1090: Punctuation: Plan for Business Exits at Maximum Value, Navigate Valuation Challenges, and Achieve Financial Goals with M&A Advisor Jonathan Baker

Are you stuck running your marketing agency, uncertain about how to level up or when to step away? Are you overwhelmed by figuring out how much your business is worth and whether selling is right? Essential factors to consider when selling include your interest in running the business, its potential for growth, and what buyers are looking for. But before you make any decisions, you must go through several evaluations to ensure you get the best deal. That's where having an advisor comes in handy.

Jonathan Baker is the son of the father-son duo at Punctuation, a small advisory practice that works exclusively with small to mid-sized independent marketing services firms. Jonathan handles the mergers and acquisitions side of the business, which includes valuations, helping buyers find sellers, and then helping sellers find buyers. He also advises marketing firms on how to focus and grow their businesses. Today, Jonathan discusses the process of selling a marketing agency, including determining the right time to sell, the factors that contribute to a business's value, and the emotional and logistical considerations involved in the M&A process.

Quotes

“You never know what might happen. You may have multiple offers, but sometimes things fall apart during due diligence, financing doesn't work out, or unexpected events like a global pandemic occur. It's important to hope for the best but plan for the worst.” – Jonathan Baker

“We will always shoot straight with you. We are known for being brutally honest and will never force you into a deal we don't believe is right for you.” – Jonathan Baker

“Retirement is not an age; it's a number. It's a financial number you need to hit in order to do the things you want with your time. So, don't think of retirement as, ‘Oh, I have to wait until I'm 65.’ Think of it as, ‘What do I want to do with my time, and how much money do I need to get there?’” – Jonathan Baker

Takeaways

03:20 Determining the right time to sell a business involves predicting the future and understanding the owner's personal and financial goals, not just the business's current performance.

06:46 Conducting thorough due diligence on both the buyer and seller is crucial to ensuring a successful deal, as the two parties are effectively tying their financial futures together.

08:10 The process of selling a business can be emotionally and logistically challenging but working with an experienced M&A advisor can help navigate the complexities and provide support throughout the journey.

14:55 Having an outside advisor can provide valuable perspective and help business owners make the best decisions for their company, whether that involves selling, growing, or even shutting down the business.

21:53 Retirement should be viewed as a financial goal, not just an age, and business owners should consider how their business sales can help them achieve the lifestyle they desire in the next chapter of their lives.

Resources

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