@ShaneCheek is the CEO of @ContinuaSoftware which is a private company that specialises in acquiring, operating and growing B2B software companies.Shane is an experienced founder, builder, business seller and investor. His expertise and practical insights make this episode a must-listen for #businessowners who are potential sellers looking to understand the best strategies to sell their business, especially when they are selling to an industry buyer. In this episode we cover;how to best manage the process of selling your business to an industry buyerthe fast growing trend of #searchfund buyers making direct approaches to business ownershow to best prepare for a direct approach preparing for sale negotiationsunderstanding the value of your companythe importance of building relationships with potential acquirershow to effectively qualify incoming inquiries from a search fund or industry buyer navigating negotiations with #privateequity buyers like a propreparing for a fulfilling life after sellingthe crucial role of trusted advisors in the selling process"People are messy, businesses are messy, people are imperfect, and businesses are imperfect as well. Acknowledging that and then approaching any potential transaction or sale with that as a realization makes things smoother and hopefully more enjoyable and fun along the way as well" - Shane CheekVisit @continuasoftware.com to learn more about Continua Software and their focus on acquiring businesses in the software and technology space.Contact Shane at Shane@continuasoftware.com to connect with him regarding business opportunities or discussions related to small businesses in the software and technology sector.Timestamped summary of this episode:00:00:06 - Introduction to Small Business Banter podcast Michael Kerr introduces the Small Business Banter podcast, highlighting its focus on business owners and their advisors at various stages of business ownership.00:02:34 - Continua Software and Outreach Model Shane Cheek discusses Continua Software's focus on acquiring B2B software companies and their outreach model to directly connect with business owners. He emphasizes the importance of building relationships and understanding the people behind the businesses.00:10:14 - Reasons for Considering an Exit Shane highlights the reasons why business owners consider selling their businesses, including reaching a plateau, feeling tired, and personal factors such as upcoming travel or personal fulfillment.00:14:30 - Importance of People in Acquisition Shane emphasizes the significance of prioritizing people in business acquisitions, focusing on aligning values and building rapport with business owners. He discusses the importance of understanding owner's goals beyond financial aspects.00:17:22 - Flexible Operating Model and Partnership Shane explains Continua Software's flexible approach to business acquisition, accommodating varying levels of owner involvement post-acquisition. He emphasizes the importance of aligning owner's strengths with the business's needs for mutual success.00:20:46 - Challenges in Business Transition Shane discusses the tensions and challenges in making new business decisions, especially for sellers who have built successful businesses.00:23:39 - Key Elements of a Good Business Opportunity Shane highlights the importance of consistency, predictability, and clarity of roles and responsibilities in evaluating a business opportunity.00:27:28 - Importance of Building Relationships Shane emphasizes the importance of building a relationship with the owner of the business, comparing it to dating and marriage, and the role of a good advisor in the process.00:31:48 - The Role of an Advisor in Selling a Business Shane discusses the significance of having an advisor to guide the seller in the sale process, and the impact of having an advisor on the certainty of closing the deal.00:39:32 - Managing Inquiries and Interest Shane addresses the increasing inquiries to owners from various sources, emphasizing the need for credibility and genuine interest in potential buyers, and the importance of managing the pipeline effectively.00:41:47 - Qualifying Inbound Inquiries The owner needs to quickly validate the quality and intentions of inbound inquiries. Key questions to ask: Why do you want to buy my business? What is your capital source? What are your values and alignment?00:44:28 - Evaluating Potential Buyers It's important to assess the track record and intentions of potential buyers. Owners should approach incoming inquiries as they would a long-term sales prospect or a potential business partner.00:47:48 - Initial Steps in the Sale Process After an initial conversation, gathering historical financials, customer lists, and staff lists is crucial. Advisors can help prepare the business for sale by cleaning up and organizing key information.00:55:53 - Reflecting on Business Performance Owners should reflect annually on their business ...
