges and maintain stability in the business.Lessons learned: Erik advises considering forgivable seller notes to mitigate risks and protect against potential contract pauses or cancellations.

Notable Quotes:
"You really should have a mentor. I definitely have, and I also recommend peer groups for that same kind of thing. It's been great too." - Erik Fike

"The best-case scenario with a bunch of recurring revenue is awesome. This is not one of those businesses. This is a big project-based business." - Erik Fike

Erik Fike's LinkedIn

IN THIS EPISODE
00:00:00:00 | Introduction, Erik Fike's Background
00:04:02:10 | Emerging ETA Space & Social Media
00:17:37:01 | LOI, 9 Revisions, and Addressing Key Issues Upfront
00:20:11:13 | Experienced Lender vs Unexperienced Lender
00:27:06:20 | Unexpected budgetary issue in California affecting contracts
00:31:03:08 | Seller Note Forgiveness and Customer concentration
00:36:04:12 | Stability and Experience with Project-based Revenue
00:38:05:04 | Erik Fike Answers: Do You Have a Mentor?
00:39:30:02 | Erik Fike Answers: What Motivates You?
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If you have questions for Jared, visit JaredWJohnson.com

DISCLAIMER: The views and opinions expressed in this program are my own and/or those of my guests. They do not necessarily reflect the views or positions of my employer.

In this episode, host Jared Johnson interviews Eric Pacifici, an attorney specializing in small and medium-sized business (SMB) mergers and acquisitions (M&A). 
Eric shares valuable insights and advice for buyers and sellers in the acquisition process. He emphasizes the importance of having legal representation and discusses key contractual terms such as indemnity and non-compete clauses. Eric also addresses the cost of legal services and the benefits of a fixed fee model. 
He highlights common challenges in SMB M&A deals, including issues with quality of earnings and seller disputes. Eric provides practical strategies for mitigating risks, such as addressing customer concentration and involving investors in the deal. Throughout the conversation, Eric's passion for SMB M&A shines through, as he offers valuable guidance for navigating the complexities of these transactions.
Key Takeaways:Treat your bank as an ally, not an adversary. Your interests are aligned, and the bank can help identify potential issues such as customer concentration.The three most important contractual terms in an SMB M&A deal are indemnity, non-compete, and a strong letter of intent.Quality of earnings is a crucial aspect of due diligence. Hiring a quality of earnings provider can help uncover potential issues and protect your investment.Customer concentration is a common challenge in SMB deals. Mitigate this risk by including contingent compensation in the purchase agreement or promissory note.When bringing in investors, consider their control rights, objectives for the business, and potential impact on governance.
Notable Quotes:"You're risking your financial life. You're taking multimillion-dollar personally guaranteed debt. You need to have a checklist of things that you need in your deal.""Don't be a jerk, but you don't need to walk on eggshells. You're risking your financial life, and you can always pull the plug and go do another deal.""Find smart money people who can serve as strategic advisors. It's better to have strategic alignment than just generic dollars."
Resources:SMB Law GroupEric Pacifici on TwitterEric Pacifici on LinkedIn

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If you have questions for Jared, visit JaredWJohnson.com

DISCLAIMER: The views and opinions expressed in this program are my own and/or those of my guests. They do not necessarily reflect the views or positions of my employer.

In this episode of Before You Buy or Sell a Business, host Jared Johnson welcomes back Tommy Speigner to share his journey and lessons learned from acquiring a business in an industry he had never explored before. Tommy discusses the process, challenges, and triumphs he experienced in finding and buying a company. The conversation dives into the nuances of engaging with investors and the strategic approaches for buying and growing a business successfully.
From the decision-making strategies to the realization of purchasing a forestry and vegetation management service company, this episode unpacks the details of identifying viable business opportunities and the role of investor relationships. Tommy's experience demonstrates the importance of adaptability and keen business acumen.
Key Takeaways
Tommy Speigner explains the differences between his initial solo venture and his recent team-backed approach.The episode delves into the intricacies of searching for and acquiring a business outside one's typical industry.Key discussions on leveraging relationships, networking, and utilizing different types of funds for business acquisition provide valuable insights.Tommy shares his firsthand experience with the SBA loan process, exposing both challenges and triumphs.
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If you have questions for Jared, visit JaredWJohnson.com

DISCLAIMER: The views and opinions expressed in this program are my own and/or those of my guests. They do not necessarily reflect the views or positions of my employer.

In this episode of, host Jared Johnson interviews Daniel Cox, a serial entrepreneur who recently purchased a restaurant.
Daniel shares his background and journey from construction to law enforcement to the mental and behavioral health industry. He discusses how he found the listing for the restaurant and the due diligence process he went through before making the purchase. Daniel also provides insights into the challenges and opportunities he faced during the transition and the importance of having working capital.
He emphasizes the value of mentors and the need for careful planning and preparation when applying for an SBA loan. The episode concludes with Daniel discussing his plans for the future, including growing the restaurant and continuing his coaching work.
Key Takeaways:Daniel Cox emphasizes the importance of having working capital when buying a business, as unexpected expenses and regulatory requirements can arise during the transition phase.Conducting thorough due diligence, including spending time at the physical location and talking to staff members, is crucial to understanding the business and identifying any potential red flags.The SBA loan process requires careful planning, understanding the eligibility criteria, and preparing comprehensive financial statements. Having a mentor and organizing personal finances can also facilitate the loan application process.Daniel highlights the significance of an operating system and technology in managing and growing a business. Implementing efficient systems and staying adaptable are key to success.Holistic success, including personal fulfillment, the well-being of the team, positive community impact, and innovation, motivates Daniel in his entrepreneurial journey.

Daniel Cox's TED Talk: Elevating Expertise - How Skill Synergy Shapes Success

Listen to the full episode to gain valuable insights from Daniel Cox's entrepreneurial journey and learn about the challenges and opportunities of buying and growing a business. Stay tuned for more enlightening content from the Before You Buy or Sell the Business podcast.

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If you have questions for Jared, visit JaredWJohnson.com

DISCLAIMER: The views and opinions expressed in this program are my own and/or those of my guests. They do not necessarily reflect the views or positions of my employer.