Justin Sandridge, an experienced M&A advisor from Murphy Business Sales, discusses the intricacies of buying or selling a business, emphasizing the importance of meticulous planning and professional guidance. Justin shares his insights on key financial, legal, and operational details that business owners should not overlook. The conversation also touches on the importance of early planning, understanding business valuation, and how to make a business more marketable by focusing on financial reporting, reducing owner dependency, and diversifying customer concentration. This episode is part one of a mini-series designed to help business owners and entrepreneurs navigate one of the most significant decisions they will ever make.

Key Takeaways:

• Why is early exit planning crucial for business owners, and what timeframe is recommended for starting this process?

• What are the key financial and operational factors that can influence the valuation of a business?

• Who are the essential professionals that business owners should engage with during the exit planning process?

Key Timestamps:

(00:00) - The Landscape of Business Sales

(09:00) - Planning Your Business Exit Strategy

(16:04) - Financial Considerations for Business Owners

(21:47) - Building Your Dream Team for Business Transition

(23:39) - The Importance of Accurate Valuation

(27:24) - The Four C's: Enhancing Business Value

(29:56) - Common Deal Killers and How to Avoid Them

(37:16) - Preparing for the Next Steps: Structuring the Deal

Key Topics Discussed:

Financial Fortitude, Genesis Wealth Planning, Brady Hemmerle, Michael Acosta, Financial Wellness, Wealth Building, Financial Psychology, Financial Advisor, Finance Coach, Student Loan Debt, Finance Guidance for High Earners, Business Owner Finances, Hiring a Financial Advisor, Student Loan Forgiveness, Tax Strategies, Retirement Planning, Investing Strategies, Stock Market Crashes, Millennial Financial Planning, Gen Z Money Struggles, Overcoming Financial Stress, Building Financial Confidence, Modern Financial Goals Strategy, buying or selling a business, exit planning, business exit strategy, financial plan, sell your business, buy a business, entrepreneur, M&A advisor, Murphy Business Sales, business valuation, financial reporting, customer capital, intellectual property, personal financial planning, business owner, Justin Sandridge

Mentions:

Justin’s website: https://www.murphybusiness.com and https://www.sellcharlottebusiness.com

Justin’s LinkedIn: https://www.linkedin.com/in/justinsandridge/

Website: https://www.genesiswealthplanning.com/

Michael’s LinkedIn: https://www.linkedin.com/in/michaelracosta/

Brady’s LinkedIn: https://www.linkedin.com/in/brady-hemmerle-cfp%C2%AE-75043013a/

Financial Health Checkup: https://www.livingbalancesheet.com/lbsVision/lite/michaelracosta

Sources: "2023 National State of Owner Readiness Report" by the Exit Planning Institute

This podcast is for informational purposes only and is not to be construed as tax, legal, or investment advice. Although the information has been gathered from sources believed to be reliable, please note that individual situations can vary. Therefore, the information should be relied upon only when coordinated with individual professional advice. Guest speakers and their firms are not affiliated with or endorsed by PAS, Guardian, or Genesis Wealth Planning and opinions stated are their own. Guardian, its subsidiaries, agents, and employees do not provide tax, legal, or accounting advice. Consult your tax, legal, or accounting professional regarding your individual situation. All investments and investment strategies contain risk and may lose value.

Michael Acosta is a Registered Representative and Financial Advisor of Park Avenue Securities LLC (PAS). OSJ: 6115 PARK SOUTH DRIVE, SUITE 200, CHARLOTTE NC, 28210, 704-5528507. Securities products and advisory services offered through PAS, member FINRA, SIPC. Financial Representative of The Guardian Life Insurance Company of America® (Guardian), New York, NY. PAS is a wholly owned subsidiary of Guardian. Genesis Wealth Planning is not an affiliate or subsidiary of PAS or Guardian. CA Insurance License # 0M50974. 6991809.9. Expiration 2/27.