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The Exit - Presented By Flippa

12 Key Factors to Focus on when Scaling Your Business for an Exit with Greg Sloan

The Exit - Presented By Flippa

The Exit - Presented By Flippa

Technology

52K Ratings

🗓️ 2 October 2023

⏱️ 32 minutes

🧾️ Download transcript

Summary

This week on The Exit: What do you do when you’ve spent years scaling your company with the goal of an exit but the acquiring company falls through? This is what happened to Greg Sloan who started his financial services business one year before the Global Financial Crisis (GFC). After getting through the GFC, Greg decided it was time to build the business rather than just surviving. He successfully grew the business over the next couple of years, but after some self-reflection he decided he wanted to plan his retirement which meant scaling his business with the goal of an exit. He received an external valuation of the business which was well below what he would consider selling for. He identified 12 key factors that he needed to improve in order to grow the value of the business, and by focusing on those factors, Greg doubled the businesses value in just three years. That was when he started talking to potential acquirers. Listen to find out how those conversations went and why finding a buyer was the toughest part of Greg’s exit journey. Greg Sloan is a serial entrepreneur who started his first business nearly 30 years ago. In the summer of 2006, he found himself at the peak of his professional career as a Vice President for Goldman Sachs, so he designed and presented a new role for his division. When his manager wouldn't accommodate this role change, he quit his job to launch a boutique tax and financial planning firm, Daniel Advisors. During the next thirteen years, Greg grew the practice from a handful of clients to a firm serving forty-five households and managing $110M of investment assets. In January 2020, he sold Daniel Advisors and formally retired as a personal financial planner after 25 years in the industry. He now serves other leaders, founders, and entrepreneurs integrating purpose-centered leadership and decision-making to grow their business and leave their mark. LinkedIn: https://www.linkedin.com/in/gregonpurpose/ Website: https://www.telosplans.com/ X (Twitter) @Gregonpurpose - https://twitter.com/gregonpurpose Flippa’s First Access: https://flippa.com/exit For a Free Flippa Business Valuation: flippa.com/freevaluation -- The Exit—Presented By Flippa: A 30-minute podcast featuring expert entrepreneurs who have been there and done it. The Exit talks to operators who have bought and sold a business. You’ll learn how they did it, why they did it, and get exposure to the world of exits, a world occupied by a small few, but accessible to many. To listen to the podcast or get daily listing updates, click on flippa.com/the-exit-podcast/

Transcript

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0:00.0

Hello, and welcome to the exit presented by Flipup, the number one platform to buy and sell online businesses.

0:06.0

Flipup manages over a billion in deal value annually and combines expert buy and sell side advisory with its market leading valuation tool,

0:14.0

deal room, off market offering, market insights and AI based deal by deal matching engine. Now for the exit.

0:22.0

The exit is a 30 minute podcast featuring awesome entrepreneurs who have been there and they have done it.

0:27.0

The exit talks to operators who have bought and sold businesses of all different sizes. You learn how they did it.

0:32.0

Why they did it and get exposure to the world of exits. It's a world occupied by a small few but accessible to many in this episode of the exit.

0:41.0

I sit down with Greg Sloan and awesome entrepreneur who walks through his exit to the matter group.

0:48.0

He started a company called Daniel advisors and in this episode he literally walks through end to end what it was like having two potential courted acquiring companies fall through within a year time frame.

1:03.0

And then going through a broker with 70 plus interested buyers narrowing that down to nine from the broker and then going forward with two one Atlanta where he was based in one in Chicago.

1:17.0

And he talks through that whole experience. This is a really great episode for anybody that is interested in going through a banker or someone that's going to shop around your deal.

1:28.0

And the fact that Greg had already gone through two different processes with two different potential acquires leading into this banker negotiation.

1:42.0

It was such a value add because he had everything ready. He had all of his ducks in a row. He knew exactly what needed to be said. And also he had his three key metrics.

1:56.0

His values, his vision and the valuation. And these types of metrics that people are tracking internally for themselves and as a business are extremely underrated.

2:07.0

And it was really fun walking through this with Greg and the importance of these three key metrics that he tracks internally and externally.

2:15.0

So without further ado, let's sit down with Greg Sloan and he's going to walk us through his whole journey here. So sit back, relax and enjoy the ultimate preparedness episode here on the exit.

2:37.0

All right. I am here with Greg Sloan, the legendary serial entrepreneur. How's it going Greg?

2:48.0

Good to be with you today. Yeah. I'm excited to unpack your exit. But before we get there, let's start with your background. What got you into business and entrepreneurship?

2:58.0

Well, you know, it's kind of in light of this past week, I'm from that little town in Hawaii called Lahaina, which has been on the news this entire past few weeks.

3:08.0

That front street location is where I grew up, that school that burned down at the end called command method elementary school. I went to the elementary school.

3:17.0

So I am from Hawaii originally and what I always say was my grandfather was this seed that planted me. He planted the seed into my entrepreneurship.

3:27.0

So when I was a young kid and I would go over and spend summers at his house and just work in the yard with him. He was a mechanic, but he had gone blind.

3:36.0

So I was his eyes. Well, he taught me how to fix things. But he would also pick up a cotter pin every once in a while and he would say, Greg, if you just invent this cotter pin, you'll be a millionaire.

...

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