The Deal Board podcast is a place for small business owners and entrepreneurs to learn the best way sell a business or buy a business. Business Exit Experts, Andy Cagnetta and Jessica Fialkovich, lead discussions with expert business brokers, M&A professionals, and entrepreneurs that have sold a business or bought a business. Whether you are looking to learn how to sell a business, information on business valuation, or how to buy a business – The Deal Board gives you the behind the scenes of the entire mergers and acquisitions world.
First Quarter Recap
Valuation: Listen to the Experts to Know the Worth of Your Business
Welcome to another episode of The Deal Board Podcast! In today’s episode, Andy and Jessica are addressing one of the most popular topics in the world of business sales: valuation; and for that, they are discussing with two top industry experts in valuation. Darren Mize from GCF Valuations gives a great update on what is happening in the marketplace, and how they are approaching the COVID-19 crisis. David Fein, CEO of ValuSource, talks today about data, how it is compiled, its quality, and where it comes from. This is very useful information since we usually talk about variation multiples without knowing where all this information comes from.
Listings of the week:
- Sam Curcio (New York) is selling an Interior Design Architecture firm that also does repositioning work. Listed at $3.9 million. They did over $2.4 million in 2021 with an EBITDA of $1.1 million. It is an SBA prequalified deal.
- Bob Dunphy (New York) is selling a fabulous Mexican restaurant, SDE $350,000, and the asking price is $599,000.
[5:29] Darren Mize (GCF Valuations).
[6:21] Darren talks about what he is seeing in the business world these days.
[8:51] How important is the beginning of 2022 for Darren?
[11:18] How is Darren approaching the valuations?
[13:22] How does Darren’s valuation differ from business brokers’ valuations? What kind of adjustment does he usually have to make?
[16:41] Darren dives deep into the concept of data.
[19:43] How important is a location in trying to understand multiples?
[21:40] Darren shares advice to business owners who might think about selling and maximizing their value in the future.
[24:19] Deal of the week: Gary Goldwasser (Denver, Colorado) sold an electrical contractor company doing $5 million in revenue. The asking price was $1.75 million with real estate involved. The buyer purchased it through an SBA loan for $1.7 million.
[31:59] Listing of the week: Sam Curcio (New York) is selling an Interior Design Architecture firm that also does repositioning work. Listed at $3.9 million. They did over $2.4 million in 2021 with an EBITDA of $1.1 million. It is an SBA prequalified deal.
[33:36] David Fein (President and CEO of ValuSource)
[34:04] David talks about how buyers and sellers think about valuation.
[34:53] David shares what ValuSource does as the owner of the largest source of data for small businesses.
[36:23] What does the data collected by buyers and sellers tell us?
[40:01] David explains how to increase valuation by lowering risk.
[43:05] David shares how they acquire the data and from whom.
[46:26] David shares his advice for anyone wondering about the value of their business.
[49:23] Listing of the week: Bob Dunphy (New York) is selling a fabulous Mexican restaurant, SDE $350,000, and the asking price is $599,000.
SBA Financing Made Simple
Welcome to another episode of The Deal Board Podcast. This time, Andy and Jessica, your hosts, are welcoming two of the top SBA business lending experts, John Wahl and Lynn Ozer, who are explaining some of the basics, including what is SBA financing, how is it used, and what business financing in general looks like in our current environment.
Listing of the week: The team of Transworld Business Advisors from Oregon Central is sharing one amazing listing: An e-commerce business in the outdoor power sports industry that has been in business for over 20 years. It is making $5 million per year and $600,000 in EBITDA. The asking price is $3.5 million. Completely turn-key. Great scalable opportunity. Call Lonnie Woodruff at (541) 920-9026 or email firstname.lastname@example.org.
[4:52] John Wahl (Live Oak Bank).
[5:18] What is business financing?
[7:36] How do you know if you are qualified for SBA financing?
[8:13] John describes some of the eligibility requirements for an SBA loan.
[9:43} John talks about the state of the union when it comes to business financing and acquisition.
[12:50] Jessica and John talk about the importance of having a specialist by your side when looking for SBA financing.
[14:51] John shares about Live Oak Bank and the kind of SBA financing they offer.
[15:14] John talks about the SBA 504 and 7(a) programs.
[16:23] How do buyers start engaging in this process? How do they know if they qualify for SBA financing?
[19:55] John expands on Live Oak and the programs they offer.
[21:55] Deal of the week: Aaron Fox (Boston) sold a pediatric office focused on mental health as a behavioral help facility. Twenty-eight therapists working, following all legal regulations. They were making $1 million in revenue, sold at $785,000.
[26:06] Lynn Ozer from MultiFunding explains what makes her an expert.
[28:40] Lynn talks about the current SBA programs available.
[30:35] What does it take to get an SBA loan?
[36:50] How much experience does a new buyer need?
[38:14] Lynn talks about the collateral.
[39:04] Andy and Lynn talk about the special circumstances that happened in these past couple of years and how they affected valuations.
[42:15] Why should someone choose a company like MultiFunding?
[46:27] Listing of the week: The team of Transworld Business Advisors from Oregon Central is sharing one amazing listing: An e-commerce business in the outdoor power sports industry that has been in business for over 20 years. It is making $5 million per year and $600,000 in EBITDA. The asking price is $3.5 million. Completely turn-key. Great scalable opportunity.
Become a Better Leader
Andy and Jessica welcome you to another episode of The Deal Board Podcast; this time they are talking about leadership. Leadership is crucial, even when you are buying and selling a company, you even were or become the leader of that business and your skills as such are of great importance. The way of viewing leaders has changed; now people are looking for a servant leader, one that values the relationship with the employees, and prioritizes a psychologically safe environment at the workplace.
Listing of the week: Tom Alana (Fort Lauderdale) is selling an elevator repair company in the Turks and Caicos Islands; their gross revenue is about $2 million annually and their profit margins go from $600,000 to $700,000. They specialize in new installation, repair, and maintenance of elevators. The listed price is $1.95 million; they are able to do seller financing with at least a $1.2 million down payment. No residency is needed. A Canadian or European buyer would be ideal! Call Tom at (561)702-6067 or email at email@example.com.
[4:59] Nate Bailey who is a Leadership Guru joins today’s conversation.
[7:25] Being a leader is mentally challenging, Nate shares some of his experiences in his leadership journey.
[9:02] Nate explains how participating in physical challenges has made him a better husband, leader, and overall a better person inside of his community.
[10:21] Nate shares his advice to young people that aim to become entrepreneurs or leaders.
[14:16] How can leaders up their game to attract and retain talent?
[16:28] How does Nate motivate people to become better leaders?
[19:57] We have underestimated the mental health toll that the pandemic has taken on people.
[21:20] How do leaders receive mental health support?
[24:13] Nate talks about what he has been working on.
[25:53] Deal of the week: Michael Snider (Cleveland West) just sold a business in the medical services industry that was doing $1.1 million in sales and the net profit margin was 40%. They received a full-price LOA. The closing process took 11 months after overcoming several challenges regarding their financial statements.
[32:55] Brian Brault, founder of Legacy of Significance.
[33:34] What does leadership mean to Brian?
[35:50] How does the role of a leader pivot in a transition-like situation?
[39:26] Brian explains why providing certainty to people is not always an option.
[40:01] Brian describes the skills needed in a leader to help reduce the stress levels of employees.
[42:07] Brian shares an example about leadership during transition times.
[45:02] Are leaders born or made?
[49:05] How can leaders strengthen their leadership muscle and even increase their emotional intelligence?
[52:29] Brian explains what Legacy of Significance is all about.
[56:12] Listing of the week: Tom Alana (Fort Lauderdale) is selling an elevator repair company in the Turks and Caicos Islands; their gross revenue is about $2 million annually and their profit margins go from $600,000 to $700,000. The price is $1.95 million; they are able to do seller financing with at least a $1.2 million down payment.
What is My Business Worth? Part 2
Andy and Jessica welcome you to another episode of The Deal Board Podcast. This time, to resume the topic started on Episode 121, about business valuation. First, you need to have under consideration that a business can be valued in different ways, depending on the purpose, but if your objective is to sell it, then this is the right show for you. In today’s episode, Andy and Jessica are sharing the different approaches to valuating your small-to-medium business that you are considering selling.
Listing of the week: Michael Shea (Central Florida) is selling a manufacturing business that cuts designs for walls; they are making $1 million in sales. The owner is a 23-year-old who started this great online business. Cash flow: $333,000. Priced at $650,000. Call Michael at (321) 287-0349 or email him at firstname.lastname@example.org.
[2:09] Why do you want to value your business?
[4:03] Andy talks about the right valuations in order to get financing.
[5:10] When do you need a certified valuation?
[6:55] Andy shares the definition of Fair Market Value.
[8:25] Jessica talks about the two earnings that should be looked at in valuations.
[10:39] The first approach to valuation: The Income Approach.
[13:36] The second approach to valuation: The Asset Approach.
[15:45] If your business is not making money, it doesn’t mean you can’t sell it.
[17:05] The Market Approach is the method for valuations that is used more often to sell small businesses.
[19:55] SDE multiples have increased over the years.
[21:08] Andy shares the statistics.
[23:06] Andy talks about other factors that can affect the valuation multiple, like location, supply, or labor issues.
[23:50] What does the current market look like?
[24:26] How was the market during COVID-19?
[25:09] It is still a strong seller’s market.
[27:28] Andy and Jessica talk about overpricing.
[28:50] Case studies and examples.
[33:41] Andy shares on the Rules of Thumb, which are highly used for valuations.
[36:10] Get some outside help!
[38:13] Deal of the week: Sam Curcio (New York) sold a high-end residential cleaning company. Revenue $3 million per year. SDE $700,000, Sold at $2.175 million. Impeccable books and records! The buyer was in the industry too.
[41:18] Listing of the week: Michael Shea (Central Florida) is selling a manufacturing business that cuts designs for walls; they are making $1 million in sales. The owner is a 23-year-old who started this great online business. Cash flow: $333,000. Priced at $650,000.
[44:39] The annual Andy’s family pasta dinner!
Writing a Book: The Next-Level Business Card
Title: Episode 122: Writing a Book: The Next-Level Business Card with Andrew Cagnetta and Jessica Fialkovich
Subtitle: What a Book Can Do for Your Business
Description: Andy and Jessica welcome you to a special episode of The Deal Board Podcast, this time they want to share their books, this idea began one year ago when each of them has been working on the writing of their own books. Today, they talk about the learned lessons and share tips for business owners since nowadays a book is a next-level business card. Andy and Jessica share the ten lessons they learned in the process of writing their books: Closing the Deal: A Business Owner's Guide to Avoiding Pitfalls, Dispelling Myths, and Selling Your Business the Right Way and Getting the Most For Selling Your Business: How to Get Top Dollar for the Company You've Nurtured for Years.
Listing of the week: Chris Cantwell (Colorado) is selling a business in the pool-spa-swimming industry with five locations which has been working for 30 years. It is making $20 million in revenue. Business has been doing great the past years and the projections are even stronger. Cashflow of over $1million a year. Email Chris at email@example.com.
[2:31] Lesson 1: Commit to the goal of writing a book.
[3:31] Lesson 2: Don’t worry about the structure at the beginning.
[4:16] Lesson 3: There is no one right way to write a book.
[5:15] Lesson 4: Just write (or speak! whatever it takes).
[6:11] Lesson 5: Ignore the word count.
[7:30] Lesson 6: Leverage technology.
[8:40] Lesson 7: Get professional help.
[12:28] Lesson 8: Use Amazon and Kindle’s direct publishing site.
[12:38] Lesson 9: You need to market the book.
[14:23] Lesson 10: Celebrate the launch!
[18:24] Kevin Daum and Anne Mary Ciminelli talk about the process they use to get Jessica’s book out.
[18:50] Why is it important for business owners to have a book?
[21:50] Anne Mary talks about the organization part of writing a book.
[23:19] Anne Mary and Keving talk about the biggest benefits of having a team to write a book.
[28:31] Writing a book is a way of talking to your audience.
[31:46] Anne Mary and Kevin share tips for those business owners who want to become authors.
[34:39] You have to divorce the emotion from your book and look at it tactically.
[35:07] Self-publishing vs. Trade publisher.
[39:49] Anne Mary and Kevin share suggestions for business owners considering entering the writing space.
[43:57] Deal of the week: Robert Cunio (San Diego) sold a mental health counseling business and its real estate, sold in $500,000 to a strategic buyer.
[45:40] Bruce Corris (BMD Publishing).
[49:20] How typical is the process of writing a book?
[51:49] Andy shares his interest in helping customers make an informed choice when buying or selling a business.
[54:50] Bruce explains why writing a book is not about sitting and writing every day.
[58:22] Bruce shares how the industry of publishing a book has changed.
[1:00:54] The process of writing a book is better when you have the help of an expert.
[1:03:15] Listing of the week: Chris Cantwell (Colorado) is selling a business in the pool-spa-swimming industry with five locations which has been working for 30 years. It is making $20 million in revenue. Cashflow of over $1 million a year.
[1:04:24] Randy Bring (Florida) became an International Business Brokers Association Chairman.
[1:06:07] Giving back to the community is at the center of Randy’s work.
[1:06:59] Andy and Randy talk about the upcoming IBBA Conference in May.
Actionable, educational, and inspiring!
This show is an incredible resource for entrepreneurs looking to grow their business, exit their business, or even buy a business! Jessica and Andy are excellent hosts who lead really engaging interviews with expert guests. Highly recommend listening and subscribing.
Andy and Jessica do such a good job covering a variety of topics. The guests offer valuable insight as well. I would recommend this podcast to anyone looking to be inspired and motivated!
Really enjoy it and appreciate the real world case stories with specifics.
Would it be possible to address how to invest in small businesses for those of us who don’t want to be operators?