Summary:
Jim and Jason talk about buying and selling businesses. You get some great nuggets of information from this podcast that will propel your business to the next level and help you get the most money when you decide to sell your business.
Main Questions Asked:
- Were you thinking exit when you bought your real estate agency?
- What led you to consider selling?
- How did you decide valuation?
- I suspect that they had a system for purchasing business, did they?
- What did you do right in the process?
Key Points made:
- If you want to get rich, learn the business first. (2:39)
- I wanted to expand beyond my own efforts and earn off of someone else’s efforts. (4:15)
- I bought my own real estate agency ran it for about 11 years and then sold it. (4:35)
- I wanted to benefits from OPE (other people’s efforts). (5:45)
- Real estate agents are a pretty tough crowd, they negotiate for a living and want to negotiate with you. (7:00)
- It took about a year to do the deal when I sold it. (7:15)
- I thought it was good to be an independent company that was run like a franchise. (9:10)
- I negotiated and got them to come up on the price. (10:15)
- It’s better to be lucky than good. (10:49)
- It’s important to have your accounting act together if you want to be acquired. (11:20)
- Entrepreneurs build things, assemble things, so you need to package your business. (14:25)
- You want to let that buyer take time examining your business. It is the sunk cost bias. (18:15)
- The more time and effort and expense, the more they already think they’ve bought your business. (19:01)
Resources Mentioned:
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Tennessee Valley Group
Jim Cumbee established Tennessee Valley Group to help business owners fulfill their dreams for life after business ownership.
It’s a mission that his 30+ year career history had prepared him well for—in addition to being an attorney, transition mediator and business broker, Jim has been a buyer, seller, and entrepreneur. His broad range of experience gives him unique insight into how business buyers and sellers can achieve their goals.
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