Disruptive Successor Podcast

Episode 161 - Generational Transitions: Navigating the Sale of Your Family Business with Kevin Berson

Episode Summary

Join Jonathan Goldhill in a riveting episode of Disruptive Successor as he delves into the intricate world of mergers and acquisitions with seasoned expert Kevin Berson. Uncover the common misconceptions, challenges, and success stories behind selling businesses, whether you're a family-owned enterprise or a thriving IT managed service provider. Gain valuable insights and strategic advice to navigate the M&A process effectively. KEY TAKEAWAYS M&A is not a quick process; it requires thorough preparation and can take around 9 months on average. The value of a business is not solely based on its potential but primarily on past performance. Buyers are interested in EBITDA, not just revenue, and a clear, accurate financial picture is essential. Choosing the right buyer is crucial – one who aligns with the company's values and culture. Successful M&A involves strategic planning, including transitioning to recurring revenue for added value. Family businesses face unique challenges, such as sibling conflicts and differing views on selling. QUOTES "Buyers are not paying for potential; they want to see how the business has performed in the past." "The process of selling a business is not a sprint; it's a marathon that requires meticulous preparation." "Your business won't trade on a multiple of revenue; it's the multiple of EBITDA that matters most." "Identifying the right buyer is like finding a life partner for your business – values and culture alignment are crucial." "Success in M&A involves strategic transformations, like transitioning to recurring revenue for increased valuation." "Family businesses often face unique challenges, from underpaid family members to disagreements on the next chapter." Connect and learn more about Kevin Berson. https://www.linkedin.com/in/kberson/ If you enjoyed today’s episode, please subscribe, review, and share with a friend who would benefit from the message. If you’re interested in picking up a copy of Jonathan Goldhill’s book, Disruptive Successor, go to the website at www.DisruptiveSuccessor.com

Episode Notes

Join Jonathan Goldhill in a riveting episode of Disruptive Successor as he delves into the intricate world of mergers and acquisitions with seasoned expert Kevin Berson. Uncover the common misconceptions, challenges, and success stories behind selling businesses, whether you're a family-owned enterprise or a thriving IT managed service provider. Gain valuable insights and strategic advice to navigate the M&A process effectively.

KEY TAKEAWAYS

• M&A is not a quick process; it requires thorough preparation and can take around 9 months on average.
• The value of a business is not solely based on its potential but primarily on past performance.
• Buyers are interested in EBITDA, not just revenue, and a clear, accurate financial picture is essential.
• Choosing the right buyer is crucial – one who aligns with the company's values and culture.
• Successful M&A involves strategic planning, including transitioning to recurring revenue for added value.
• Family businesses face unique challenges, such as sibling conflicts and differing views on selling.

QUOTES

• "Buyers are not paying for potential; they want to see how the business has performed in the past."
• "The process of selling a business is not a sprint; it's a marathon that requires meticulous preparation."
• "Your business won't trade on a multiple of revenue; it's the multiple of EBITDA that matters most."
• "Identifying the right buyer is like finding a life partner for your business – values and culture alignment are crucial."
• "Success in M&A involves strategic transformations, like transitioning to recurring revenue for increased valuation."
• "Family businesses often face unique challenges, from underpaid family members to disagreements on the next chapter."

Connect and learn more about Kevin Berson.

https://www.linkedin.com/in/kberson/

If you enjoyed today’s episode, please subscribe, review, and share with a friend who would benefit from the message. If you’re interested in picking up a copy of Jonathan Goldhill’s book, Disruptive Successor, go to the website at www.DisruptiveSuccessor.com