Business
In this episode:[01:00] Understanding the importance of a valuation [02:25] How to have the valuation conversation [05:45] How emotional attachment comes into play[08:50] Why key personnel will drive more value for the business [11:20] Who will pay for the bonus [12:45] When to work with your employees and key employees [15:45] Final takeaways Key Takeaways:Qualitative aspects of buying a business can sometimes be stronger than the quantitative aspects. The buyers will want key personnel in place, and a seller may pay bonuses to ensure their personnel stays in place.Do not say a word to any of your employees or key employees about the sale. The valuation can be comprised throughout the entire process. When sellers try and do it themselves, they don’t realize how much time and effort will go into it.Featuring Brain Slipka and Peggy DeMuseMeet Brian SlipkaPrior to becoming chairman and CEO, Mr. Slipka served as senior vice president and senior director and head of TCF Technology Finance and was responsible for incrementally growing and leading the efforts to grow TCF’s technology finance companies in the United States prior to their integration into TCF Capital Solutions. Prior to his nearly 14 years at TCF/Winthrop, Mr. Slipka held sales and leadership roles at PeopleSoft and Oracle, where he was responsible for the largest financial institution accounts, after starting his career at Ernst & Young.Throughout his career as a senior executive, Mr. Slipka began investing in numerous operating companies, eventually forming the framework of today’s Paradygm Equity Partners (analysis and due diligence) and True North Equity Partners (acquisition platform). Over time, and with his own hard-earned capital, he began acquiring controlling interest in operating companies across varied and diverse industries. Today, the combined portfolio of small businesses has revenues in excess of $25 million and 140 employees. Mr. Slipka’s experience includes building a startup, buying existing (including distressed) businesses, selling/exiting businesses, and angel investments in numerous companies, as a limited partner/investor, while serving on the boards of many. He is the owner of multiple types of commercial real estate, inducing retail, multi-tenant, medical office, and commercial.Meet Peggy DeMusePeggy has been Sunbelt Business Advisors Broker of the Year or runner-up every year since 2012.Peggy brings a unique perspective from operating at senior levels in both large publicly held companies as well as smaller privately held organizations. Her career has included finance and tax positions with Ecolab, Sales Leadership position with Ernst & Young and Managing Partner for SALO Finance. She has also started her own small business, which she built to a profitable position in its first year of operations, and then sold with the assistance of Sunbelt.Peggy is a CPA (inactive) and graduated from the University of St. Thomas with a degree in Accounting and from the University of Minnesota, Carlson School of Business with a Master’s in Business Taxation. In addition, she is a Certified Main Street Business Broker (CMSBB).Peggy has worked on over 150 transactions in her time at Sunbelt and has expertise in the following industries: Marketing, Business Services, SAAS and other software and computer services, Printing and Publications, HVAC and Electrical Contractors, General Construction. She has also sold businesses in the Manufacturing, Transportation, Retail, and Hospitality industries.