DealQuest Podcast with Corey Kupfer Corey Kupfer

As is the case with many guests of the DealQuest Podcast, this week’s guest, Richard Parker, never envisioned himself as a dealmaker. Parker's journey into the world of dealmaking, however, began early at the age of 12 when he launched his first business endeavor, delivering newspapers and selling subscriptions in his local community. This early venture instilled in him the fundamentals of sales and marketing, laying the groundwork for his future endeavors. Throughout his career, Parker has been actively involved in numerous transactions, assuming roles as both buyer and seller. Each deal has provided invaluable insights, shaping his approach to deal making and bolstering his expertise in the field. Today, Parker is committed to assisting others in realizing their entrepreneurial aspirations. Through his programs and consultations, he shares his wealth of knowledge and experience, empowering individuals to achieve their dreams of business ownership – and he’s here to share this the keys of knowledge base with us today. 5 GOLDEN RULES OF DEALMAKINGIn his years as a dealmaker, Richard has created his own formula for a set of guiding principles that he adheres to when assessing potential business opportunities. These principles have played a pivotal role in his success, and as such, he encourages others to develop their own criteria for evaluating deals. Parker's five golden rules are outlined as follows:


Sales and Marketing Driven: Richard prioritizes businesses that are driven by robust sales and marketing strategies, recognizing that revenue generation is fundamental to business success.
High Margins: He seeks out businesses with high profit margins, understanding that such margins facilitate increased profitability and long-term sustainability, providing resilience against challenges and fostering opportunities for strategic growth.
Element of Exclusivity: Richard looks for businesses offering an element of exclusivity in their products or services, whether through unique offerings or territorial advantages. This exclusivity confers a competitive edge and enhances the business's overall value.
Demand in Place: He gives preference to businesses with established demand in the market, recognizing the costliness and difficulty of creating demand from scratch. Investing in businesses with proven market demand mitigates risk and enhances potential returns.
Not Competing on Price: Richard steers clear of businesses that compete solely on price, recognizing the inherent pitfalls of such a strategy in the long term. Instead, he focuses on businesses that offer value and differentiation in the marketplace.

THE IMPORTANCE OF SPECIFICITY IN DEAL CRITERIAWhen crafting deal criteria, Richard states that it is imperative to be precise and deliberate about the factors that hold the most significance. Richard believes that generic criteria can result in vague and unproductive assessments of potential deals, and he advises dealmakers to look deeply and pinpoint the specific quality and attributes crucial for success in a business venture. For instance, rather than simply expressing a general preference for enjoying one’s work, it hold more weight to identify the underlying motivation behind the desire. Perhaps it stems from a passion for working with children, which can then be translated into a specific criterion pertaining to businesses specializing in children’s products or services. By adopting a specific and intentional approach to defining deal criteria, dealmakers can effectively evaluate potential opportunities and align them with their unique strengths and interests. HOW TO BUY A GOOD BUSINESS AT A GREAT PRICEAre you looking into making serious business purchases? Need a good place to start on how to go about it? Luckily enough, Richard offers a course for just this. The How To Buy a Good Business at a Great Price course featured on Richard’s website is a course designed to help individuals who are thinking about bu

Mergers and acquisitions, one of the best ways to grow your business, but sometimes it feels like trying to assemble a puzzle in a hurricane - exhilarating, chaotic, and you might end up missing a few pieces. That’s why I’m excited to have Scott Bushkie on this episode of the DealQuest Podcast. Scott is a managing partner and Founder of Cornerstone Business Services, a firm that specializes in offering exit strategies, managing sell- and buy-side transitions, and providing valuations within the lower middle market. With a primary focus on businesses with revenue ranging from $5 to 150 million and an EBITDA between $1 to 15 million, Cornerstone Business Services have collaborated with private equity firms, family offices, and strategic buyers. Scott himself dons over 25 years of experience in providing exit strategies, sell- and buy-side transitions, and valuations. Scott is a go to man to help you turn your hurricane puzzle into a carefully crafted masterpiece, ensuring that all the pieces fit together seamlessly for a successful outcome. STRATEGIC SELLINGStrategy is something we discuss often on the DealQuest Podcast, and in the context of selling, strategy in identifying and targeting specific buyers or investors who can bring the most value to a company is no less important. Business owners need to shift their mindset from just building a successful business organically to thinking like a dealmaker. Successful entrepreneurs and business owners need to focus on creating a valuable and transferable company, rather than just taking cash out of it. This involves planning early, building a team of advisors, and understanding the various options available for exiting the business. For Scott, one of the biggest moves when it comes to strategy is having “the conversation” about exiting the business early on. Business owners should feel encouraged to explore their options and start making well-informed decisions about their future exit strategy – there are more options available than just simply giving their business to children or selling to a local buyer. THE COST OF DOING IT WRONGHolding out too long could cost 40% of a company's value and make it unsaleable. Many businesses sell at a low rate due to mistakes, but educating business owners can increase their chances of success. The issue is that owners often keep their intentions confidential and try to figure things out alone, leading to overspending and poor results. Working with trusted advisers and partners can help increase odds of success. Unsolicited offers may seem perfect for tired entrepreneurs, but they should be cautious and consider consulting trusted advisers before making a decision. ENSURING A FAIR DEALEntrepreneurs might initially feel a sense of relief when they receive interest from a potential buyer for their business. It's crucial, however, to recognize that this doesn't always translate into the most favorable deal. Buyers may capitalize on the seller's emotional connection to the business by telling them what they want to hear. That's why it's so important to collaborate with a professional who can help navigate the complexities of selling a business and secure a fair deal. To maximize the value of their business and prevent leaving money on the table, sellers should consider creating a sense of urgency and scarcity. Scott also emphasizes the significance of professional buyers who are adept at securing advantageous deals for themselves. It's essential for sellers to have a clear understanding of the true market value of their business. To learn more about ensuring a fair deal and navigating the M&A landscape, check out the book Finish Strong: Sell Your Business on Your Terms by Scott Bushkie: https://www.cornerstone-business.com/finishstrong/ • • • For my full discussion with Scott Bushkie, and more on this topic and topics not featured on this blog post:Listen to the Full DealQuest Podcast Episode Here• • • FOR MORE ON SCOTT BUSH

On this episode of the DealQuest Podcast, I have guest Stephen Speer, the founder and CEO of eCommerce Lending Inc., a firm specializing in financing acquisitions, advisory, and search services in the online space. With a lending career spanning decades, Stephen and his team have utilized their expertise in assisting hundreds of entrepreneurs in achieving business acquisition success. As an e-commerce lender, guest speaker, and M&A instructor, he and his firm have funded over 500 transactions totaling over $1 million – making eCommerce Lending Inc. the top lender in the country in this very specialized niche. NAVIGATING THE COMPLEXITIES OF E-COMMERCE DEALSOne of the key takeaways of this episode is the importance of patience and strategic planning when navigating the complexities of e-commerce deals. There are various components in e-commerce deals that vary from brick-and-mortar businesses, but there are many similarities including the use of earn-outs, seller equity roles, and seller notes, especially in context of larger deals. Stephen emphasized the need for thorough due diligence and a deep understanding of the client's business goals and objectives. It’s about finding the right opportunity, and the need for buyers to be prepared to act quickly when they find it. Finding the right advisory services is also a crucial key when making the right deal, as they can guide clients through the deal process – from structuring the offer, to securing the right financing. By leveraging their expertise and industry knowledge, Stephen and his team empower clients to make informed decisions and capitalize on the opportunities within the e-commerce space. AI IN BUSINESS ACQUISITIONIn the last 2 years, artificial intelligence (AI) has grown rapidly in its use across all fields. The state of AI in the business world is still in its infancy, and currently focused primarily on seeking startup capital and venture capital. When discussing AI in business, some existing companies are buying startup AI companies, while others express fear and uncertainty of the technology. The potential impact of AI on society is both beneficial and potentially negative, and it requires much more exploration and understanding. One this is for certain for Stephen, AI cannot have the intricate expertise of M&A advisory and buyer representation when it comes to business acquisitions. Acquisitions are never straightforward, and AI lacks the human capability to work on deal structuring, negotiations, or deal financing. That said, educational technology is a growing segment with high multiples due to recurring revenue, while e-commerce is experiencing some softening, particularly in comparison to the software as a service (SaaS) segment. THE POWER OF ENTREPRENEURIAL MINDSETAs an entrepreneur himself, Stephen understands the power of an entrepreneurial mindset in driving deal-driven growth. His keys to the entrepreneurial mindset are patience, resilience, and adaptability, especially in the face of market uncertainties and evolving market landscapes. Stephen’s history from a young owner of a car detailing business to founding eCommerce Lending Inc. reflects the transformative power of entrepreneurship and the ability to seize opportunities in uncharted territories, Which is, arguably, a hallmark staple of an entrepreneur. • • • For my full discussion with Stephen Speer, and more on this topic and topics not featured on this blog post:Listen to the Full DealQuest Podcast Episode Here• • • FOR MORE ON STEPHEN SPEER:https://www.linkedin.com/in/stephenspeer/www.ecommercelending.com


Corey Kupfer is an expert strategist, negotiator, and dealmaker. He has more than 35 years of professional deal-making and negotiating experience. Corey is a successful entrepreneur, attorney, consultant, author, and professional speaker. He is deeply passionate about deal-driven growth. He is also the creator and host of the DealQuest Podcast.  Get deal-ready with

Negotiation: Not just a pivotal element in dealmaking, but a crucial skill to possess. Mastering the skill of negotiation can lead to deal-driven growth and success. The repercussions of failed negotiations, however, can be dire, often resulting in strained relationships, missed opportunities, and financial losses. On this episode of the DealQuest Podcast, I want to focus on the top six reasons negotiations fail. Understanding these reasons can help business owners, executives, and leaders navigate negotiations more effectively and achieve their objectives. By delving into the fundamental skill of negotiation, and how negotiations fail, I hope to equip individuals with the knowledge and strategies necessary to navigate complex business dealings effectively, all while fostering mutually beneficial outcomes and fortifying relationships for long-term success in the competitive nature of business. THE TOP SIX REASONS FOR FAILED NEGOTIATIONSBecoming a great negotiator isn’t just learning how to negotiate successfully, it also requires a deep understanding of the factors that can lead to negotiation failure. I’ve narrowed down the top six reasons that cause negotiations to fail:


Lack of preparation
Ego
Fear
Rigidity
Becoming too emotional
Lack of integrity

To be fair, each of these reasons could easily take an episode each to unpack, however, learning to address these issues allows negotiators to enhance their negotiation skills and achieve deal-driven growth. BALANCING LIKABILITY AND OBJECTIVES FOR SUCCESSFUL DEALSBeyond the top 6 reasons for negotiation breakdown, there are other elements at play. For instance, the desire to be liked can lead to conceding on points one doesn't want to, especially if they haven't prepared or done their due diligence. This can be a pitfall for those who need approval from others, as it may cause individuals to make concessions that they shouldn't, especially if they have not clearly defined their objectives. The need for approval can cloud judgment and lead to decisions that are not aligned with one's goals. Focusing on achieving objectives rather than winning is key. Be careful not to fall in love with deals before they're completed. Listening more than talking allows negotiators to better understand the other party's needs, and setting up deals in a way that lets the other party feel like they've won can be a successful strategy. Simply put, to succeed in negotiations, as dealmaker you must prioritize achieving your objectives, listen more than you talk, and use the other party's need to feel like they've won against them. Ultimately, the key to successful negotiations lies in thorough preparation, understanding the other party's perspective, and maintaining a focus on achieving objectives rather than seeking approval or ego-driven victories. By addressing these pitfalls and approaching negotiations with clarity, detachment, and equilibrium, dealmakers can navigate the complexities of negotiations more effectively and achieve mutually beneficial outcomes. • • • For my full discussion, and more on this topic and topics not featured on this blog post:Listen to the Full DealQuest Podcast Episode Here


Corey Kupfer is an expert strategist, negotiator, and dealmaker. He has more than 35 years of professional deal-making and negotiating experience. Corey is a successful entrepreneur, attorney, consultant, author, and professional speaker. He is deeply passionate about deal-driven growth. He is also the creator and host of the DealQuest Podcast.  Get deal-ready with the DealQuest Podcast with Corey Kupfer, where like-minded entrepreneurs and business leaders converge, share insights and challenges, and success stories. Equip yourself with the tools, resources, and support necessary to navigate the complex yet rewarding world of dealmaking. Dive into the world of deal-driven growth today!

Hey there, it's Corey Kupfer, your host at DealQuest, and I'm bringing yet another enlightening conversation your way. In this episode, I had the pleasure of engaging in a lively dialogue with none other than entrepreneur and best-selling author Mike Michalowicz. Together, we covered some pivotal aspects of entrepreneurship, business growth, and personal fulfillment.Welcome back to DealQuest, where we dive into the minds of successful entrepreneurs and business leaders. Today, I was beyond excited to have Mike Michalowicz join me—a prolific author and a significant figure in the entrepreneurial space.

Mike Michalowicz's Fascinating Journey
Mike Michalowicz, the brains behind bestsellers like Profit First, Clockwork, The Pumpkin Plan, and his latest masterpiece, Fix This Next, brings a wealth of experience to the table. By the time he hit his 35th birthday, Mike had already established and sold two companies, one to private equity and the other to a Fortune 500 giant. Currently, he's at the helm of his third multimillion-dollar venture, Profit First Professionals, a testament to his unwavering dedication and expertise in the entrepreneurial realm.

Unveiling Entrepreneurial Insights
Throughout our conversation on DealQuest, I guided Mike to delve into his past, exploring the unconventional origins of his entrepreneurial ambitions. From childhood dreams of being a garbage man to crafting a path as a successful entrepreneur and acclaimed author, Mike's journey is a testament to innovation, resilience, and a commitment to learning from every experience.

The Hierarchy of Business Needs: Shifting Perspectives on Business Growth
A pivotal moment in our discussion revolved around Mike's groundbreaking concept: the hierarchy of business needs. Inspired by Maslow's hierarchy of needs, Mike introduced a paradigm shift in understanding the fundamental pillars that drive business success. He elaborated on how sales, profit, order, impact, and legacy form the bedrock, each playing a crucial role in shaping a thriving business ecosystem.

Navigating Challenges and Embracing Opportunities
Mike also emphasized the challenge of pinpointing the most critical issues in business—a struggle faced by many entrepreneurs. He stressed the importance of thoughtful contemplation and strategic focus when tackling challenges, echoing my own perspective on dealing with business obstacles.

Freedom as a Catalyst for Entrepreneurial Expression
Our conversation culminated in a poignant reflection on freedom—an intrinsic value that propels Mike's entrepreneurial endeavors. For Mike, freedom goes beyond traditional definitions; it signifies the ability to positively influence and genuinely serve others, empowering him to express his unique talents in the entrepreneurial landscape.This dynamic dialogue between Mike Michalowicz and myself sheds light on the multifaceted world of entrepreneurship. From the foundational principles of business success to the nuances of personal fulfillment, our discussion aims to inspire entrepreneurs to navigate their journey with purpose, authenticity, and a profound understanding of the intricate relationship between business acumen and personal growth. • • • For my full discussion with Mike, and more on this topic and topics not featured on this blog post:Listen to the Full DealQuest Podcast Episode Here• • • FOR MORE ON MIKE MICHALOWICZ:https://mikemichalowicz.com/


Corey Kupfer is an expert strategist, negotiator, and dealmaker. He has more than 35 years of professional deal-making and negotiating experience. Corey is a successful entrepreneur, attorney, consultant, author, and professional speaker. He is deeply passionate about deal-driven growth. He is also the creator and host of the DealQuest Podcast.  Get deal-ready with the DealQuest Podcast with Corey Kupfer, where like-minded entrepreneurs and business leaders converge, share insights and challenges, and success stories. Equip yourself with the

This week on the DealQuest podcast, we have impressive guest, Jon Ostenson on. Jon is the CEO of FranBridge Consulting, a top 1% franchise consultant, and the best-selling author of Non-Food Franchising: The Better Path to Ownership. With over 35 years of experience as a successful entrepreneur, professional negotiator, and attorney, Jon draws on his background as a former Inc 500 franchise president and multi-brand franchisee to help his clients select their franchise investments. He is a frequent contributor on franchising to publications such as Forbes and Bloomberg, and his goal is to help businesses achieve deal-driven growth.FRANCHISING AS A BUSINESS MODELFranchising is not something we’ve commonly discussed on the DealQuest Podcast, but Jon’s insights and experience in franchising offers us substantial information on franchising. Franchising is a business model that allows individuals to own and operate their own business under the established brand and system of a larger parent company, known as the franchisor. Jon recognizes the appeal in franchising as a business model with many benefits for aspiring entrepreneurs. Jon views franchising as “starting on 3rd base”, which is effectively leveraging an established system and framework provided by franchisors. It works, however, and allows entrepreneurs to bypass the challenges of building a business from scratch, providing them with a head start in their entrepreneurial journey. Offering new and different freedom and control than building an entirely new business from the ground up. FOOD AND NON-FOOD FRANCHISINGWhen we think of a franchise, we commonly think of food, such as fast-food restaurants like McDonald’s or Subway – which can be a lucrative choice for those looking to go into franchising. Jon argues, however, that non-food franchising can require less capital upfront, fewer employees, less operating hours, and be less susceptible to consumer whims, leading to lighter investment and higher margins. By looking outside of the food industry, potential franchisees are provided a diverse array of investment options. Non-food franchises encompass a wide range of industries, including:


Retail
Service
Healthcare
...and more!

 THE BENEFITS AND CHALLENGES OF FRANCHISINGJon's passion for helping individuals achieve freedom through business ownership shines, but he also recognizes that like any deal, it has both benefits and challenges. The benefits of franchising include the ability to build an asset with potential exit value, tax benefits, and the opportunity to leverage a proven business model with support from the franchisor. Franchising also allows for diversification of a business portfolio and can provide a head start on starting a business with support, advertising, and a proven model. There are also challenges, however, associated with franchising. These include the potential for individual failure within the system, the need for a significant upfront investment, and the requirement to follow the franchisor's system and guidelines. Additionally, there may be challenges in securing financing for the franchise, and there is always a risk of business failure, as with any entrepreneurial endeavor. To learn more about franchising, sign up for FranBride’s newsletter, and receive a complimentary copy of the book Non-Food Franchising: The Better Path to Ownership by Jon Ostenson: https://franbridgeconsulting.com/• • •For my full discussion with Jon Ostenson, and more on this topic and topics not featured on this blog post:Listen to the Full DealQuest Podcast Episode Here• • • FOR MORE ON JON OSTENSON:https://www.linkedin.com/in/jonostenson/


Corey Kupfer is an expert strategist, negotiator, and dealmaker. He has more than 35 years of professional deal-making and negotiating experience. Corey is a successful entrepreneur, attorney, consultant, author, and professional speaker. He is deeply passionate about deal-driven growth. He is also th