Hello, Deep Wealth Nation! We're celebrating a major milestone today—our 400th episode. And what a journey it has been!
"Deep Wealth Nation, welcome to this special landmark episode!" kicks off Jeffrey Feldberg, filled with the joy of reaching such a significant milestone. Steve Wells joins in, reminiscing about how they started their podcast to help business owners prepare for successful exits. "It's amazing. Your podcast has touched thousands," he beams. Both Jeffrey and Steve agree that their podcast has amplified their knowledge, allowing them to learn from a myriad of experienced business owners, investment bankers, and buyers.
Let's start with a bit of history. Our adventure began during the early days of COVID. Everything was shut down, and Steve and I wanted to make a difference. We decided to start a podcast. We didn't know how to do it, but that didn't stop us. It was all about helping people maximize the value of their companies.
Steve, my partner in crime, remembers those early days. "It's amazing, 400 episodes! You touched thousands of people with your podcast, and they learned how to prepare for an exit," he said.
The podcast doesn't just focus on happy endings or glorious beginnings. Instead, it digs deep into the middle—the struggles, the learning, and the growth. "Why don't we talk about the middle of what we did," Jeffrey suggests as he reflects on their past decisions that led to an incredible 9-figure exit. It’s crucial to remember that every success story has a challenging, messy middle.
Today, we're diving into a part of our story we've never shared before—the middle part. You know, the journey from turning down a 7-figure offer to landing a 9-figure deal. That's right! We turned a 7-figure offer into a 9-figure one by making the right moves.
Unexpected Offers Can Be Tricky
Flashback to the start: "Remember, when we started, we were just like many business owners," Jeffrey describes. Pedal to the metal, they were immersed in running their business when a large company approached them, not with a concrete offer but with interest to 'work together.' Although the 7-figure offer initially seemed appealing, they realized accepting would mean leaving significant value on the table.
When it comes to business, one saying rings true: "Preparation is everything." Jeffrey Feldberg and Steve Wells have been through it all. They turned down a 7-figure offer and ended up with 9 figures. You might be wondering, how did they do it?
"Most business owners leave a lot of money on the table by not preparing," warns Steve Wells. This is something they've learned the hard way, and they’re here to explain how important it is to be ready.
Steve adds, "It's crucial to understand that being unprepared will negatively impact your exit." Through this journey, they learned that it's essential to resist the allure of a first offer and focus on building value.
Jeffrey shares a crucial insight: "Unsolicited offers are often the worst deals you can get." When a big company knocks on your door, it's tempting to jump at their offer. But think twice. Without competition, you don’t have the upper hand. It’s like selling your house to the first bidder without checking how many others might want it.
Here's the first lesson: unsolicited offers are often not the best ones. When a big company came to us with a 7-figure offer, we were thrilled but naive. We didn't understand the full value of our business. Steve recalls, "We expanded opportunities, but we didn't refine our thought process."
The company wanted to work with us, which we thought was a great chance to grow. But we weren't prepared. We lacked a leadership team and a clear exit strategy. The buyer knew this and kept pushing for an exclusive agreement with us, which would stop us from talking to other potential buyers.
As Steve puts it, "It's a way to get the best price if you're trying to buy something."
The Power of Preparation
One crucial lesson from their journey: preparation is key. When dealing with buyers, Jeffrey emphasizes, "Success is about knowing what to do and what not to do." Reflecting on the approach from potential buyers, he warns about the tactics to watch out for, such as requiring exclusivity or dissuading businesses from hiring investment bankers. Steve firmly agrees, "They don't want external competition. They want to deal with a company that's unprepared."
Also crucial is the need for robust data and reports. "We were naive," Jeffrey admits. They learned that projecting future growth, understanding financial nuances, and identifying unique X-Factors like recurring revenue streams contribute significantly to a company’s valuation.
If you're going to sell your business, preparation is key. Jeffrey said, "How can you win at a game you've never played before?" We took the time to learn and prepare. We knew our mistakes, found our skeletons, and planned our moves.
Steve added, "Entrepreneurs are builders and we're running quickly. We weren't ready because we didn't have the people around us."
Another critical takeaway was the importance of narratives. The first offer they received was much lower because, as Steve reflected, "We didn't know how to present our advantages." But in their 9-figure deal, they knew their X-Factors and presented their business story compellingly. Crafting and understanding your company’s story—what makes you special—is essential.
"A big mistake is showing up unprepared," Steve points out. When you're running a business, it's easy to get lost in the day-to-day without a long-term view. But, to get that 9-figure offer, you need to think like a buyer. What do buyers want? They want to see growth potential and a solid team.
This tough preparation process paid off when we went for the 9-figure deal. Our new system, the Deep Wealth 9-Step Roadmap, made a huge difference. We were ready and knew our business inside out.
In business sales, having multiple offers can drive up the value of your company. Steve asked, why not have an auction? When they received numerous offers, they could compare and get the best terms—something a single offer doesn’t allow.
Let’s talk about auctions. Steve can’t get his head around why any business owner would avoid them. Without a competitive process, you’re selling your business short. An auction raises the stakes and puts you in the driver’s seat.
"Having many buyers gives you peace of mind," Jeffrey explains. It also keeps those buyers fair and competitive. So, whether it's an auction or another process, making buyers compete is key.
Reflecting on their journey, Steve encourages entrepreneurs, "Don't take that first offer." A first offer might seem tempting but is rarely the best. Instead, stay patient, prepare, and communicate effectively. "Preparation is so important," he reinforces.
Building a Winning Team
Imagine showing up to sell your business without the right team. That's what we did at first. It was amateur hour. But when we went for the 9-figure deal, we had a dream team beside us.
A critical lesson from their journey was the importance of having the right team. Steve shared, "We hadn't developed a management team yet." Entrepreneurs need a strong team to keep the company running while preparing for a sale. This means having people around who can help, support, and ultimately make the business more valuable.
"Entrepreneurs are builders," says Steve. And like any big build, you need the right team. Jeffrey and Steve learned that having smart advisors and a strong leadership team makes a world of difference. Surround yourself with experts who know the ins and outs of selling a business.
Jeffrey and Steve learned firsthand about the importance of having a skilled advisory team. In their initial 7-figure offer scenario, lacking investment bankers and sufficient advisors, they were easy targets. But during their 9-figure deal, with Harvard and Stanford graduates on their team, they could command a strategic advantage. Steve emphasizes, "You need the smartest minds working for you, turning your company’s potential into undeniable value. We had Harvard and Stanford MBAs working around the clock. Now we had our pros up there."
Our professional advisors showed the buyers that we meant business. Having expert help made us more confident and capable. It helped avoid buyer tactics trying to lower our business value.
Jeffrey and Steve also shared their experiences with buyer tactics. From signing exclusives to dining out with buyers, it became a learning opportunity on how some buyers operate. "They don't want the expertise of an investment banker," Steve explained. Buyers may seem friendly, but their goal is to minimize expenses. Entrepreneurs need to be savvy and ready for such tactics.
Steve discussed the role of investment bankers and how their advice changed the game. "We didn't even realize how powerful and effective the advice of our investment banker would do for us," he said. An investment banker can open doors and negotiate better deals. So, when preparing to sell, don’t skip hiring skilled advisors.
Break Free from Myths
Crafting a winning mindset and creating powerful narratives tailored for potential buyers played pivotal roles in their exit strategy. For their 9-figure exit, they highlighted their ability to keep customers longer and utilized their X-Factors to set themselves apart. Jeffrey recalls, "It's not just about showing past success. Buyers want to know your future potential."
Here’s a secret they learned: be ready to show your business off like a precious jewel. Know your strengths and weaknesses. "We had to know what made us special," Jeffrey points out. You need to show buyers why your business is the best choice they have.
When selling your business, timing is crucial. "We made some mistakes with timing," Jeffrey admits. To build trust with your buyers, employees, and customers, make sure you communicate well and at the right time.
Jeffrey emphasizes the importance of having clear reports and data. When a new buyer questioned their growth, "We had the reports, we had the data," Jeffrey proudly declared. Being able to prove your value with data gives you credibility and power during negotiations.
Conclusion: Preparing for the Future
As companies and business owners listen to their story, Jeffrey and Steve provide a clear blueprint: don’t accept the first offer blindly. Preparation, they learned, far outweighs the temptation to sell quickly. Jeffrey concludes with a compelling reflection, "Our only difference between our 7-figure and 9-figure offers was our preparation—a testament to why you should never underestimate its power."
Jeffrey and Steve developed the Deep Wealth 9-step Roadmap. It’s their unique tool to prepare for a profitable exit. This system transformed their business from a mere 7-figure value to a stunning 9-figure success. It’s all about having a plan, knowing your worth, and seizing the right moment.
Embarking on a successful exit begins with knowing your worth and fortifying your business foundation. They urge business owners to learn from their mistakes, trust in the process, and build strong teams to secure remarkable results.
As Steve hopefully looks towards the future, "We live in a great era with boundless potential. For those preparing, now is the time to act on these lessons and transform your business journey."
For Deep Wealth Nation, the message is clear: with the right actions and mindset, any business can unlock extraordinary value and thrive beyond initial expectations.
Conventional wisdom says to sell your business when you're ready, and if not, do nothing until then. But that's wrong! Preparing your business even before you're ready to sell boosts its value.
Deep Wealth Nation, remember these key lessons: don't accept the first offer, show up with preparation, and have a world-class team with you. These were the secrets to our success.
As we close this chapter, remember to focus on preparation and trust the process. As Steve emphasizes, "Don't gain a company to lose a family. Keep loved ones close."
A binding message in their story is the essence of trust and preparation. Steve advises, "Trust the process. Business owners must keep a long-term perspective, focusing on growth even when no immediate sale is on the horizon." He encourages maintaining a strong personal life and balancing business with family to ensure success does not come at a personal cost.
We live in fortunate times, with great opportunities waiting. Continue planning, growing, and preparing, as your dreams can really come true.
This 400th episode of the Deep Wealth Podcast is a treasure trove of insights for anyone looking to learn from successful entrepreneurs. The stories shared by Jeffrey and Steve are reminders of the power of preparation, the importance of having a winning mindset, and holding on to hope. Would you get better offers or work alone? It's crucial to surround yourself with the best advisors and prepare. The right time to act could be just around the corner.
Thank you for being part of the Deep Wealth Podcast journey. Until next time, may you thrive, prosper, and stay healthy. God bless you all!
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