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Dec. 8, 2020

Stop Losing And Start Winning When You Have The Right Liquidity Event Mindset (#034)

Stop Losing And Start Winning When You Have The Right Liquidity Event Mindset (#034)

"Welcome achievement and success when you expect the unexpected" - Jeffrey Feldberg and Steve Wells

Investment Banker Round Table On Everything You Need To Know are the founders of Deep Wealth. The M&A journey for Jeffrey and Steve began when they said "no" to a 7-figure unsolicited offer. Immediately, the two said "yes" to mastering the art and science of a liquidity event. Two years later, Jeffrey and Steve said "yes" to a 9-figure offer. On the process, Jeffrey and Steve increased their company value 10X.

How did Jeffrey and Steve increase their company value 10X and go to a 9-figure liquidity event?

Jeffrey and Steve created a proven 9-step solution on how to successfully prepare. 

The Deep Wealth Experience has you learn the 9-steps of preparation in 90-days. At the end of the 90-days you have a launch plan and certainty that you capture the maximum value.

SHOW NOTES

  • Why you need to create a winning liquidity event mindset by expecting the unexpected
  • How mindset helps you both prepare for a liquidity event and get through challengEs
  • How the mindset of Jeffrey and Steve changed from their preparation and what this meant for them
  • Why the right preparation and mindset gives you two win-win options
  • How business owners stop their liquidity events right at the finish line and the high cost of doing this
  • Understanding that the value of your business is created from your preparation
  • How to communicate your way to success with the right liquidity mindset
  • How to communicate to customers and employees
  • The type of liquidity mindset needed when speaking to customers
  • Why most business owners who have had liquidity events struggle with communication
  • Your future buyer knows everything about you. What do you know about your future buyer?
  • Understanding the different types of buyers
  • Knowing how to tune into WII.FM for buyers
  • How you can leverage your so-called failures into strengths with your future buyer
  • Why buyers want an upside and what they are looking for
  • Why buyers pay a premium for your company
  • Understand that it's not buyer beware, buy seller beware and how a liquidity mindset helps
  • The reasons why buyers want you to make mistakes
  • A winning liquidity event mindset protects you and your enterprise value
  • Understanding that your future buyer has had many liquidity mindsets
  • A winning liquidity event mindset has you dominate and win through preparation
  • The 9-step road map Jeffrey and Steve developed for their liquidity event
  • How the 9-steps work together to give you certainty to capture your maximum value on your liquidity event
  • Why time and money spent on preparation is a rounding error compared to the increase in business value
  • How preparation helps you find and fix the skeletons in your closet
  • How preparation helps you find the hidden Rembrandts in your attic and share them with the world

This podcast is brought to you by Deep Wealth. Are you thinking about a liquidity event? You have one chance to get it right and you better make it count. Enterprise value is created from preparation, and not the event itself. Learn how the Deep Wealth Experience helps you maximize enterprise value. Master the same strategies our founders used to increase their company value 10X with a 9-figure exit. Click here to book your free exploratory call.

Enjoy the interview!

SELECTED LINKS FOR THIS EPISODE

TriSearch Website

Stevie Aylsworth on LinkedIn

Contact Stevie through SAylsworth[at]TriSearch[dot]com

The Deep Wealth Experience

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Deep Wealth LINKS FOR THIS EPISODE

The Deep Wealth Experience

FREE Deep Wealth eBook on Why You Suck At Selling Your Business And What You Can Do About It (Today)

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This podcast is brought to you by Deep Wealth. 

Your liquidity event is the most important financial transaction of your life. You have one chance to get it right, and you better make it count. 

But unfortunately, up to 90% of liquidity events fail. Think about all that time, money and effort wasted. Of the "successful" liquidity events, most business owners leave 50% to over 100% of their deal value in the buyer's pocket and don't even know it.

Our founders said "no" to a 7-figure offer and "yes" to a 9-figure offer less than two years later. 

Don't become a statistic and make the fatal mistake of believing that the skills that built your business are the same ones for your liquidity event. 

After all, how can you master something you've never done before? 

Are you leaving millions on the table? 

Learn how the 90-day Deep Wealth Experience and our 9-step roadmap helps you capture the maximum value for your liquidity event.  

Click here to book your free exploratory strategy session.

Enjoy the interview!

Transcript

Steve Wells: [00:00:00] I'm Steve Wells. 

Jeffrey Feldberg: [00:00:01] And I'm Jeffrey Feldberg. Welcome to the Sell My Business Podcast.

 Steve Wells: [00:00:06] This podcast is brought to you by the Deep Wealth Experience. When it comes to your liquidity event or exit, do you know how to maximize the value of your business? You have one chance to get it right, and you better make account.  Most business owners believe that business value is determined during the liquidity event.

Unfortunately, most business owners are wrong. Your enterprise value is a direct result of the depth and quality of your preparation. Who are we and, how do we know? We're the 9-figure exit guys. We said "no" to a 7-figure offer based on 3-times, EBITDA. Two years later, we said "yes" to a 9-figure offer based on 13-times E ITDA. Despite having the same people, the same company, the same services, we increased our business value 10 times. 

How did we do this? We spent millions of dollars and years of time to uncover strategies that level the playing field. The end result is the 12-week Deep Wealth Experience.

We've created a proprietary solution that is relentless, resilient, and gets results. Learn how to master the art and science of a liquidity event. We've leveraged the same strategies that took us from 7-figures to 9-figures.

The Deep Wealth Experience levels of playing field so you can dominate and win. 

Book your free call today to find out if you have what it takes for the Deep Wealth Experience.

Visit www.deepwealth.com/success to book your free call.

That's www.deepwealth.com/success. 

Welcome to episode number 35 of The Sell My Business Podcast, Jeffrey, what are we going to talk about today?

Jeffrey Feldberg: [00:01:46] Hi, Steve. Hi everyone. Great to be back again.  Steve and I we've been busy the past while. We've been speaking at virtual conferences. We've been speaking to a number of business owners out there. We've been reading the press and everything seems to be coming back to this one topic today that we're going to be talking about. Of our 9-step roadmap, it's step number five, and is what we call in a Deep Wealth Experience, a winning mindset, the kind of mindset that you need to help you get across the finish line with your deal.

So, Steve, I know we were offline talking about what is this mindset? What do you have to do? And what's involved with it. Why don't you kick things off with the first step of creating a winning mindset?

 Steve Wells: [00:02:25] it's so important when you are going through this process, that you prepare your mind. And it sounds funny in a situation where everyone's looking at numbers and data, but so much that happens in our world. It depends on your mind, your attitude and your preparation for the process that's going to help you win at the end. We prepare the best we can, but something's going to happen. There's going to be something that is completely unexpected. It's going to come out of left field and, you're going to have to deal with that. I know what we're going through our process in selling our business.

We thought we had everything wrapped up and all of a sudden, we had a major personnel change, one of our key people. It could have been devastating. So, while we could not have predicted, that event we were prepared for the unprepared for the unexpected. So, that would be something we'd really want you to consider as you go through this process.

Jeffrey Feldberg: [00:03:23] It's almost counter-intuitive when you think about it. I love this expression when it comes to negotiations and the expression goes something like this, the person that cares the least is the one who wins the negotiation. And by no means, are we saying not to care about your liquidity event, as we all know for most business owners this will be the single most important decision of your business career that you're going to be doing for the liquidity event. But Steve, something interesting happened to us when we said no to our seven figures off or that unsolicited one. And we said yes to diving into this crazy and wacky world called mergers and acquisitions.

I'm not quite sure where it happened along the way, and we're developing this 9-step roadmap of how to prepare, but for our mindset, we just came out with the attitude, if you remember, we have this incredible thriving profitable company. And if we chose to, we could keep it forever. Or maybe we choose to sell it, tomorrow.

And either one was a really good situation to be in. We didn't really talk about it much at the time as we're going through it. If it doesn't work out, my fallback is we're going to keep on running this incredible profitable, successful company that's changing lives.  How does that resonate with you when you think back to that event and the process?

Steve Wells: [00:04:43] Yeah. We look at it at hindsight now, so we have clarity and we see that attitude is what helped us through it. I know we've spoken to hundreds and hundreds of investment bankers and brokers, and I don't think we've ever spoken to one that did not have a horror story about a seller who gets to the very end of the process and gets cold feet and backs out and they lost the deal maybe forever, or they'll never recoup that deal that they could have had.

But what happened in these cases is their mindset.  They didn't think through what they would feel like if the deal did go through and they weren't going to have a company and their identity was wrapped up into it.

 The same thing they need to be prepared for, if it didn't go through, what does that mean? That means they haven’t jumped back into running their company. What you're saying is really important. So, it's right. It’s not being lazy and thinking it's not being laissez faire, but it is being prepared for the unexpected and then being prepared to deal with that.

Jeffrey Feldberg: [00:05:44] And it really goes back to what we've said from the beginning. And I know speaking for myself when we went into our liquidity event, my belief at that time was that the value for our business would be determined from the liquidity event process itself. And having gone through a journey.

I now know I couldn't have been more off base. Simply speaking, I was wrong because the value of your business, it's really determined from the depth and the quality of the preparation that you do to get you to the liquidity event. And so, from that perspective, looking back at this now. And it's easy for us to say because we've been through it, there is a feeling of, okay, I've done the best that I can. Whatever's going to happen is going to happen.   And so I know for us, Steve, as we were entering the liquidity event, all the work that we'd put into it in those two years, the preparation, at least for me, gave me a sense of peace, a sense of calm and saying, okay,  we don't know what we don't know whatever's going to happen is going to happen.

Let's assume that something's going to happen. We don't know what that's going to be, and when it does happen, we'll figure it out. Our confidence in ourselves, in our business and the preparation that we had done. So, that's really what I think of as we look to the start of how do you create a winning liquidity event mindset?

Steve Wells: [00:06:56] Absolutely Jeffrey. Absolutely. I agree with what you were saying. Now second point of what we cover in the winning mindset is how to communicate through this process. How do you communicate, that's going to give you success? Now there are quite a few points in here that we really can't go over all of them, but let's start with a couple, and these are some areas that we were not successful in. We didn't communicate properly here.  And a couple of them were our employees and our customers, really more our customers. When we look back at it, we were caught up in what the organization that was purchasing us did.

And they didn't really want us to contact the customer. And we didn't really do that. When we look back at it, we regret some of that. We could've made things better I think for our customers had, we had been clear with what was going to happen and we weren't going to be around.

 You need to think about those key customers that you're going to have to bring into the discussion because your future buyer or partner is going to want to talk to those. And so it's a very delicate balance  in getting them prepared for those conversations and being honest with them, not scaring them at the same time and along this communication is the time to look at any contracts you might have because, if you've gone through your due diligence section for yourself and building your data room, you may have found that your customer contracts were irregular. Some of them may not have given you the ability to assign that client over to a new buyer. So, this is a time to really get nitty gritty and some of that information. So, you can communicate and re get those things shored up before you get to the end of this sales process and that could be a big stumbling block. What else, Jeffrey?

Jeffrey Feldberg: [00:08:39] I'm just thinking about many of the business owners that we've interviewed on The Sell My Business Podcast.  I can't think of one who has said. Hey, I just hit that out of the park. I knew what to say and when to say it, and with the interviews that we've done, I've heard our fellow business owners really struggle. They're looking back. I think I spoke too soon or maybe I spoke too late or maybe I didn't say enough. And it's something that we really took to heart when we put our 9-step roadmap together. Failure more than success has been my biggest teacher and yes, success is nice and it feels great, but it's been the failure where I've learned the most from the failures that have happened over the past.  Here's the mindset that you really need to think about now because your future buyer or your future investor, they have their own agenda and their agenda as it should be, is to protect their investment and they don't want you doing anything to rock the boat. They want to have this transition to be as seamless as possible to your customers who are paying the bills and keeping this moving forward.

And from their perspective, that's terrific. But from your perspective that may have some conflicts there. When you think about it, it's your customers who believed in you when nobody else would. Particularly your early customers. And so now it becomes a balancing act, a juggling act. You've made some reps and warranties about the sale of your business, but you've also made some unspoken reps and warranties to your customers along the way. So, what do you do and how do you deal with that? And that's one of the things in the Deep Wealth Experience that we focus on is how you do communicate and what you can say.

And ultimately it comes back to the mindset of knowing how to position things and knowing when to include the different stakeholders in your liquidity event. Stakeholders being your employees, your leadership team, your customers, to name a few of when to include them and what to say. And that's something I know Steve, that we go into a lot of detail in with the Deep Wealth Experience of how you should be positioning yourself.

But as we looked at the mindset of point number two of how to communicate your way to success, Steve, when you look back at your experience and what we went through, what words of wisdom, in addition to what you've already shared, would you put out there for our listeners.

 Steve Wells: [00:10:52] I think it's preparation. You've got to think about those people in your customer base and also in your employee base. And they're going to be different levels. They're going to be different people who have different information and so make a plan and then stick to that plan.

 It's not going to be easy, but you're going to be much better off if you thought your way through how you're going to say this and who you're going to say this to and what information they're going to receive. Now we didn't do everything bad. Obviously, we sold the business and we did pretty well at that.

So, one of the areas that we were successful I think was how we communicated to our buyer. Do you want to talk more about that?

 Jeffrey Feldberg: [00:11:28] I am going to toot our own horn. And when it came to the mindset of communicating to the buyer, I’m giving us. Hi marks Steve. I think we really did well. And it's interesting because what we're going to talk about here of the mindset of communication for your buyer. We really figured out in terms of our buyer, what they were looking for and what we needed to communicate and how we needed to communicate that with. As an example, we took a look at some of our initiatives and we were very honest about it.

And we said, listen, we didn't hit a home run with these initiatives. Maybe we didn't even get on base with some of these initiatives. It wasn't that the initiative itself was wrong. It was simply that we didn't have enough time or perhaps there wasn't enough capital or perhaps we didn't have enough skillset on the bench to help us get that going.

But instead of overlooking that or trying to, hide that under the rug, like it didn't happen. We communicated that in a way to the buyer that resonated and our communication and our mindset was listen we have an incredible company and our solution is over the top. We are best of class. We are world-class with what we're doing.

Here's a few areas that we haven't yet had the ability to fully implement from a time or skillset or capital side of things. And Steve if you remember that really resonated with the buyer who then was able to pick up from where we left off and run with that. And in a very nice way, it dovetailed with increasing the value of our business.

Steve Wells: [00:12:55] Yeah. You think about almost every kind of buyer they  want an upside, so they want to see the runway that you've come from, but they want to see the runway where you're going and they want to see things that are going to increase the value from the day they purchase or the day they partner with you in that business.

So, it's important to show them that these things are out there and they exist, but they weren't able to be realized out of many things, it could have been capital. It could have been skillset. It could have been it's just early on and we haven't had time yet to get there. So, it's important to give them that perspective, because they’re going to need that.

We were just speaking yesterday with, an investment banker. And they're talking about the, have all the buyers that come to them. they almost all have the same request and one of them is just this point. They want to be able to buy a company that has an upside to it that they haven't realized, or haven't captured all the things that they're going to need to capture out of that company.

And this is where you come into the picture too, whether you're sticking around or not sticking around. And in our case, honestly, we had a skillset from zero to where we got our company and our buyers all of them that we were talking to had a skill set from what we built to another level, another plateau that required, some, financial, interjection of capital and also some financial, expertise that we didn't really possess and we didn't have.

Jeffrey Feldberg: [00:14:20] So, it's a nice dovetail Steve into number three of developing this liquidity mindset and when you have the right liquidity mindset, really anything is possible. And so point number three, and we've talked about this before in other episodes of The Sell My Business Podcast, and it's absolutely worth mentioning again, because most business owners the only thing that they care about with their future buyer is if the check is going to clear the bank, that's all they care about. But the mindset is that your future buyer knows everything about you. What do you know about your future buyer? So, on that question, Steve, what do you have to say about the mindset of knowing everything about your future buyer?

 Steve Wells: [00:15:00] There again, what’s in it for them. What is going to make this successful for them? And you can't answer that question until you identify the buyer and we go through great lengths in our learning experience to help you process that question.  You may have different kinds of buyers, or you may have one kind of buyer in big broad categories. You might have a strategic buyer or that means someone who is going to take a look at your business and incorporate it into what they're doing. And many times, they pay a premium for that. You have some type of financial buyer, private equity and they look at these experiences that you're bringing them as short term, maybe it's three or four or five years, and they want to flip it this or they want to roll you up into other financial purchases and then liquidate and sell that themselves. And then you get this kind of mix, which is a family office, which is becoming more and more popular, and they're looking at this for the long-term.

They want to buy an entity that’s coming in and they're going to just be with that company forever and ever, and is providing them with a return every year. So, you can imagine each one of these buyers has different things. Some want a management team, some may not, some are going to have to convince other investors or banks or lending institutions.

So, you have provided them with the data and the story to help them, be successful in getting that capital. So, it can be very complex in some way, but when you sit down and identify who you're going after, then you will have a plan and you'll know how to communicate that plan to them.

 Jeffrey Feldberg: [00:16:35] And what's interesting is when you begin the process of knowing everything you can about your future buyer, one of the mindset changes that happens, and it's a good thing to happen.  Most business owners, they take the mindset of, I'm just going to go with whoever offers me the highest price, that's it.

And that's done and that's going to be the best buyer.  Is it?  Maybe it isn't because what we've seen time and time again, and everyone, I'm sure you've heard of these horror stories where a company was sold. And years later, the original business owner buys it back for pennies on the dollar, because it was just wrong with a new buyer from day one.

And it just decimated and destroyed the business. You don't want that happening. You don't want to do that to your employees who believed in you. You don't want to do that to your customers who believed in you. And one of the things that we focused a lot on in the Deep Wealth Experience is how do you determine the best cultural fit for your future buyer or an investor, during your liquidity event.

And part of the way of doing that is having the right mindset of knowing what is it that your buyer wants to achieve? What is it that you want to achieve and that your business needs to be achieving, and they're not all necessarily going to be a match and on the same page? So, when you have the right mindset of knowing how to speak to the buyer, or as we like to say in the Deep Wealth Experience, you're tuning into our favorite radio station WII.FM the what's in it for me radio station, but what's in it for me isn't you it's. So, what's in it for me, for your buyer of what are they looking for? What problem are you solving for them that's a painful problem that’s going to make your business one that they want to buy, and one that they're going to put a high value on of something that's going to be helping them get from point A to point B.

So, knowing your buyer and the different kinds of buyers, and what they're looking for is something that's paramount. And Steve how many times have you heard a business owner say, Oh, I know it's going to be this kind of buyer that's buying my company.

How many times have we heard that?

Steve Wells: [00:18:34] Yeah. that's a common thing.  You hear that particularly with the people who are saying, Oh, I got my offer. It was someone in the business that I'm in and they just came to my door and knocked. And that's probably who I'm going to sell my business to. That's nothing you want to do. That is no way to maximize your value of your company.

Jeffrey Feldberg: [00:18:51] And so really, it's not a buyer beware, but its seller beware in terms of really knowing who your buyer is and what that buyer is all about and the cultural alignment. And I know in the Deep Wealth Experience, we call it the Richter Reverse RFP process, which for most investment bankers, the first time they see this, it just shocks them, but it helps you go through the process to really see what your potential buyers are made of. And is it just talk or is there actual substance to what they're saying? And it's only 18 questions, but wow those are powerhouse questions that help you separate the quality buyers who have the cultural fit from the ones that don't.

Now, Steve we've mentioned the Deep Wealth Experience a few times here. And for those that are new to the community and listening, what is the Deep Wealth Experience and in particular, something that we call the Deep Wealth 9-step roadmap. What's that all about? What are we doing here?

 Steve Wells: [00:19:46] After we went through our process and after talking to many other people who are asking us to consult with them, we we're able to distill all the things that we learned from our experience and what we've found with working with other business owners to create a 9-step process that if we follow those 9-steps, if you, as a business owner, follow those, you're going to take away almost all the uncertainty from that process. And each one of these 9-steps is important and each one builds on the other and it’s foundation, it's preparation, and there's ultimately leading you to maximum value for your company and what we like to call Deep Wealth.

Jeffrey Feldberg: [00:20:33] Steve at the time when we were creating this, we didn't really, look at it in that way. We were creating it because we had become our own Chief Exit Advisor, for ourselves.

Any favorites that you have of the Any 9-steps that we developed.

Steve Wells: [00:20:43] They're all very important, at the time we didn't have these phrases. This is what we did How to find the skeletons in your closet and discover those Rembrandts in your attic. Now, we did that. Now, what that means is take time to find those issues that are in your company, that either you can correct. Or you bring out right away and you explain. And so, it's something that doesn't have to surprise anyone and hopefully you've corrected them. At the same time, we touched on it, but these Rembrandts are those areas that are beautiful works of art that may not be obvious to you at first, but to the buyer, they're treasures.

And so how to find those then how to communicate those, can make tremendous advances in the value of your company to the eyes of the partner or to the buyer.

 Jeffrey Feldberg: [00:21:35] I know when we speak with business owners and we explain to them the 9-steps and we share with them that in 90 days, period of time you master the art of preparation and that you walk out with the certainty that you'll capture the maximum value in your liquidity event. But if you don't know, what's involved with that, one of the questions that I'd be asking, and I'm going to ask you, and if you could share your thoughts for the benefit of our community, is your company ready after 90 days that you can sell it tomorrow after that 90 day period or what are we talking about here? So, you go through the Deep Wealth Experience. It's a 90-day period of time. You're with other business owners from across the country and you're learning with them. You're learning with us. We're all learning together the 9-step process. What are you left with and why is that important?

Steve Wells: [00:22:18] The quick answer is no; your business is not ready to sell on the 91st day because some of the things that you're going to need to do may take a year and longer. you may be building a management team out, maybe there are tax, strategies you need to put into place. Maybe there's some skeletons you need to clean up, but what you will have after 90 days is a clear roadmap.

You're going to have a plan in these nine silos, these sections that we're going to go through and we're going to give you time in these 90 days to begin to develop those out. So, you're going to get the concept. Then you're going to have a week to work on that concept with your coach, with the benefit of your peers who are going to be with you in this experience.

So, you're going to complete every step of the way through these 9-steps. So, when at the end you're going to have some holes you are going to need to fill in. You're also going to have some work you're going to have to hire your whole exit team and we’re going to help you understand how to do that, but you're going to have the plan and this is our goal.

This is pre exit, and it's a unique thing. And we didn't really realize, what we're offering I don't know if there's anyone who really does that. There are people who are consultants. I know, but this is so much more than that. So, we're not there to sell your business. We're really there to help you prepare for that, sell and get your team ready.

Jeffrey Feldberg: [00:23:41] This is a system built, by business owners for business owners, focusing exclusively on preparation that helps you capture the maximum value for your business in your liquidity event.

 So, back to the winning liquidity event mindset. Let's talk about number four and Steve for number four I know for both of us, what we like to say is a winning liquidity event mindset. It not only protects you, but it protects the value of your business or your enterprise value. So, what would you have to say about that?

 Steve Wells: [00:24:12] Your enterprise value and you touched on a little bit, Jeffrey. It's not this magic number that someone has come up with that's going to be determined by a spreadsheet. This number is going to be created when someone is willing to pay for your business or invest in your business based on all your communication. And we've said this before, and we see it every day when we talked to different investment bankers. The same company can have an enterprise value that is two, three, four times greater or less based on the communication and based on the needs of these companies.

So, when you have the right mindset is going to protect you to maximize that enterprise value because you're communicating the information and you're communicating in the ways that buyer needs to hear, to give you that maximum value.

Jeffrey Feldberg: [00:25:05] You're absolutely right, Steve.  The first step of our 9-step process is what we call the big picture. If you want to win at anything, you have to know the rules of the game. And so, for the first step, it's understanding, what are the rules for a liquidity event?

What are the rules in mergers and acquisitions? So, when you know what the rules in the game are, that's step number one, you now can build a mindset to help support you on how you're going to win at this game. And in the world of mergers and acquisitions. And again, we didn't make up these rules. We are simply sharing with you what they are. More times than not it's a zero-sum game. So, either the buyer wins or you win, not always the case, but most of the time, that seems to be the case. And so, from your buyer's perspective, they want you to make not a mistake, not two mistakes. They want you to make many mistakes. Not fatal mistakes that's going to kill the deal, but enough mistakes that it gives them a justification to adjust the value of your business.

And not in the direction that you want. It is in their favor is to lower the value of the business. Based on the mistakes that you're making. So, when you have a winning mindset, you're now understanding what you need to do to protect the value of your business, how you should respond to how you should be thinking what you should be doing within the liquidity event process itself. How you should be interacting with the buyer and the buyer's team because your buyer will try every trick in the book. And Steve, we saw this with ourselves. We see this when we speak to buyers who come onto the podcast. We hear this. When we speak to the investment bankers, Things like flattery or ego are two of the things that your buyer is going to use to box you in and have you made commitments that you possibly can't live up to. Steve, what are some of your thoughts on that? Any insights with that?

Steve Wells: [00:26:56] Think about this. This is probably your first liquidity event, your first sale. And think about your buyer and their team, this could be their hundredth or their thousandth. They have been down this path. They know what to do, how to manipulate, how to find weaknesses and exploit those weaknesses.

So, this is where you've got to have the right mindset. And this is where you've got to go through these steps and prepare yourself so that you can handle that kind of potential onslaught from the buyer.

Jeffrey Feldberg: [00:27:31] So, it's just incredible when you have the right mindset. And when you think about it, the right mindset or the wrong mindset. It takes no more time or effort or money, but it makes all the difference when you're on the right side. So, when you have the right mindset and you're going through what we've been speaking about, and particularly for strategy number four, the right liquidity event mindset protects you and the value of your business or your enterprise value. So, Steve, as we begin to wrap things up here, what's strategy number five of a liquidity event mindset.

 Steve Wells: [00:28:08] The fifth point is a winning liquidity event mindset has you dominate and win through preparation. And the key word there is preparation. Jeffery, you can expound on this, but we know in talking to so many business owners again, to repeat what I just said, this is the first time they've done this.

They've been very successful in running their business, but now they're going to have to sell their business and they can't do both of these at the same time. So, it takes some preparation to make this happen. Many of them have been, somewhat negligent in maybe delegating responsibilities, just because they love doing it.

And it's in this preparation where they have to see where they can step back. And what's always amazing about this too, if you go through all these 9-steps that we talk about in the Deep Wealth Experience, and you never have a liquidity event, at the end of the day, you're going to have a much more successful and profitable company.

Now you will have some event sometime in the future, whether it's an inheritance or it's sold. The day will come where something has to happen to your company, but, all the steps of preparation make you a better company regardless of the actual event. And when that event happens.

Jeffrey Feldberg: [00:29:25] It's amazing. And I don't think a day goes by Steve, where we're speaking to business owners and they more or less say this, I’ve been running my company for two, three, four decades and it's successful. I've done well with it. There's no one in my family. Who's really interested in taking things over and I feel tired.

I feel burnt out. I just want my competition to come gets me the right number and I will call it a day and listen to on paper. It sounds alluring. You're not spending money. You're not spending time. You're not having to do anything. You're already busy enough with your business. And you're saying, I don't have the time.

Where am I going to find that? And all my money is spoken for. I'd rather put that towards growing the business. And this is what your future buyer wants you to do in hopes you're going to do. And that's why to this day, unsolicited offers should be illegal. They should be banned because I've never yet met a business owner who walked away better off for doing an unsolicited offer, as opposed to taking the company, putting it through the right process and preparation, holding an auction.

And then at that point, looking to sell the business or have some kind of liquidity event. So, when you change your mindset, and the mindset becomes I'm going to do the preparation, whatever time and money that I put into the preparation. It's a rounding error. It's not even going to count relative to the increase in your enterprise value.

Preparation is at the heart of everything. As we like to say here at Deep Wealth and in a Deep Wealth Experience, the number that you get for your business at the liquidity event, it's like looking in the rear-view mirror based on the depth and the quality of the preparation that you've done. So, right from the start, if you get your head wrapped around doing the preparation.

Putting the time, the effort, the money into getting the preparation done, as Steve said, you'll have a more profitable company, a stronger company. And again, you choose. You keep this thriving profitable company forever.t You sell it tomorrow. They're both right. Incredible outcomes and you can't lose either way.

Steve, remember that conversation. We had that just the other day, actually. And we were told that the one business owner was told that his company just wasn't prepared enough. They were so disorganized that they should just simply shut down. That no one would want to buy the company. And what happened from there.

Remember that?

Steve Wells: [00:31:47] And the advisers who told them this, we're very astute, they're financial people. and they said, no, I think you should just, just close it down the best you can. This owner went through a process and he ends up selling his company somewhere around 17 to $20 million. That is money in his pocket that, otherwise it was gone. he was, it was he not only if you shut the business down, I'm sure it would have cost him money to shut the business down. The thing about preparation, we have had, advisors and investment bankers come to us and say, listen, once our client has gone through the Deep Wealth Experience you have made our job so much easier, and it's not like we're just trying to save time, but you've created, the, value that we can now take and build on to give this, owner much more value. So, the small amount of money that is invested in doing this preparation, it’s almost comical compared to just, I don't even know the percentage, thousands of percent fold off that investment, for doing this preparation.

 Jeffrey Feldberg: [00:32:52] If you remember nothing else from this episode and this podcast, it's preparation should be at the heart of everything that you do and it's time and money well spent. So, Steve, as we begin to wrap things up now, why don't we do a quick recap and go over those five winning mindsets for a liquidity event.

So, point number one was what Steve?

Steve Wells: [00:33:13] Create a winning liquidity event and mindset by expecting the unexpected. That's where you are prepared for those things you have no control over. And number two?

Jeffrey Feldberg: [00:33:23] Number two is how you need to communicate your way to success by building, crafting, and creating the right communication mindset. And number three, Steve?

Steve Wells: [00:33:34] Number three is your future buyer knows everything about you. What do you know about your future buyer? 

Jeffrey Feldberg: [00:33:40] And as we roll into number four, it's how a winning liquidity event mindset is going to protect you and your enterprise value. And as we wrap it up with number five.

Steve Wells: [00:33:51] Number five, a winning liquidity event mindset has you dominate and win through preparation.

Jeffrey Feldberg: [00:33:57] The three Ps. So, the hair you go, we want to thank you so much. We know your time is valuable. You could be doing other things and you're taking time out of your busy day to listen to The Sell My Business Podcast. And really, we started this podcast as a way for us to pay it forward to help other business owners to profit, to not make the mistakes that most make.

And to really begin the education process of what do you need to do to get ready for your own liquidity event. And so, for that, we thank you. We are eternally grateful for your continued support. If you want to help, it would be wonderful for you to go to Apple Podcasts and put a comment in and share with others what we're doing and why you find this podcast helpful.

And we'll be reading those comments and taking a look for them and let's get the word out there for other business owners. Collectively, we can all level the playing field and make sure that as business owners we're able to collect the value that we've earned in creating our businesses. So, on that note, we're going to wish you all a terrific day and please stay healthy and safe.

Thank you.