Exit Consultants Can Play a Crucial Role in the Business Sale Process
Exit Consultants Can Play a Crucial Role in the Business Sale Process
In this exclusive interview for Bsale Magazine, I sit down with Jeff Love, a renowned business exit consultant from ExitDNA Australia, to delve into the critical role that the expert guidance of an exit consultant plays in the business sale process. In my own role as a business broker I see the difference every day between business owners that have properly prepared their business for sale and those that list their business without understanding this.
With less than one in two businesses listed proceeding to a successful sale, it's patently obvious that owners who have properly planned and implemented strategies are substantially more likely to be on the right side of this ledger. In addition, the value of the sale is almost certainly going to be higher and the sales process smoother and faster if the business is properly prepared to find strategic buyers.
Jeff has over 10 years of experience in business process optimisation, a deep understanding of the market dynamics and has owned and successfully exited multiple businesses himself. He has recently joined forces with ExitDNA, founded by U.S. serial entrepreneur and business investor Mac Lackey, to bring their proven processes to Australian business owners. Jeff shares his insights on how strategic exit planning significantly enhances the profitability and smooth transition of businesses for sale.
This conversation aims to shed light on the tangible benefits that specialised consultants like Jeff bring to the table, helping business owners maximize their outcomes in what is possibly the most crucial transaction of their lives
Justin: Jeff - could you start by telling us your path to becoming a business exit consultant?
Jeff: My journey to becoming a business exit consultant has been a culmination of my diverse experiences in the corporate world, entrepreneurship, and consulting. I grew up and began my career in the United States, where I gained a solid foundation in business processes and consulting skills during my six-year tenure at Accenture after university. This experience provided me with valuable insights into optimizing business operations and driving growth.
However, after emigrating to Australia, I wanted to put my skills and knowledge to the test by becoming an entrepreneur myself. Over the course of 15 years, I bought, started, grew, and successfully sold five businesses. This hands-on experience taught me invaluable lessons about what it takes to build a profitable and attractive business for potential buyers. I learned the importance of generating strong cash flow, maximizing EBITDA, effectively managing staff, identifying and leveraging competitive advantages, protecting intellectual property, and consistently exceeding customer expectations to cultivate a loyal fan base.
After my entrepreneurial journey, I spent the last decade consulting and coaching numerous businesses, helping them optimize their operations and prepare for successful exits.
Through my diverse background in corporate consulting, entrepreneurship, and business coaching, I have developed a unique perspective and a comprehensive skill set that allows me to guide business owners through the complex process of preparing for a successful exit. My firsthand experience in buying, growing, and selling businesses, combined with my expertise in business optimization, positions me to provide valuable insights and actionable strategies to help owners maximize their business value and achieve their desired outcomes.
Justin: Tell us more about ExitDNA - how will this help Australian business owners who are thinking of exiting?
Jeff: ExitDNA is a comprehensive program designed to help business owners strategically plan and optimize their business for a successful exit. Our proven methodology, developed by serial entrepreneur Mac Lackey, focuses on building strategic value beyond just financial metrics. We work closely with business owners to identify and develop unique assets, craft a compelling exit story, target the right buyers, and proactively prepare for the sale process.
Our programs include an 8-week Exit Accelerator course, where owners learn the key principles and tactics of exit optimization. We also offer personalized consulting services, where our experienced team works one-on-one with clients to assess their business, develop a customized exit strategy, and guide them through the preparation and sale process.
By partnering with ExitDNA, Australian business owners gain access to a wealth of expertise and resources to help them maximize their exit value and achieve their personal and financial goals.
Justin: Can you give a few examples of strategies you will help business owners implement to increase the value of the sale?
Absolutely! One key strategy we help owners implement is what we call "Stacking the Deck." This involves identifying and developing multiple layers of strategic value that would be attractive to potential buyers. For example, we might work with a client to secure exclusive partnerships, develop proprietary technology, or build a fiercely loyal customer base. By stacking these unique assets, the business becomes much more valuable than its financial performance alone would suggest.
Another important strategy is crafting a compelling exit story. We help owners articulate a vision for how their business is poised to transform its industry in the hands of the right acquirer. By highlighting the strategic potential of the business, we can generate excitement and urgency among buyers, leading to a more competitive sale process and higher offers.
We also focus heavily on proactive preparation. This means getting the business in top shape for due diligence well before going to market. We help clients optimize their financials, operations, and legal structures to minimize red flags and maximize value. By being proactive, owners can avoid last-minute surprises and negotiate from a position of strength.
Justin: You've bought, operated and sold businesses yourself - what do you think makes a great business?
In my experience, a great business is one that has a clear competitive advantage and strong growth potential. This could be a unique product or service, a loyal customer base, or a scalable business model. Great businesses also have a talented and committed team, with a culture of innovation and continuous improvement.
From an exit perspective, I believe the best businesses are those that are not overly dependent on the owner. They have strong systems and processes in place, allowing them to operate smoothly and continue growing even after the founder moves on. This makes them much more attractive to potential buyers and ensures a smoother transition post-sale.
Finally, I think great businesses are those that deliver real value to all of their stakeholders - customers, employees, suppliers, and the community. When a business has a positive impact beyond just its bottom line, it creates a lasting legacy and makes the exit process much more meaningful for the owner.
Justin: How can a business owner get in touch with you - what's a good first step?
The best first step is to complete our online Exit Readiness Assessment. This short survey will help you evaluate your business's current exit potential and identify areas for improvement. After completing the assessment, you'll receive a customized report with actionable insights and recommendations.
From there, I invite you to schedule a complimentary consultation with our team. We'll review your assessment results, discuss your exit goals and timeline, and explore how ExitDNA can help you achieve a successful sale. Whether you're planning to exit in 6 months or 5 years, it's never too early to start preparing. The sooner you begin optimizing your business for sale, the more value you can ultimately capture.
To get started, simply visit our website I look forward to helping you unlock the full potential of your business and achieve the exit you deserve.
Justin: Thank you, Jeff for these valuable insights for all business owners – but particularly those who are savvy enough to know how important planning for their business exit really is. I can definitely see, just from reading Mac Lackey’s fantastic e-book “Creating The Exit Opportunity” how business owners who invest in the ExitDNA courses typically see greater than 10x ROI when they sell their business.
Speaking of Mac’s book – Jeff has also offered a special coupon just for Bsale readers. You can purchase the book through the ExitDNA website and if use the code BSALE10 you will receive a $10 discount (the book retails for $24.90).
Tags: selling exit strategy tips small business
About the author
Justin Bunt
Business Broker
Justin joined the MMJ Business Sales team in 2020 as a Business Sales Consultant. He brings a history of business ownership including multiple star ...
