How can founders prepare for a business exit?
Short answer: Because their savings already supported retirement, Michael said the sale price did not have to carry their future lifestyle (7:51, 8:18).
At a Family Office Club strategy session, Richard C. Wilson asks founders Samantha and Michael about building and selling their ATM company.
Revisited whether to sell
Samantha said every few years they considered whether to sell all or part of the company, or keep it. She said the decision came down to the outcome she wanted (5:07). (at 5:07)
Floated a sale with industry contacts
Samantha said she softly raised a possible sale with people in the industry before telling a potential buyer they were ready and offering him first look (5:34, 6:01). (at 5:34)
Kept two buyers in play
Samantha said she approached another buyer, kept both in play when low numbers came in, and explained the company based on each buyer's desired outcome (6:01, 6:28). (at 6:28)
Michael on passive income during negotiations
Michael said savings and investments made the sale proceeds feel like icing on the cake (7:51). He said passive income covered their lifestyle and eased negotiations (8:18). (at 7:51)
Samantha on the ATM industry's M&A cycle
Samantha said the ATM industry was in another round of mergers and acquisitions, and she worried they might not have a buyer if they waited. She said they were selling from their strengths (8:18, 8:45). (at 8:18)
"And that was the huge strategy. You know, if you have one buyer, you really don't have one."
From Richard's exclusive Billionaires.com interviews
Lessons from Richard C. Wilson's one-on-one interviews, as published on each interview page.
- Igor Olenicoff: Learn the business from the ground up. A job at a builders hardware store taught Olenicoff about building materials and techniques. It also built an affinity for real estate.
- Tony Robbins: Think like an owner. His biggest turning point was moving from operator to owner. An operator tries to supervise everything and cannot scale.
- Bobby Castro: Change the strategy to scale. Bobby says that to scale a business, everything has to change. He suggests asking whether the business is scalable, whether it offers a solution and whether it is disruptive.
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Frequently asked questions
How can founders prepare for a business exit?
Because their savings already supported retirement, Michael said the sale price did not have to carry their future lifestyle (7:51, 8:18).
Why did Samantha sell within the industry?
Samantha said she wanted to be done, so they sold within the industry rather than to a private equity firm (15:07).
What payment concern did Samantha raise?
Samantha said a seller may stay on as a consultant and then miss a later payment. She said to work out how payment will be made (15:34).
Sources
Quotes are copied from the video captions and checked against the transcript. Timestamps link to the moment in the video. General information only, not legal, tax or investment advice.