We talk to Jonathan Smith, EOS Implementer and Negotiations Trainer and Coach with the Black Swan Group. Jonathan tells us why the EOS system is so powerful, the importance of having an EOS implementer, and how to make EOS work for you for years after your initial implementation. He also tells us how he met and agreed to work with Chris Voss, the founder of the Black Swan Group and the best selling negotiating book, Never Split the Difference, and he teaches us some great negotiating tips from the book. I also share my riveting story about how I used the book to several hundreds of dollars in a car rental negotiation. Enjoy the show!

We talk to Pat McKenna, CEO of DMI Partners, a 100 person agency based in Philadelphia that focuses on affiliate and CRM marketing. Pat tells us why they tend to offer a single solution service offering to clients, why it’s important to maintain quality as you scale, the one sentence that describes his agency culture, what he means when he says you should avoid a zero sum agency, why differentiation matters, and how COVID forced him and a client to make an incredibly fast pivot.

We talk to Sherrick Murdoff. Sherrick ran worldwide alliances and channels at Salesforce. Over more than a decade, he invested in over 80 different companies across 13 countries. Sherrick tells us why Salesforce was open to making minority investments in service companies, why he always wanted to make sure that everyone involved in a transaction felt it was a good deal for them, why so many of his investments did not have competitive bids from other investors, what he thinks distinguishes great private equity firms, and how he ended by investing in service companies alongside Sequoia Capital. Enjoy the show!

In this episode of Agentic Shift, we talk to Keith McCracken, founder of McCracken Advisory Partners, an international M&A advisory firm. Keith tells us about his early life in Liverpool, England (yes, he did cross paths with the Beatles on many occasions), his experience growing, selling, and then buying back an agency, as well as buying other agencies as part of a roll-up, why team members leave after an acquisition (and whether you should be worried), why selling a factory is easy, but selling an agency is hard, and why timing really is everything in agency M&A.

In this episode of the Agentic Shift podcast, we talk to Jesse Pujii, co-founder of Ampush and Gateway X, and the first person to be on two episodes of this podcast. Jesse tells us about the long and twisted path he took to eventually selling Ampush to Tinuiti, including several different business pivots, taking minority investment from Red Ventures, firing himself as CEO, hiring and then firing an investment banker, and working through the most challenging negotiating points to get the final deal done. He also shares what he’s been doing post-acquisition. Enjoy the show.

Patrick discusses his background and how Level Agency was founded in 2010. He talks about their initial focus on the education vertical and expanding to other verticals like B2B, financial services, home services, and e-commerce. Patrick emphasizes the importance of being experts in a specific vertical while also having the ability to learn from different accounts. He mentions that agencies have an advantage in learning about channels due to their exposure to various clients. The conversation then shifts to M&A activity, specifically the management buyout of one of their partners. Patrick describes how he approached the idea of buying the agency from his partner and how they secured an SBA loan for the transaction. Overall, it was a smooth process guided by SBA guidelines which required a 100% cash deal without earnouts or rollover equity.

Patrick discusses the process of selling their company and the involvement of the Small Business Administration (SBA). They explain how they had to follow SBA guidelines, go through a fair market valuation, and come up with a down payment for the sale. Patrick also mentions that they had favorable terms with the buyer and were able to borrow against their 401K for the down payment. They compare the process to buying an expensive house and mention that they had to complete all paperwork within a specific timeline. They emphasize that having experienced advisors was crucial during this process. Later, they talk about how a private equity firm was interested in acquiring their company after nine months of running it themselves. This decision turned out to be one of their best as it led to a successful partnership. Patrick acknowledges that their friend who sold them the company might have felt some regret or envy seeing what happened next but highlights their continued friendship. In terms of advisors, they initially worked with an MA attorney acting as an advisor during management buyout (MBO) due to dealing with an SBA loan, and later set up an advisory board consisting of industry experts when considering offers from potential acquirers.

Patrick discusses the decision not to go through a formal process when selling their organization, as they believe it resulted in a fair deal. They highlight the benefits of working with agencies and employees that are not actively looking to sell or leave. The speaker shares an experience where running a process led to a higher offer for their company. They express satisfaction with partnering with Dubin Clark, emphasizing their financial expertise and support in mergers and acquisitions. The partnership also provides access to operating partners and financing opportunities. Patrick values Dubin Clark's belief in their vision and appreciates the ability to take risks while receiving guidance from experienced professionals. They stress the importance of assessing how potential partners handle difficult times before entering into an agreement. Lastly, they advise understanding concepts like adjusted EBITDA during the MBO or private equity process and recommend seeking assistance from a reputable sell-side advisor.

The transcript discusses the importance of structuring books, representing expenses accurately, and understanding valuation methods for selling a business. It emphasizes the need to sell when the business is doing well and highlights the impact of showing a down year on valuation. The conversation also touches on the significance of having succession plans in place and being replaceable as a CEO or founder. It advises against overinflating one's value and stresses the importance of scalability and contingency planning. Additionally, it mentions that enterprise value increases when CEOs are replaceable and have built strong teams around them. The transcript concludes by discussing post-sale changes in responsibilities and the necessity of succession planning at all stages of a company's growth.

Richart Ruddie, the founder of The Reputation Management Company, talks about how he sold his business and the journey leading up to it. He discusses the importance of due diligence on potential buyers and shares an interesting story about a competitor who quit the industry to become a pastor. Richart also explains how he accidentally got into the online reputation management space and how his business grew over time. He mentions that he brought in a professional management team to make the business less reliant on him before eventually selling it in 2023. Throughout the conversation, Richart highlights the challenges and successes he experienced while building his agency.

Richart initially spoke to another reputation agency owner but they were not interested in acquiring the business. He then connected with a consultant and used a site called Biz Buy Sell to find potential buyers and investors, including a private equity company. Richart also sought advice from friends who had sold similar companies and worked with Quiet Light Brokerage based in Charlotte, North Carolina. Ultimately, Richart chose to pursue the private equity route for a partial sale of the business. Biz Buy Sell was effective in reaching potential buyers and even attracted some clients. The broker at Quiet Light helped organize financials and facilitate buyer-seller calls. Having good organization and video demonstrations made buyers comfortable during meetings with the team in Utah. Richart had multiple offers but waited for the right one because they didn't have to sell urgently due to strong cash flow. Reputation played an important role in choosing the buyer since bad reputations can negatively impact deals. Meeting potential buyers through video calls was common, but there were also some in-person meetings, including one with a successful internet marketer based out of DC Virginia area who ultimately lost out on their offer due to financing issues.

Richart discusses the challenges and complexities of selling a business, particularly an agency. He emphasizes the importance of preparing for the sale process by diversifying revenue streams and building a strong team. The value of an agency lies in its talent, making it a risky acquisition if key staff members leave. Richart also reflects on their own experience, highlighting the need to avoid certain mistakes and regrets in hindsight. After selling his agency, he remains actively involved as a consultant while pursuing other ventures.

Phil Palazzo, founder of PALAZZO, discusses various aspects of selling agencies in an interview. He highlights that growth is the most important metric for agency buyers and explains the complexity of due diligence. Phil shares his own experience of selling and buying back his agency twice. He emphasizes finding the best fit with a buyer rather than focusing solely on financial outcomes. Phil also mentions red flags when assessing compatibility between buyers and sellers, including falling asleep during a meeting. He differentiates his investment bank by emphasizing their industry experience and understanding from both sides of the M&A process. Phil advises clients on considering private equity or strategic buyers based on their specific needs and goals. Lastly, he reveals that many companies are not actually ready to be sold due to factors such as inadequate growth or scale.