Mastering Exit Readiness: A Founder’s Guide with Jordan Calderon

In this conversation, Mike Sirius and Jordan Calderon discuss the critical aspects of preparing a business for sale, emphasising the importance of exit readiness, profitability, and sustainable growth. They explore the M&A process, the significance of standard operating procedures (SOPs), and the impact of founder dependency on business valuation. Jordan shares personal experiences from his own exits, highlighting the lessons learned and the psychological aspects of selling a business. The discussion also touches on the role of remote talent and the future of business operations in a globalized economy.

Takeaways

• Selling your business requires long-term planning, not last-minute efforts.
• Profitability is crucial for bootstrapped founders to sustain their lifestyle.
• Investing in all business functions is essential for sustainable growth.
• Creating a sellable business involves preparing well in advance of a sale.
• SOPs can significantly increase business valuation by providing structure and clarity.
• Founder dependency can severely limit a business's sellability.
• Understanding the M&A process is vital for a successful exit.
• Valuation multiples are influenced by consistent growth and operational efficiency.
• Trusting your instincts is important during negotiations and deal-making.
• Building a strong company culture is essential for retaining talent post-acquisition.

Sound Bites

• "Work to build a sellable business."
• "Buyers set the price, not the sellers."
• "Trust your gut when something feels off."

Keywords

exit readiness, business valuation, profitability, M&A process, founder dependency, SOPs, remote talent, business growth, entrepreneurship, startup success