106 Christine McDannell - Strategies for a Rewarding SaaS Exit

In this episode of the SaaS Fuel™ Expert Series, Jeff Mains sits down with Christine McDannell, founder and principal of the Magnolia firm, an M&A brokerage specializing in helping digital business owners achieve a perfect exit. With 20 years of entrepreneurship experience and multiple successful exits under her belt, Christine shares her insights on the mistakes founders make when exiting their businesses, the importance of having clean books, and the value of strategic acquisitions.

Join us as we uncover the intricacies of the exit process and gather priceless insights that could potentially shape the course of your business journey.

Key Takeaways

[00:03:19] - Importance of mentorship and guidance

[00:06:48] - M&A brokerage for digital businesses

[00:11:09] - Selling a profitable business is valuable

[00:16:15] - Support and educate sellers through the process

[00:20:37] - Valuing and selling a business

[00:28:16] - Importance of clean financial records

[00:30:02] - Focus on building an incredible company

[00:38:14] - Acquiring companies through aggressive outreach

[00:44:30] - Sacrifice and hustle for success

Tweetable Quotes

"There's a lot of intangibles, I think, that AI could never be able to really value." - 00:14:53 Jeff Mains

"There are some really cool ninja things you could do that nobody, not even any, every other advisor said I couldn't do it." - 00:15:05 Christine McDannell

"Having somebody, we work with somebody like you is absolute gold and the cost is, there are big checks, but the value and the benefit that you get is far, far higher than that." - 00:20:25 Jeff Mains

"Having clean books is ideal." - 00:28:18 Christine McDannell

"I think only focusing on the exit price is not smart, especially in the very beginning, my best advice and all my startups." - 00:29:41 Christine McDannell

"I didn't date for years. Like, and I don't regret it. Even looking back, I don't regret it one bit because now I don't have to work that much and I get to live, you know, travel the world and half the time I'm gone in other countries. And so to me, it was worth it." - 00:44:16 Christine McDannell

SaaS Leadership Lessons

When building a business, it's important to have a long-term vision and plan. Instead of focusing solely on the exit price, concentrate on building an incredible company with a strong reputation, exceptional team, and solid systems in place.
Seek expert guidance. Exiting a business can be a complex and emotional process. It's crucial to have experienced advisors or firms in your corner to guide you through the process, provide support, and help you navigate any challenges that arise.
Prepare your business for sale. To maximize the value of your business and attract potential buyers, it's essential to have clean and organized financial records. Ensure that your books are accurate and up-to-date, as this will instill confidence in potential buyers and make the due diligence process smoother.
Work on creating a business that is not solely dependent on the owner. Delegate responsibilities, build a strong team, and establish systems and processes that can operate independently of your direct involvement.

Guest Resources

Christine McDannell (Linkedin): https://www.linkedin.com/in/christinemcdannell

The Magnolia Firm (Website): https://themagnoliafirm.co/

The Magnolia Firm (Twitter): https://twitter.com/themagnoliafirm

Resources Mentioned

Snowflake: https://www.snowflake.com/

Bob Muglia: linkedin.com/in/bob-muglia-714ba592

Microsoft: https://www.microsoft.com/

Champion Leadership Group: https://championleadership.com/

Amazon: https://www.amazon.com/

Hawaii Community Foundation: https://www.hawaiicommunityfoundation.org/

Red Cross: https://www.redcross.org/

David Rush: linkedin.com/in/drush29

SmallWorld: https://www.smallworld.ai/

Dan Radu: linkedin.com/in/danradu2000

Macro: macromator.com

Magnolia Firm: https://www.themagnoliafirm.co/

Eco Chateau Wellness Spa: https://www.spaecochateau.com/

Salesforce: https://www.salesforce.com/ap/?ir=1

HubSpot: https://www.hubspot.com/

Zoho: https://www.zoho.com/

EIDL Loans: https://www.sba.gov/funding-programs/disaster-assistance/economic-injury-disaster-loans

IRS: https://www.irs.gov/

LinkedIn: https://www.linkedin.com/company/linkedin

SBA Loan: https://www.sba.gov/funding-programs/loans

Google: https://www.google.com/

Kindred Quarters: https://www.kindredquarters.com/

Crunchbase: https://www.crunchbase.com/

WeWork: https://www.wework.com/

Trustpilot: https://www.trustpilot.com/

Glassdoor: https://www.glassdoor.com/index.htm

YouTube: https://www.youtube.com/?hl=en&gl=PH

Episode Sponsor

If you could use an upgrade to your SaaS building trail map, check out Champion Leadership Group and my book Small Fish Big Pond: Building a World-Class Business That Swims Circles Around Competitors. SFBP centers around 2 labor days a year apart and delivers powerful marketing and leadership lessons guaranteed to enhance your marketing message, wrap value around clients, and guide their buying journey to conclude that your company is the only solution for them. It includes step-by-step frameworks and time-tested growth principles to attract ideal clients, convert them, and transform them into your brand ambassadors. Pick up the print, ebook, or audio today at smallfishbigpond.com, Amazon, or your favorite book source. All book profits go to charity and always have. We were in Hawaii when the fires started and came home. Maui was hammered in a heavily populated area - total devastation, tragic loss of life, and still so many missing. If you want to help, check out the Hawaii Community Foundation ORG or Red Cross. Both are on the ground and very involved in day-to-day relief efforts. All profits for August are going to help the people of Maui in addition to what we’re giving. Appreciate you partnering with us. It’s falling out of the news cycle, but we haven’t forgotten.

Small Fish, Big Pond – https://smallfishbigpond.com/ Use the promo code ‘SaaSFuel’

Champion Leadership Group – https://championleadership.com/