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How To Build An Exit Strategy For Your Business
Episode 3427th June 2022 • Close The Loop • CallSource
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Kevin Dieny:

Hello, and welcome to the Close the Loop podcast.

Kevin Dieny:

I'm your host, Kevin Dieny, and today we're gonna be talking about How to

Kevin Dieny:

Build an Exit Strategy for your Business.

Kevin Dieny:

I've got a really special guest with us today, who I would consider to

Kevin Dieny:

be a fantastic resource for talking about exit strategies with business.

Kevin Dieny:

His name is Kyle Griffith.

Kevin Dieny:

Kyle Griffith is a trusted M and A advisor for business owners, planning their

Kevin Dieny:

retirement in the sale of their companies.

Kevin Dieny:

Kyle is a managing partner of the N Y B B group.

Kevin Dieny:

For the past 18 years, the N Y B B group has assisted privately held companies

Kevin Dieny:

in need of merger and acquisition and business advisory services.

Kevin Dieny:

Kyle is the chair elect of the International Business Brokers

Kevin Dieny:

Association and is the CEO and founder of the M and A, an advisory

Kevin Dieny:

network for business owners seeking to build, grow, and exit their company.

Kevin Dieny:

So welcome Kyle, and I'm so grateful for having you on.

Kyle Griffith:

Hey, Kevin, I really appreciate the opportunity to

Kyle Griffith:

connect with you and, and share some insights with your guests.

Kyle Griffith:

I feel honored to be part of your program.

Kyle Griffith:

Thank you for so much for the invite.

Kevin Dieny:

Yeah, and I think a great place for us to get started

Kevin Dieny:

here, Kyle, is with the very basics.

Kevin Dieny:

So when we talk about an exit strategy, when we talk about mergers and

Kevin Dieny:

acquisitions, the sale of a company, what are we, what is that I guess in

Kevin Dieny:

layman's terms, what are we talking about?

Kyle Griffith:

So when, when you're thinking about an exit strategy, one

Kyle Griffith:

way to look at it, you know, most folks, when you think of exit to think

Kyle Griffith:

about sale, don't look at it that way.

Kyle Griffith:

An exit strategy is in, in the event that you need to transition

Kyle Griffith:

the business, success the business, have a succession plan in place

Kyle Griffith:

for a family member or employee.

Kyle Griffith:

You wanna have something in place in case of that event occurs.

Kyle Griffith:

Also, you could be looking to grow your company, right?

Kyle Griffith:

You wanna grow your company from 5, 10 to 20 million.

Kyle Griffith:

What's your strategy?

Kyle Griffith:

Are you plan to grow your company in preparation for exit

Kyle Griffith:

to purchase another company.

Kyle Griffith:

Another exit strategy can be, Hey, you know what?

Kyle Griffith:

I have a great team here.

Kyle Griffith:

I wanna do an internal sale, my exit strategy, I'm gonna transfer ownership

Kyle Griffith:

to some key employees or key management.

Kyle Griffith:

A lot of people when, when they get involved in a business, they don't

Kyle Griffith:

think about what the exit strategy is.

Kyle Griffith:

And, you know, 20, 30 years later, later they're stuck in a business

Kyle Griffith:

that they probably could have sold or could have exited, uh, years ago.

Kyle Griffith:

I like to use the analogy, Kevin.

Kyle Griffith:

You know, you think of it in the real estate world.

Kyle Griffith:

You're not gonna just buy a piece of property without knowing what

Kyle Griffith:

your exit strategy is gonna be.

Kyle Griffith:

Either you end up in the buy and hold game, you're buying property to hold and

Kyle Griffith:

you know, you put it in your portfolio and it stays in family trust and stays from

Kyle Griffith:

generation to generation, or you fix it, and you're flipping, you're doing rehab.

Kyle Griffith:

So the same thing when you get in a company, what's your game plan is

Kyle Griffith:

your plan to hold it, build it up or keep it in the family or go public.

Kyle Griffith:

There's different ways to exit depending on what your, what

Kyle Griffith:

your, what your game plan is.

Kevin Dieny:

No, that's really fascinating to me because the, that

Kevin Dieny:

there's so many different options a business could take, you know, maybe.

Kevin Dieny:

Maybe it's it wants to success to the, to its family member, to an employee.

Kevin Dieny:

It wants to sell, it wants to grow.

Kevin Dieny:

There's a lot of options or interesting avenues there.

Kevin Dieny:

So that makes me think, okay, well, how early is it?

Kevin Dieny:

Like life insurance where it's like well...

Kevin Dieny:

The earlier you get it, the better off you are.

Kevin Dieny:

Is it like that where the earlier a business is thinking about it?

Kevin Dieny:

Cause you mentioned you don't buy a property before knowing your exit.

Kevin Dieny:

Is it the same, should a business owner today who maybe doesn't have the, I don't

Kevin Dieny:

know the most confident exit strategy.

Kevin Dieny:

Should a business owner at any point in time be thinking about

Kevin Dieny:

their exit or is it, you know, when they're near the exit is it from day

Kevin Dieny:

two or three of having a business?

Kevin Dieny:

Where do you, where would you, where do you think a good time to start

Kevin Dieny:

planning an exit strategy takes place?

Kyle Griffith:

From the very beginning.

Kyle Griffith:

You, you wanna think of it.

Kyle Griffith:

And from the end in mind, you wanna reverse engineer what your game plan

Kyle Griffith:

is, as far as your exit strategy is, and the growth of your business.

Kyle Griffith:

From the very beginning, a lot of people don't think about it,

Kyle Griffith:

cause they're so excited, right?

Kyle Griffith:

I have to see a business I just started or I just bought or I just inherited,

Kyle Griffith:

and you just have so much going on.

Kyle Griffith:

You have to deal with the staff, vendors, customers.

Kyle Griffith:

In that beginning, just a big rush to get things situated.

Kyle Griffith:

You deal with contracts, attorneys, leases, and you forget about, you

Kyle Griffith:

know, what is the eventual goal here?

Kyle Griffith:

Is your goal, you're gonna, this business is gonna fund your retirement?

Kyle Griffith:

You're building a business that's gonna make X amount

Kyle Griffith:

that can fund your retirement.

Kyle Griffith:

Are you building up a legacy for your kids and your family?

Kyle Griffith:

So ideally you wanna start from the beginning.

Kyle Griffith:

And reverse engineer.

Kyle Griffith:

It's funny, um, I just got out of a Goldman Sachs program.

Kyle Griffith:

See my cup here.

Kyle Griffith:

10,000 small business, a wonderful program.

Kyle Griffith:

The very first day in the class.

Kyle Griffith:

Now their program runs for four months the very first day.

Kyle Griffith:

Guess what they taught on the first day?

Kevin Dieny:

Have an exit, have a, have the end in mind?

Kevin Dieny:

Or?

Kyle Griffith:

Yeah, what's your exit strategy?

Kyle Griffith:

Right?

Kyle Griffith:

So you've been through a whole course of four months, you know, figuring

Kyle Griffith:

how to build your business, how to, how to grow your business, how to

Kyle Griffith:

build a sustainable viable company.

Kyle Griffith:

Right, has your exit plan changed?

Kyle Griffith:

If it hasn't changed, whether it's changed or not, what are you gonna do?

Kyle Griffith:

What are some things you're gonna track?

Kyle Griffith:

What some metrics you're gonna track to make sure that you're building a

Kyle Griffith:

company that's sellable, a company has value, and you have people in place

Kyle Griffith:

who run a company if you're not around.

Kyle Griffith:

So you can step away, you can go on vacation, you can do some cool things.

Kyle Griffith:

So it's, it is very important because, I speak with many clients that are,

Kyle Griffith:

you know, they can't take a vacation.

Kyle Griffith:

They're locked in.

Kyle Griffith:

They don't have anyone to run the company and, it's things you have to think about

Kyle Griffith:

in the very early stages of your company.

Kevin Dieny:

Wow, yeah, so you mentioned there's a lot of things

Kevin Dieny:

in that, even in what you just said, I'd like to unpack even more.

Kevin Dieny:

The first thing I'd wanna go into would be, okay, so let's say a business

Kevin Dieny:

owner, someone who's launched the business at any point in time, wants

Kevin Dieny:

to have a very solid exit strategy.

Kevin Dieny:

What would you say is one of the first steps on that journey on that

Kevin Dieny:

path to, to having an exit strategy where they're gonna feel confident

Kevin Dieny:

about it, know what maybe what it is.

Kevin Dieny:

Maybe have some backup options to it.

Kevin Dieny:

What, what would be the first step in that path to getting an exit strategy?

Kyle Griffith:

Well, it, it depends on where they are at with their business.

Kyle Griffith:

I ideally, you, you want to have that conversation with your financial

Kyle Griffith:

planner, your financial advisor, your wealth advisor, you know?

Kyle Griffith:

So if your goal is you need a million dollars to retire and your company's

Kyle Griffith:

valued at $500,000, then there's a gap of five hundred grand, right?

Kyle Griffith:

So one of the first steps you wanna do is get an evaluation, right?

Kyle Griffith:

You need to assess where you are.

Kyle Griffith:

Right, I like to use, I like analogies.

Kyle Griffith:

Kevin just, just put things in perspective.

Kyle Griffith:

So every year, what do you do?

Kyle Griffith:

You get a checkup, right?

Kyle Griffith:

You get a physical, right?

Kyle Griffith:

So if your goal is to be chiseled like Christiano Ronaldo, and you go to the

Kyle Griffith:

doctor and you're a little bit lumpy.

Kyle Griffith:

Right, the docs gonna say, you need to work out, lose weight,

Kyle Griffith:

and you put a plan together.

Kyle Griffith:

You get a gym membership, you start eating right.

Kyle Griffith:

And you get to be Christiano Ronaldo.

Kyle Griffith:

Now, if your goal is not to be Christiano, you want to be, you know, just in

Kyle Griffith:

shape that you put a, a plan in place.

Kyle Griffith:

The same thing with your, with your company.

Kyle Griffith:

You, you want to, the first step you wanna get evaluation of your

Kyle Griffith:

company, determine what it's worth.

Kyle Griffith:

And then part of that plan is let's say your exit plan is to

Kyle Griffith:

sell your company in five years.

Kyle Griffith:

Your companies worth 1 million today.

Kyle Griffith:

And as part of that assessments, we do different assessments.

Kyle Griffith:

We do what's called a value gap assessment.

Kyle Griffith:

So with that value gap assessment, we will assess what your businesses were today.

Kyle Griffith:

And we will discuss various key value drivers.

Kyle Griffith:

So if you take action, if, if you take these action steps, your

Kyle Griffith:

business can go from, let's say it's 5 million today to possibly 10 million.

Kyle Griffith:

Right?

Kyle Griffith:

So here's the key, the key question.

Kyle Griffith:

Do you wanna put in the work to get it to 10 now?

Kyle Griffith:

Or does it make sense for you to exit now?

Kyle Griffith:

Because it, in some cases there are business owners

Kyle Griffith:

that have other opportunities.

Kyle Griffith:

They have other motivations that could be investing in real estate,

Kyle Griffith:

other businesses, relocation.

Kyle Griffith:

So there's a, an opportunity loss.

Kyle Griffith:

So if you stay growing your company, you can lose out other opportunities.

Kyle Griffith:

So it depends on that individual.

Kyle Griffith:

For some, it makes sense to exit right away or, and others

Kyle Griffith:

maybe wanna stick around.

Kyle Griffith:

Build a company to a high evaluation and, and exit.

Kyle Griffith:

But one of the first people you wanna speak with is your financial advisor.

Kyle Griffith:

There's also some tax considerations as well when you start a company.

Kyle Griffith:

So having those conversations with your, with your, an accountant would

Kyle Griffith:

be definitely my, my recommendation.

Kevin Dieny:

Yeah, that's that's fantastic.

Kevin Dieny:

And, uh, man, so a, a question that comes off that right away in my head is,

Kevin Dieny:

you know, I, I know that it's complex.

Kevin Dieny:

I know that it's a lot of subjectivity around the business and when it would

Kevin Dieny:

win and, it's the owner up to the owner to decide, okay, is this what I want?

Kevin Dieny:

These being my goals is this what I want in my life?

Kevin Dieny:

Opportunity costs, you mentioned, there's other avenues to explore,

Kevin Dieny:

but I guess in terms of like the basics again, what are some of the

Kevin Dieny:

things that a, a company would say.

Kevin Dieny:

Well, this is how I value.

Kevin Dieny:

I'm going to value a business.

Kevin Dieny:

What are some of the factors or levers or, or just general things

Kevin Dieny:

that go into how a company is valued?

Kyle Griffith:

Kevin, that's the money question, man.

Kyle Griffith:

That's the money question.

Kyle Griffith:

That's the number one question, what's my business worth?

Kyle Griffith:

And it's like a picture it's like the value is in the

Kyle Griffith:

eye of the beholder, right?

Kyle Griffith:

It's the valuation is just like that.

Kyle Griffith:

It's a picture.

Kyle Griffith:

It's art, it's more of an art in a science.

Kyle Griffith:

There are, I can go very deep on this if you want.

Kyle Griffith:

I can keep it high level as well.

Kyle Griffith:

There are multiple factors that goes into the valuation.

Kyle Griffith:

Majority of buyers, the first thing you wanna look at is the financials, right?

Kyle Griffith:

Buyers are looking for some, looking at the EBITDA, which is earnings before

Kyle Griffith:

interest taxes, depreciation, and amortization, and essentially wanna

Kyle Griffith:

see how profitable the business is.

Kyle Griffith:

So you can get away from the financials.

Kyle Griffith:

You have to have clean financials, even projections at times, right?

Kyle Griffith:

I would say maybe 70%, 80% of the valuation is based upon the financials.

Kyle Griffith:

The other aspects is more stuff that you can't see, more Goodwill intangible.

Kyle Griffith:

So let me, let me give you one that you understand.

Kyle Griffith:

Multiples are, is assess is basically a risk that multiple, right?

Kyle Griffith:

When you value the business part of it, you do a multiple of the EBITDA.

Kyle Griffith:

That multiple is a risk factor.

Kyle Griffith:

The higher, the multiple, the lower, the risk.

Kyle Griffith:

The lower than multiple the higher the risk.

Kyle Griffith:

Right?

Kyle Griffith:

So if you're working in a H V A C company, 10 million, you have

Kyle Griffith:

recurring revenue, a lot of good will.

Kyle Griffith:

You have good, good reviews.

Kyle Griffith:

You have good key people, that's a, a low risk.

Kyle Griffith:

Lower risk opportunity.

Kyle Griffith:

So a buyer will be willing to pay a little bit more because they can feel

Kyle Griffith:

rest assured they have a high confidence that the business is not gonna fall

Kyle Griffith:

apart once I take the business over.

Kyle Griffith:

Right, now on the flip, in the flip end, if you don't have contracts,

Kyle Griffith:

you don't have your current revenue.

Kyle Griffith:

You have some contractors that doing some work on the side.

Kyle Griffith:

There's a lot of things happening.

Kyle Griffith:

A buyer will look at that, you know, there's some risk that's involved.

Kyle Griffith:

So I'm not willing to put my money out.

Kyle Griffith:

So I'm going to pay you a lower multiple.

Kyle Griffith:

So the, the valuation has a lot to do with that.

Kyle Griffith:

Another thing that factors into the valuation, Kevin is

Kyle Griffith:

the growth opportunity, right?

Kyle Griffith:

So the buyer is going to essentially value the business based upon the

Kyle Griffith:

historical performances of the company.

Kyle Griffith:

Anything after that is their profit.

Kyle Griffith:

And the re that's that's their return.

Kyle Griffith:

They're gonna bring, they're gonna infuse capital in the company.

Kyle Griffith:

They're gonna bring teams.

Kyle Griffith:

They're gonna bring the advisory team.

Kyle Griffith:

They're gonna bring their wits, their knowledge, depending on who the buyer is.

Kyle Griffith:

And their goal is, wow, you have made you have a $10 million company.

Kyle Griffith:

That's wonderful.

Kyle Griffith:

I love what you did here.

Kyle Griffith:

I love your business, but I want to, I wanna 10 X this company, I wanna go

Kyle Griffith:

20, 30, 40 million, but guess what?

Kyle Griffith:

I'm putting, I'm investing my capital.

Kyle Griffith:

I wanna get a return in my investment, right?

Kyle Griffith:

That additional revenue and performance, and profitability of that

Kyle Griffith:

company, that's a buyer's benefit.

Kyle Griffith:

So that's what they look at too.

Kyle Griffith:

So they may be willing to pay a little bit more because there is a

Kyle Griffith:

growth factor's a growth strategy.

Kyle Griffith:

So if you were to you, not a buyers ask the owner.

Kyle Griffith:

If you were to stick around 5, 10 years...

Kyle Griffith:

what will you do to grow the business?

Kyle Griffith:

And if you have that already laid out that the buyer can just come in, plug and play.

Kyle Griffith:

The chance of you get a much higher, multiple increases.

Kyle Griffith:

One other thing, Kevin, I'll give you one of the bonus.

Kyle Griffith:

There's not a lot of great companies.

Kyle Griffith:

There are few unicorns.

Kyle Griffith:

I'll give you one example of a unicorn.

Kyle Griffith:

It just happened recently.

Kyle Griffith:

Twitter.

Kyle Griffith:

Twitter got an insane valuation, right?

Kyle Griffith:

Now not every company is a Twitter or a WhatsApp, right?

Kyle Griffith:

However, one key reasons that that can inflate a price is demand.

Kyle Griffith:

If you have two buyers that are essentially bidding for that one

Kyle Griffith:

particular business or multiple buyers bid, if one particular business, let's say

Kyle Griffith:

it's two competitors, you have three H V A C companies in this one area, one is being

Kyle Griffith:

sold and you have two other competitors that, that are buying a business.

Kyle Griffith:

Those two buyers, the one that doesn't win that bid knows that now they're

Kyle Griffith:

gonna have a bigger competitor.

Kyle Griffith:

That competitor's gonna get probably the best employees.

Kyle Griffith:

They're probably gonna get materials at a lower cost.

Kyle Griffith:

You're gonna get a lot of value between both companies and it's gonna be a, a,

Kyle Griffith:

a challenge for the third HVAC in that marketplace to survive and gain traction.

Kyle Griffith:

So the other company can essentially try to outbid the other

Kyle Griffith:

competitor, just not to lose out.

Kyle Griffith:

So they want to pay a little bit more cause they don't

Kyle Griffith:

wanna lose out on the deal.

Kyle Griffith:

So there's a couple things that factor valuation.

Kyle Griffith:

There's multiple others, but you know, I'll stop right there.

Kevin Dieny:

No, I think those are really interesting because, if any one

Kevin Dieny:

of those stand out, if I'm listening to this and one of those stands out and

Kevin Dieny:

I'm like, oh, that would be that's an interesting factor I should consider.

Kevin Dieny:

Right.

Kevin Dieny:

Then, then maybe I'll do something about, I, I read when I was

Kevin Dieny:

looking this up this topic.

Kevin Dieny:

I was just researching this topic.

Kevin Dieny:

I found a lot of times.

Kevin Dieny:

It was recommended that a business, get evaluation even when they're not

Kevin Dieny:

in the market to sell just yet, because a business analysis, an, an evaluation

Kevin Dieny:

per se value analysis would tell them, well, if I did have to sell today,

Kevin Dieny:

this is what, you know, my weaknesses, my strengths, my multiplier might

Kevin Dieny:

be, these are areas where someone may say, well, you know, this is just you.

Kevin Dieny:

If I was a buyer, this would just.

Kevin Dieny:

Be a little sketchy to me or a little risky to me.

Kevin Dieny:

And so the, the owner then could be like, Hmm, okay, how can I shore this up?

Kevin Dieny:

If the plan is, far off, but maybe today that analysis could be useful.

Kevin Dieny:

And so I was like, well, that that'd be kind of cool.

Kevin Dieny:

So how, how often, how costly, how often are these valuation checkups?

Kevin Dieny:

Would it be something a business could afford to do often or is it

Kevin Dieny:

something they may do, sparingly because it can get costly.

Kevin Dieny:

I wasn't sure.

Kyle Griffith:

Here's the thing, here's the thing.

Kyle Griffith:

Kevin, I'll give you another analogy.

Kyle Griffith:

I'm assuming you have a car and there's a, a schedule for oil change

Kyle Griffith:

for check-in, we have oil change, you have the maintenance and all that.

Kyle Griffith:

You have a schedule, right?

Kyle Griffith:

You just go into the, to your mechanic or your dealership for an oil change

Kyle Griffith:

and what happens they find something.

Kyle Griffith:

Oh, by the way, Kevin, your alternator is bad, or you didn't

Kyle Griffith:

know you have a nail in your tire?

Kyle Griffith:

Now, had you not gone to get that service?

Kyle Griffith:

What would happen?

Kyle Griffith:

You could have been on a trip with your family, the tire

Kyle Griffith:

blows out what happened, right?

Kyle Griffith:

So it's the same thing with your business, right?

Kyle Griffith:

As far as valuation goes, there are different types of valuations,

Kyle Griffith:

the different levels to evaluation.

Kyle Griffith:

You wanna get some sort of assessment once a year.

Kyle Griffith:

So we do something that's called a price valuation analysis.

Kyle Griffith:

That's something you can get done once a year.

Kyle Griffith:

A full blown, complete appraisal and valuation.

Kyle Griffith:

You may wanna do that every five years, it can get a little bit costly.

Kyle Griffith:

But I would say, five years for a full valuation, but every year

Kyle Griffith:

you wanna do a, a SWOT analysis.

Kyle Griffith:

You wanna do some sort of assessment that's to make sure you're on track.

Kyle Griffith:

Right?

Kyle Griffith:

It's like, you have a plane that's going from Denver to LA.

Kyle Griffith:

Every time, every few seconds there are course corrections, right.

Kyle Griffith:

To make sure the plane's on the right track.

Kyle Griffith:

So the same thing for a company, you wanna make sure that you're

Kyle Griffith:

assessing your company regular.

Kyle Griffith:

So you can make these course corrections.

Kyle Griffith:

If your goals are exit and, and create a legacy for your family, you wanna

Kyle Griffith:

have these, these cost corrections.

Kyle Griffith:

So you can make sure you get your goals accomplished.

Kevin Dieny:

Okay.

Kevin Dieny:

Let's say you do want to have an exit strategy and it does

Kevin Dieny:

involve handing off a sale.

Kevin Dieny:

You know, something, it could be anything, I think really how

Kevin Dieny:

do you make that exit smoother?

Kevin Dieny:

You know what I mean?

Kevin Dieny:

Like there's the, the sale and making sure it's valued right.

Kevin Dieny:

Which is getting the most for it and making sure that it looks great.

Kevin Dieny:

But I think there's also that aspect of okay, the company, if it's still gonna

Kevin Dieny:

persist after the exit, how do you make that transition from maybe you as the

Kevin Dieny:

owner to someone else or, you know, how do you make that process more smooth?

Kevin Dieny:

I would imagine that that's part of it is like the transitional point.

Kyle Griffith:

Yeah, so it's, it's a lot, it's a lot to it.

Kyle Griffith:

So it's probably easier if I give an example.

Kyle Griffith:

So right now I'm representing a metal distribution company.

Kyle Griffith:

And when the client first came to me, the owner was very much involved

Kyle Griffith:

in the business and his client wanted to exit and sell the company.

Kyle Griffith:

So he had a VP and slowly but surely he started relinquishing some

Kyle Griffith:

of his responsibility to the VP.

Kyle Griffith:

That VP's a couple years from retirement.

Kyle Griffith:

So anyone that's buying a company, the VP's gonna, can potentially stay with the

Kyle Griffith:

company and he does majority of the work where the CEO does general oversight.

Kyle Griffith:

So one of the key things to answer your question, Kevin is to make

Kyle Griffith:

sure that you're replaceable and it doesn't sound great.

Kyle Griffith:

We all wanna think we are replaceable.

Kyle Griffith:

Right, one thing that, you know, there's no one else can do a great job as me, but

Kyle Griffith:

sometimes, you have to maybe fire yourself or give yourself a longer vacation, right?

Kyle Griffith:

Because sometimes you can be holding the company back.

Kyle Griffith:

I've had a couple clients where they have grown their business and

Kyle Griffith:

they come to me and want to exit, they've grown their business at 2

Kyle Griffith:

million or 5 million or whatever.

Kyle Griffith:

And the sales just plateaued.

Kyle Griffith:

Like they can't get the business to the next level.

Kyle Griffith:

And it's all about the mindset.

Kyle Griffith:

Mindset has a lot to do with it.

Kyle Griffith:

You have to figure out, okay, so what do I need?

Kyle Griffith:

What tools do I need?

Kyle Griffith:

What resources do I need?

Kyle Griffith:

Who do I need in my team to get my business on the next level?

Kyle Griffith:

And sometimes it may start with the CEO.

Kyle Griffith:

It may need a CEO change.

Kyle Griffith:

Get some fresh blood in, in the company and, and get things going and, and,

Kyle Griffith:

and move in the right direction.

Kyle Griffith:

So sometimes you see folks founding the companies, they start as a

Kyle Griffith:

founder, as a CEO and then slowly they, they bring in someone else.

Kyle Griffith:

Cause they are great at building companies.

Kyle Griffith:

So they build a company and move on to the next one and they have a next one.

Kyle Griffith:

And then they have a portfolio of 10 companies and that's

Kyle Griffith:

the smartest way to do it.

Kyle Griffith:

You just get yourself out of the picture.

Kyle Griffith:

Cause when you're in that bubble, working in your business,

Kyle Griffith:

you don't see from the outside.

Kyle Griffith:

So you wanna always be working on your business or not in your business.

Kyle Griffith:

So one of the key things is getting someone else.

Kyle Griffith:

I would say out of every question I get from buyers, they wanna know about

Kyle Griffith:

the key personnel and management.

Kyle Griffith:

Who's staying with the company.

Kyle Griffith:

Give us a background.

Kyle Griffith:

What's a turn, what's a turnover.

Kyle Griffith:

How often, you know, how long have they been with the company?

Kyle Griffith:

What's the, the ages.

Kyle Griffith:

Cause if their key personnel are retirement ages, the chance that I may

Kyle Griffith:

buy the company and then they move on.

Kyle Griffith:

So the personnel aspect, the human cap aspect is one of

Kyle Griffith:

the most, most instrumental parts in getting the deal done.

Kyle Griffith:

So you talk about a smooth transition, get a team in place.

Kyle Griffith:

And Kevin, this works for startups as well.

Kyle Griffith:

So I do work with a lot of lenders and bankers.

Kyle Griffith:

And some of these, some of these bankers invest in early stage companies.

Kyle Griffith:

They know that you just started and you may not have a lot of profits

Kyle Griffith:

cause you guys going, but they wanna know who is on your team.

Kyle Griffith:

Who's gonna help you.

Kyle Griffith:

What's your infrastructure.

Kyle Griffith:

What's your build out.

Kyle Griffith:

What's your game plan.

Kyle Griffith:

What's your business plan, what's your growth plan?

Kyle Griffith:

What's your exit plan, right?

Kyle Griffith:

They wanna know who's in your team can help you execute.

Kyle Griffith:

So you want a smooth transition.

Kyle Griffith:

Make sure you have some good people working inside the

Kyle Griffith:

house and outside of the house.

Kyle Griffith:

Outside team, you wanna have some great advisors, attorneys, you know, business

Kyle Griffith:

advisors, consultants, and, and so on.

Kyle Griffith:

So, um, I know it's a loaded answer, but essentially I think people don't

Kyle Griffith:

put the importance of that, even though it's two companies, another transaction,

Kyle Griffith:

those two companies are run by people.

Kyle Griffith:

People is the most important factor.

Kyle Griffith:

It starts at the top and it works all the way down.

Kyle Griffith:

Everyone has to be on the same page, have great values, good

Kyle Griffith:

vision, and a great culture.

Kyle Griffith:

And if you have a great culture, a company has a great culture.

Kyle Griffith:

It's where the CEO can step away, right.

Kyle Griffith:

Go to Punta Cana for, for two weeks, come back, and everyone is working.

Kyle Griffith:

If you go to Punta Cana, Kevin you come back, everyone's partying and

Kyle Griffith:

celebrating and you know that it's not gonna be a smooth transition.

Kyle Griffith:

There's gonna be some problem.

Kyle Griffith:

So getting some good people in your, working on your team is

Kyle Griffith:

way which what you wanna do.

Kevin Dieny:

Wow, that, I think that's such a powerful statement

Kevin Dieny:

of focusing on, the people, the teamwork, the people that are in there.

Kevin Dieny:

Okay, so this isn't necessarily like a, an argument against what you said.

Kevin Dieny:

I think it's exactly what you're saying, but it does make me think, man, if

Kevin Dieny:

you spend the time to really create a really good team, I think there's that

Kevin Dieny:

feeling of like attachment to them.

Kevin Dieny:

So I think there's an emotional attachment to the business.

Kevin Dieny:

I like describe it as like blood, sweat and tears went into this sometimes.

Kevin Dieny:

And then you forge these relationships, you create these teams, you help

Kevin Dieny:

them become the managers and the leaders in the business.

Kevin Dieny:

And then that point comes where it's like, okay, now it's time for you to step back.

Kevin Dieny:

And it's like that emotional anchor has been created there.

Kevin Dieny:

So how, how emotionally are owners managing that ability

Kevin Dieny:

to detach a little bit.

Kevin Dieny:

And either sell the business or make that succession.

Kevin Dieny:

Cause I think that's, that's an aspect of it that would be really hard besides

Kevin Dieny:

just, you know, executing the plan.

Kevin Dieny:

There's like an emotional feel there.

Kyle Griffith:

That's a fabulous question, Kevin.

Kyle Griffith:

So I sold a fulfillment center and my client who sold the company, he had a

Kyle Griffith:

key employee and she's a go getter, man.

Kyle Griffith:

She's like, let me do this, let me do that.

Kyle Griffith:

But my client's very conservative.

Kyle Griffith:

He has been running a very clean business, no debt.

Kyle Griffith:

He's been through the recessions and he is been doing very well.

Kyle Griffith:

So it's like, we have a good thing going, you don't wanna change it too much.

Kyle Griffith:

You know what I mean?

Kyle Griffith:

It's like, get a good thing going if it ain't broke, don't fix it, right.

Kyle Griffith:

However, it's good because I mean, you have consistent revenue.

Kyle Griffith:

You can kind of predict where the company's gonna go because you have

Kyle Griffith:

a long historical sales, but looking back at it, maybe you could have done a

Kyle Griffith:

little bit better if there are certain things could have been implemented.

Kyle Griffith:

To answer your question, so let me twist it around a little bit as a, as

Kyle Griffith:

a leader and a CEO of your company, you have to empower your employees.

Kyle Griffith:

You have to empower your staff and you have to let them know that

Kyle Griffith:

their, their voices is heard and your voices is cherished and you

Kyle Griffith:

wanna constantly gain feedback.

Kyle Griffith:

There's one good quote, I'll give you, "The more input gives better output."

Kyle Griffith:

So the more information you give back, the more data as a CEO, you

Kyle Griffith:

can process and make the decisions.

Kyle Griffith:

The buck stops at you, and you have to be a quick decision maker and be decisive and

Kyle Griffith:

decide what direction you're gonna go in.

Kyle Griffith:

So if you are planning on exiting your company and you have some key people,

Kyle Griffith:

you have to have that conversation with them and start empowering them.

Kyle Griffith:

You're not gonna tell 'em I'm selling the company, but say, Hey, Hey, Joan

Kyle Griffith:

you know, I really appreciate the years you've been working with us.

Kyle Griffith:

You've been some great things here.

Kyle Griffith:

You're really a natural at doing this, and I know you wanna be challenged here.

Kyle Griffith:

I wanna give you the opportunity to explore your career with our company

Kyle Griffith:

and provide some more advancement.

Kyle Griffith:

I'm gonna create opportunity for you or career path and let them feel excited.

Kyle Griffith:

Give them some opportunities to work and, and build them up.

Kyle Griffith:

They don't know that your plan is to either transition to coming to them or

Kyle Griffith:

have them be a key person moving forward.

Kyle Griffith:

They don't know that at this point, but you start empowering your staff

Kyle Griffith:

and getting them prepared for, for a potential transition and

Kyle Griffith:

relinquishing some of that power.

Kyle Griffith:

It takes away anxiety and that emotional attachment to that one

Kyle Griffith:

particular employee or that job that you think where you're irreplaceable.

Kyle Griffith:

I'm the only person who can run the business, like I can.

Kyle Griffith:

And something you need coaching.

Kyle Griffith:

Another thing you can do is get a board, put together an advisory board, get

Kyle Griffith:

some outside opinion and some feedback.

Kyle Griffith:

Sometimes me, or you might educate our client and say, Hey, John or

Kyle Griffith:

Jane, this is what you should do as far as the next best steps.

Kyle Griffith:

And they may not listen, but one of their peers, like if another HVAC

Kyle Griffith:

contractor tells another contractor, Hey, this is what I've done.

Kyle Griffith:

It's worked for me.

Kyle Griffith:

They'll quick a listen.

Kyle Griffith:

So getting on a board, getting feedback from other peers, what they have done

Kyle Griffith:

can release that emotional anxiety and attachment to staff and tasks

Kyle Griffith:

that you have done, that you have wanna, you know, get, get rid of.

Kyle Griffith:

And one other thing, Kevin, cause I'm really passionate about this.

Kyle Griffith:

I wanna share.

Kyle Griffith:

So one other thing, and you did mention this a lot of, business owners

Kyle Griffith:

they're businesses are their identity.

Kyle Griffith:

So one of the reasons that I may have this attachment is that, Hey, when I

Kyle Griffith:

sell, I'm known for being, you know, Dr.

Kyle Griffith:

Smith.

Kyle Griffith:

I'm known for being whatever the case may be.

Kyle Griffith:

Right?

Kyle Griffith:

When I sell a company, you have almost like a mistaken identity.

Kyle Griffith:

So part of that attachment is, Hey, this is what I've been doing all the

Kyle Griffith:

years and what I'm gonna do next.

Kyle Griffith:

So a lot of these clients, like we work with psychologists and so on.

Kyle Griffith:

We wanna think about, okay, what charities we wanna support?

Kyle Griffith:

Are you philanthropic?

Kyle Griffith:

What you gonna do next?

Kyle Griffith:

Start thinking 5 and 10 years down the road, all, all goes back to the exit plan.

Kyle Griffith:

Like, why are you, why are you doing what you're doing beginning to begin with?

Kyle Griffith:

Or how are you gonna transition out?

Kyle Griffith:

So you wanna have them thinking about fishing, golfing, all the fun

Kyle Griffith:

stuff, playing with the grandkids and all that, all that great stuff.

Kyle Griffith:

If you've been a dentist all your life, it's tough to kind

Kyle Griffith:

of detach from that world.

Kyle Griffith:

But now you can be a spokesperson.

Kyle Griffith:

You could probably work with a charity.

Kyle Griffith:

You work with a trade association, you could be in the same space, but

Kyle Griffith:

now you're not running the company.

Kyle Griffith:

You're still doing what us in the same industry, but in a different capacity.

Kyle Griffith:

So there's different ways to go about it.

Kevin Dieny:

Wow, so let's say someone puts it off.

Kevin Dieny:

They don't have an extra strategy and let's say some crisis happens, anything.

Kevin Dieny:

Where they now have to figure it out in the 11th hour, maybe the owner,

Kevin Dieny:

something tragic happens to the owner.

Kevin Dieny:

You know, I don't know, but let's say the business immediately has to

Kevin Dieny:

try to figure this out from a, the disadvantage of they haven't had the

Kevin Dieny:

plan or the strategy built along the way.

Kevin Dieny:

Why is that such a bad place to be?

Kyle Griffith:

So, yeah, it, it is, it is a bad place to be.

Kyle Griffith:

I'll give you a story.

Kyle Griffith:

So we, we sold a contract in business and I wanna protect the innocent.

Kyle Griffith:

In this particular scenario, the owner passed away and the,

Kyle Griffith:

the son inherited the business.

Kyle Griffith:

Now the owner had no exit plan, nothing in place.

Kyle Griffith:

The son worked in the business, but didn't want to be the business.

Kyle Griffith:

He was just working in a business.

Kyle Griffith:

And that happens in a lot of cases.

Kyle Griffith:

I've had multiple clients and scenarios like this.

Kyle Griffith:

There is a family business.

Kyle Griffith:

I wanna be there for my family.

Kyle Griffith:

As soon as the father passed away, he wanted sell.

Kyle Griffith:

He wanted to sell a company and be out.

Kyle Griffith:

So the disadvantage to that is that you now you're selling from an

Kyle Griffith:

unleveraged position., Where it's a fire sale, you have to get out.

Kyle Griffith:

A key person is no longer with the company.

Kyle Griffith:

That CEO has a lot of relationships with the marketplace customers,

Kyle Griffith:

vendors, and a lot of good will.

Kyle Griffith:

So you lose out on that.

Kyle Griffith:

And then another thing every day that passes the value that's decreases right?

Kyle Griffith:

There are, I was actually working with another company in the fitness space.

Kyle Griffith:

Where, the same thing, the, the, the father passed away.

Kyle Griffith:

The son is in the business.

Kyle Griffith:

The father was so relational, like was a really good charismatic person.

Kyle Griffith:

Like everyone loves the father.

Kyle Griffith:

And when he, unfortunately, when he passed away, they had like a

Kyle Griffith:

mini-mutiny in the company because they didn't respect the son.

Kyle Griffith:

And this client he's gonna phone me.

Kyle Griffith:

He's crying, like, you know, these guys are not listen to me, you know, that's,

Kyle Griffith:

that can be a major, a major issue.

Kyle Griffith:

That's a company in a distressed situation and selling in that

Kyle Griffith:

situation nothing good is gonna happen.

Kyle Griffith:

Nothing good.

Kyle Griffith:

Meaning that it's not gonna get the full value of the company.

Kyle Griffith:

Now, if the father had an exit plan in place.

Kyle Griffith:

I wanna make sure my son is taken care of.

Kyle Griffith:

He may not be the best person to run the company, but part of the plan

Kyle Griffith:

is I'm gonna have some insurance.

Kyle Griffith:

So an event like, like I pass away or disabled, whatever.

Kyle Griffith:

That money can go towards hiring an interim CEO, hiring an advisor, hiring

Kyle Griffith:

someone that we can trust to work with the family and the business to, to a potential

Kyle Griffith:

exit to sell or wherever the case may be.

Kyle Griffith:

So it's not a good situation, but we have had multiple cases.

Kyle Griffith:

We have helped clients in the worst case scenario where the CEO

Kyle Griffith:

of the company passed away and the families left and another situation

Kyle Griffith:

can be where they are partners in.

Kyle Griffith:

The business is multiple partners.

Kyle Griffith:

and one partner can physically can no longer win the company or is sick

Kyle Griffith:

disabled, or unfortunately passes away.

Kyle Griffith:

Now the wife, or it could be reversed, could be the, the could be the, the wife

Kyle Griffith:

running the company, the wife passed away, now the husband, is involved.

Kyle Griffith:

The other partners may not necessarily wanna work with the spouse cause

Kyle Griffith:

they don't know their business.

Kyle Griffith:

You wanna have some sort of buy-sell agreements in place.

Kyle Griffith:

So the event likelihood, one of the partners passed, something happened.

Kyle Griffith:

They can take care of the family, they can buy out that partner

Kyle Griffith:

and take care of the family.

Kyle Griffith:

So it's extremely important to have some sort of plan in place because

Kyle Griffith:

in the unlikelihood that something happens at least your family.

Kyle Griffith:

Most importantly, your family's first that's they're taken care of.

Kevin Dieny:

And, and in the fire sale environment makes me think of a,

Kevin Dieny:

another question I had, which was okay.

Kevin Dieny:

A business has the exit strategy, but you know, in your experience, how long

Kevin Dieny:

does it, how long let's say the business decides it's gonna sell, how long does it

Kevin Dieny:

usually take to, to have that succession carry out of the sale or the exit happen?

Kevin Dieny:

Is it like a, wow.

Kevin Dieny:

We can, businesses can sell within a month or is it like, usually it'll

Kevin Dieny:

take about three to six months.

Kevin Dieny:

Is it like a multi-year process?

Kevin Dieny:

What, what does that kind of look like?

Kevin Dieny:

Time wise?

Kyle Griffith:

Hey, Kevin, you, you hit you hitting all the key questions, man.

Kyle Griffith:

So the first question, what my businesses are worth, how valued and how long does

Kyle Griffith:

it take for me to sell the company?

Kyle Griffith:

Yeah, those are the top, the top two questions that we get.

Kyle Griffith:

So the best way to answer this is it depends.

Kyle Griffith:

So I have sold companies in weeks.

Kyle Griffith:

And I've taken years to sell some companies.

Kyle Griffith:

It really depends.

Kyle Griffith:

So I'm, I'm part of the committee on the International Business

Kyle Griffith:

Brokers Association that, that we do these market pulse reports.

Kyle Griffith:

I'll be happy to share it with, with your audience.

Kyle Griffith:

We survey intermediaries, investment bankers, M and Advisors every quarter.

Kyle Griffith:

And one of the questions we ask them, you know, how long

Kyle Griffith:

does it take for you to close.

Kyle Griffith:

How long does it take from letter intent to close?

Kyle Griffith:

What are the multiples?

Kyle Griffith:

So we have a lot of data.

Kyle Griffith:

The data we have gotten from, we get about 400 folks to

Kyle Griffith:

take the survey every quarter.

Kyle Griffith:

And it's pretty consistent with, within our company as well.

Kyle Griffith:

We are based in New York, we do deals across the country, but

Kyle Griffith:

we are based in New York area.

Kyle Griffith:

40% of deals close within seven to nine months.

Kyle Griffith:

Now that number can be very skewed because that 40% is sellable companies.

Kyle Griffith:

Meaning that, there's three things that really determine whether

Kyle Griffith:

our company's sellable or not.

Kyle Griffith:

Number one, the business has to be ready for sale.

Kyle Griffith:

Ready for sale, meaning that it's priced right.

Kyle Griffith:

Has good key people in place, recurring all the stuff we talk about.

Kyle Griffith:

The business itself, which is a big one, it has to ready.

Kyle Griffith:

It has to be packaged, ready to go.

Kyle Griffith:

Everything, a buyer comes in, we up a data room.

Kyle Griffith:

Are we good to.

Kyle Griffith:

Okay, number two, is that the owner has to be ready.

Kyle Griffith:

Cause I've been on transactions where we have gotten full price

Kyle Griffith:

and the owner's like, Hmm, I don't know if I want to sell anymore.

Kyle Griffith:

I think I want give it a shot.

Kyle Griffith:

Right?

Kyle Griffith:

So we are talking about the emotional attachment and seller's remorse.

Kyle Griffith:

The owner of the company has to be ready to move on either into another

Kyle Griffith:

company or relocate or whatever their reasons are is for retirement.

Kyle Griffith:

The third major factor is that, is the business ready for the market?

Kyle Griffith:

Is there a market for the company?

Kyle Griffith:

Those are the three factors.

Kyle Griffith:

So when we assess our clients, we assess it on those three things.

Kyle Griffith:

If we have those three, sometimes we have two outta three, which is okay.

Kyle Griffith:

Those companies take about seven to nine months to get done, or even less.

Kyle Griffith:

Now selling a company there's a lot of variables.

Kyle Griffith:

So a lot of stuff that's out of our control, right?

Kyle Griffith:

Things happen.

Kyle Griffith:

People get up and quit, right?

Kyle Griffith:

I've I've been in working in deals where the owners found out that there's a part.

Kyle Griffith:

I was working a deal.

Kyle Griffith:

One time the partner was stealing from him and providing

Kyle Griffith:

services outside the company.

Kyle Griffith:

Deals where there were no contracts with employees, through

Kyle Griffith:

noncompete, things happen.

Kyle Griffith:

A lot of things happen with the business itself.

Kyle Griffith:

And the best example of that is COVID.

Kyle Griffith:

When COVID hits, we had multiple deals on a contract and some of them, we had to

Kyle Griffith:

take off, take off the market and wait.

Kyle Griffith:

So things come up, right.

Kyle Griffith:

Deals will get done.

Kyle Griffith:

Some of them is outta control.

Kyle Griffith:

There are in internal factors that affect the closing and sale of a company.

Kyle Griffith:

And there are external factors, COVID being one of them.

Kyle Griffith:

The other fact about it, there's the is two parties to a sale.

Kyle Griffith:

The buyer, right?

Kyle Griffith:

You have a buyer in the middle of buy a company and a wife and

Kyle Griffith:

husband can say, you know what John.

Kyle Griffith:

I don't know about this.

Kyle Griffith:

I don't think it's a good idea.

Kyle Griffith:

Let's just keep on doing what we're doing.

Kyle Griffith:

Let's find another company, right.

Kyle Griffith:

Or the bank can the bank usually underwrites and approve these loans?

Kyle Griffith:

The bank can come back.

Kyle Griffith:

You know what?

Kyle Griffith:

It's been some time since we agreed to a particular offering, term sheet and

Kyle Griffith:

rather, um, we need some insurance.

Kyle Griffith:

We need this, we need, you know, things come from the bank, the funds.

Kyle Griffith:

Funds can no longer be available.

Kyle Griffith:

A lot of things happen.

Kyle Griffith:

So that factors into the sale price, to the timing.

Kyle Griffith:

But I would say about 40% in our research, 40% gets done in about

Kyle Griffith:

that's seven to nine month range.

Kyle Griffith:

And that's the timeline when we say to our clients, we want to get you

Kyle Griffith:

out here and say, we want to get you sold in seven to nine months.

Kevin Dieny:

And you mentioned the buyer and I wanna focus this on like the exit

Kevin Dieny:

strategy of the business, but I think if for a moment, if you could give us

Kevin Dieny:

the opposite perspective of the buyer, I think that helps the sellers too.

Kevin Dieny:

From the perspective of the buyer, you mentioned, there's the value,

Kevin Dieny:

there's the things that, you know, that are through the analysis

Kevin Dieny:

that are being determined too.

Kevin Dieny:

But what are, what are some other considerations a buyer has, what does

Kevin Dieny:

the buyer go through in terms of being like, oh, I wanna buy a business.

Kevin Dieny:

I don't, where do I start?

Kevin Dieny:

Right.

Kevin Dieny:

Where do I, how do I start that?

Kevin Dieny:

So what does that other side look like?

Kyle Griffith:

Hey Kevin, that's a second podcast, man.

Kyle Griffith:

We have to come back, hah hah hah.

Kyle Griffith:

We gotta come back.

Kyle Griffith:

That's a big one, so, okay.

Kyle Griffith:

Let me break it down.

Kyle Griffith:

High level for you real quick.

Kyle Griffith:

So as a buyer, three things are important.

Kyle Griffith:

Cashflow, number one, you've got a family to support, right?

Kyle Griffith:

So you're looking for businesses with financials and financials that are, you

Kyle Griffith:

don't always get audited financials, but a business that's already has valuation

Kyle Griffith:

done or has a quality of earnings report.

Kyle Griffith:

So you wanna get clean numbers and you wanna make sure the

Kyle Griffith:

numbers that represented is what it should be and what it is.

Kyle Griffith:

And some of it, we spoke about a little bit earlier.

Kyle Griffith:

So as a buyer, you wanna minimize your risk in the deal, minimizing

Kyle Griffith:

the risk as you, you know, talk about financial due diligence, making

Kyle Griffith:

sure the numbers is what it is.

Kyle Griffith:

There's legal due diligence, has a company been in any, any lawsuits,

Kyle Griffith:

sexual harassment cases, any issues with any, any contracts worker's comp.

Kyle Griffith:

So you have a legal due diligence, which is equally long list

Kyle Griffith:

as a financial due diligence.

Kyle Griffith:

You also have, you know, a human capital due diligence, right?

Kyle Griffith:

So you inherit, you're buying a company with five people, five key

Kyle Griffith:

people that if those five key people, well, let's say it's just one person.

Kyle Griffith:

This one person, if this one person walks away, the entire value for the

Kyle Griffith:

company goes with that one person.

Kyle Griffith:

Right.

Kyle Griffith:

So making sure there are some stay agreements.

Kyle Griffith:

Some these, these employees are incentivized to stay with the deal

Kyle Griffith:

cause you, you are minimizing your risk.

Kyle Griffith:

So that's a conversation you have for the owner.

Kyle Griffith:

Either the owner bonuses the employees, or part of the proceeds or the,

Kyle Griffith:

the buyer plays a part in that.

Kyle Griffith:

In some cases I've done deals where the buyer puts together a really

Kyle Griffith:

nice package for them, including insurance benefits, maybe a car.

Kyle Griffith:

Different things incentivize that employee to stay with the business.

Kyle Griffith:

I think that's probably one of the biggest ones outside of real estate.

Kyle Griffith:

Real estate, it can be, we can be here talking other hours about real

Kyle Griffith:

estate alone deal with, with landlords.

Kyle Griffith:

So let's say business is great, wonderful business, but the landlord is refusing

Kyle Griffith:

to re renew the lease because he's gonna essentially break the whole pro his goal.

Kyle Griffith:

As the lease is up in a year, I'm gonna tear it down and

Kyle Griffith:

build up residential condo.

Kyle Griffith:

Because that's the best use for that property location, right.

Kyle Griffith:

So deal with landlords and here in Manhattan, have some

Kyle Griffith:

of the toughest landlords.

Kyle Griffith:

I'm sure I have a lot where you're at everywhere has because the

Kyle Griffith:

landlord's been hit hard during COVID.

Kyle Griffith:

As a buyer you wanna minimize risk, making sure you get all of

Kyle Griffith:

your questions answered and you have some sort of representation.

Kyle Griffith:

You have someone like myself or some intermediate that can help

Kyle Griffith:

and get those questions answered.

Kyle Griffith:

The, the third thing is okay.

Kyle Griffith:

What are you as a buyer?

Kyle Griffith:

What are you gonna bring to the table?

Kyle Griffith:

What's your value in this transaction?

Kyle Griffith:

What experience you have, what transferable skills

Kyle Griffith:

you had have, who, you know?

Kyle Griffith:

So we spoke earlier about the sellers, infrastructure and your team and

Kyle Griffith:

so on, who is the buyer's team?

Kyle Griffith:

Who are they?

Kyle Griffith:

Who are you being advised by?

Kyle Griffith:

Who are your coaches?

Kyle Griffith:

Who's gonna help you take this company from five to 10 to 20.

Kyle Griffith:

Are you gonna hire a fractional CFO?

Kyle Griffith:

Are you gonna help?

Kyle Griffith:

Are you gonna have someone help you with the numbers with your due diligence?

Kyle Griffith:

So from the buyer's perspective, there's a bunch of questions you can

Kyle Griffith:

ask a seller, like why they sell in and making sure you understand the numbers.

Kyle Griffith:

But most importantly, you wanna minimize your risk.

Kyle Griffith:

Cause it's your is an investment, right?

Kyle Griffith:

You have to pay those loans back and you wanna see, okay, how

Kyle Griffith:

are you gonna grow the company?

Kyle Griffith:

What's a growth strategy.

Kyle Griffith:

Now, one thing that buyer can ask a seller is have you done an exit plan

Kyle Griffith:

or have you done part of the exit plan is a growth strategy, right?

Kyle Griffith:

So the growth strategy, which is part of the exit plan is

Kyle Griffith:

that I have a 5 million company.

Kyle Griffith:

I wanna get a 10 million company.

Kyle Griffith:

And here's what I I'm gonna do to get into 10.

Kyle Griffith:

Right?

Kyle Griffith:

If the seller can have that plan ready and available to present to the buyer.

Kyle Griffith:

Hey, John, Hey, Sue, I'm looking to retire, but you know what?

Kyle Griffith:

If my son, Eddie was gonna take the business over, this is a plan we had

Kyle Griffith:

to get the business to the next level.

Kyle Griffith:

I'll be happy to help you for the next year or two to initiate

Kyle Griffith:

this plan and get it going.

Kyle Griffith:

You know, so all the key things that are very important.

Kevin Dieny:

Just to highlight some of the things right.

Kevin Dieny:

Which is that we've talked about, which is like, okay, what's an extra strategy, why

Kevin Dieny:

it's important, what factors to consider.

Kevin Dieny:

How often to analyze interpret, kind of get the business, checked.

Kevin Dieny:

How to look at it from the different perspectives.

Kevin Dieny:

Considerations about detaching letting it go, what the owner's plans are, what

Kevin Dieny:

the growth plan of the business is.

Kevin Dieny:

I think we've really covered a lot of stuff in this episode.

Kevin Dieny:

So Kyle, thank you for coming on.

Kevin Dieny:

Is there any way people can reach out to you, connect

Kevin Dieny:

with you, find more about you.

Kevin Dieny:

If they have questions about this or anything related to this

Kevin Dieny:

that they can find your company or, or be able to find you?

Kyle Griffith:

Yeah, most definitely.

Kyle Griffith:

And I appreciate you asking that.

Kyle Griffith:

So my company is called the N Y B B group N Y BB group.

Kyle Griffith:

And that's the website?

Kyle Griffith:

The N Y B B group.com.

Kyle Griffith:

That's thenybbgroup.com.

Kyle Griffith:

All of information is there.

Kyle Griffith:

We work with buyers, work with sellers.

Kyle Griffith:

We do business valuations.

Kyle Griffith:

Exit plans as well.

Kyle Griffith:

We are a full service mergers and acquisitions company.

Kyle Griffith:

I started another company two years ago called M and A network.

Kyle Griffith:

So I'm a CEO founder of that group.

Kyle Griffith:

And I did that to help and educate business owners that are planning to grow

Kyle Griffith:

their company in preparation for exit.

Kyle Griffith:

So with that company, I got 40 advisors that work with companies

Kyle Griffith:

from startup to exit and, um, M and A is, eminaenetwork.com.

Kyle Griffith:

So it's E as in Edward, M as in Mary, I as in India, N as in Nancy, A as in apple, E

Kyle Griffith:

as in Edward dot com, eminaenetwork.com.

Kyle Griffith:

You can find more information about that.

Kyle Griffith:

There you can Google my name, or look me up a LinkedIn, like

Kyle Griffith:

how Kevin and I connected, could pretty much find me everywhere.

Kyle Griffith:

Thank you, Kevin.

Kevin Dieny:

Awesome.

Kevin Dieny:

Thank you.

Kevin Dieny:

So, yeah.

Kevin Dieny:

And thank you so much, Kyle, for coming on, this has been

Kevin Dieny:

fantastic exploring a topic.

Kevin Dieny:

I have not a ton of experience in, but I think it's something so valuable that

Kevin Dieny:

every business, and everyone, people in the business could be looking at and,

Kevin Dieny:

and getting a better understanding for.

Kevin Dieny:

So I appreciate you coming on and thank you for the time.

Kevin Dieny:

I hope we connect again.

Kevin Dieny:

So thank you, listeners and hope you got a lot out of this.

Kyle Griffith:

I appreciate you as well, man.

Kyle Griffith:

This is awesome.

Kyle Griffith:

Thank you.

Kyle Griffith:

Thank you.

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