The Exit Plan: Mergers and Acquisitions for Creative Entrepreneurs (Barnaby Cook)

Summary

In this conversation, Saul Cohen, owner of Expert Eye, shares his journey from working in corporate finance to supporting small and medium-sized enterprises (SMEs). He discusses the importance of providing tailored financial advice to entrepreneurs, the impact of personal experiences on his career choices, and the challenges faced by business owners in the current economic climate. The conversation also delves into the implications of recent changes in business taxation, the dynamics of mergers and acquisitions (M&A), and the role of private equity in business sales. Saul emphasizes the need for business owners to plan their exit strategies early and to view their businesses objectively when considering a sale.

Takeaways

• Saul Cohen transitioned from corporate finance to support SMEs.
• Personal experiences can significantly influence career paths.
• Many business owners are unprepared for the sale of their businesses.
• Government policies often overlook the needs of business owners.
• Tax changes can motivate business owners to sell sooner.
• M&A requires a different skill set than standard accountancy.
• Private equity seeks low-risk businesses with strong management.
• Business owners should plan their exit strategies early.
• It's crucial to view your business objectively when selling.
• Building a business provides valuable experience for future acquisitions.

Connect with Barnaby on LinkedIn: https://www.linkedin.com/in/barnabycook/

Join The Exit Plan mailing list: http://eepurl.com/iC8sIY

Welcome to The Exit Plan, a podcast for business owners interested in learning more about selling their business.

Gareth Dunlop is a seasoned professional in the agency world with over two decades of experience. After leading a web agency for 13 years, he sold it and ventured into UX, successfully growing and selling a business from 2011 to 2021 during the pandemic. Garth's genuine passion for the web, dating back to the mid-nineties, is evident in his LinkedIn profile, which tells a story of navigating the dynamic highs and lows of the industry. He is a former agency owner, web developer, and founder of Fathom. Gareth shares his previous work in a digital strategy business as a programmer for 13 years before starting his own UX agency called Fathom. His desire to concentrate on the study of human behavior and design science led him to become a UX specialist. The business grew steadily for a number of years, but it ran into problems with larger value contracts and recurring revenue. Gareth had always thought about selling the company, and in 2019 they were on the verge of a deal that didn't work out. Following that, Gareth started looking for a buyer more actively and, two years later, they were able to close a deal.

Gareth also shares how they felt comfortable setting high growth goals in a previous agreement and how they were confident in their team's capacity to grow by twofold. Gareth talks about their goal of creating a dispersed team of experts and how they got in touch with possible acquirers via an email newsletter. During the M&A process, he also stresses the significance of being aware of market trends and seeking expert counsel. He continued to be involved as a consultant while others handled day-to-day management integrating disparate agencies with different cultures, technologies, and systems made the integration phase difficult.

Gareth discusses their confidence in doubling the team's size and how they navigated the integration phase after the acquisition. He also talks about the shifts of the UX team's to Microsoft, a significant change for a team accustomed to Google. He shares about the 15 to 18-month transition period, emphasizing the importance of clean books and financial hygiene when preparing a business for sale.

Discover the world of merge and acquisition processes and delve deeper with the knowledge of running a business.

Sign up to The Exit Plan mailing list: http://eepurl.com/iC8sIY

WHAT YOU WILL LEARN:

• Importance of maintaining a clean and transparent business

• How to build a healthy culture within the company, emphasizing on profitability and high-value customers.

• Challenges and differences between the web agency and UTV

• Negotiation process and reaching an agreement

• Difficulties and complexities of integrating five agencies with different cultures and technologies.

• The role of a healthy culture in achieving commercial success

CONNECT WITH GARETH:

• LinkedIn | www.linkedin.com/garethdunlop

• Website | www.fathom.pro

• Twitter | @dunlop71

THE EXIT PLAN

The Exit Plan is for business owners that are interested in learning more about how to sell their business. Each episode Barnaby Cook interviews someone who has bought or sold a business - either a creative agency, or a production company. The conversation gets under the skin of why they wanted to sell, or were looking to acquire, how the deal was structured, how they agreed upon a valuation and what lessons they learnt along the way.

The topic of roll-up deals, the target market for BizCrunch, and the value of acquirer community development are all discussed. Gareth highlights the distinct perspectives that professionals like Jonathan Jay and Jeremy Harbour offer in the field of business acquisition. In closing, Gareth encourages listeners to check out BizCrunch, highlighting the platform's free launch strategy and range of premium plans to improve outreachWelcome to The Exit Plan, a podcast for business owners interested in learning more about selling their business.

We are joined today by Gareth, a seasoned businessman and co-founder of BizCrunch. He has extensive knowledge of business purchase and ownership succession. His observations hold the potential to simplify the intricacies of data-driven tactics and SME financing. Watch this space for an exciting discussion! To learn the keys to a smooth ownership transfer, keep listening.

Gareth and Barnaby talk about their businesses and the generational shift in SME ownership. While Gareth offers insights into the valuation arbitrage game and the difficulties of effectively accumulating data, Barnaby discusses his approach to buying small video production companies.

There is a discussion of ideas such as Sellers Discretionary Earnings (SDE), and Gareth explains how BizCrunch helps buyers find possible acquisition prospects by gathering and evaluating data. Plans to extend services, including support for due diligence, are mentioned, as well as the algorithmic method that BizCrunch uses to estimate turnover from balance sheets.

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Come along to The Exit Plan Live event: https://www.eventbrite.co.uk/e/the-exit-plan-live-tickets-765231597307

Welcome to The Exit Plan, a podcast for business owners interested in learning more about selling their business.

In this episode, Angela Law shares her journey from marketing to founding and selling a production company, highlighting the importance of finding a niche in attracting buyers. Angela also talks about the remarkable case where a company was sold to one to one of its own clients, propelled by innovative data analysis and a unique intellectual property.

Angela touches on pivotal aspects of business transitions, including the delicate balance between creative and operational elements, cultural alignment during acquisitions, and crafting the right deal structure. She emphasizes clean financial records, avoiding inflated valuations, and the early preparation needed for a smooth integration process.

Listen as Angela shares insights on specialization, strategic planning, and the value proposition that appeals to potential buyers. Whether you're building a business for growth or considering an exit, Angela's experiences provide actionable guidance for entrepreneurs and business leaders. 

WHAT YOU WILL LEARN:

• Angela's journey from marketing to founding a consultancy

• The importance of finding a niche to attract buyers and stand out in the market

• How Angela worked with a company that sold to its client 

• The delicate balance between creative aspects and operational efficiency during business transitions

• Importance of cultural alignment between acquiring and selling entities, and crafting the right deal structure

• Emphasizing the need for clean financial records, avoiding inflated valuations, and early preparation for integration

CONNECT WITH ANGELA LAW:

• Website | www.everysense.co.uk

• LinkedIn | Angela Law

THE EXIT PLAN

The Exit Plan is for business owners that are interested in learning more about how to sell their business. Each episode Barnaby Cook interviews someone who has bought or sold a business - either a creative agency, or a production company. The conversation gets under the skin of why they wanted to sell, or were looking to acquire, how the deal was structured, how they agreed upon a valuation and what lessons they learnt along the way.

Tim Drake, a semi-retired agency owner, shares his journey of building and selling his agency for £20 million. He discusses the various pivots his agency went through, from graphic design to websites to mobile-first business. Tim emphasizes the importance of finding the right business partner and maintaining a ruthless focus on building and selling. He explains the earn-out structure of the deal and how they exceeded expectations. Tim also highlights the significance of culture, agility, and a deep understanding of running a business in achieving success. He encourages agency owners to consider different approaches to achieve their financial goals.

Takeaways

• Pivoting and adapting to new technologies and market demands is crucial for the success of an agency.
• Finding the right business partner who complements your skills and shares your vision is essential.
• Maintaining a ruthless focus on building and selling can lead to significant financial success.
• Culture, agility, and a deep understanding of running a business are key factors in achieving success in the agency industry.

Connect with Tim on LinkedIn: https://www.linkedin.com/in/tim-drake-6b41569/

Connect with Barnaby on LinkedIn: https://www.linkedin.com/in/barnabycook/

Join The Exit Plan mailing list: http://eepurl.com/iC8sIY

Mike Finger, a small business owner and expert in the transaction space, shares his insights on selling small businesses. He emphasizes the importance of understanding the basics of selling a business and dispels common misconceptions. Mike discusses the challenges faced by business owners in valuing and selling their businesses, including inflated expectations and lack of knowledge. He also shares his own experiences with buying and selling businesses, including turnaround acquisitions. Mike offers advice for business owners, encouraging them to focus on creating desirable results, ensuring the business can operate without the owner, and documenting the results.

Takeaways

• Understanding the basics of selling a business is crucial for small business owners.
• Many business owners have inflated expectations and lack knowledge about the value and sellability of their businesses.
• Creating desirable results, ensuring the business can operate without the owner, and documenting the results are key factors in preparing a business for sale.
• The market for small businesses is complex, and owners should seek professional advice and educate themselves about the process.
• Waiting too long to tackle the topic of selling a business can lead to missed opportunities and regrets.

Connect with Barnaby on LinkedIn: https://www.linkedin.com/in/barnabycook/

Join The Exit Plan mailing list: http://eepurl.com/iC8sIY

Tulips & Company, a corporate film agency, was founded in 2002 by Laure Cousin and Charles Drouin. They started the business in the attic of Laure's house with a focus on creative storytelling. Over the years, they grew the company and gained recognition through awards. In 2018, they decided to sell the company to its employees in a unique way. They created a new company called Ortus, owned by the employees, which gradually buys shares in Tulips using profits from the company. This allows the employees to become shareholders without taking on debt. The transfer of ownership will be complete in 10 years, with the employees owning 65% of the company.

• Tulips & Company was founded in 2002 as a corporate film agency with a focus on creative storytelling.
• The founders, Laure Cousin and Charles Drouin, decided to sell the company to its employees in a unique way.
• They created a new company called Ortus, owned by the employees, which gradually buys shares in Tulips using profits from the company.
• The transfer of ownership will be complete in 10 years, with the employees owning 65% of the company.

Nick Morgan, Group CEO of We Group, shares his experience with building and exiting multiple businesses. He discusses his background and the different agencies he has been involved with, including bars, pubs, and a distressed agency. Nick also talks about the three agencies within We Group: an independent events company specialising in festival production, The Fair, creative placemaking We Are Placemaking and event operations / health and safety We are OPS. He emphasizes the importance of transparency and setting benchmarks for growth, as well as the value of building a strong leadership team. Nick also touches on the EMI scheme he has implemented and the potential acquirers for We Group.

• Nick Morgan has built and exited multiple businesses, including bars, pubs, and a distressed agency.
• We Group consists of three agencies: The Fair, Ops, and We Are the Fair.
• Transparency and setting benchmarks for growth are important in building a successful business.
• A strong leadership team is crucial for managing the day-to-day operations and allowing the CEO to focus on strategic planning.
• The EMI scheme implemented by We Group incentivizes long-serving employees with vested shares.
• Potential acquirers for We Group include promoters and large agencies looking to expand their services.

Connect with Barnaby on LinkedIn: https://www.linkedin.com/in/barnabycook/

Join The Exit Plan mailing list: http://eepurl.com/iC8sIY

Summary

Jim Hawker, co-founder of 3Pipe, shares his journey of starting and growing the agency over 20 years, including the challenges of mergers, acquisitions, and financial turmoil. He reflects on the evolution of marketing, the importance of strategic growth, and the lessons learned from navigating a significant financial crisis. The conversation culminates in his exit strategy and thoughts on the future of agency growth.

Takeaways

Started 3Pipe in April 2004, the same month as Facebook.
The agency evolved from traditional PR to brand performance work.
Merging with a paid media agency was a strategic move to enhance digital skills.
Acquisitions were driven by the need to fill gaps in service offerings.
Navigating financial turmoil was a significant challenge for the agency.
The finance director's gambling addiction led to a major crisis.
The sale to a technology consulting firm was a strategic decision.
The earn-out period was extended due to COVID-19.
Reflections on whether to have continued as a traditional PR agency.
Understanding new channels kept Jim motivated in his marketing career.

Connect with Barnaby on LinkedIn: https://www.linkedin.com/in/barnabycook/

Join The Exit Plan mailing list: http://eepurl.com/iC8sIY

The co-founder of Studio Blup, DINES®, tells a gripping story about the agency's path from acquisition to independence in this episode. The discussion provides a thorough examination of the highs and lows they encountered while working for a larger group. At first, Studio Blup was lured in by the prospect of pooling resources and strength as a group, but now they struggle with the tension between corporate demands and their initial creative vision. In order to underscore the internal struggle of striking a balance between financial success and creative integrity, the debate dives into the critical moments when financial demands led to sacrifices in pursuing innovative ventures.

The unexpected offer to purchase the entire group after just two years forces Studio Blup to reassess their objectives and consider the real reason for their company as the story develops. The subsequent acquisition's failure turns into a pivotal event that prompts them to decide to regain their freedom. The significance of coordinating professional objectives with personal ambitions is emphasized by DINES®, which offers insights into the negotiating process and the workings of repurchasing the majority stake.

The difficulty encountered, the lessons discovered, and the tenacity needed in entrepreneurship are all discussed in this episode. Audience members acquire invaluable knowledge regarding the workings of acquisitions, the effects they have on creative firms, and the need to strike a balance between pursuing one's passion projects and achieving financial success. For company owners traversing the uncertain path of creating and maintaining their creative ventures, the story eventually inspires

Join The Exit Plan mailing list: http://eepurl.com/iC8sI

Nicholas Spezio, Director of Transaction Services at Expo Group, discusses the world of private equity and venture capital. Private equity firms invest capital into mature businesses with long-term growth potential, often seeking a controlling stake. Venture capital firms, on the other hand, invest in early-stage companies in exchange for equity. Spezio emphasizes that private equity investors are attracted to recurring revenue-based businesses, while venture capitalists are interested in early-stage investments. He also discusses the timing of selling a business and the challenges that entrepreneurs face when transitioning to being an employee after selling their business.

• Private equity firms invest in mature businesses, while venture capital firms invest in early-stage companies.
• Private equity investors are attracted to businesses with recurring revenue streams.
• The timing of selling a business depends on the owner's future plans and goals.
• Entrepreneurs should carefully consider their reasons for selling and the long-term implications before making a decision.
• Integration post-acquisition can be a laborious process, requiring financial and operational due diligence.
• Working capital calculations can be contentious in deals, and sellers should be prepared for adjustments and negotiations.
•  

Loreta Tarozaite is a marketing communications consultant and executive coach with a background in news anchoring. She helps business owners and executives improve their on-camera and on-stage presence, particularly in using video as a medium. Loreta emphasizes the importance of personal branding, especially on platforms like LinkedIn, and encourages the use of video to build rapport and trust with the audience. She advises starting with simple videos, such as recording oneself describing the scenery or talking through a cooking process, to get comfortable with being on camera. Loreta also offers coaching on presentation skills for both on-camera and on-stage appearances.

• Loreta helps business owners and executives improve their on-camera and on-stage presence, particularly in using video as a medium.
• Personal branding is crucial, especially on platforms like LinkedIn, to build visibility, authority, and trust.
• Starting with simple videos, such as recording oneself describing the scenery or talking through a cooking process, can help build comfort with being on camera.
• Loreta offers coaching on presentation skills for both on-camera and on-stage appearances, emphasizing the differences between the two mediums.

Connect with Loreta on LinkedIn: https://www.linkedin.com/in/loretatarozaite/

onnect with Barnaby on LinkedIn: https://www.linkedin.com/in/barnabycook/

Join The Exit Plan mailing list: http://eepurl.com/iC8sIY

Welcome to The Exit Plan, a podcast for business owners interested in learning more about selling their business.

In this episode, Richard Bridge, Founder and CEO of Top Banana Communication Limited, shares the challenges he faced, including the unexpected departure of his business partner, which led to a solo journey as the CEO. He highlights the pivotal role of visibility in the industry and how it can open doors to potential buyers.

Richard's experience during the COVID-19 pandemic demonstrates the resilience of Top Banana, driven by adaptability and a focus on virtual events. Richard's decision to sell part of the business to TBA Group reflects a strategic move to seize a bigger opportunity while continuing to mentor others and grow personally within the group. He shares valuable insights on business valuation, multiples, and the importance of managing expectations when selling a business.

Richard Bridge's wisdom in this interview offers a wealth of knowledge and practical advice for entrepreneurs and business owners considering the path of growth, acquisition, or selling their businesses. Richard's journey exemplifies the rewards that come from careful planning, adaptability, and a passion for continual learning and growth.

WHAT YOU WILL LEARN:

• Top Banana's 24-Year Journey and Philosophy.

• Challenges and Evolution of Ownership.

• Impact of Co-Founder's Departure.

• Planning for Retirement and Business Valuation.

• Selling Attempts and Visibility.

• Structuring the Buyout and Transition.

• Selling Shares During the Pandemic.

• Transition to TBA Group and Personal Growth.

• Realistic Expectations in Business Sales.

• Determining Business Valuation Multiples.

• Due Diligence and Clear Plans.

• Life Choices Beyond the Sale.

CONNECT WITH RICHARD:

• LinkedIn | Richard Bridge

• Website | www.top-b.com

THE EXIT PLAN

The Exit Plan is for business owners that are interested in learning more about how to sell their business. Each episode Barnaby Cook interviews someone who has bought or sold a business - either a creative agency, or a production company. The conversation gets under the skin of why they wanted to sell, or were looking to acquire, how the deal was structured, how they agreed upon a valuation and what lessons they learnt along the way.

In the dynamic world of business, growth and expansion are often the keys to success. But how does a small video production company evolve into a thriving multi-channel agency with over 420 employees spread across the UK and Europe?

In this episode, Dale Parmenter, the founder of DRP Group shares his acquisition journey. Dale emphasizes the importance of strategic acquisitions that bring new expertise, clients, and market opportunities to the DRP Group. He discusses the impact of acquisitions on team size, services offered, and financial success. Dale also covers deal structures, integration challenges, and future growth plans.

Listen now and gain valuable insights into sourcing deals, maintaining acquired brands' identity, and the significance of trust-building with acquired teams. Don't miss this episode!

WHAT YOU WILL LEARN:

• Dale's acquisition journey and DRP Group's growth

• Importance of finding acquisitions that bring new expertise, clients, or market opportunities

• Impact of acquisitions on team size, services offered, and financial success

• Valuing potential rather than current worth when considering acquisitions

• Integration challenges, including understanding culture and fostering collaboration among teams

• Sourcing deals through networks and brokers

• Importance of good advisors in acquisitions and ensuring a win-win situation

ABOUT OUR GUEST

Dale has been in the presentation and communication industry for over 40 years. He left school with one goal to run his own business, after just 3 years the opportunity arose and Dale took it, operating at first from a small outbuilding at his parent’s home as a filmmaker.

Today DRPG is recognised as one of the leading integrated, full service presentation and communication groups, winning agency of the year multiple times. The drpg team comprises over 420 specialists across seven locations in Worcestershire, London, Windsor, Manchester, Germany, Ireland and the USA.

DRPG designs and produces communications solutions globally. Working with a wide range of clients to effectively communicate to internal and external audiences, all through award-winning film & video, events, experiential, print, design, digital, exhibition and creative solutions.

Dale is passionate about sustainability and believes businesses should be fully

integrated into the community. DRPG was the first agency globally to gain the ISO14001 and ISO20121 accreditations plus more recently being awarded the Queen’s Award for Enterprise in Sustainable Growth.

• Website | www.drpgroup.com

• LinkedIn | www.linkedin.com/company/drpgroup 

• Facebook | www.facebook.com/DRPGteam

• Twitter | @drpgroup

CONNECT WITH BARNABY

• LinkedIn | Barnaby Cook

THE EXIT PLAN

The Exit Plan is for business owners that are interested in learning more about how to sell their business. Each episode Barnaby Cook interviews someone who has bought or sold a business - either a creative agency, or a production company. The conversation gets under the skin of why they wanted to sell, or were looking to acquire, how the deal was structured, how they agreed upon a valuation and what lessons they learnt along the way.

 Welcome to The Exit Plan, a podcast for business owners interested in learning more about selling their business. 

Doug Austin is the Author of Permission to Win, he spent most of his career building, growing, and selling ad agencies until he founded the Austin Amplifies which specializes in helping independent agencies find their next level. 

In this episode, Doug Austin shares how, in 2008, he helped to build a successful agency network  in Missouri supporting the food service industry. It grew into three ad agencies and a product development firm including an Employee Stock Ownership Plan (ESOP) and acquisition in 2015, Doug left in 2016. He also shares how he decided to be a consultant focusing on growth, innovation, and organizational culture as he enjoys connecting with agency professionals without the pressure of agency leadership. During his leadership, three competing agencies thrived with a strategy that balanced growth and operational independence.

Doug also touches on his role in growing three competing agencies that focused on certain verticals which allowed separate leadership teams consisting of creative, account, and digital to lead authentically under a holding company umbrella. He also explains the meaning of The Employee Stock Ownership Program (ESOP) on which it enables business owners to slowly sell their business to employees. Furthermore, he shares how he does his job as a consultant, where he helps businesses prepare for sale by improving operations through focusing on management instead of selling. Regarding valuation, he assesses the business' financial health, operations, and profitability, and works closely with the client to determine a fair and accurate valuation using industry benchmarks and financial analysis. 

Doug shares what he focuses on in his consultant career which are cultural, positioning, and experiential aspects of agencies. He specializes in understanding an agency's true selling proposition, value proposition, and factors influencing loyalty. He provides insights on necessary changes before selling by observing, asking targeted questions, and assessing market presence. Doug also emphasizes the importance of embracing Artificial Intelligence for traditional agencies. Adopting AI is vital for competitiveness, as those lagging behind risk commoditization of their services. Adaptation and collaboration with AI specialists are crucial for agencies to thrive in this evolving landscape. AI-specialized agencies, currently managing tools, could quickly transform into full-fledged agencies with strategic hires, requiring just a few key additions. 

Learn more on how to widen your business, making it profitable and how a marketing consultant works. 

Sign up to The Exit Plan mailing list: http://eepurl.com/iC8sIY

WHAT YOU WILL LEARN:

• How a consultant works and processes done in a business industry

• Understanding Employee Stock Ownership Plan (ESOP)

• How Artificial Intelligence affect businesses in this time era

• How proper positioning affects selling process

• Cybersecurity as an evaluation metrics

• Assessing and evaluating factors before selling

CONNECT WITH DOUG:

• LinkedIn | www.linkedin.com/in/doug-austin

• Company LinkedIn | www.linkedin.com/company/austin-amplifies

• Company Website | www.austinamplifies.com

• Book | Permission To Win

THE EXIT PLAN

The Exit Plan is for business owners that are interested in learning more about how to sell their business. Each episode Barnaby Cook interviews someone who has bought or sold a business - either a creative agency, or a production company. The conversation gets under the skin of why they wanted to sell, or were looking to acquire, how the deal was structured, how they agreed upon a valuation and what lessons they learnt along the way.

Welcome to The Exit Plan, a podcast for business owners interested in learning more about selling their business.

Claire Daniels, who has a background in strategic in-house marketing roles, took on the role of CEO at Trio Media's Digital Marketing Agency in 2020. She became part of the company in 2018 with a strong emphasis on prioritizing customer satisfaction, making it the central focus of all her endeavors.

In this episode, Claire Daniels, the CEO of Digital Marketing Agency of Trio Media, shares her journey of how she became involved in the business. Following the passing of her brother and her sister-in-law's pregnancy, Claire chose to contribute to the company while navigating her own aspirations. As her sister-in-law became pregnant again, the business underwent changes, leading to conflicts upon her return from maternity leave. Owing to divergent decisions and objectives between the two owners, they eventually opted to buy out the company. Claire eventually took over as CEO and bought out her sister-in-law's shares. 

Claire also shares the process of acquiring the company, managing a legal dispute involving her sister-in-law, and securing the transfer of her shares to resolve the issue. Despite initial dissatisfaction from her husband, Claire mentions that things have since settled with her sister-in-law and assures that everything is going well with their personal relationships. Further, she shares outlines of their future objectives that include rebranding and integrating AI into their operations. While contemplating expansion and potentially acquiring other companies, Claire is uncertain about seeking external funding.

Although not a venture she initiated outright, Claire acknowledges the significant effort and emotional investment she has dedicated to the company, emphasizing its pivotal role in the business's success. Expressing contentment with her current role, Claire conveys her enjoyment of every aspect of the journey.

Be inspired as we listen to this episode of winning your goals, enjoying your journey while setting up proper communication to maintain good relationships with other people. 

Sign up to The Exit Plan mailing list: http://eepurl.com/iC8sIY

WHAT YOU WILL LEARN:

• Managing a business while experiencing business-related relationships and co-founders departure

• Handling financial problems to maintain a business

• How to properly communicate with business partners and how to deal with inside work conflicts

• Resolving legal matters such as shares and company related issues

CONNECT WITH CLAIRE: 

• LinkedIn | www.linkedin.com/in/claire-daniels-trio-media

• Website | www.trio-media.co.uk

• Twitter | @triomediaclaire

• Instagram | @mrsclairedaniels

THE EXIT PLAN

The Exit Plan is for business owners that are interested in learning more about how to sell their business. Each episode Barnaby Cook interviews someone who has bought or sold a business - either a creative agency, or a production company. The conversation gets under the skin of why they wanted to sell, or were looking to acquire, how the deal was structured, how they agreed upon a valuation and what lessons they learnt along the way.

Welcome to The Exit Plan, a podcast for business owners interested in learning more about selling their business.

In this episode, Emmie Faust, a mother of four and a serial entrepreneur, takes us on her journey through various businesses and her experience in the world of entrepreneurship. From her early days in field marketing to venturing into the online gambling industry, Emmie's story is one of determination and innovation.

Emmie shares how she founded Jack Media, a successful agency with about ten employees, and the pivotal moment when she decided to sell the business. Emmie also talks about the challenges of selling a business, including the absence of an earn-out and the decision to separate the management of Jack Media and GDM, a programmatic advertising venture that they launched. GDM's rapid growth and eventual acquisition are discussed, highlighting the complexities and opportunities that come with selling a business. Emmie shares her insights into the emotions and practicalities surrounding exits, emphasizing the role of luck and hard work.

Emmie discusses her current venture, Female Founders Rise, a community and support network for female entrepreneurs. She discusses the challenges and triumphs of this endeavor, emphasizing the importance of accessibility and collaboration.

Join Emmie Faust on her entrepreneurial journey, learn about her unconventional exits from Jack Media and GDM, and discover her commitment to supporting female entrepreneurs through Female Founders Rise.

WHAT YOU WILL LEARN:

• Emmie's early career on field marketing and transitioning into the online gambling industry

• The decision to sell Jack Media and the process of an informal merger with another agency.

• Balancing multiple businesses, including Jack Media and GDM, with her business partner.

• Emmie's experience of being pregnant during the sale and communicating this to buyers.

• The creation of GDM as a separate programmatic advertising venture and its rapid growth.

• Discussing the acquisition of GDM by another network following the sale of Jack Media.

• Details of the sale price and the various businesses Emmie and her partner had.

• Emmie's post-sale activities, such as angel investing in female founders and creating Female Founders Rise.

CONNECT WITH EMMIE:

• Website | emmiefaust.com

• LinkedIn | Emmie Faust

• Twitter | @emmiefaust

• Instagram | @emmiefaust
  
  

THE EXIT PLAN

The Exit Plan is for business owners that are interested in learning more about how to sell their business. Each episode Barnaby Cook interviews someone who has bought or sold a business - either a creative agency, or a production company. The conversation gets under the skin of why they wanted to sell, or were looking to acquire, how the deal was structured, how they agreed upon a valuation and what lessons they learnt along the way.

Welcome to The Exit Plan, a podcast for business owners interested in learning more about selling their business.

In this episode, we have Paul Harrison from Carve, now part of Radancy. Paul shares the genesis of Carve, born out of an unexpected job loss in 2006, which led him and his wife to take a leap of faith and start the company, initially offering blog services before evolving into a successful social media consulting firm.

Paul discusses Carve's acquisition by Radancy, detailing the exploration of various offers and the positive meeting in New York City that led to the acceptance of Radancy's offer. 

Join this episode to learn how Paul's unwavering dedication, combined with a shared vision between Carve and Radancy, has led to an exciting new chapter for both companies, poised for even greater success in the dynamic world of social media and recruitment marketing.

WHAT YOU WILL LEARN:

• Paul Harrison's background and founding of Carve

• Carve's unexpected origin and early growth

• Challenges faced during Carve's growth phase

• Consideration of selling the business and finding the right fit with Radancy

• Radancy's perspective on the value of Carve and its potential for growth

• Structure of the deal, including cash, shares, and revenue incentives

• Reflection on the deal and lessons learned

CONNECT WITH PAUL:

• LinkedIn | www.linkedin.com/in/paulharrison

• Radancy Website | radancy.com

• Twitter | @PaulCHarrison

• Facebook | Carve Consulting: Social Media Strategy

CONNECT WITH ME

• LinkedIn | Barnaby Cook

THE EXIT PLAN

The Exit Plan is for business owners that are interested in learning more about how to sell their business. Each episode Barnaby Cook interviews someone who has bought or sold a business - either a creative agency, or a production company. The conversation gets under the skin of why they wanted to sell, or were looking to acquire, how the deal was structured, how they agreed upon a valuation and what lessons they learnt along the way.

Entrepreneur Peter Kemp, MD of Global 3 Digital, has navigated the dynamic landscape of digital corporate communications. With the establishment of his agency in 1999, Kemp successfully led the company through significant growth, culminating in its strategic sale in 2014. Kemp's journey unfolds with insights into the acquisition process, emphasizing a streamlined due diligence period. Beyond the sale, Kemp ventured into a new endeavor, Flint, showcasing his resilience and adaptability in the evolving realm of digital ventures.

In this episode Peter Kemp is engaged in a discussion with Barnaby about his journey in establishing, growing, and eventually selling his digital corporate communications agency. Founded in 1999, the agency addressed a market gap by providing websites for quoted companies. Kemp shared insights into the intricacies of negotiating the sale with a larger competitor backed by private equity. The acquisition, which took place in 2014, involved an all-cash deal.

Kemp highlighted the critical aspect of a streamlined six-week due diligence process, despite the challenges it posed. The integration phase, while presenting some differences in technological approaches, proved successful, with the acquiring company retaining many of Global 3 Digital's clients seamlessly. Kemp reflected on the impact of personal health considerations on the decision to sell.

Post-acquisition, Kemp faced constraints due to a three-year non-compete clause but eventually launched a new venture named Flint with two former colleagues. Flint, a platform built on a proprietary SAS platform, enables the creation of corporate websites for listed companies without the need for web development. The focus is on scalability and a non-immediate plan for sale, showcasing lessons learned from the previous venture.

The conversation also touched on Kemp's advice for business owners considering a sale, emphasizing the importance of maintaining open relationships with competitors and keeping meticulous records for due diligence. The episode provided a comprehensive exploration of Kemp's entrepreneurial journey, shedding light on the strategic decisions and challenges inherent in building and selling a digital agency.

Join our mailing list: http://eepurl.com/iC8sIY

Come to The Exit Plan Live on the 31st January 2024: https://www.eventbrite.co.uk/e/the-exit-plan-live-tickets-765231597307

Welcome to The Exit Plan, a podcast for business owners interested in learning more about selling their business.

In this episode, we welcome John Starr, a business owner, mentor and co-founder of PR agency Clairville. Clairville began in 1989, emerging from a publishing company. Facing challenges, they sold the design agency, focusing on PR. With no clients initially, they secured the first within weeks. John discussed their growth, deliberately maintaining a manageable size for 20 years.

The decision to sell arose from a desire for tech focus, seeking a partner. Failing to find one, John explored selling and engaged brokers, facing valuation misalignment. Simon Rine Tut, from Relationship Audits, connected John with a buyer, initiating a year-long negotiation.

The deal involved selling the business, not the limited company, for tax reasons. The structure included a third upfront, and the rest was an earn-out based on fee income over three years. John explained the importance of a balanced earn-out, aligning downside and upside.

Post-sale, integration faced challenges. Clairville's strengths in communication clashed with a "not invented here" sentiment. Cultural fit was good, but the top-down approach from the new owners created difficulties. John shared past acquisition experiences, emphasizing the need to swiftly replace top management to ensure successful integration.

John Starr delved into the intricacies of selling his PR agency, providing valuable insights for potential sellers. One notable aspect was the common practice of overpaying founders during acquisitions for a smoother transition, although this strategy didn't yield success for John due to his disposition and the earn-out structure tied to performance.

The three-year earn-out coincided with the onset of the pandemic, resulting in a significant 40% loss in fee income within a month. Despite the challenging circumstances, John highlighted the buyer's flexibility, which involved a temporary payment pause to navigate the financial uncertainties.

Post-departure, John faced challenges as his former agency struggled to replace a major client. Nevertheless, he continued his professional journey through consulting, specifically running press centers for global exhibitions. Notably, he shared his involvement with a space company, Spacebit, working on an innovative project involving art being sent to the moon aboard a SpaceX NASA rocket.

Imparting valuable advice for prospective sellers, John emphasized the importance of engaging with multiple brokers for accurate valuations. He urged sellers to maintain meticulous records from the outset of considering a sale, streamlining the process when negotiations begin. John stressed the significance of the disclosure letter, a tool for sellers to protect themselves from unforeseen liabilities post-sale.

John advised sellers to secure legal counsel with experience in deals of a similar size, cautioning against unnecessary legal complexities that might inflate costs. Finally, he underscored the necessity of time management during the deal process, reminding sellers to balance their efforts between negotiating the sale and continuing the smooth operation of their businesses to avoid potential downturns.

Tune in for a deep dive into the world of selling and buying businesses, with practical insights from John Starr's wealth of experiences.

What You Will Learn:

• Selling Strategies: John Starr shares insights on selling a PR agency, discussing strategies, challenges, and post-sale integration nuances.

• Earn-Out Dynamics: Explore the intricacies of a three-year earn-out structure, its importance, and balancing downsides and upsides.

• Pandemic Impact: Learn how the pandemic affected the agency's fee income, and the buyer's flexibility during uncertain times.

• Post-Departure Challenges: Understand the challenges post-sale, including integration difficulties, top management replacements, and client transitions.

• Valuable Advice: Gain practical advice from John on engaging brokers, maintaining records, crafting disclosure letters, and effective time management

Get your ticket to The Exit Plan Live event: https://www.eventbrite.co.uk/e/the-exit-plan-live-tickets-765231597307

Sign up to The Exit Plan mailing list: http://eepurl.com/iC8sIY

Taylor Christoffel, CEO of Uncubed, shares the story of the company's evolution from HR software to employer branding production. He joined Uncubed in 2016 and eventually acquired the company in 2024. Taylor discusses the value of the company's legacy and the passion he brings to the business. He highlights the expansion of Uncubed Studios into the European market and the opportunity to improve employer branding in Europe. Taylor's background in video production and his dedication to building the company have been instrumental in its success.

• Uncubed started as an HR software company and evolved into employer branding production.
• Taylor Christoffel joined Uncubed in 2016 and acquired the company in 2024.
• The value of Uncubed lies in its legacy, reputation, and production services.
• Uncubed Studios is expanding into the European market to improve employer branding in Europe.

Connect with Barnaby on LinkedIn: https://www.linkedin.com/in/barnabycook/

Join The Exit Plan mailing list: http://eepurl.com/iC8sIY

In this edition of the Exit Plan podcast, Barnaby participates in a live conversation taped at the Riding House Cafe in Fitzrovia. The panellists are Lisa Paasche, former CEO of Verve Search, Nick Berry, partner and M&A advisor at Green Square, and Joe Lewin, CEO of Foundy, an M&A marketplace. The episode begins with insights into the panellists' experiences selling enterprises, which shed light on the complexities of the exit process. 

The conversation begins with Lisa Paasche's story of selling her SEO agency to Omnicom Media Group, focusing on the financial motives and hurdles she encountered. Nick Berry discusses his entrepreneurial pursuits and the intricacies of building and selling a production firm, Taylor James.

Joe Lewin provides a technical perspective, emphasising the Foundy's role in modernising the business acquisition process through technology and artificial intelligence.

The discussion focuses on the motivations for selling firms, which range from financial aims to personal reasons such as family time or overcoming burnout. The panellists discuss the importance of timing, the influence of recurring revenue, and the obstacles encountered during the negotiating and earnout phases. As they share their experiences and perspectives, the audience obtains insight into the complex process of quitting a business. Stay tuned for Part 2 of this conversation in the upcoming episode.

Join The Exit Plan mailing list: http://eepurl.com/iC8sIY

Welcome to The Exit Plan, a podcast for business owners interested in learning more about selling their business.

In this episode, Lisa Paasche, was the founder and CEO of Award Winning SEO & Content Marketing agency; Verve Search. She sold her agency to Omnicom Media Group in 2017. She's now proud to run EKTE Vision, mentoring Directors and CEOs with a focus on self-belief and interpersonal skills based on applied neuroscience principles.

Lisa talks about her experiences starting and growing her creative SEO agency. She started the business on her own and focused on finding the right people to hire. The company experienced rapid growth in its early years but faced challenges as it scaled up. She discusses the importance of maintaining a sense of community within the agency and addressing performance issues. 

Lisa discusses how Google's algorithm changes impacted her business, and how she needed to restructure the business to continue growth. Lisa explains her motivation for selling the agency for financial security, the negotiation process and earnouts, and COVID-19's negative impact on their earnings. Lisa also talks about the challenges in merging SEO teams and cross-selling services during integration. 

Join us now to uncover valuable insights from Lisa on trusting your instincts, safeguarding your interests in negotiations, and navigating profit multipliers for success!

WHAT YOU WILL LEARN:

• How Lisa Paasche started and grew her SEO agency, Verve Search.

• Challenges and successes during the agency's growth.

• Finding the right people to hire and addressing performance issues.

• Why Lisa decided to sell the agency for financial security.

• The negotiation process and challenges, including earnings affected by COVID-19.

• Challenges during the integration, like merging teams and selling services.

• Tensions within the agency due to missed targets and client loss.

• Why Lisa left the agency and experiencing burnout 

• Lisa's next step starting a consulting business, EKTE Vision.

• The importance of speaking from a specific perspective, trusting your instinct, and holding on to your values and beliefs

CONNECT WITH LISA:

• LinkedIn | Lisa Paasche

• Website | ekte-vision.com

• Twitter | @LisaDMyers

THE EXIT PLAN

The Exit Plan is for business owners that are interested in learning more about how to sell their business. Each episode Barnaby Cook interviews someone who has bought or sold a business - either a creative agency, or a production company. The conversation gets under the skin of why they wanted to sell, or were looking to acquire, how the deal was structured, how they agreed upon a valuation and what lessons they learnt along the way.

Welcome to The Exit Plan, a podcast for business owners interested in learning more about selling their business.

In this episode,  we are joined by Danny Bull, a commercially and strategically minded digital leader with over 25 years of industry experience spanning branding, user experience, and technical development.

Danny recounts his childhood experience like crafting makeshift catapults from discarded materials, a venture that showcased his creativity and drive to create value even in unconventional ways. 

Danny also shares his unique strategic approach to challenges. He founded his own digital agency, Digi Nut, successfully running it for 12 years before strategically selling the business to CI Group in 2018. Danny opens up about the human side of entrepreneurship – the negotiations, the cultural dynamics, and the value of introspection in leadership. 

Join us to explore how childhood experiences, agency dynamics, and the complexities of acquisitions collectively mold Danny Bull's exceptional career journey. 

WHAT YOU WILL LEARN:

• Danny’s transition from childhood ventures to working in agencies

• Danny’s journey as a developer in a software company during the rise of the Internet

• Danny’s decision to start his own business as a freelancer

• Danny’s involvement in complex web and mobile application projects

• Balancing cultural fit and maintaining performance during the merger

• The impact of the pandemic on agency dynamics and transitions

CONNECT WITH DANNY BULL:

• LinkedIn | Danny Bull

THE EXIT PLAN

The Exit Plan is for business owners that are interested in learning more about how to sell their business. Each episode Barnaby Cook interviews someone who has bought or sold a business - either a creative agency, or a production company. The conversation gets under the skin of why they wanted to sell, or were looking to acquire, how the deal was structured, how they agreed upon a valuation and what lessons they learnt along the way.

Welcome to The Exit Plan, a podcast for business owners interested in learning more about selling their business.

In this episode, we welcome Joe Lewin, the founder of Foundy, a platform revolutionising the business acquisition process. Joe's background includes working for a startup and founding a successful business in the E-Mobility sector. Frustrated by the complexities of traditional M&A, Joe embarked on a mission to modernise it.

Foundy's platform, launched in early 2022, has over 9,000 users with a cumulative buy budget of £13.5 billion and 230 live businesses for sale. Foundy's technology streamlines the entire M&A process, from origination to post-acquisition support. The key to their speed and efficiency is providing founders and buyers with checklists, educational tools, and a legal copilot tool. The goal is to ensure cultural fit between buyers and sellers and democratize access to business opportunities.

Joe's vision is for Foundy to become the go-to platform for business acquisitions, similar to Rightmove in real estate. The aim is to make the process smoother, faster, and more accessible for all business owners.

Foundy, a prominent UK platform for business transactions, is pivotal in connecting buyers and sellers. The discussion addressed the challenges faced by smaller service-based enterprises in the market. Foundy's efforts to streamline the process for all parties and its ambitious product roadmap were highlighted.

The advice was shared for creative agency and production company owners contemplating selling their businesses, focusing on building strategic and financial value, expanding the scope beyond traditional competitors when identifying potential buyers, and initiating preparations well before the intended sale.

Foundy aims to cultivate a robust community where founders can share knowledge and experiences. They advocate for active marketing and thought leadership, recognizing the importance of reputation and visibility in the market. By modernizing and democratizing buying and selling businesses, Foundry endeavors to provide founders with the tools, education, and networks they need to navigate this complex terrain successfully.

What You Will Learn:

• Modernisation of M&A: Traditional M&A processes are being modernised for simplicity and accessibility, as exemplified by Joe Lewin's platform, Foundy.

• Technology Empowers Efficiency: Foundy uses technology for checklists, education, and legal support, reducing the need for lengthy advisory interactions.

• Democratising Access: Family aims to democratise business opportunities, focusing on cultural fit for businesses with £1M to £10M revenue.

• Foundy's Role: Foundy connects buyers and sellers, recognizing challenges in the process and striving for efficiency.

• Preparation and Community: Preparatino is vital, including building value and broadening buyer options. Platforms like Foundy support a knowledge sharing community

Connect with Joe Lewin: https://www.linkedin.com/in/jp-lewin/

List your business for sale on Foundy: https://partners.foundy.com/94mezf7xh8rz

Welcome to The Exit Plan, a podcast for business owners interested in learning more about selling their business.

In this episode, we are joined by Richard Tompkins, Co-Founder of Where Eagles Dare and an award winning comms expert. Richard has experience working with a broad range of clients from exciting sustainable start-ups to FTSE100 companies. He has experience across sectors including travel, sport, finance, FMCG, aviation, technology and music.

Richard's journey into acquisitions began during his tenure as Managing Director at W Communications, where he helped grow the agency and embarked on an expansion drive that included several acquisitions. These acquisitions were motivated by the agency's desire for continuous growth and cost-efficiency. Richard emphasizes the importance of evaluating opportunities and understanding the cultural aspects of integration, which played a significant role in the success of these acquisitions. He shares insights into valuation, financing, and the challenges involved in integrating acquired teams.

After leaving W Communications in 2020, Richard launched Where Eagles Dare in September of the same year. The first year focused on establishing the agency, and the second year saw growth and the restructuring of ownership through a management buyout (MBO) in February. Richard's advice for business owners considering acquisitions or exits includes getting legal and financial matters in order, being honest about post-acquisition intentions and capabilities, recognizing the importance of relationships, understanding the realistic value of your business, and considering the impact of earnings on your workload and expectations.

Discover valuable lessons and expert advice from a comms pro who's been there, done that.

WHAT YOU WILL LEARN:

• Richard's experience with acquisitions during his time as Managing Director at W Communications.

• Valuation methods for acquisitions and the importance of assessing staffing and growth potential.

• Challenges and considerations during the integration of acquired teams, including cultural aspects.

• The transition from W Communications to launching Wear Eagles Dare in 2020.

• The initial challenges and adaptations faced during the first years of Wear Eagles Dare.

• Advice for business owners considering acquisitions or exits, including financial and relationship considerations.

CONNECT WITH RICHARD:

• Website | www.whereeaglesdare.co.uk

• LinkedIn | Richard Tompkins

THE EXIT PLAN

The Exit Plan is for business owners that are interested in learning more about how to sell their business. Each episode Barnaby Cook interviews someone who has bought or sold a business - either a creative agency, or a production company. The conversation gets under the skin of why they wanted to sell, or were looking to acquire, how the deal was structured, how they agreed upon a valuation and what lessons they learnt along the way.

Richard Simpson talks about his role in sales and how it helped him access opportunities. He discusses the history and specialisations of Tayburn, the design agency he joined in 2008. Richard also explains how he acquired equity in the business and how his role evolved over time. He then delves into the process of the acquisition by Lewis, including the valuation, deal structure, and integration of the two agencies.

• Sales experience can provide access to valuable opportunities in the creative industry.
• Equity ownership in a business can be obtained through options and converted into equity over time.
• Preparing for a sale or acquisition by getting the company's house in order is crucial.
• Maintaining business as usual and minimizing disruption to clients and employees during the integration process is important.
• Combining the strengths and expertise of two agencies can create new opportunities and services for clients.

Connect with Barnaby on LinkedIn: https://www.linkedin.com/in/barnabycook/

Join The Exit Plan mailing list: http://eepurl.com/iC8sIY

In the ever-evolving world of business, entrepreneurs embark on journeys filled with challenges, successes, and unexpected turns. 

In this episode, Erwan, founder of a video production agency, shares his journey from starting the company to growing it to revenues of $5 million within three years. Erwan unveils the strategies and insights that enabled him and his business partner to scale their venture rapidly, with a sales-oriented approach and a laser focus on animation videos. Moreover, Erwan provides valuable advice on building a successful sales team, finding potential buyers, and navigating the intricacies of a post-acquisition landscape.

Discover the secrets to scaling and exiting a successful video production company from Erwan's journey! 

WHAT YOU WILL LEARN:

• Erwan’s journey from starting the company to selling it within three years after reaching revenues of $5 million

• Strategies for scaling the business rapidly

• Insights into building a successful sales team and finding potential buyers, 

• Deal structure with upfront payment and earn-out

• Price negotiation based on revenues instead of using an EBITDA multiplier

• Smooth integration process for production but challenges in sales due to different commission structures

• Erwan’s advice when looking for buyers, shortening earnout contracts, adopting an investor mindset, and building relationships with sponsors for successful integration

ABOUT ERWAN DROUET

Erwan Drouet has been helping companies grow their numbers to 6-7 figures for over 10 years. He combines powerful lead generation systems with the strongest sales process closing every deal that is closable. He is the living proof of his systems running several successful businesses.

• Linkedin | Erwan Drouet

• Twitter | @erwandrt

CONNECT WITH ME

• LinkedIn | Barnaby Cook

THE EXIT PLAN

The Exit Plan is for business owners that are interested in learning more about how to sell their business. Each episode Barnaby Cook interviews someone who has bought or sold a business - either a creative agency, or a production company. The conversation gets under the skin of why they wanted to sell, or were looking to acquire, how the deal was structured, how they agreed upon a valuation and what lessons they learnt along the way.

Welcome to The Exit Plan, a podcast for business owners interested in learning more about selling their business.

In this episode, we dive into the world of PR and communications with industry veteran Laura O'Connell who is about to launch her consulting firm ‘Laura O’Connell Consultancy’. With a career spanning three decades, Laura guides us through her agency roots and her role as the inaugural head of Communications at Direct Line when she still works for them. Her entrepreneurial journey is a highlight, co-founding Wriglesworth Consultancy, which grew into an acclaimed agency with 30 employees and then sold it to Instinctif Partners.

Laura shares her work experience when she was with Instinctif Partners acquisition. She shares insights into valuation, deal structuring, and the appeal for buyers. Laura emphasizes strong team building and structured management as key to successful transitions

Laura's wisdom shines through as she reflects on the journey, offering advice to her younger self and aspiring entrepreneurs. She underscores the value of early planning, network building, and staying flexible. 

Join us as Laura's experience in entrepreneurship, growth, and strategic transition becomes a source of inspiration for anyone navigating the ever-evolving landscape of business.

WHAT YOU WILL LEARN:

• The significance of having a clear vision and a strategic plan from the outset of business

• The role of advisors, coaches, and a strong network 

• The balance between retained and project work in a client portfolio

• The process of structuring a deal, valuing a service-based business, and understanding the appeal to potential buyers

• The complexities of ownership structure, integration, and the transitioning process in the post-acquisition phase

• The importance of recognizing when it's the right time to move on from a business and embark on new endeavors

CONNECT WITH LAURA O’CONNELL:

• Website | www.lauraoconnell.co.uk

THE EXIT PLAN

The Exit Plan is for business owners that are interested in learning more about how to sell their business. Each episode Barnaby Cook interviews someone who has bought or sold a business - either a creative agency, or a production company. The conversation gets under the skin of why they wanted to sell, or were looking to acquire, how the deal was structured, how they agreed upon a valuation and what lessons they learnt along the way.

Nikki Wheeldon, a versatile entrepreneur with a background in acting, shared her journey from a struggling actor to the founder of Jam Pot, a flourishing business providing freelance operational support. Initially managed solely by Nikki and her husband, Jam Pot's unique business model, devoid of retainers, offered flexible operational services across admin, HR, finance, and more. The company expanded, boasting a team of 40 and serving 40-50 clients monthly.

The sale decision emerged when Nikki discovered Foundy, a platform facilitating anonymous business listings. Foundy garnered significant interest despite initial skepticism, leading to conversations with potential buyers. The sale posed challenges, forcing Nikki to consider deal structures, terms, and the post-sale impact on her life. Eventually, a buyer aligning with her conditions emerged on Foundy, resulting in Jam Pot's successful sale.

Nikki's journey underscores adaptability, resilience, and strategic decision-making in entrepreneurship. In the continuation, Nikki delves into the sale process, emphasizing the importance of understanding one's objectives and setting clear boundaries. The negotiation intricacies, buyer details, and the one-month collaborative handover period are discussed. Nikki shares her plans, considering temporary employment elsewhere and exploring her interest in speaker coaching. She offers valuable advice for aspiring entrepreneurs, highlighting the significance of early preparation and business decisions that enhance appeal to potential buyers.

Join The Exit Plan mailing list: http://eepurl.com/iC8sIY

Come along to The Exit Plan Live event: https://www.eventbrite.co.uk/e/the-exit-plan-live-tickets-765231597307

Welcome to The Exit Plan, a podcast for business owners interested in learning more about selling their business.

In this episode, we have Thom Gonyeau and Stephen Pruitt, owners of Mountain View, a full-service creative agency based in Atlanta, USA. They share their journey from being employees at the company, which was founded in 1981 by Jim Tusty, to becoming owners through a management buyout.

Thom and Stephen also discuss the details of the closing, the paperwork, and the financial aspects involved. They also touch on the significance of timing, as their purchase occurred just before the 2008 financial crisis, and how managing finances tightly and diversifying services led to the company's growth.

Join us as we explore the journey of Mountain View, a creative agency that thrives on a combination of hard work, luck, and a shared vision for success.

WHAT YOU WILL LEARN:

• The history of Mountain View

• The belief and interest shown by Thom and Stephen in taking over the company and their negotiations with Jim

• The role of the Small Business Administration in providing an SBA loan to secure the funds for the buyout

• The financial aspects of the buyout

• Thom and Stephen's plans for the future

• Valuable advice for others considering a management buyout

CONNECT WITH MOUNTAIN VIEW:

• Website | www.mountainviewgroup.com

• LinkedIn | www.linkedin.com/company/mountainviewgroup

• Facebook | www.facebook.com/mountainviewgroup

• Twitter | @mvgtweets

• Instagram | @mountainviewgroup

CONNECT WITH THOM:

• LinkedIn | Thom Gonyeau

• LinkedIn | Stephen Pruitt

CONNECT WITH ME

• LinkedIn | Barnaby Cook

THE EXIT PLAN

The Exit Plan is for business owners that are interested in learning more about how to sell their business. Each episode Barnaby Cook interviews someone who has bought or sold a business - either a creative agency, or a production company. The conversation gets under the skin of why they wanted to sell, or were looking to acquire, how the deal was structured, how they agreed upon a valuation and what lessons they learnt along the way.

Cindy Anderson, a certified public accountant and M&A consultant, shares insights on preparing a business for sale and navigating the M&A process. She emphasizes the importance of clean financial records and understanding the buyer's perspective. Anderson recommends working with advisors and creating a clear integration plan to ensure a smooth transition post-sale. She also discusses the challenges of earnouts and the emotional impact of selling a business. Overall, Anderson advises business owners to clarify their goals and seek professional guidance to maximize the value of their business.

Takeaways

• Clean financial records are crucial for preparing a business for sale.
• Understanding the buyer's perspective and their specific needs is essential.
• Working with advisors and creating a clear integration plan can facilitate a smooth transition post-sale.
• Earnouts can be challenging and require a clear strategy and commitment from both parties.
• Selling a business can have emotional implications, and it's important to be prepared for the transition.

Connect with Barnaby on LinkedIn: https://www.linkedin.com/in/barnabycook/

Join The Exit Plan mailing list: http://eepurl.com/iC8sIY

In this episode, join Andrew on a riveting narrative spanning nine years as he unveils the dynamic trajectory of Origins of Motion. This video production venture began in the quiet corners of Cambridge. The exit, a management buyout by two videographers, followed Andrew's decision due to remote management challenges.

The valuation prioritized mutual affordability, ensuring a smooth transition. Andrew ventured into health and wellness tech, addressing mental health needs after exit. Simultaneously, he found fulfillment consulting for business owners.

This shift highlights Andrew's adaptability, transitioning from video production to diverse ventures. His commitment to mental health aligns with contemporary needs. As he navigates, Andrew's journey exemplifies entrepreneurial evolution.

The conversation explores financial and legal facets. The somewhat opportunistic sale stemmed from Andrew's desire for a new challenge. Two videographers took over in a management buyout. Valuation focused on mutual affordability, involving upfront cash and deferred payments. Andrew benefited from Business Asset Disposal Relief for tax efficiency.

Legal considerations adopted a simple joint process, minimizing costs. The timeline from the selling conversation to the key handover spanned three and a half months. Post-sale, Andrew coaches remotely, exploring e-commerce ventures. Reflecting on selling, he emphasizes upfront planning and understanding the selling process's intricacies.

Join The Exit Plan mailing list: http://eepurl.com/iC8sIY

Come along to The Exit Plan Live event: https://www.eventbrite.co.uk/e/the-exit-plan-live-tickets-765231597307

George Hughes, founder of Small Films, shares his experience of starting and acquiring businesses in the video production industry. He discusses the challenges of transitioning from working in the television industry to running his own company and the importance of understanding the objectives of clients. Hughes also talks about how he acquired Maia Films, an education specialist company, during its liquidation process. He explains the negotiation process, the assets he acquired, and the impact on his business. He concludes by reflecting on the lessons learned and the potential for future acquisitions.

Takeaways

• Transitioning from working in a specific industry to running your own company requires understanding the objectives of clients and adapting to their needs.
• Acquiring a business during its liquidation process can be a strategic opportunity, but it requires careful negotiation and assessment of the assets and liabilities involved.
•  The acquisition of Maia Films has the potential to significantly increase Small Films' turnover and establish the company as a dominant player in the education content industry.
• Timing is crucial in business acquisitions, and acting quickly can help secure clients and maximize the benefits of the acquisition.
• Reflecting on the experience, being more aggressive and proactive in the acquisition process could have yielded even better results.

Connect with George on LinkedIn: https://www.linkedin.com/in/georgemhughes/

Connect with Barnaby on LinkedIn: https://www.linkedin.com/in/barnabycook/

Join The Exit Plan mailing list: http://eepurl.com/iC8sIY

The world of entrepreneurship is a dynamic and ever-evolving realm, where success stories and trials intertwine to shape the destinies of countless ventures.

In this episode, Gus Colquhoun talks about selling his business, Jacaranda. Gus discusses the history of Jacaranda, their clients such as The Body Shop and Rio Tinto, the growth of the business over time, and their decision to sell. He also talked about finding a buyer through Rockworth advisors and unexpected interest from a printing company.

Explore the intricacies of Jacaranda's growth, witness the emotional process of parting ways, and witness the unexpected twists and turns that the business sale journey can bring. In doing so, we gain valuable insights into the complex world of entrepreneurship and the indomitable spirit that propels businesses to new heights.

WHAT YOU WILL LEARN:

• Overview of Jacaranda's business before the sale

• Process of selling the Jacaranda

• Closing the deal and post-sale

• Building a new business and Gus’s future plans

ABOUT OUR GUEST

Gus specialises in communicating strategic insights - translating complex concepts into engaging stories - through print, online and film.

He has 25 years of writing and film production experience, working with some of the world’s leading brands including BP, Barclays, British Airways, HSBC, Rio Tinto and Virgin Group. His unique experience enables Kinetic to develop narratives to  explain client’s strategies, engage their staff and create inspiration and focus throughout the organisation.

International recognition for his work includes New York Festival Gold Awards, the U.S. International Film Festival Gold Camera Award and the IVCA Grand Prix Award. Gus is a Trustee of The Body Shop Foundation.

• Linkedin | Gus Colquhoun

CONNECT WITH ME

• LinkedIn | Barnaby Cook

THE EXIT PLAN

The Exit Plan is for business owners that are interested in learning more about how to sell their business. Each episode Barnaby Cook interviews someone who has bought or sold a business - either a creative agency, or a production company. The conversation gets under the skin of why they wanted to sell, or were looking to acquire, how the deal was structured, how they agreed upon a valuation and what lessons they learnt along the way.

In this edition of the Exit Plan podcast, Barnaby participates in a live conversation taped at the Riding House Cafe in Fitzrovia. The panellists are Lisa Paasche, former CEO of Verve Search, Nick Berry, partner and M&A advisor at Green Square, and Joe Lewin, CEO of Foundy, an M&A marketplace. The episode begins with insights into the panellists' experiences selling enterprises, which shed light on the complexities of the exit process. 

The conversation begins with Lisa Paasche's story of selling her SEO agency to Omnicom Media Group, focusing on the financial motives and hurdles she encountered. Nick Berry discusses his entrepreneurial pursuits and the intricacies of building and selling a production firm, Taylor James.

Joe Lewin provides a technical perspective, emphasising the Foundy's role in modernising the business acquisition process through technology and artificial intelligence.

The discussion focuses on the motivations for selling firms, which range from financial aims to personal reasons such as family time or overcoming burnout. The panellists discuss the importance of timing, the influence of recurring revenue, and the obstacles encountered during the negotiating and earnout phases. As they share their experiences and perspectives, the audience obtains insight into the complex process of quitting a business. Stay tuned for Part 2 of this conversation in the upcoming episode.

Join The Exit Plan mailing list: http://eepurl.com/iC8sIY

Welcome to The Exit Plan, a podcast for business owners interested in learning more about selling their business.

In this episode, we explore the inspiring journey of Olly Fawcett, the 26-year-old founder and CEO of 303 London, a thriving creative agency specializing in digital and creative production. From starting the agency at 17 to scaling it into a comprehensive powerhouse, Ollie shares insights into their revenue growth, the acquisition of Ralle Media, and their vision for the future. 

Join us for an episode filled with valuable lessons and inspiration for aspiring entrepreneurs and creative professionals.

WHAT YOU WILL LEARN:

• Olly's background and the founding of 303 London at 17 years old

• Transition from theater shows to focusing on digital content and online sales

• Structure and functions of 303 London, including the digital and creative production teams

• Revenue growth and financial performance of the company over the years

• Target clients and focus on the premium sector

• The decision to acquire Ralle Media and the reasons behind it

• Future plans for additional acquisitions and the importance of integration and strategic planning

• Lessons learned and reflections on the acquisition process

CONNECT WITH OLLY:

• LinkedIn | Olly Fawcett

• Instagram | @303.london

• LinkedIn | www.linkedin.com/company/303london

• Facebook | www.facebook.com/303.london

CONNECT WITH ME

• LinkedIn | Barnaby Cook

THE EXIT PLAN

The Exit Plan is for business owners that are interested in learning more about how to sell their business. Each episode Barnaby Cook interviews someone who has bought or sold a business - either a creative agency, or a production company. The conversation gets under the skin of why they wanted to sell, or were looking to acquire, how the deal was structured, how they agreed upon a valuation and what lessons they learnt along the way.

Welcome to The Exit Plan, a podcast for business owners interested in learning more about selling their business.

In this episode,  we are joined by Alex Goat, CEO of Livity, a London-based youth specialist consultancy and creative studio with 22 years of global experience working with brands such as Google, Nike, and more. They focus on connecting with Gen Z and beyond.

Alex shares her incredible journey, starting from her background in events to her time at Iris, working on projects from behavior change to global FMCG clients like Unilever. In 2012, she found her calling at Livity, a purpose-driven business founded 22 years ago. Livity uses marketing to make a positive impact on the world, especially with young audiences.

Tune in to hear Alex Goat's inspiring journey from events to leading Livity, as she discusses their impact on young audiences and their unique approach to marketing.

WHAT YOU WILL LEARN:

• The importance of preparing for a sale and thinking strategically well in advance.

• The need to adapt in a changing landscape, especially during the COVID-19 pandemic.

• The surprising revelation that what potential buyers wanted most was Liberty's youth specialism.

• How the Liberty team found their perfect match with the Mission Group, a creative agency group that allowed them to maintain their identity and purpose.

CONNECT WITH DANNY BULL:

• LinkedIn | Alex Goat

• Website | https://livity.co.uk/

THE EXIT PLAN

The Exit Plan is for business owners that are interested in learning more about how to sell their business. Each episode Barnaby Cook interviews someone who has bought or sold a business - either a creative agency, or a production company. The conversation gets under the skin of why they wanted to sell, or were looking to acquire, how the deal was structured, how they agreed upon a valuation and what lessons they learnt along the way.

Arthur Petropoulos, the managing partner at Hillview Partners, discusses his work in mergers and acquisitions and capital advisory for middle market companies. He shares how he got into this line of work and the process of setting up and growing his own firm. Petropoulos explains the importance of building infrastructure and processes in businesses to reach the one million EBITDA mark, which is a key threshold for attracting buyers. He also highlights the factors that make a business attractive to acquirers, including fundamentals, access, capabilities, people, process, and product. Petropoulos shares his experience working with video production companies and the types of buyers in that industry. Arthur Petropoulos of Hill View Partners discusses the number of transactions his firm works on each year, the current state of the market, and the types of companies they typically deal with. He emphasizes the importance of consistent, profitable businesses that generate cash and provide real-world products and services. Petropoulos also explains the split between strategic buyers and private equity in the transactions he has worked on. He provides an overview of how private equity works, their objectives, and the success rate of private equity deals.

Takeaways

• Mergers and acquisitions and capital advisory firms help companies sell themselves and secure capital.
• Building infrastructure and processes is crucial for businesses to reach the one million EBITDA mark and become attractive to buyers.
• The attractiveness of a business to acquirers is determined by fundamentals, access, capabilities, people, process, and product.
• Video production companies can be attractive to buyers, especially if they have specialized capabilities or access to specific industries. Hill View Partners typically closes around 10 to 12 deals a year, but is aiming to increase that number to 20 as the team grows.
• While flashy early-stage companies and mega deals may get attention, the majority of the market consists of consistent, profitable businesses that generate cash and provide real-world products and services.
• Private equity firms typically look for businesses they can buy, improve, and sell within a 5 to 9 year timeframe, aiming for a return of around 20%.
• The split between strategic buyers and private equity in transactions is roughly 40% each, with the remaining 20% being family offices and search funds.
• Private equity deals have become more institutionalized and professionalized over the years, with a focus on consistent returns rather than high-risk, high-reward strategies.

Connect with Arthur on LinkedIn: https://www.linkedin.com/in/arthur-petropoulos/

Watch his YouTube Channel here: https://www.youtube.com/@HillViewPartners

Connect with Barnaby on LinkedIn: https://www.linkedin.com/in/barnabycook/

Join The Exit Plan mailing list: http://eepurl.com/iC8sIY

Jacqueline O'Donovan OBE shares her journey of owning and growing a waste management business, O'Donovan Waste Disposal, after her father's passing. She discusses the challenges of taking over the business at a young age and the close-knit dynamic of working with her siblings. Jacqueline highlights the importance of a strong work ethic and cohesion within the family. She also talks about the growth and success of the business, becoming an employer of choice, and leading the industry in sustainability and digitalization. The conversation concludes with the decision to sell the business and the process of finding the right buyer. Jacqueline O'Donovan shares her experience of selling her waste management company and transitioning to a new chapter in her career. She emphasizes the importance of relationships and due diligence in the selling process. Jacqueline discusses the challenges of finding the right buyer and valuing the business. She also talks about her current ventures, including her PR marketing agency. Jacqueline encourages women to be confident and assertive in their careers.

• Taking over a family business at a young age requires resilience, adaptability, and a strong work ethic.
• Building a successful business involves continuous learning, innovation, and staying ahead of the competition.
• Creating a positive work environment and being an employer of choice can attract top talent and contribute to business success.
• Selling a business requires careful planning, finding the right buyer, and maintaining a good relationship with advisors throughout the process. Building strong relationships and conducting thorough due diligence are crucial when selling a business.
• Finding the right buyer who understands and appreciates the business is essential.
• Valuing a business can be a complex process, and it's important to have a clear understanding of the factors involved.
• Transitioning to a new chapter in one's career can be exciting and challenging, but maintaining a strong work ethic and adaptability is key.
• Jacqueline O'Donovan's current ventures include a PR marketing agency and investments in various industries.
• Women in business should be confident, assertive, and supportive of one another.

Connect with Jacqueline O'Donovan on LinkedIn: https://www.linkedin.com/in/jacqueline-o-donovan/

Connect with Barnaby on LinkedIn: https://www.linkedin.com/in/barnabycook/

Join The Exit Plan mailing list: http://eepurl.com/iC8sIY

Welcome to The Exit Plan, a podcast for business owners interested in learning more about selling their business.

In this episode, the director and co-founder of Green and Purple, Katie Bent, talks with Barnaby about her career path and the distinctive course of Green and Purple. Starting with her early career in accounting, Katie describes her corporate experience and her partnership with Pete, which resulted in the founding of a company that provides flexible financing options for creative sectors.

The conversation reveals the M&A trajectory of Green and Purple, starting with their 2019 acquisition by a London-based company, followed by the spin-off of their Cambridge office, and ending with a full management buyout in 2020. Katie goes into great detail about the buyout's financial details, highlighting the need of individual financing and making all of the payments at once.

The topic of possible exit strategies is also discussed, as well as the significance of culture and trust in their decision to stick together. We talk about Green and Purple's growth goals for 2024, which centre on internal process optimisation and consolidation, as well as their latest purchase in the life sciences industry. Katie portrays a dynamic path for Green and Purple by demonstrating her dedication to ongoing progress while remaining open to individual directors' specific aspirations.

Join The Exit Plan mailing list: http://eepurl.com/iC8sIY

Punctuation's co-owner Jonathan Baker discussed the company's function as an adviser focusing on small to mid-sized marketing services organizations on this episode of "The Exit Plan" podcast. During the interview, Jonathan discussed their twin strategy of offering M&A activities, including buy-side and sell-side searches, valuations, and advising services encompassing positioning and lead generation.

Baker emphasized the difficulties in valuing companies, especially those with revenues between $1 and $10 million, and stressed the significance of owner wages and the enterprise's long-term viability after a sale. The discussion also included internal transfers, where Punctuation helps customers negotiate sales with staff members and look into innovative deal arrangements.

Using a sizable newsletter subscriber list, cold emailing, referrals, and careful research were among the market outreach tactics described. Baker recognized the M&A market's cyclical character and the importance of timing in locating qualified purchasers.

The session ended with some insights into typical transaction arrangements, including an earn-out term of two to three years, contingent on performance measures, and an upfront payment of forty to fifty percent. Baker emphasized innovative transaction strategies for purchasers with tight budgets, looking at possibilities like seller-funded working capital and future profit-based payments. In 2024, Punctuation intends to rebrand, launch a digital benchmarking tool, and remain dedicated to offering its customers high-quality service.

Emphasizing sound financials and a unique market positioning, the conversation offers insightful guidance to entrepreneurs preparing for a potential sale.

Join The Exit Plan mailing list: http://eepurl.com/iC8sIY

Come along to The Exit Plan Live event: https://www.eventbrite.co.uk/e/the-exit-plan-live-tickets-765231597307

Welcome to The Exit Plan, a podcast for business owners interested in learning more about selling their business. 

Hasan Fadlallah is the founder & CEO of Brand Lounge, the region’s leading and award–winning branding consultancy. He is also the Co-Founder & Director of Fullmoon Experiments, a socially driven incubator that develops and grows purposeful startups in the region. Embodying the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum to improve the Arab world through empowering communities, spreading knowledge and nurturing entrepreneurship and innovation.

In this episode, Hasan shares his background in marketing and advertising where he contributed to legacy brands like Dmbnb, Darcy, Masseus, Benton, and Bowls, later acquired by Become Three. He then founded the started Brand Lounge in 2006 as a strategy-led company focused on brand creation and development. Hasan shares the roller coaster events happened within the development span of the company due to crises. The turning point was on the 2008 financial crisis, which led to a pivot in their business model, where they decided to expand the business area to Saudi Arabia. During the development stage, he incorporate their services to purpose and culture, explaining that there is no point in building a brand that resonates in people's minds if purpose isn’t figured out while culture serves as a byproduct of the strategy. 

Hasan mentions that they became a part of a network of almost 24 operations across the globe of around 5000 people. This works by having no equity within the local operations, and no financial arrangement as well, but it's a knowledge transfer and support mechanism as a specialty. He also shares that they focus on two key elements: distinctive philosophy and growth strategy, explaining that their philosophical views are what set them apart. Brand Lounge recently acquired a small talent management firm that specializes in culture from a brand perspective, called People Mina, then integrated as Brand Lounge becoming a culture practice. The acquisition is focused on talent rather than brand names. Hasan also shares that the IP value was determined by client interest and the valuation in the acquisition was determined by considering client willingness to pay for specific IPs. It is also crucial to consider the value of cultural fit and strategic alignment when making deals.

Want to know more about partnership, networking, and how to grow your business? Listen, be inspired, and be literate on how to expand a business.

WHAT YOU WILL LEARN:

• The journey to business expansion

• How to deal with crises

• Thriving not only surviving after success of your business

• Building internal components and methodology for brand development

• How does partnership and networking works globally

• The importance of Philosophy and Culture in integrating to business services

• Determining IP valuation

• Learnings and realizations about Hasan’s journey

CONNECT WITH HASAN: 

• LinkedIn | www.linkedin.com/in/hasanfadlallah

• Website | www.brandloungeme.com

• Twitter | @hfadlallah

• Instagram | @hfadlallah

THE EXIT PLAN

The Exit Plan is for business owners that are interested in learning more about how to sell their business. Each episode Barnaby Cook interviews someone who has bought or sold a business - either a creative agency, or a production company. The conversation gets under the skin of why they wanted to sell, or were looking to acquire, how the deal was structured, how they agreed upon a valuation and what lessons they learnt along the way.

Welcome to The Exit Plan, a podcast for business owners interested in learning more about selling their business.

In this episode, Jack Horwitz, an associate at Leathes Prior Solicitor shares the most obvious thing in terms of valuation, which is how various companies differentiate themselves based on how they legally position themselves for sale, wise accounting, higher turnover, lower costs. But from a legal standpoint, there are things they can do to make themselves more marketable. He also shares about the typical process they are doing, which starts with an accountant who then collaborates with a few corporate finance accountants under the seller's direction to market the seller's business for sale.

He also talks about the main works of the legal side where they concentrate on issues relating to employment, property, disputes, the company's share history, any insurance matters that might be pertinent, and insurance claims. Furthermore, he also shares the IR35 Legislation of UK, which oftentimes a problem he handles in shares and employment. He also touches the other professionals that may be involved, such as specialists in employment law or commercial property within their firm or external experts. 

Jack also discusses the role of a corporate lawyer, which is to try to avoid having to pay back a portion of the purchase price, some negotiation restrictions. One of those is a concept known as a de minimis level, which effectively disqualifies claims below a particular amount. He reiterated that these kinds of terms need to be properly negotiated to the purchase price because anything below that value is excluded, and the buyer cannot make a claim with regard to that amount. Legal facts and documents are always present before buying or selling a business or piece of property. 

Tune in now and learn more about the idea of the deal process and the significance of getting a company ready to sell legally.

JOIN THE EXIT PLAN COMMUNITY http://eepurl.com/iC8sIY

WHAT YOU WILL LEARN:

• How to build a business to make it an attractive proposition for a buyer

• Process of corporate transactions

• Definition and processes of employment ownership trusts (EOTs)

• Typical trade sale structure

• Challenges related to share history and unraveling issues

• Financial and legal due diligence processes

• Introduction to the process through an accountant

• Valuation of businesses and factors that influence value

CONNECT WITH JACK:

• Website | www.leathesprior.co.uk

• LinkedIn| Jack Horwitz

ABOUT THE GUEST:

Jack Horwitz is an associate in Leathes Prior Solicitor who works as a corporate and commercial attorney with a focus on buying and selling businesses describes his background and his interest in corporate law. He studied economics in college with the intention of either entering the legal profession or working in finance until he ultimately chose to pursue a career in law, but still not entirely sure what kind of law to practice. During his lawyer training contract, he visits four different locations which made him practiced some commercial property law, employment law, corporate commercial, and disputes law.

He is interested in the economics of buying and selling businesses, and was sure wanted to work in the business sector.

THE EXIT PLAN

The Exit Plan is for business owners that are interested in learning more about how to sell their business. Each episode Barnaby Cook interviews someone who has bought or sold a business - either a creative agency, or a production company. The conversation gets under the skin of why they wanted to sell, or were looking to acquire, how the deal was structured, how they agreed upon a valuation and what lessons they learnt along the way.

Building a business requires a strong goal, proper management, sourcing, teamwork, and leadership. But success doesn't guarantee the absence of failure and the number of unwanted outcomes after the other. 

In this episode, Raj Choudhury, the CEO of Alloy, shares his background in merge and acquisition and how he started Spunlogic before eventually selling it to a private equity firm. Alloy is a marketing agency specializing in technology brands. With the support from private equity firms, they made several acquisitions to create Engauge. The acquisitions were funded through a combination of cash consideration and rolling over equity into the new unit. Engauge made five acquisitions over five years before ultimately being sold again.

Raj also talks about his experience working with Publicis Group and different companies. Raj reiterated the attitude that a team must have which involves people management, leadership, sourcing and evaluating potential acquisitions, integration processes, and future deal sourcing to aim for success in a business. In terms of valuations for service-based businesses, it depends on factors such as revenue growth trajectory and product market fit rather than specific multiples of EBITDA. 

Raj talks about the factors to consider when valuing a business, such as revenue and expenses. He includes the importance of looking at the potential for growth and time value when considering acquisitions. He also shares the acquisition strategy to speed up their overall path to success such as a clean number and transparency are highlighted as crucial elements in preparing a business for sale. Additionally, it is advised to communicate with the management team about objectives and recognize one's strengths and weaknesses to facilitate growth.

Looking to sell your business? Raj offers valuable advice, stressing the importance of clean financials and transparency. Get ready for a rollercoaster of entrepreneurial wisdom, and uncover the key elements to build a successful business. 

WHAT YOU WILL LEARN:

• Strategies on how to assemble a larger unit

• How meeting with entrepreneurs and allotting enough time to source and evaluate potential acquisition targets affects Alloy's vision and strategy

• How does a private firm work

• The roles of cultural and work integration 

• How to build units to create firms

• The importance of having clean numbers and a well-structured balance sheet

• The importance of transparency and openness from entrepreneurs in a business

• Knowing strengths and weaknesses is essential for building and growing a unit.

CONNECT WITH RAJ:

• LinkedIn | www.linkedin.com/in/rajchoudhury

• Website | alloycrew.com

• Twitter | @rmchoudhury
  
  

THE EXIT PLAN

The Exit Plan is for business owners that are interested in learning more about how to sell their business. Each episode Barnaby Cook interviews someone who has bought or sold a business - either a creative agency, or a production company. The conversation gets under the skin of why they wanted to sell, or were looking to acquire, how the deal was structured, how they agreed upon a valuation and what lessons they learnt along the way.

Mike Craddock, co-founder and CEO of Kairos Group, underwent a unique journey, transitioning from a successful career as a YouTuber to leading a social creative agency. Established in 2015, Carros Group, with offices in London, Manchester, and New York, specializes in social media and influencer marketing. Mike's strategic approach includes acquisitions, such as Horizon, an esports organization, and an aqua-hire in the U.S. talent management sector. The latter acquisition, while ambitious, faced challenges, highlighting the complexities of navigating growth in the competitive agency landscape.

In this episode of The Exit Plan Podcast, hosts Barnaby and Mike Craddock engage in a candid conversation exploring various facets of Mike's entrepreneurial journey and the growth of Carros Group. The discussion unfolds chronologically, starting with Mike's background as a YouTuber, leading to the establishment of Carros Group in 2015. The hosts delve into the evolution of the company from a social creative agency to a major player in influencer marketing, highlighting key milestones such as office expansions and team growth to 110 people.

The episode takes a deep dive into Carros Group's acquisition strategy, focusing on the successful integration of an esports organization named Horizon. Mike provides valuable insights into the negotiation process, the structure of the deal, and the subsequent integration of the acquired business. Another acquisition attempt is explored, revealing the challenges and lessons learned, emphasizing the complexities of aggressive growth in the agency landscape.

The hosts address financial aspects, including revenue figures and the revenue-sharing model with creators. Mike details the valuation exercise undertaken by Carros Group, involving traditional accountants, brokers, and benchmarking against publicly listed companies. The discussion sheds light on the operational readiness and cultural alignment challenges post-acquisition, offering a nuanced perspective on the importance of thorough assessments.

Mike reflects on the cultural clashes that arose, leading to the eventual decision to part ways with the acquired business. The hosts touch upon legal and financial considerations during the unwinding process, providing practical insights into the associated costs.

Looking ahead, Mike shares Carros Group's current strategy, emphasizing organic growth in the evolving market landscape. The episode concludes with insights into prospective offers, future plans, and Mike's open stance towards potential future acquisitions. The interview offers a comprehensive exploration of the triumphs and challenges associated with acquisitions, contributing valuable lessons for businesses navigating growth and integration complexities.

What We Will Learn:

• Entrepreneurial Evolution: Explore Mike Craddock's journey from YouTuber to founding Carros Group and navigating its evolution into a major influencer marketing agency.

• Acquisition Strategies: Gain insights into Carros Group's acquisition approach, including successful integrations, negotiation tactics, and lessons learned from challenges.

• Financial Dynamics: Understand revenue-sharing models with creators, revenue figures, and the valuation exercise undertaken by Carros Group for strategic decision-making.

• Operational Readiness: Delve into the challenges of post-acquisition integration, including cultural clashes, operational shortcomings, and the importance of meticulous assessment processes.

• Strategic Growth: Learn about Carros Group's current strategy, emphasizing organic growth and navigating the ever-changing landscape of social media, influencer marketing, and agency dynamics.

Connect With Mike Craddock: https://www.linkedin.com/in/mike-craddock/

Join our mailing list: http://eepurl.com/iC8sIY

Come to The Exit Plan Live on the 31st January 2024: https://www.eventbrite.co.uk/e/the-exit-plan-live-tickets-765231597307

Mike Silver, the founder of an experiential agency called Stretch, shares his journey of setting up an experiential marketing agency called Stretch in Cape Town, South Africa.  We talk about its growth, a merger with another agency in Johannesburg and it’s eventual sale to a WPP affiliate. He discusses the challenges, learnings, and post-sale experiences, offering valuable insights for entrepreneurs considering a similar path.

Takeaways

• Invest in growth and take risks to achieve exponential growth
• Stay focused on the core business and strategy during the acquisition process
• Prepare for a different dynamic post-acquisition, with a shift in responsibility and accountability

Connect with Mike Silver on LinkedIn: https://www.linkedin.com/in/experiencemike/

Connect with Barnaby on LinkedIn: https://www.linkedin.com/in/barnabycook/

Join The Exit Plan mailing list: http://eepurl.com/iC8sIY

Welcome to The Exit Plan Podcast!

Join Barnaby Cook on a podcast tailor-made for business owners interested in how to sell their business. In each episode, we dive into the world of buying and selling creative agencies and production companies. Hear from industry experts who share their motivations, deal structures, and lessons learned.

In this trailer, you'll catch sneak peeks of the upcoming episodes, offering insight into the wealth of knowledge and expertise that The Exit Plan’s guests have. From understanding how to find the right buyer to negotiating favorable deal terms, "The Exit Plan" covers it all. 

Each episode Barnaby Cook interviews someone who has bought or sold a business - either a creative agency, or a production company. The conversation gets under the skin of why they wanted to sell, or were looking to acquire, how the deal was structured, how they agreed upon a valuation and what lessons they learnt along the way.

Get ready to make informed decisions and craft your successful exit strategy. Don't miss out on The Exit Plan.

In this conversation, Greg Moyer, CEO of Blue Chalk Media, shares his extensive career journey in the media industry, from his early days in journalism to his pivotal role in launching the Discovery Channel. He discusses the founding of Blue Chalk Media, emphasizing the creative freedom it provided him and the challenges of running a media company. Moyer reflects on the growth of Blue Chalk, the development of his team, and the impact of industry changes on their business. He also delves into his succession planning and the recent sale of Blue Chalk, expressing optimism for the future under new leadership.

takeaways

• Greg Moyer's career began in journalism and evolved into media production.
• He was part of the founding team of the Discovery Channel.
• Blue Chalk Media was founded to explore more soulful content.
• Creativity thrives within constraints, not in a vacuum.
• The first commission for Blue Chalk came from the Weather Channel.
• Team development was crucial for Blue Chalk's growth.
• Industry changes have forced media companies to adapt.
• Succession planning was a key focus for Moyer before selling Blue Chalk.
• The integration process with new leadership is seen as an opportunity for growth.
• Moyer expresses satisfaction with the sale and future prospects of Blue Chalk.

Connect with Barnaby on LinkedIn: https://www.linkedin.com/in/barnabycook/

Join The Exit Plan mailing list: http://eepurl.com/iC8sIY