Wayne Zell is an expert in business succession planning (with a unique process) who has been the architect behind hundreds of transactions that have made his clients millions.

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Guest Resources

Your Multimillion-Dollar Exit Book – Architect Your Ultimate Exit Plan – On Day One!

Zell Law – We make the complex clear, the daunting manageable, and the unforeseeable anticipated. Check out Wayne’s website.

Wayne’s Email – Connect with Wayne via email!

3 Value Bombs

1) Success is not solely about economic wealth or a certain financial threshold. It encompasses achieving personal goals, positively impacting others, excelling in various aspects of life (such as athletics, academics, or your profession), and feeling a sense of accomplishment in your heart.

2) Be realistic about your business’s value. Identify deficiencies in marketing, management, processes, social responsibility, and employee satisfaction.

3) It is essential to start thinking about your exit strategy from the beginning of your business journey, not just when you’re ready to sell. Start planning today.

Show Notes

**Click the time stamp to jump directly to that point in the episode.

Today’s Audio MASTERCLASS: Your Multimillion-Dollar Exit with Wayne Zell

[1:14] – Wayne shares something he believes about becoming successful that most people disagree with.

He believes success is not solely about economic wealth or a certain financial threshold. It encompasses achieving personal goals, positively impacting others, excelling in various aspects of life (such as athletics, academics, or your profession), and feeling a sense of accomplishment in your heart.

[2:29] – Wayne talks about the different ways to sell a business.

Many people take their companies public to gain liquidity, but not everyone is fortunate enough to do so.
You can sell to a strategic partner interested in your services, products, or technology. Private equity firms, family offices, or investor groups may buy your business for its long-term wealth potential.
Your management team, if financially capable, could be potential buyers.

[4:20] – What secrets do lawyers and investment bankers use to gain the upper hand in negotiations?

Having a good lawyer and an experienced advisor is crucial.
As a tax lawyer and accountant, Wayne has learned that considering tax implications from the very beginning is vital.
Negotiations require confidentiality. Anticipate buyer arguments and showcase why your business is worth more than perceived.
Investment bankers and buyers have their interests in mind during a sale. Prepare by understanding their tactics. Wayne’s book, Your Multimillion-Dollar Exit, can help with guidance on anticipating and responding to negotiation strategies.

[7:30] – How can you value your business today and increase its value before you sell?

To avoid undervaluing your business, do not base its worth solely on what others have sold similar companies for. Instead, consult experts like appraisers or certified valuation analysts. They consider unique factors like your payments, adjustments, and future projections to give you a more accurate valuation.
To determine your business’s value, understand current and projected earnings based on a multiple of EBITDA. Work with a CPA or valuation professional if you’re unfamiliar with the terms.
Be realistic about your business’s value. Identify deficiencies in marketing, management, processes, social responsibility, and employee satisfaction.
To address gaps in value, you may require assistance from various professionals, depending on the specific issues.

[12:48] – A timeout to thank our sponsors!

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FranBridge: Many EOFire listeners have launched franchises in a variety of industries outside of food – and FranBridge Consulting has guided them to these premier opportunities! Sign up for a free consultation with Jon – or get a free copy of his book, “Non-Food Franchising” – at FranBridgeConsulting.com!

[16:10] – What are buyers looking for in their purchase?

Buyers are interested in a strong management team that can keep the business running smoothly even without you, the founder.
Another critical factor for buyers is the source of your revenues.
Buyers also assess your sources of supply or manufacturing. If you depend on a single supplier, they may control your costs and terms significantly. This lack of supplier diversity can be risky for the business.
Buyers also consider whether you work directly with the government or as a subcontractor. Being a subcontractor may reduce your business’s value because the prime contractor often dictates the terms.
Additionally, buyers evaluate your intellectual property, technology, or software assets.

[21:04] – How can business owners care for their team after an exit?

Wayne has seen cases where the seller did not care for their team, and everyone left the company after selling it.
This problem can also arise with private equity buyers. They focus on financial metrics and profits, and if the management team does not deliver as promised, their jobs are at risk.
To protect your team as a seller:
1. Negotiate Employment Agreements
2. Consider Retention Bonuses
3. Implement Fair Non-Compete Agreements
Beyond economic considerations, assess the buyer’s culture and values. Conduct due diligence to understand the environment, how employees are treated, and whether it aligns with your values.
Preserving your employees well-being and happiness is crucial during a sale.

[24:50] – Wayne’s call to action and takeaway.

Your Multimillion-Dollar Exit – Architect Your Ultimate Exit Plan – On Day One!
Wayne’s Email – Connect with Wayne via email!
It is essential to start thinking about your exit strategy from the beginning of your business journey, not just when you’re ready to sell. Start planning today.

[27:07] – Thank you to our Sponsors!

HubSpot: The HubSpot Sales Hub supercharges your sales process so you can find, track, and close deals all in one powerful, easy-to-use platform. Make the switch to HubSpot Sales Hub at HubSpot.com/sales.
FranBridge: Many EOFire listeners have launched franchises in a variety of industries outside of food – and FranBridge Consulting has guided them to these premier opportunities! Sign up for a free consultation with Jon – or get a free copy of his book, “Non-Food Franchising” – at FranBridgeConsulting.com!

Killer Resources!

1) The Common Path to Uncommon Success: JLD’s 1st traditionally published book! Over 3000 interviews with the world’s most successful Entrepreneurs compiled into a 17-step roadmap to financial freedom and fulfillment!

2) Free Podcast Course: Learn from JLD how to create and launch your podcast!

3) Podcasters’ Paradise: The #1 podcasting community in the world!

Your Multimillion-Dollar Exit with Wayne Zell

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Guest Resources

3 Value Bombs

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Show Notes

Killer Resources!

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