Phil Fitz - Expert M&A Planner

Helping small business owners buy or sell | Simple steps for planning & prep | Better deals, less stress

[Phil Fitz - Expert M&A Planner @phil_fitz]

Super exciting news!

We've launched a podcast! 

Deal-Ready is now live on YouTube! 

Deal-Ready is a podcast for small business owners to help them plan and prepare for M&A deals.  Check it out at https://t.co/oMzYzdGncC

We've posted 2 videos - a short introductory clip giving some background on Deal-Ready, and the first "official" episode - What Does it Mean to be Deal-Ready?

We'll be adding new episodes in the coming weeks, and expect to bring on guests to share their M&A stories to help you get ready for your own process.

Like, comment, share, make suggestions for future episodes.  Get in touch with ideas, guests we should meet, feedback or to hear more about how Amplify can help you.

Thanks (in advance) for watching!

[Phil Fitz - Expert M&A Planner @phil_fitz]

The problem with the due diligence process is that it tends to find things.

Things that you as the business owner might find surprising.

They often fall into 1 of 2 categories:

 1). Things you should have known about.
 2). Things you've ignored for far too long.

[Phil Fitz - Expert M&A Planner @phil_fitz]

Did someone tell PK it was pajama day at school?

Go whalers (Canes)!

[Phil Fitz - Expert M&A Planner @phil_fitz]

@ryanraysr Congrats!! Sounds awesome

[Phil Fitz - Expert M&A Planner @phil_fitz]

If your data room looks like A or B, it's time for us to talk.

If it looks like C, once you stop patting yourself on the back, it's time to talk.

[Phil Fitz - Expert M&A Planner @phil_fitz]

When a buyer reaches out, there are only 4 possible outcomes.

Only 1 of them lets you pass GO and collect $200. (Hopefully more, actually.)

1). You answer the call, and you're ready for the conversation.  

2). You answer the call, and you're not prepared.  

3). You don't answer the call, and you're prepared.

4). You don't answer the call, and you're not prepared.

Which one describes your current situation? 

If it's not 1, then it's time to get started. It's never too early. But it can get late quickly.

And if it's 2, 3 or 4, or you're not sure, DM (or comment) if you want to stress-test your readiness. Let's get you Deal-Ready.

[Phil Fitz - Expert M&A Planner @phil_fitz]

When a buyer reaches out, there are only 4 possible outcomes.

Only 1 of them lets you pass GO and collect $200. (Hopefully more, actually.)

1). You answer the call, and you're ready for the conversation.
You know your numbers. Your data room is organized. Your positioning is tight. You're the one holding the dice.

2). You answer the call, and you're not prepared.
You're winging it. Maybe taking a long time to respond to basic due diligence questions. Maybe sharing information too early. Overplaying your hand.

3). You don't answer the call, and you're prepared.
Maybe you're waiting for the right moment. Maybe you're hoping for a better partner. Selectivity may not be a bad quality. Trying to improve your odds.

4). You don't answer the call, and you're not prepared.
You know your house isn't in order. And you know you need to change that. But in the meantime, opportunities may be passing you by.

Which one describes your current situation?

If it's not #1, then it's time to get started. It's never too early. But it can get late quickly.

And if it's not #1, or you're not sure, DM (or comment) if you want to stress-test your readiness. Let's get you Deal-Ready.

[Phil Fitz - Expert M&A Planner @phil_fitz]

For my birthday this weekend my 6-year old daughter bought me some chocolates (she's asked me to share). She took me to the movies (we saw what she wanted to see). We went for ice cream (she got sprinkles and gummy bears on hers).

10/10 would change nothing.

[Phil Fitz - Expert M&A Planner @phil_fitz]

Yesterday we celebrated Memorial Day here in the US. 

The "unofficial start to summer." 

But if you're thinking about selling your business, there's no rest for the weary. 

Getting ready to sell your business (let alone actually trying to) is a full-time commitment. 

And you probably already have a full-time commitment, right? 

Sounds like a busy summer. 

If an exit is on the radar, later this year, next year, or later than that, now is not the time to ease up. 

M&A isn't a day at the beach. 

And buyers...serious buyers, of course...aren't waiting while you shake the sand off your financial model.

Enjoy the summer. Nothing wrong with that. But the buyers are busy and they aren't taking Summer Fridays. 

Which is why it's a great time to get some help planning and preparing. It's going to take time and effort right when you're trying to enjoy your summer, official or unofficial. And the choice to be Deal-Ready doesn't have to be binary.

If the right buyer reaches out, do you really want to tell them you'll call them when you get back from the beach?

[Phil Fitz - Expert M&A Planner @phil_fitz]

@wraithbrokerage "Trust me..."

[Phil Fitz - Expert M&A Planner @phil_fitz]

Data room. Buyer list. Financials. Tax returns. Forecast model. Customer analyses. Employee details. Partner information. Supplier contracts. Customer contracts. Service provider contracts.

I should keep going but I'm getting tired just typing that out. You probably are too. 

If you're a small business owner, you either know you need this stuff (plus a LOT more), or you have a sneaking suspicion it's a long list. 

On the brink of this holiday weekend here in the US, I'd just like to offer some brief words of encouragement, advice if you will.

Don't let the length of the to-do list stop you from getting started. 

Every bit of planning and preparation you do will help you be deal-ready when it's time.

• Smoother process. 
• More thoughtful conversations. 
• A running start at the beginning of the transaction marathon.

You don't have to tackle the whole mountain today. Just start, one step at a time.

• One document
• One file
• One folder

Enjoy the long weekend. Barbecue. Hang out with your family and friends. Watch the NHL playoffs. Unplug.

And when you're back?

You run your business. I'll help your business get Deal-Ready.

DM in confidence.

[Phil Fitz - Expert M&A Planner @phil_fitz]

@wraithbrokerage Getting caught up in this is entirely self-inflicted and avoidable.

You have time to understand what's in your contracts before diligence starts.

[Phil Fitz - Expert M&A Planner @phil_fitz]

@MichaelGJarvie By the time someone knocks on your door it's already way too late.

[Phil Fitz - Expert M&A Planner @phil_fitz]

Whether you as the business owner like it or not, the buyer may want to see accrual-basis financials. Wait for them to do it, and you're losing visibility on the process.

I've seen it done formally via audit, informally via QofE, and much more back-of-envelope. I'd probably recommend A or B, not likely C. But C is better than nothing I suppose.

If you don't do the work to see what it looks like, and the buyer does, you may not know what's coming, what to expect. The results can be...how do I say this politely?...Surprising.

[Phil Fitz - Expert M&A Planner @phil_fitz]

"I'm not ready to sell, why do I need a data room now?"

That's exactly the point.

You're not ready to sell. Even if you want to.

The best deals happen when everyone is ready before the conversation even starts.

Deal-ready.

[Phil Fitz - Expert M&A Planner @phil_fitz]

@dealflow_guy Hm. I suppose that one needs a bit more diligence.

I'm available this weekend to do a site visit on said boat.

[Phil Fitz - Expert M&A Planner @phil_fitz]

@BoilerPlateCPA Couldn't agree more.

I'm copyrighting (trademarking?) or whatever the right thing is for "Quality of Working Capital."

Because this conversation happens every single time.

Licensing opportunities available.

[Phil Fitz - Expert M&A Planner @phil_fitz]

Amazing story. "Dad" is the best job in the world, and it's crazy how you get to interview for it every day even when you already have the job.

But situations like this are where you get to prove you're Employee of the Month. Over and over.

Thanks for sharing this. Tons of real perspective. Happy to hear you all are working it. Kudos to you and your crew for not giving up.

[Phil Fitz - Expert M&A Planner @phil_fitz]

@girdley Obviously not a happy ending for most of the players here but a very detailed yet approachable analysis.

Great stuff. Going to watch the sears / Kmart video next!

[Phil Fitz - Expert M&A Planner @phil_fitz]

Had a colonoscopy this morning.

The prep sucked. The procedure thankfully was not terribly memorable.

But I missed a golden opportunity to tell my 6 year-old my favorite dad joke (again. She's heard it a million times).

How do you know your booty's broken? It has a crack.