@MarkRubbo from @readingsbooks shares his personal take on buying and building this iconic business. We cover a lot of ground including;

• How the opportunity to buy Readings came about
• Laving the music industry (Professor Longhair) for book retailing
• The linkage of Marks business ambitions with the impact on;
  • the Australian book industry
  • the broader literary community (writers, publishers)
  • the local community
• Mark's ambition and opportunistic mindset to expanding Readings into multiple other locations, and the establishment of an online presence
• The importance of community engagement, author events and creating a vibrant bookstore
• The physical bookshops as a unique experience, with the opportunity for discovery
• Why Government support for bookshops is crucial in preserving the cultural value they bring to communities
• Transitioning out of the CEO role and ensuring a smooth succession to maintain the unique flavor of Readings
• The challenges and rewards of running an independent bookstore
• The impact of Borders Books when it opened directly opposite in Lygon St in the early 2000's
• The impact of online retailers like Amazon
• His experiences of succession planning, and advice for other small bookshop owners - to ensure the continuity of their business and to pass on their legacy.
• He also talks about his current projects;
  • The Book Sellers podcast - https://podcasts.apple.com/gb/podcast/the-booksellers-podcast/id1683259417
  • #Indigenousarts
  • #literaryprizes
  • @beyondblue
• And finally what it's really like to 'move on', and hand over day to day management

QUOTES:

"Sometimes founders rightfully wrongly put everything they've got into it and other people get to benefit from it."

"I hope Readings has been a sort of community focused business."

Thanks for listening. Visit the Small Business Banter website to subscribe, listen back, or check out any resources or information mentioned on the show.

Search @SmallBusinessBanter on your favorite podcast player to subscribe and listen to the episodes.

Reach out to Michael Kerr via the website if you need personal assistance or advice for your small business.

michael.kerr@kerrcapital.com.au

www.smallbusinessbanter.com.au

@Earl Eddings has started, sold and acquired multiple businesses. Along the way he's had high profile roles including as Chair of Cricket Australia, and served as Non Executive Director, Advisory Board member, Adviser and Mentor to other business owners and businesses. He's had wins. He's also learned a lot from experiences where things didn't go to plan. These experiences were however formative and continue to shape how he continues to approach his work, the support he provides to other business leaders and business owners.

In our discussion we cover;

• Earl's background and his journey as a business owner, including his first owned business and its sale
• Turning around businesses and the importance of planning for an exit
• The key factors to consider when selling a business, such as having a clean balance sheet and strong systems
• The significance of trust, open communication and integrity in mergers and acquisitions, as well as the importance of proper due diligence
• The importance of expert advice and representation
• Managing expectations to avoid unrealistic valuations
• Planning for an exit and the starting point, and the future vision
• Ways to increase the value of the business
• The importance of identifying potential buyers and scanning the market is highlighted
• Mitigating risks and ensuring sustainability
• Working with the buyer and transitioning
• The use of non-binding indicative offers and deal negotiations
• Why to avoid lengthy exclusivity periods is emphasized
• The vital importance of personal aspirations and family considerations
• The role of non-executive directors and advisory boards
• Why seeking guidance and building networks is encouraged as a way to navigate the complexities of selling a business

Some of the key takeaways;

1. When starting a business, it's important to have an exit plan in mind and be prepared for a potential sale.
2. #Culturalfit and alignment of strategic intent are crucial considerations in mergers and acquisitions.
3. Plan for an exit by starting with a clear vision of the future.
4. Identify potential buyers and scan the market to find the right fit.
5. Consider personal aspirations and family dynamics when planning for an exit.
6. Engage non-executive directors and #advisoryboards for guidance and support.
7. Build networks and seek guidance from experienced professionals.

@kerrcapital @michaelkerr

Thanks for listening. Visit the Small Business Banter website to subscribe, listen back, or check out any resources or information mentioned on the show.

Search @SmallBusinessBanter on your favorite podcast player to subscribe and listen to the episodes.

Reach out to Michael Kerr via the website if you need personal assistance or advice for your small business.

michael.kerr@kerrcapital.com.au

www.smallbusinessbanter.com.au

@Pete Seligman talks about and #eta (Entrepreneur through Acquisition) and #searchfunds and their impact on small business owners. He's an investor and co-owner of multiple businesses. 

Pete explains the concept of search funds and how they provide a vehicle for investors to back #acquisitionentrepreneurs. 

We talk about;

• the importance of finding the right fit between the entrepreneur and the business
• current market challenges and opportunities
• how business owners should handle an approach from  a search fund or investors
• the role of #earnouts in business sales and how they can bridge the gap between buyer and seller
• the common misunderstandings in relation to earnouts, and the potential benefits they can offer
• creative deal making and risk sharing to improve the prospects for getting a successful transaction
• why business owners need to augment their existing advisors with subject matter experts for a sale process
• the importance for owners to reflect on their mission and have honest conversations with co-owners to align their goals

Takeaways

• Search funds provide a pathway for entrepreneurs to buy existing businesses instead of starting one.
• The fit between the entrepreneur and the business is crucial for success.
• Business owners should be open to conversations with search funds and investors, as it can lead to new opportunities.
• Co-investing and joint ventures can be options for owners who want to grow their business with additional capital and expertise.
• Owners should be prepared for potential exit opportunities and have a clear understanding of their role in the business. Earn outs can be a valuable tool in bridging the gap between buyer and seller in a business sale.
• Creative deal making and risk sharing are essential for a successful transaction.
• Owners should consider the potential benefits of earnouts and not reject the concept of deferred payment outright.
• Business owners may need to augment their advisors with additional expertise for a sale process.
• Reflecting on the owner's mission and having honest conversations with co-owners are crucial for aligning goals.

@kerrcapital

Thanks for listening.  Visit the Small Business Banter website to subscribe, listen back, or check out any resources or information mentioned on the show.

Search @SmallBusinessBanter on your favorite podcast player to subscribe and listen to the episodes.

Reach out to Michael Kerr via the website if you need personal assistance or advice for your small business.

michael.kerr@kerrcapital.com.au

www.smallbusinessbanter.com.au