In this episode of the Steps To Sells podcast, Brandon Bourgeois and Chris Sater discuss the critical importance of seller involvement after the sale of a business. They emphasize that signing the Asset Purchase Agreement (APA) is not the end of the journey, but rather the beginning of a new phase that requires careful planning and execution. The conversation covers various aspects of post-sale transitions, including buyer concerns, the significance of training and knowledge transfer, the role of consulting agreements, and the necessity of setting clear expectations. The hosts highlight the importance of maintaining relationships and ensuring continuity for the success of the business and the legacy of the seller.

00:00 The Journey Begins: Understanding Seller Involvement After Sale
02:51 Reality Check: Life After Closing
05:50 Buyer Concerns: Ensuring Continuity and Relationships
08:57 Transitioning Main Street Businesses: The Handoff Process
11:42 Training and Knowledge Transfer: A Two-Way Street
14:42 Lower Middle Market Transitions: The Importance of Seller Involvement
17:39 Licensing and Certification: Navigating Seller Obligations
18:51 The Importance of Clear Timelines in Transactions
21:40 Consulting and Employment Agreements: Key Considerations
24:40 Seller Involvement: A Critical Asset
28:15 Navigating Post-Sale Relationships
31:54 Understanding Non-Compete Agreements
33:46 Setting Expectations for Post-Closing Involvement
39:05 The Legacy of Seller Involvement

In this episode of the Steps to Sold podcast, Brandon Bourgeois and Chris Sater delve into the complexities of the lower middle market, focusing on the different types of buyers and their characteristics. They discuss the importance of understanding buyer types, the role of funded searchers, and the significance of transparency in the acquisition process. The conversation also highlights the red flags to watch for in buyer behavior and offers valuable advice for sellers navigating the Letter of Intent (LOI) process. The hosts emphasize the need for commitment and the importance of surrounding oneself with the right advisors to ensure a successful transaction.

00:00 Understanding Lower Middle Market Buyers
02:58 Identifying Buyer Types
05:58 The Role of Funded Searchers
08:57 Private Equity and Family Offices
11:35 Traits of Successful Closers
14:46 Red Flags in Buyer Behavior
17:28 The Importance of Transparency
20:24 Advice for Sellers
23:15 Navigating the LOI Process
26:33 Final Thoughts on Buyer-Seller Dynamics

In this episode of the Steps to Sold podcast, Brandon Bourgeois and Chris Sater delve into the complexities of the buyer landscape, particularly focusing on the differences between various types of buyers in the lower middle market. They discuss the importance of identifying serious buyers versus tire kickers, the necessity of financial preparedness, and the red flags that indicate a buyer may not be serious. The conversation emphasizes the role of brokers in screening buyers and the traits that define a good closer. Ultimately, the episode serves as a guide for both buyers and sellers to navigate the business acquisition process effectively.

00:00 Understanding Buyer Types
02:52 The Buyer Landscape in Lower Middle Market
05:32 Identifying Serious Buyers vs. Tire Kickers
08:30 The Importance of Financial Preparedness
11:45 Red Flags in Buyer Behavior
14:35 Traits of a Good Closer
17:21 The Role of Brokers in Buyer Screening
20:20 Navigating the Buying Process
23:03 The Importance of Communication and Transparency
25:58 Closing the Deal: What It Takes
28:56 Final Thoughts on Buyer Preparedness

Summary
In this episode, Brandon Bourgeois and Chris Sater delve into the often-overlooked topic of working capital in business sales. They discuss its significance in deal structure, the differences between asset and stock sales, and the importance of accurate financials. The conversation highlights the role of seasonality in working capital needs and the necessity of transparency between buyers and sellers. They also cover the concept of true ups post-closing and emphasize the importance of preparing financials well in advance of a sale to maximize value.

Chapters
00:00 Understanding Working Capital in Business Sales
04:53 The Importance of Working Capital in Deal Structure
09:42 Calculating Working Capital: The Right Approach
14:33 Challenges in Working Capital Management
19:24 Seasonality and Its Impact on Working Capital
21:52 Navigating Deal Structures and Cash Flow Challenges
24:55 The Importance of Quality of Earnings (Q of E) in Business Sales
29:15 Understanding Working Capital in Deal Negotiations
35:20 True Ups: Ensuring Accurate Working Capital Post-Closing
39:13 The Role of Transparency in Successful Transactions

Summary
In this episode of the Steps Sold Podcast, Brandon Bourgeois and Chris Sater discuss the impending 'silver tsunami' as baby boomers begin to exit the market, leading to a significant transfer of business ownership. They explore the challenges and opportunities this presents for both sellers and buyers, emphasizing the importance of preparation, understanding market dynamics, and the impact of economic shifts and technology on business valuations. The conversation highlights the need for sellers to be ready and for buyers to be strategic in their approach, as the market is expected to change dramatically in the coming years.

Chapters
00:00 The Silver Tsunami: An Overview
02:54 Ownership Transfer and Market Dynamics
05:45 Challenges in Business Valuation and Buyer Readiness
08:40 The Trillion Dollar Opportunity and Economic Implications
11:30 Timing and Preparation for Sellers
14:23 Transferability and Knowledge Transfer in Business Sales
21:07 Navigating Business Sales and Financing Challenges
23:13 Identifying Hot Industries and Market Trends
25:28 Preparing Buyers for Success in Acquisitions
27:43 Understanding Deal Structures and Financing Options
31:26 The Importance of Education and Preparation for Sellers
33:41 Bridging Generational Gaps in Business Transactions

Summary
In this episode of the Steps To Sold Podcast, Brandon Bourgeois and George Wellmer discuss the future of business brokerage and M&A, focusing on the impact of technology and AI on the industry. They explore how buyer and seller expectations are evolving, the importance of relationships in brokerage, and the role of private equity in acquisitions. The conversation emphasizes the need for brokers to adapt to technological advancements while maintaining personal connections with clients. Predictions for the future of the industry are shared, highlighting the potential for increased efficiency and the challenges posed by AI integration.

Chapters
00:00 The Future of Business Brokerage
02:43 Technology's Impact on the Industry
05:55 AI Integration in Business Brokerage
08:35 Deal Sourcing and Buyer Education
11:28 Navigating the Buyer-Seller Relationship
14:22 The Silver Tsunami and Market Dynamics
24:28 The Future of Business Valuation and Acquisitions
26:06 The Role of Private Equity in the Market
27:47 The Impact of Technology on Business Transactions
30:28 Navigating Buyer-Seller Relationships
34:30 The Evolution of AI in Business Acquisitions
41:14 Predictions for the Future of the Industry

Summary
In this episode of the Steps to Sold podcast, Brandon Bourgeois and Chris Sater discuss the essential qualities and roles of business brokers and M&A advisors. They explore what sellers should expect from their brokers, the importance of teamwork, managing expectations, and the significance of due diligence. The conversation also highlights red flags to watch for when choosing a brokerage firm, the role of NDAs, and the complexities of structuring deals. The hosts emphasize the need for brokers to have a deep understanding of the market and the emotional aspects of selling a business, ultimately guiding sellers to make informed decisions.

Chapters
00:00 Introduction to Business Brokers and M&A Advisors
02:49 Understanding the Role of Business Brokers
05:41 Qualities of a Great Broker and Firm
08:50 The Importance of Teamwork in Brokerage
11:38 Managing Expectations and Emotions in Transactions
14:38 Identifying Red Flags in Brokerage Firms
16:23 The Importance of NDAs and Buyer Vetting
19:49 The Importance of Personal Branding in Business Inquiries
21:33 Vetting Buyers: Understanding Intentions and Readiness
22:25 Navigating the Complexities of Business Sales
23:55 The Role of NDAs in Buyer Screening
25:19 Understanding Seller Goals and Strategic Buyer Matching
27:01 Managing Buyer Expectations and Deal Flow
28:52 The Role of a Good Broker in Successful Transactions
32:58 Confidentiality and Strategy in Business Sales
34:41 The Role of Due Diligence in the Selling Process
36:29 Choosing the Right Broker: Red Flags to Watch For

Summary
In this episode of the Steps to Sold podcast, Brandon Bourgeois and Chris Sater discuss the critical importance of disaster proofing your business. They explore various scenarios that can impact business continuity, such as owner incapacity, partner conflicts, and market changes. The conversation emphasizes the need for succession planning, insurance, and standard operating procedures to ensure a business can survive unexpected challenges. Real-life anecdotes illustrate the consequences of poor planning, while actionable advice is provided for business owners to prepare for the unexpected and protect their investments.


Chapters
00:00 Disaster Proofing Your Business
01:57 The Importance of Succession Planning
08:41 Handling Partner Conflicts
12:00 Insurance and Financial Protections
14:22 Preparing for Market Changes
19:36 Establishing Standard Operating Procedures
24:00 The Role of Advisors
24:25 Real-Life Consequences of Poor Planning
29:15 The Value of Documentation
31:14 Taking Action and Continuous Improvement