Summary:
Chris and Jim talk about Chris’s M&A Journey. Chris guides you through some very smart things to do for your small business and knowing how to set your business up for success, no matter the size.
Main Questions Asked:
- Did you open your business in Las Vegas?
- This is a business that you bought, you didn’t start this from scratch?
- So, in that sense, it was like a start up?
- When you bought the business, or really the assets, did you have in mind your exit strategy?
- Were you thinking that you could franchise this or just get it up and running and make some money, what was your goal?
- What made you decide to sell?
- How did you go about selling your business?
- How did you determine the valuation?
- Let’s talk about some of the lessons you learned. What would you do differently?
- What did you do well?
- So, you were able to instill in the seller a sense of confidence about your business?
Key Points made:
- Yes, it is in Las Vegas. (2:50)
- Yes and no. The previous owners were not US citizens and they went on vacation and were not allowed back in the country. (3:35)
- The business sat vacant for a year. (3:39)
- When I got it it was completely defunct, like the Goonies in the attic, dust all over everything. (4:05)
- I just wanted to see where this would take me. (4:50)
- I thought I could get it running and then go do something else and just make money from this. (5:30)
- I realized things were slowing down, this was around 2007. I realized the direction it (the economy) was heading. (6:44)
- I told my wife, we could ride it out, or we could sell. (7:00)
- I like to do everything myself and to save a couple of bucks. I have learned to let the professionals do what they are good at. (8:25)
- The number we came up with was exactly what we bought it for and what we put into it. (9:25)
- I’m completely happy with the way things turned out. (10:40)
- Most business owners don’t pay attention to the metrix. They feel they are a small business and these things don’t apply to them. (11:35)
- You have to know the nitty gritty details because it affects your bottom line. (12:20)
- Having all the details helped us attract the right buyer. We knew down to the penny of every asset in that company. (13:35)
- We have a very cool Pod cast. (15:50)
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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