Successful entrepreneurs know their business is often their largest asset, yet most lack a clear strategy for unlocking its full value when it's time to move on. Jeff McKeehan and Chris Buehler from Viking Mergers & Acquisitions pull back the curtain on the complex world of business transitions, revealing insights that could potentially double what your business sells for.
The conversation exposes a critical misconception among business owners: the belief they can handle selling their business themselves. These natural "do-it-yourselfers" have mastered running their companies but often underestimate the specialized expertise needed to maximize sale value. From creating competitive bidding situations to navigating complex due diligence, the M&A professionals explain why going solo typically leaves substantial money on the table.
Perhaps most eye-opening is the timeline revelation. While the average business takes nine months to sell once listed, Viking often works with owners for 4-6 years before taking a business to market. This preparation period focuses on implementing strategic changes that dramatically increase valuation while giving owners time to emotionally prepare for life's next chapter. As Chris poignantly notes, planning this transition thoughtfully beats being forced into a hasty sale due to health issues or unexpected circumstances.
The Viking team shares their proprietary process that begins with accurate valuation, moves through strategic enhancements, professional marketing, buyer identification, and ends with coordinated due diligence support alongside CPAs and attorneys. Their approach specifically targets the challenges unique to privately-held, closely-held companies in the lower middle market.
Ready to explore what your business might be worth? The Viking team invites owners to start the conversation early – even if selling is years away. Their no-obligation consultations provide valuable insights about current value and specific steps to increase that value over time. Connect with them directly at 828-808-5528 or visit them at the upcoming Asheville Business Summit on September 23rd.
Thanks for Listening. You may contact me or our team at https://billgilliland.biz/
All the best!
Bill
Thanks for listening. Please hit the subscribe button, leave us a 5 star review, and share this podcast. You can reach me at williamgilliland@actioncoach.com or at https://billgilliland.biz/
All the best!
Bill
Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:02):
Hey there, welcome to this week's episode of Epic
Entrepreneurs.
I have got a treat for youtoday, but before we get to our
guests and they're great guestsI want to remind you that the
Asheville Summit, the AshevilleBusiness Summit, is coming up on
September 23rd.
It's time we're a couple weeksout it's time to get your
(00:25):
tickets.
You just go to wncsummitcomandI will tell you.
I'll give you a secret rightnow.
If you can find one of thesponsors, they might have a
ticket for you.
All you got to do is ask them.
If not, get them out there onthe website.
We have got some great gueststoday.
(00:48):
We have got a couple of peoplefrom Viking Mergers and
Acquisitions and I just want tosay something about Viking.
I mean, when I told Jeff McKeonwhat we were up to, he's like
I'm in.
I mean, he was one of the firstguys that said let's get behind
this summit, let's make itsomething big and great for
(01:10):
Asheville.
So I'm super pumped to haveJeff McKeon and his colleague,
chris Buehler from VikingsMergers and Acquisitions.
So, jeff, tell us a little bitabout you and Viking and your
role here in Western NorthCarolina.
Speaker 2 (01:27):
Well, bill, it's good to be back here on your podcast
, and we are really excitedabout the upcoming Asheville
Business Summit.
We've been looking forward toit all year now and it's hard to
believe it's right here withinthe next couple of weeks we're
all going to be together and youknow it's a great time to come
together.
We all know what happenedalmost a year ago here in
Western North Carolina and,being a lifelong resident of
(01:52):
Western North Carolina, I residein Triad.
I live in the little village ofTriad.
My office here is in Ashevilleand you know we are all part of
this community and, as Viking,we support the small business
community, we support theentrepreneur ecosystem here in
western North Carolina,particularly in the greater
(02:13):
Asheville area, and we don'tthink that there's any better
place to do business than righthere at home.
And so when we found out thatyou were planning this year's
event, we wanted to make surethat we got on the marquee there
with you, and we appreciate theopportunity that you've given
us to be sponsors and to bepresent and to be a part of this
(02:35):
event this year.
As far as Viking goes, we areprobably the leading mergers and
acquisitions firm here inWestern North Carolina.
What we focus on is what'scalled the lower middle market.
We help business owners ofprivately owned, closely held
companies plan and execute tosell other business.
(02:57):
99.9% of what we do is sellside representation, which means
that we work very closely withthe business owners in some
cases for years, to help preparethe business for sale.
Then we go to market and weproject manage that whole
process all the way to close,step by step, hand in hand with
(03:17):
the business owner.
So we are very in tune to theownership aspects of a business
and what it takes to grow abusiness and prepare a business
for sale.
And your business summit thatyou host every year, that you
graciously invited us to be apart of this year, is right down
(03:38):
the middle of the lane for whatwe do.
We are just really excitedabout it, and we're also excited
to have a new member of ourteam who joined us recently,
chris Buehler.
He is a very well-known, verywell-connected person here in
the business community and Chrisis going to be front and center
(04:01):
at this event, coming up, andwe really enjoy having him on
board and I'd like to turn itover to Chris to say hello and
introduce himself.
Speaker 3 (04:10):
Thank you, jeff.
Thank you, bill, for theopportunity to join you today
Again.
My name is Chris Buehler, justrecently joined with the team at
Viking Mergers and Acquisitions.
I've actually known Jeff McKeonfor about seven years now.
I've been in the market forover eight years and Jeff and I
found that we kept circling eachother at a lot of the same
(04:30):
entrepreneur and networkingevents over the years and struck
up a friendship and I've gottento know Jeff, the team and the
Viking process quite well overthe years, not only making
cross-referrals of businessopportunities and potential
clients to each other.
I actually looked at some ofthe listings on the Viking
platform over the years with abusiness partner that would be
(04:53):
good acquisition candidates andover those years I got to know
the Viking team, the Vikingprocess, very well.
I have an utmost amount ofrespect for the professionalism
and integrity of the team andearlier this year Jeff and I
were speaking about some of thechanging business dynamics in
Western North Carolina and whatwe need to do to prepare to
support entrepreneurs across thespectrum in coming years
(05:18):
post-tween, as businesses getback to generating the kinds of
earnings and returns that theyhad grown accustomed to and look
forward to in the future.
Since I'd worked with so manyentrepreneurs, usually at the
earlier and growth stages oftheir business, it just seemed
natural to, when Jeff offered methe invitation to consider
joining the Viking team, to domy due diligence and think, oh,
(05:40):
this is a great part of workingwith entrepreneurs that you know
.
It's a nice part of workingwith entrepreneurs.
That is a nice complement toworking with entrepreneurs at
the earlier stages as theyestablish and grow their
businesses.
And by participating with theViking team I get the
opportunity to support thoseentrepreneurs when they see the
true value of their businessmanifested in the form of the
(06:01):
sale of their business.
So it's great to just be ableto see the entire life cycle of
supporting entrepreneurs throughthe starting, the growth and
ultimately the exiting of theirbusinesses so that they can go
chase their dream, be itretirement or starting their
next exciting gig.
So it's just been a real honorand a pleasure to be invited to
(06:22):
join the Viking team and I'mlooking forward to supporting
businesses and our partners inthe region in years to come.
Speaker 1 (06:29):
So I got a quick question for both of you.
What is the biggestmisconception about working with
a business intermediary?
Speaker 2 (06:47):
That's a great question, bill.
Question that a business ownermay have is what value does a
M&A advisor, intermediary,business broker what value do
they bring?
Because they really don'tunderstand the process.
Most of the time our clientsit's their first time at the
rodeo.
(07:07):
They've never sold a businessbefore.
Most of our clients Most ofclients have have never bought a
business.
They were, they were creative,they had an idea, they had a
skill, they had knowledge andthey opened a business.
They started the business andthrough grit and determination
and hard work over the course of20, 25, 30, 40 years they've
(07:31):
built a successful business andthey are do-it-yourselfers.
They've worked hard and they'veaccomplished a lot on their own
.
And the biggest misconceptionthey have is that, hey, you know
I can sell this.
Why do I need help doing this?
(07:51):
They don't really understandthe complexities that are
involved in selling a business.
From the very start we start onthe valuation.
We determine, using ourproprietary valuation model,
what the most likely sellingprice of that business is going
to be in the open market todayin an arm's length transaction,
(08:12):
and then from that point we canstart helping that business
owner maximize the value of thatbusiness.
We know what to look for weknow what buyers are asking
about a business.
We know how they're going tovalue a business.
We also understand if a buyerof that business is going to
obtain a loan through the SBA orcommercial lender or capital
(08:34):
markets to acquire a business.
We know what those lenders aregoing to be asking, the
questions that they're going tohave about a business, and we're
going to be working proactivelyon the front end to answer all
of those questions that we canpossibly answer on the front end
.
We're going to package thatbusiness up in a professional
marketing way to take it out tothe open market and we're going
(08:57):
to solicit buyers for thatbusiness.
The best situation we can getinto is a business that we have
more than one buyer engaged,prospective buyers, and create
what we call a competitive bidprocess for that business.
Well, once it goes undercontract, then there's the whole
closing process and we'reseeing more buyers now and
(09:20):
lenders requiring what we call aquality of earnings, where you
really dig deep into thefinancials of that company.
We team along with our client,the sellers, cpa attorneys and
others to create a full suite ofexpertise to help that business
(09:41):
owner get across the finishline with the cell of that
company.
So there's a lot to it thatbusiness owners generally don't
understand, and it's when we sitdown with them, when we start
through the process, that thelight bulb goes off and they
recognize that there is there isvalue to bringing in a person
like myself or chris or one ofour other team members that are
(10:04):
experienced.
This is what we do.
This is all we do, and we havehad a very, very successful
track record here in WesternNorth Carolina representing
business owners, and I thinkwe've developed a reputation as
probably the most trusted M&Aadvisory firm here in Western
North Carolina.
Speaker 1 (10:24):
Yeah, I found that a couple of things that you said
really resonate.
First of all, most people youknow they're in the business of
running their business.
They don't know how to marketit for sale.
So the actual marketing pieceof it to me is worth, probably
worth all of it.
I mean, obviously you'remaximizing value.
That's in everybody's bestinterest to get the right value.
(10:46):
So you know, I see that as thetime factor.
I mean they don't want to spendthe time I mean it's a
full-time job really to sell abusiness, much less keep it
growing, because you have tokeep it growing during the sales
process.
The other thing I think is Idon't believe people understand
(11:09):
how long it takes.
What would you say, what isyour average From the time they
come to you until you get a dealdone?
I know about what I think it is.
I'd be interested to hear whatyou think it is.
Speaker 2 (11:23):
Yeah, that's a great question.
Going to market is usuallyabout nine months right now,
from the date that we list abusiness till we close the
business.
Yep, now that nine months.
There's different phases alongthat timeline.
What we're doing across thatnine-month period.
It changes from phase to phase.
(11:44):
Now what has happened is thingshave become more complex and
that timeline's gotten longer.
With the COVID period that wewere in, that was a challenge
from lenders particularlywanting to understand what the
impacts were.
Now there's all of these othermacroeconomic issues that we're
dealing with now, even withtariffs and the threat of
(12:05):
tariffs and the impacts and theHelene and everything else that
we have to work through.
So we've seen that timelinecreep up over the past couple of
years from about seven monthsto nine months.
However, we have worked withclients for four, five, six
years before we ever take thatbusiness to market.
So once we go to market next tothe business owner, we are
(12:29):
probably the most knowledgeableperson with regards to how that
business operates and thefinancial aspects of that
business, along with their CPA.
We are probably there with thatbusiness owner for an extended
period of time as we learn aboutthe business and how the
business operates.
So to say that timeline is ninemonths may not include the
(12:54):
multiple years that we've workedwith that business owner to
prepare that business.
Speaker 1 (12:59):
Yeah, keeping in touch with them, giving them
advice, telling them.
You know, my experience hasbeen people come and they say,
well, I want to sell my businessand they think it's worth about
twice as much as it is.
And you know, once they get thereal valuation, oh, I'm not
going to sell it for that.
And so then you have to go towork to make it worth twice as
(13:20):
much.
You know which is kind of whatwe do.
And then you know, turn it backover to you guys.
So, yeah, it's pretty good.
Let me ask Chris, let me askyou a question what are you most
excited about in helpingbusiness owners transition their
businesses?
Speaker 3 (13:39):
I think the part for me is again reflecting back on
that description of the entirelife cycle of a business.
So much of my career has beenspent in the early stages of
entrepreneurship gettingbusinesses started, mentoring,
coaching and advisingentrepreneurs through the early
stages of launching and growingtheir firm and I firsthand know
the joys of going through thatprocess myself.
(14:00):
I have successfully sold abusiness in the past and I'd
like to be able to helpentrepreneurs and business
owners in the region find thatsame spirit of accomplishment
when they do successfullytransact their business.
When they do successfullytransact their business and they
do see the financial benefitfrom their years of hard work
and the options that lie infront of them in terms of what
(14:21):
they can do with the balance ofthe time and the resources that
they have to exist on this earth.
It's a lot of fun to see newdoors and opportunities opening
up for business owners once theyhave successfully exited the
business.
Speaker 1 (14:39):
Yeah, it's pretty cool, it's a pretty.
It's pretty cool when they cando it and it's.
It's almost like you've, you've, you've experienced it.
Now you can get back, and soit's, that's a.
Speaker 2 (14:57):
Chris, I'm sorry, bill.
As far as I'm concerned, thisis like a homecoming, in my
opinion.
You know I'm looking forward toseeing a lot of the people that
over the years I've met, I'vegotten to know.
You know we're all busy.
This past year has been a realchallenge for everyone.
I don't think there's abusiness in Western North
(15:19):
Carolina that wasn't affectedone way or another by the
hurricane last year, and sowe've all been sort of head down
doing our thing, trying to youknow, trying to recover and
rebuild, and I see this as anevent almost marking that one
year to the day almost, from thehurricane, and I'm really
(15:43):
looking forward to just taking acouple of days there and just
catching up with people.
To be honest with you, I'mreally looking forward to seeing
some people that I haven't seenin a long time.
Speaker 3 (15:52):
Yeah, and I would echo that sentiment, bill.
There are so many people in ournetworks that we have not had
the opportunity to spend thekind of time quality time with
over the past year that we maybehad grown accustomed to prior
to Alene, so it's a greatopportunity to reconnect with
folks in our network, be theyclients, partners, customers,
(16:13):
what have you.
And so for me, the other thingis just because I have just
recently joined the Viking team,there are a lot of folks who
still don't know that I'm partof the Viking team.
It's an opportunity for me tospread the news about joining
the team at Viking and lookingforward to a very bright future
with the team.
Speaker 1 (16:32):
Yeah, I'm excited that you're on Viking.
That's awesome.
It's great to see that theViking team in Western North
Carolina is growing, to see thatthe Viking team in Western
North Carolina is growing.
You know, for a long time itwas just Jeff, you know, and now
it's growing more and more.
I love it.
Yeah, I've often found, you know, I encourage people to go ahead
(16:54):
and get your tickets if youhaven't already gotten them.
The stuff, the magic, you knowwe've got like nine speakers.
It's going to be great, okay,it, I trust you.
They're all.
You know they're internationalspeakers but they're all based
here, which is kind of cool.
Um, or most of them areinternational speakers but they,
they're, they're all based here, and so it's it's.
(17:15):
You know it is a celebration,but the real magic happens at
lunch, in the hallway, at thebreaks, when you can sit down
and talk to other businessowners.
I had somebody else that I wasinterviewing, one of the
speakers, who was saying thatone of the main things they were
(17:36):
looking for is that after Hel,after Helene, it's just been
hard to connect to to.
Even after COVID he was talkingabout, it was like harder for
to come.
We used to come together a lotmore as a community, and so
we're super pumped to have tocreate a community together and
I'm excited that y'all areexcited about the same sort of
(17:56):
things.
Yeah, so what advice would youhave for business owners that
are considering transitioning Atsome point?
Every business gets sold oneway or the other, so one of the
big things I tell people is theyprobably haven't started soon
(18:19):
enough.
But what advice would you haveother than that to get started
about the process?
Speaker 2 (18:29):
The first piece of advice I give is let's have a
conversation, let's talk.
Let's talk about your plans,let's talk about what your
desire is for the future.
You've built a successfulcompany.
You've worked hard.
Now you are wanting to move tothe next phase of life, to the
next phase of business.
What's your goals?
(18:50):
What's your passion?
What's the next thing?
Look like.
The reason I ask that question,bill, is I want to understand
what the compelling reason isthat a person would have to sell
their business.
I will never convince someoneto sell their business if they
don't want to sell it.
I will never convince someoneto sell their business if they
(19:11):
don't have a compelling reasonto sell the business.
Some people's identity is tiedup in their business.
Speaker 1 (19:18):
Some it's more than just Most, I think.
Speaker 2 (19:23):
Some can't separate their identity from their
business, but the reality is ismost of the time, the business
is the largest asset in theirportfolio, but it's not going to
do them any good other thanproduce a monthly income or an
(19:45):
annual income for them untilthey unlock that value.
And what you asked was what'sthe first step?
Contact Viking, let's have aconversation.
Let's have a discussion.
Let's have a conversation,let's have a discussion.
We offer a free, no cost, noobligation consultation.
We'll take you through theprocess.
(20:07):
We'll have that discoverymeeting.
We'll learn more about you andwhat your goals are.
Speaker 1 (20:19):
And we'll see if there's a way that we can assist
you in achieving what it is youwant to do.
Yeah, no, I love that.
I love that.
How about, chris?
You're new to the Viking system, but you've done this and
you've lived it.
Speaker 3 (20:33):
What advice would you give, as Jeff said, to start
the conversation sooner than abusiness owner thinks they may
need to start that conversation?
It's a lot easier to project outwhat the future looks like when
they have the time, they havethe capacity, they have the
vision for what their lifepost-business might look like.
It may be five years or morebefore they're prepared to sell
(20:55):
their business, but it's a loteasier to have those
conversations, a lot easier fora business owner to get their
head around what their lifelooks like post that business,
if they do it while they havethe opportunity and the space to
think about it and plan for it.
Because unfortunately you dosee business owners who get
themselves in a situation, anillness or a medical issue that
(21:18):
prevents their full engagementin the business, and then the
idea of selling a business ismuch more hurried, it's much
more under circumstances thatare outside that business
owner's full control.
And so just by helping thebusiness owners understand what
their options are years beforethey are prepared to sell a
business gives them that peaceof mind that, okay, their
(21:38):
business and their lives areheading in the right direction
and they'll be able to make whenit's time.
They'll make that decisionunder their own auspices and
under their own guidelines, witha much more predictable outcome
.
Speaker 1 (21:53):
Yeah, no, I love that .
I love that.
I mean, I'm sure you have too.
I mean I've certainly got ahorror story or two of someone
dying or getting seriously ill,and you know, then it's a fire
sale, if that, if they can, evenif they can sell it.
So, yeah, look, get in touchwith these guys sooner than
(22:14):
later.
I've known Jeff for a long timeand I'm going to get to know
Chris a lot better at the summit, and so I'm looking forward to
that and I've known a lot ofbusiness intermediaries over the
years and mergers andacquisitions folks, and these
guys are the guys you want totalk to.
These guys are the guys thatare straight up.
They're going to tell you thetruth and if you're a good fit
(22:35):
for them, they'll tell you that,but if you're not, they're also
going to put you in the rightplace.
They're going to tell you thatthey're not a good fit, and
here's who can help.
So it doesn't hurt to have thatconversation, which brings us
to the last thing, which isbasically how do people get in
touch with you?
Speaker 2 (22:56):
Well, the easiest way to get in touch with us is to
give us a call.
Well, the easiest way to get intouch with us is to give us a
call.
You can always reach me at areacode 828-808-5528.
That is my direct number.
Or you can easily send me anemail at jmckehan.
Jmckehan at vikingmergerscom.
Speaker 3 (23:22):
And I'll let Chris provide his contact information,
and my direct line bill is828-319-5576 or by email, chris
dhras at vikingmergerscom yeah,hey, look, give a call, sit down
, have a cup of coffee with them.
Speaker 1 (23:40):
I promise you they won't bite.
Look, it'll be educational.
You'll actually get value outof it, because they're going to
teach you something about theprocess and or about business,
or at least get you thinkingabout the things that you need
to think about over the next ifit's quick, the next year or the
next five years, or the next 10years even.
(24:02):
I know that there's been somelonger engagement.
Hey, listen, I am super excitedthat you've done this.
We are very thankful andgrateful that you've come on as
a major sponsor of the AshevilleBusiness Summit.
We appreciate that.
Yeah, and thanks for takingtime to do the podcast.
Speaker 2 (24:22):
Thanks, Bill.
We look forward to seeing youat Summit.
Speaker 3 (24:24):
Yeah, we'll see you soon, bill.
Speaker 1 (24:26):
Yeah, that's awesome.
Hey, and remember, get yourtickets.
Get them now.
Go to WNCSummitcom All theinfo's there, all the speakers.
The ticket sales are kind oframping up right now, a couple
of weeks out, so you want tomake sure you get them now while
you still can.
Hey, and until next time.
I look forward to talking toyou then, and all the best.
Hey there, welcome to this week's episode of Epic
Entrepreneurs.
I have got a treat for youtoday, but before we get to our
guests and they're great guestsI want to remind you that the
Asheville Summit, the AshevilleBusiness Summit, is coming up on
September 23rd.
It's time we're a couple weeksout it's time to get your
(00:25):
tickets.
You just go to wncsummitcomandI will tell you.
I'll give you a secret rightnow.
If you can find one of thesponsors, they might have a
ticket for you.
All you got to do is ask them.
If not, get them out there onthe website.
We have got some great gueststoday.
(00:48):
We have got a couple of peoplefrom Viking Mergers and
Acquisitions and I just want tosay something about Viking.
I mean, when I told Jeff McKeonwhat we were up to, he's like
I'm in.
I mean, he was one of the firstguys that said let's get behind
this summit, let's make itsomething big and great for
(01:10):
Asheville.
So I'm super pumped to haveJeff McKeon and his colleague,
chris Buehler from VikingsMergers and Acquisitions.
So, jeff, tell us a little bitabout you and Viking and your
role here in Western NorthCarolina.
Speaker 2 (01:27):
Well, bill, it's good to be back here on your podcast
, and we are really excitedabout the upcoming Asheville
Business Summit.
We've been looking forward toit all year now and it's hard to
believe it's right here withinthe next couple of weeks we're
all going to be together and youknow it's a great time to come
together.
We all know what happenedalmost a year ago here in
Western North Carolina and,being a lifelong resident of
(01:52):
Western North Carolina, I residein Triad.
I live in the little village ofTriad.
My office here is in Ashevilleand you know we are all part of
this community and, as Viking,we support the small business
community, we support theentrepreneur ecosystem here in
western North Carolina,particularly in the greater
(02:13):
Asheville area, and we don'tthink that there's any better
place to do business than righthere at home.
And so when we found out thatyou were planning this year's
event, we wanted to make surethat we got on the marquee there
with you, and we appreciate theopportunity that you've given
us to be sponsors and to bepresent and to be a part of this
(02:35):
event this year.
As far as Viking goes, we areprobably the leading mergers and
acquisitions firm here inWestern North Carolina.
What we focus on is what'scalled the lower middle market.
We help business owners ofprivately owned, closely held
companies plan and execute tosell other business.
(02:57):
99.9% of what we do is sellside representation, which means
that we work very closely withthe business owners in some
cases for years, to help preparethe business for sale.
Then we go to market and weproject manage that whole
process all the way to close,step by step, hand in hand with
(03:17):
the business owner.
So we are very in tune to theownership aspects of a business
and what it takes to grow abusiness and prepare a business
for sale.
And your business summit thatyou host every year, that you
graciously invited us to be apart of this year, is right down
(03:38):
the middle of the lane for whatwe do.
We are just really excitedabout it, and we're also excited
to have a new member of ourteam who joined us recently,
chris Buehler.
He is a very well-known, verywell-connected person here in
the business community and Chrisis going to be front and center
(04:01):
at this event, coming up, andwe really enjoy having him on
board and I'd like to turn itover to Chris to say hello and
introduce himself.
Speaker 3 (04:10):
Thank you, jeff.
Thank you, bill, for theopportunity to join you today
Again.
My name is Chris Buehler, justrecently joined with the team at
Viking Mergers and Acquisitions.
I've actually known Jeff McKeonfor about seven years now.
I've been in the market forover eight years and Jeff and I
found that we kept circling eachother at a lot of the same
(04:30):
entrepreneur and networkingevents over the years and struck
up a friendship and I've gottento know Jeff, the team and the
Viking process quite well overthe years, not only making
cross-referrals of businessopportunities and potential
clients to each other.
I actually looked at some ofthe listings on the Viking
platform over the years with abusiness partner that would be
(04:53):
good acquisition candidates andover those years I got to know
the Viking team, the Vikingprocess, very well.
I have an utmost amount ofrespect for the professionalism
and integrity of the team andearlier this year Jeff and I
were speaking about some of thechanging business dynamics in
Western North Carolina and whatwe need to do to prepare to
support entrepreneurs across thespectrum in coming years
(05:18):
post-tween, as businesses getback to generating the kinds of
earnings and returns that theyhad grown accustomed to and look
forward to in the future.
Since I'd worked with so manyentrepreneurs, usually at the
earlier and growth stages oftheir business, it just seemed
natural to, when Jeff offered methe invitation to consider
joining the Viking team, to domy due diligence and think, oh,
(05:40):
this is a great part of workingwith entrepreneurs that you know
.
It's a nice part of workingwith entrepreneurs.
That is a nice complement toworking with entrepreneurs at
the earlier stages as theyestablish and grow their
businesses.
And by participating with theViking team I get the
opportunity to support thoseentrepreneurs when they see the
true value of their businessmanifested in the form of the
(06:01):
sale of their business.
So it's great to just be ableto see the entire life cycle of
supporting entrepreneurs throughthe starting, the growth and
ultimately the exiting of theirbusinesses so that they can go
chase their dream, be itretirement or starting their
next exciting gig.
So it's just been a real honorand a pleasure to be invited to
(06:22):
join the Viking team and I'mlooking forward to supporting
businesses and our partners inthe region in years to come.
Speaker 1 (06:29):
So I got a quick question for both of you.
What is the biggestmisconception about working with
a business intermediary?
Speaker 2 (06:47):
That's a great question, bill.
Question that a business ownermay have is what value does a
M&A advisor, intermediary,business broker what value do
they bring?
Because they really don'tunderstand the process.
Most of the time our clientsit's their first time at the
rodeo.
(07:07):
They've never sold a businessbefore.
Most of our clients Most ofclients have have never bought a
business.
They were, they were creative,they had an idea, they had a
skill, they had knowledge andthey opened a business.
They started the business andthrough grit and determination
and hard work over the course of20, 25, 30, 40 years they've
(07:31):
built a successful business andthey are do-it-yourselfers.
They've worked hard and they'veaccomplished a lot on their own
.
And the biggest misconceptionthey have is that, hey, you know
I can sell this.
Why do I need help doing this?
(07:51):
They don't really understandthe complexities that are
involved in selling a business.
From the very start we start onthe valuation.
We determine, using ourproprietary valuation model,
what the most likely sellingprice of that business is going
to be in the open market todayin an arm's length transaction,
(08:12):
and then from that point we canstart helping that business
owner maximize the value of thatbusiness.
We know what to look for weknow what buyers are asking
about a business.
We know how they're going tovalue a business.
We also understand if a buyerof that business is going to
obtain a loan through the SBA orcommercial lender or capital
(08:34):
markets to acquire a business.
We know what those lenders aregoing to be asking, the
questions that they're going tohave about a business, and we're
going to be working proactivelyon the front end to answer all
of those questions that we canpossibly answer on the front end
.
We're going to package thatbusiness up in a professional
marketing way to take it out tothe open market and we're going
(08:57):
to solicit buyers for thatbusiness.
The best situation we can getinto is a business that we have
more than one buyer engaged,prospective buyers, and create
what we call a competitive bidprocess for that business.
Well, once it goes undercontract, then there's the whole
closing process and we'reseeing more buyers now and
(09:20):
lenders requiring what we call aquality of earnings, where you
really dig deep into thefinancials of that company.
We team along with our client,the sellers, cpa attorneys and
others to create a full suite ofexpertise to help that business
(09:41):
owner get across the finishline with the cell of that
company.
So there's a lot to it thatbusiness owners generally don't
understand, and it's when we sitdown with them, when we start
through the process, that thelight bulb goes off and they
recognize that there is there isvalue to bringing in a person
like myself or chris or one ofour other team members that are
(10:04):
experienced.
This is what we do.
This is all we do, and we havehad a very, very successful
track record here in WesternNorth Carolina representing
business owners, and I thinkwe've developed a reputation as
probably the most trusted M&Aadvisory firm here in Western
North Carolina.
Speaker 1 (10:24):
Yeah, I found that a couple of things that you said
really resonate.
First of all, most people youknow they're in the business of
running their business.
They don't know how to marketit for sale.
So the actual marketing pieceof it to me is worth, probably
worth all of it.
I mean, obviously you'remaximizing value.
That's in everybody's bestinterest to get the right value.
(10:46):
So you know, I see that as thetime factor.
I mean they don't want to spendthe time I mean it's a
full-time job really to sell abusiness, much less keep it
growing, because you have tokeep it growing during the sales
process.
The other thing I think is Idon't believe people understand
(11:09):
how long it takes.
What would you say, what isyour average From the time they
come to you until you get a dealdone?
I know about what I think it is.
I'd be interested to hear whatyou think it is.
Speaker 2 (11:23):
Yeah, that's a great question.
Going to market is usuallyabout nine months right now,
from the date that we list abusiness till we close the
business.
Yep, now that nine months.
There's different phases alongthat timeline.
What we're doing across thatnine-month period.
It changes from phase to phase.
(11:44):
Now what has happened is thingshave become more complex and
that timeline's gotten longer.
With the COVID period that wewere in, that was a challenge
from lenders particularlywanting to understand what the
impacts were.
Now there's all of these othermacroeconomic issues that we're
dealing with now, even withtariffs and the threat of
(12:05):
tariffs and the impacts and theHelene and everything else that
we have to work through.
So we've seen that timelinecreep up over the past couple of
years from about seven monthsto nine months.
However, we have worked withclients for four, five, six
years before we ever take thatbusiness to market.
So once we go to market next tothe business owner, we are
(12:29):
probably the most knowledgeableperson with regards to how that
business operates and thefinancial aspects of that
business, along with their CPA.
We are probably there with thatbusiness owner for an extended
period of time as we learn aboutthe business and how the
business operates.
So to say that timeline is ninemonths may not include the
(12:54):
multiple years that we've workedwith that business owner to
prepare that business.
Speaker 1 (12:59):
Yeah, keeping in touch with them, giving them
advice, telling them.
You know, my experience hasbeen people come and they say,
well, I want to sell my businessand they think it's worth about
twice as much as it is.
And you know, once they get thereal valuation, oh, I'm not
going to sell it for that.
And so then you have to go towork to make it worth twice as
(13:20):
much.
You know which is kind of whatwe do.
And then you know, turn it backover to you guys.
So, yeah, it's pretty good.
Let me ask Chris, let me askyou a question what are you most
excited about in helpingbusiness owners transition their
businesses?
Speaker 3 (13:39):
I think the part for me is again reflecting back on
that description of the entirelife cycle of a business.
So much of my career has beenspent in the early stages of
entrepreneurship gettingbusinesses started, mentoring,
coaching and advisingentrepreneurs through the early
stages of launching and growingtheir firm and I firsthand know
the joys of going through thatprocess myself.
(14:00):
I have successfully sold abusiness in the past and I'd
like to be able to helpentrepreneurs and business
owners in the region find thatsame spirit of accomplishment
when they do successfullytransact their business.
When they do successfullytransact their business and they
do see the financial benefitfrom their years of hard work
and the options that lie infront of them in terms of what
(14:21):
they can do with the balance ofthe time and the resources that
they have to exist on this earth.
It's a lot of fun to see newdoors and opportunities opening
up for business owners once theyhave successfully exited the
business.
Speaker 1 (14:39):
Yeah, it's pretty cool, it's a pretty.
It's pretty cool when they cando it and it's.
It's almost like you've, you've, you've experienced it.
Now you can get back, and soit's, that's a.
Speaker 2 (14:57):
Chris, I'm sorry, bill.
As far as I'm concerned, thisis like a homecoming, in my
opinion.
You know I'm looking forward toseeing a lot of the people that
over the years I've met, I'vegotten to know.
You know we're all busy.
This past year has been a realchallenge for everyone.
I don't think there's abusiness in Western North
(15:19):
Carolina that wasn't affectedone way or another by the
hurricane last year, and sowe've all been sort of head down
doing our thing, trying to youknow, trying to recover and
rebuild, and I see this as anevent almost marking that one
year to the day almost, from thehurricane, and I'm really
(15:43):
looking forward to just taking acouple of days there and just
catching up with people.
To be honest with you, I'mreally looking forward to seeing
some people that I haven't seenin a long time.
Speaker 3 (15:52):
Yeah, and I would echo that sentiment, bill.
There are so many people in ournetworks that we have not had
the opportunity to spend thekind of time quality time with
over the past year that we maybehad grown accustomed to prior
to Alene, so it's a greatopportunity to reconnect with
folks in our network, be theyclients, partners, customers,
(16:13):
what have you.
And so for me, the other thingis just because I have just
recently joined the Viking team,there are a lot of folks who
still don't know that I'm partof the Viking team.
It's an opportunity for me tospread the news about joining
the team at Viking and lookingforward to a very bright future
with the team.
Speaker 1 (16:32):
Yeah, I'm excited that you're on Viking.
That's awesome.
It's great to see that theViking team in Western North
Carolina is growing, to see thatthe Viking team in Western
North Carolina is growing.
You know, for a long time itwas just Jeff, you know, and now
it's growing more and more.
I love it.
Yeah, I've often found, you know, I encourage people to go ahead
(16:54):
and get your tickets if youhaven't already gotten them.
The stuff, the magic, you knowwe've got like nine speakers.
It's going to be great, okay,it, I trust you.
They're all.
You know they're internationalspeakers but they're all based
here, which is kind of cool.
Um, or most of them areinternational speakers but they,
they're, they're all based here, and so it's it's.
(17:15):
You know it is a celebration,but the real magic happens at
lunch, in the hallway, at thebreaks, when you can sit down
and talk to other businessowners.
I had somebody else that I wasinterviewing, one of the
speakers, who was saying thatone of the main things they were
(17:36):
looking for is that after Hel,after Helene, it's just been
hard to connect to to.
Even after COVID he was talkingabout, it was like harder for
to come.
We used to come together a lotmore as a community, and so
we're super pumped to have tocreate a community together and
I'm excited that y'all areexcited about the same sort of
(17:56):
things.
Yeah, so what advice would youhave for business owners that
are considering transitioning Atsome point?
Every business gets sold oneway or the other, so one of the
big things I tell people is theyprobably haven't started soon
(18:19):
enough.
But what advice would you haveother than that to get started
about the process?
Speaker 2 (18:29):
The first piece of advice I give is let's have a
conversation, let's talk.
Let's talk about your plans,let's talk about what your
desire is for the future.
You've built a successfulcompany.
You've worked hard.
Now you are wanting to move tothe next phase of life, to the
next phase of business.
What's your goals?
(18:50):
What's your passion?
What's the next thing?
Look like.
The reason I ask that question,bill, is I want to understand
what the compelling reason isthat a person would have to sell
their business.
I will never convince someoneto sell their business if they
don't want to sell it.
I will never convince someoneto sell their business if they
(19:11):
don't have a compelling reasonto sell the business.
Some people's identity is tiedup in their business.
Speaker 1 (19:18):
Some it's more than just Most, I think.
Speaker 2 (19:23):
Some can't separate their identity from their
business, but the reality is ismost of the time, the business
is the largest asset in theirportfolio, but it's not going to
do them any good other thanproduce a monthly income or an
(19:45):
annual income for them untilthey unlock that value.
And what you asked was what'sthe first step?
Contact Viking, let's have aconversation.
Let's have a discussion.
Let's have a conversation,let's have a discussion.
We offer a free, no cost, noobligation consultation.
We'll take you through theprocess.
(20:07):
We'll have that discoverymeeting.
We'll learn more about you andwhat your goals are.
Speaker 1 (20:19):
And we'll see if there's a way that we can assist
you in achieving what it is youwant to do.
Yeah, no, I love that.
I love that.
How about, chris?
You're new to the Viking system, but you've done this and
you've lived it.
Speaker 3 (20:33):
What advice would you give, as Jeff said, to start
the conversation sooner than abusiness owner thinks they may
need to start that conversation?
It's a lot easier to project outwhat the future looks like when
they have the time, they havethe capacity, they have the
vision for what their lifepost-business might look like.
It may be five years or morebefore they're prepared to sell
(20:55):
their business, but it's a loteasier to have those
conversations, a lot easier fora business owner to get their
head around what their lifelooks like post that business,
if they do it while they havethe opportunity and the space to
think about it and plan for it.
Because unfortunately you dosee business owners who get
themselves in a situation, anillness or a medical issue that
(21:18):
prevents their full engagementin the business, and then the
idea of selling a business ismuch more hurried, it's much
more under circumstances thatare outside that business
owner's full control.
And so just by helping thebusiness owners understand what
their options are years beforethey are prepared to sell a
business gives them that peaceof mind that, okay, their
(21:38):
business and their lives areheading in the right direction
and they'll be able to make whenit's time.
They'll make that decisionunder their own auspices and
under their own guidelines, witha much more predictable outcome
.
Speaker 1 (21:53):
Yeah, no, I love that .
I love that.
I mean, I'm sure you have too.
I mean I've certainly got ahorror story or two of someone
dying or getting seriously ill,and you know, then it's a fire
sale, if that, if they can, evenif they can sell it.
So, yeah, look, get in touchwith these guys sooner than
(22:14):
later.
I've known Jeff for a long timeand I'm going to get to know
Chris a lot better at the summit, and so I'm looking forward to
that and I've known a lot ofbusiness intermediaries over the
years and mergers andacquisitions folks, and these
guys are the guys you want totalk to.
These guys are the guys thatare straight up.
They're going to tell you thetruth and if you're a good fit
(22:35):
for them, they'll tell you that,but if you're not, they're also
going to put you in the rightplace.
They're going to tell you thatthey're not a good fit, and
here's who can help.
So it doesn't hurt to have thatconversation, which brings us
to the last thing, which isbasically how do people get in
touch with you?
Speaker 2 (22:56):
Well, the easiest way to get in touch with us is to
give us a call.
Well, the easiest way to get intouch with us is to give us a
call.
You can always reach me at areacode 828-808-5528.
That is my direct number.
Or you can easily send me anemail at jmckehan.
Jmckehan at vikingmergerscom.
Speaker 3 (23:22):
And I'll let Chris provide his contact information,
and my direct line bill is828-319-5576 or by email, chris
dhras at vikingmergerscom yeah,hey, look, give a call, sit down
, have a cup of coffee with them.
Speaker 1 (23:40):
I promise you they won't bite.
Look, it'll be educational.
You'll actually get value outof it, because they're going to
teach you something about theprocess and or about business,
or at least get you thinkingabout the things that you need
to think about over the next ifit's quick, the next year or the
next five years, or the next 10years even.
(24:02):
I know that there's been somelonger engagement.
Hey, listen, I am super excitedthat you've done this.
We are very thankful andgrateful that you've come on as
a major sponsor of the AshevilleBusiness Summit.
We appreciate that.
Yeah, and thanks for takingtime to do the podcast.
Speaker 2 (24:22):
Thanks, Bill.
We look forward to seeing youat Summit.
Speaker 3 (24:24):
Yeah, we'll see you soon, bill.
Speaker 1 (24:26):
Yeah, that's awesome.
Hey, and remember, get yourtickets.
Get them now.
Go to WNCSummitcom All theinfo's there, all the speakers.
The ticket sales are kind oframping up right now, a couple
of weeks out, so you want tomake sure you get them now while
you still can.
Hey, and until next time.
I look forward to talking toyou then, and all the best.
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