October 14, 2025 • 28 mins
Selling a company isn’t a decision you make on a Monday and close by Friday—it’s a campaign that starts years earlier, with the right team and a clear plan. We unpack a practical, four-advisor framework that helps owners protect hard-won value: a seasoned M&A advisor to run the process, a CPA or fractional CFO to make your numbers PE-ready, an M&A attorney who speaks the language of deals, and a wealth advisor who designs a tax-smart path from illiquid to liquid.
We dive into the realities of private equity diligence and why GAAP alignment, revenue recognition, and a clean quality of earnings matter more than glossy pitch decks. You’ll hear where owners get tripped up—Q4 income games to save taxes, cash off the books, sloppy working-capital management—and how a fractional CFO can model normalized working capital so your LOI, QoE, and final true-up align. We also get candid about legal strategy: why a generalist can slow a deal to a crawl, and how a true M&A attorney can shorten the path to close while protecting you on reps, warranties, escrows, and earnouts.
On the back end of the transaction, we explore wealth strategy with an eye toward today’s markets: capital gains exposure, deferral tools like a deferred sales trust, diversification beyond the traditional 60/40, and building a resilient portfolio that matches your new risk profile. Along the way, we talk mindset—bringing in a battle-tested coach, embracing humility, and letting experts lead—so the process is demanding but not derailing. If you’re aiming for a life-changing exit, this conversation gives you the roadmap, the warnings, and the confidence to start early and finish strong.
Enjoyed the show? Subscribe, share it with a fellow owner, and leave a quick review with your biggest exit question—your note could shape a future episode.
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
SPEAKER_00 (00:00):
Yeah, it does sir.
SPEAKER_01 (00:01):
Welcome to the South Florida MA Advisors Podcast,
your trusted MA team.
Here's your host, Russell Cohen.
SPEAKER_02 (00:13):
Hello, hello, everyone, and welcome back to
another episode of the SouthFlorida MA Advisors.
Jeremy Wolf here, alongside yourhost, Russell Cohen.
Russell, always good to see you,my man.
Yeah, Jeremy, it's great to seeyou too.
It's been a while, so here let'sdo it.
Yes, yeah.
So okay, I want to I want tostart this off.
I want to paint a nice, prettypicture for you to kind of
(00:35):
outline the topic for today.
So I'm only 45, but let's fastforward, let's say 20 years from
now, right?
Retirement age, 65, maybe alittle a little later nowadays.
I'm 65.
I spent the last 35 years of mylife building my empire, right?
My business is my baby.
We've talked about this before.
But now it's time for me to sailoff into the golden age of
(00:59):
retirement.
Right?
But what am I gonna do with thebusiness?
Time to sell.
We need an exit strategy, do wenot, Russell?
SPEAKER_00 (01:05):
No doubt.
SPEAKER_02 (01:06):
All right.
So there are basically fourcomponents to the exit strategy,
right?
Things you need to think about.
First, right, we need the MAadvisor.
We're gonna need a goodaccountant involved, we're gonna
need an attorney, and we'regonna need a wealth advisor,
right?
Four prongs.
So I want to get into that inthis episode.
I want to unpack each of thoseand give our listeners some some
tips and tricks around how theycan structure this so that they
(01:28):
can maximize the potential ofthis deal.
So start start with the MAadvisor.
This is what you do.
When it comes to selling abusiness, why is it so important
to have a strong team startingwith an MA advisor and just not
go at it alone?
SPEAKER_00 (01:43):
You know, you just built your business over 30, 40
years, and this is one of yourlargest assets outside of your
home.
Uh, your business is uh not aliquid asset outside, you know.
So this is now the time to startpreparing the business for sale.
You just can't wake up onemorning and say, hey, it's time
to sell.
You got to plan, especiallythese larger MA deals, you
(02:04):
really got to plan years inadvance to get the business in
preparation.
And getting your deal team is isvital.
Obviously, uh, you know, if youwant to start with the MA
advisor, you know, basically acouple couple years out, so they
can come in and uh like a personlike myself will come in and
point out the holes in thebusiness, and so you can plug up
(02:25):
those holes.
Because with with when you'redealing with private equity
groups, they are working off gapaccounting, generally, uh
accepted accounting principles,and every business that I'm
dealing with is not on gap.
So there's going to beinconsistencies, and that
they're not expecting you to beon gap accounting, but you your
your books and records better beas close as possible, as clean
(02:49):
and revenue recognition, alldifferent types of accounting
that that you're not aware of.
Uh the seller has probably hasignored over the years.
So when you're dealing withthese professional buyers,
they're running on gapaccounting and you're not.
So I come in, uh, you know, lookat from a legal, I can, you
know, ask questions about alegal, all different angles to
(03:10):
really point the holes in thebusiness so they can plug it up.
So a couple of years later, whenI come in and do sell the
business, uh, you know, we'renot walking into a firestorm,
into a quality of earnings withthese large accounting firms.
So it's important to link up toa uh MA advisor, uh, get the
know and trust.
That's very important, know andtrust.
Uh making sure that they're outfor your best interest to drive
(03:33):
the highest possible pricewithin the marketplace will
allow.
And and they, you know, I'm I'mgonna be your best friend for a
year.
You know, you're gonna talk tome daily, weekly, as often as
you want, uh, in person, onZoom, on the phone, texting, uh,
you know, uh, so yeah, so you'regonna get to know me really,
really well.
And that's important.
(03:54):
Uh, you're probably gonna talkto me more than you talk to your
wife.
Yeah, first of the year.
So, yeah, so the MA advisorcoming in early is very
important because uh that buyside has a weld engine machine
team that knows what to lookfor.
And if you're not prepared,you're you're gonna get eaten
alive in that in that processthat you're gonna go through.
(04:18):
So, very important to bring inthat MA advisor early.
SPEAKER_02 (04:21):
How should I be looking at finding the right MA
advisor, right?
If you're thankfully, I knowyou.
So if I have to sell a business,I'm I'm just gonna go right to
you.
But let's say I don't know anyMA advisors, there's none in my
networking circles or what haveyou.
I I need to go out there.
Like, what are some things tolook for when searching for an
advisor?
Um, and then once you find one,are there any signs that you
(04:45):
might be working with the wrongone and that they're not a good
fit for you?
SPEAKER_00 (04:48):
I mean, listen, you got to decide if you want
someone local that can show upin person when you're when
you're hitting that wall in thedeal, uh, you want to have that
face-to-face interaction.
Or are you gonna hire uh MAadvisor that's in another state
and it's gonna be 100% Zoom?
You know what I mean?
And they're never gonna show upat any of the meetings.
So that's your decision.
(05:09):
Also, you know, you might have aspecialty type business, so you
might want an advisor that hasexperience in the particular
industry.
Probably not absolutelynecessary.
Um, but you know, sometimessellers feel comfortable, you
know, if a MA advisor has avertical uh, you know, like if
you sell veterines for a living,then then yeah, maybe it's
(05:30):
better off to hire an MA advisorthat sells veterinary practices,
you know.
So um, you know, at the end ofthe day, it's feeling
comfortable with the personyou're talking to, trusting
them, the integrity.
Or if you're if you're justhiring an advisor to just get
you the highest possible priceand and and fight the battle for
you, you know, every everyseller is different.
(05:53):
Uh a lot of sellers run on highintegrity, and some sellers
don't have that high integrity.
Uh, they're, you know, they'reyou know, and those are the type
of assignments I don't want.
I want high quality people uhthat that really want to be on
the other side of ownership.
Uh, very important uh that wehave uh strong integrity in the
deal, and that they're gonnatell me everything up front.
(06:14):
I I need to know about what'sgoing on in the business.
SPEAKER_02 (06:18):
Yeah, I mean, you're you're the point man through
this process, right?
Am I thinking about thisproperly?
Because I think people outthere, everybody knows what a
broker, like a real estatebroker, does in terms of showing
a property, right?
You you you gotta go out thereand promote the property, but
you also in many cases are kindof the point man on the deal and
you're bringing in differentpeople.
Is is that very similar to whatyou do on the business broker
(06:40):
end, or are there any are thereany uh things that lie outside
that parallel, right?
Like things that you do that areunique specifically to business
broker.
SPEAKER_00 (06:48):
Yeah, the MA advisor it's totally different than if
you're selling a smallerbusiness.
It the language is different,the process of finding a buyer.
We have to make investments of$30,000 to$50,000 into
subscriptions to find thoseprivate equity groups, strategic
buyers.
Um, it and it's very much thethe deal process, the structured
(07:09):
transaction process of havingthese private equity groups bid
against each other and try todrive the best possible price
for the seller.
And then getting into the deal,uh, very um, you know, like I
said, high-powered attorneys,accounting firms that are doing
the quality earnings.
Every stone will be unturned,okay?
(07:32):
And and basically they're tryingto cover their rear end uh
because they could be sued.
So we have a very analaccounting and a legal process,
uh, crazy uh nonstop diligencelist that will really uh a
seller will go through one dealand say, one time is enough.
Trust me, I will tell you, it isa very invasive process, okay?
(07:56):
And it's not fun.
Uh, but if you can get to thefinish line, it's a very
rewarding uh for the seller.
Uh life-changing money,generational money sometimes.
Uh, you could change generationsfor you for your family.
Uh, and most important, youknow, after you do your
transition a couple of years,you're free.
You know, you're you take thehandcuffed off.
(08:17):
Yeah, exactly.
You're gonna go travel with yourwife, go see the grandkids, not
have to worry about you knowbeing handcuffed to the business
24-7, thinking about thebusiness.
That's the miracles that we'redoing.
We're giving your life back, andand we're we're gonna take that
asset that you have that's onthe balance sheet and make it
liquid so you can give it to thefinancial advisor to grow for
(08:42):
you.
SPEAKER_02 (08:44):
All right, so most businesses that are at the stage
where they're getting ready tosell, I would say all of them,
right?
They have they have a CPA, theyhave an accountant.
Are you finding when you'rebrought into a deal, are you
bringing in your own team, likean outside CPA that can give a
second look at it?
Or or I mean obviously it's sureit's different for every
business, but generallyspeaking, or if if a business
(09:04):
has a CPA that they're workingwith, is that who you deal with?
Or what's your typical approach?
SPEAKER_00 (09:09):
Um so the CPA, depending on the level of
involvement with the seller,sometimes the CPAs decide not to
be involved on a on a day-to-daybasis in the transaction.
Um, and the reason why isthey're they're you know, they
might be just preparing the taxreturn, uh, they might be doing
other services for the seller.
So what we do is we bring in afractional CFO, uh, and this
(09:32):
fractional CFO, which we'rehoping to get on an interview in
the future, uh, will go throughyour QuickBooks, we'll go
through your PLs and get aprivate equity ready as close to
gap accounting as possible.
And and they will they will, youknow, this a fractional CFO will
tell you where the missing linksand the financials that they're
gonna find in a quality earningsthat could really uh make it a
(09:55):
challenge.
Um and and most important, thisin these MA transactions uh in
these deals, you're includingworking capital.
So a CPA does not want to do thenetworking capital analysis.
That's why we're bringing a uhfractional CFO to do that
networking capital analysis soyou know early on as we're
(10:15):
bringing the business to market,not to market, but out there to
the private equity groups, howmuch money that you typically
need to leave behind when youget to the finish line.
And that's an important number.
If you don't uh understand thenetworking capital requirement,
that could be a major stumblingblock in getting to the closing
table because the networkingcapital will be in the LOI, it
(10:38):
will be part of the qualityearnings, it'll be part of the
agreement, the contract, andthere will be a truth there'll
be a networking capital analysisdone uh during the quality of
earnings and at the end of thedeal, and then a true up.
So the fractional CFO will getthat all put together so we
could all understand it.
And and and the goal of thefractional CFO is to, from an
(11:00):
accounting standpoint, once weget into that quality of
earnings, uh he or she isworking with me to handle the
high-powered accounting firmthat's involved with this
quality earnings, uh, so we cananswer questions.
So the fractional CFO is rightthere with me, and and and
they're we're teaming uptogether to get you through this
quality of earnings, which is avery daunting task.
SPEAKER_02 (11:22):
That makes a lot of sense because whoever is kind of
in-house doing your books,right?
They're seeing things throughtheir lens.
It makes sense to have kind ofan outside party come by and
take an objective look at thewhole situation.
Are there instances though whereyou have like smaller deals
where they just they just havetheir in-house guy do it and
it's not that complicated?
I'd imagine there is there.
SPEAKER_00 (11:39):
Yeah, if you have an in-house controller, and and a
lot of times the in-house uhcontroller knows about the sale
because that's to get theminvolved.
And if they're capable, uh thenyeah, we'll work directly with
them.
And uh as long as they can dothe networking capital analysis
and and they can support theirwork.
And um, you know, with sometimesthey do get critiques, so you
(12:00):
got to be careful of you knowwhat's what's involved in that.
Uh, but yeah, it's veryimportant.
So every every seller has adifferent scenario uh that comes
into play, and we'll we willadjust based on what the seller
wants to do.
And sometimes sellers don't wantto spend the money on a
fractional CFO.
Uh they they you know they wantto keep it to their accountant
or other control.
(12:22):
Yep, every deal is different,and that's what every deal is
different, nothing is exactlythe same.
Yeah.
SPEAKER_02 (12:27):
What what are some of the biggest or the most
common financial mistakes thatyou see owners make before a
sale?
Are there things that owners dothat are uh that jump out at you
right now that say like this isa big no-no?
SPEAKER_00 (12:40):
Oh, yeah.
Um, especially in construction,a lot of times sellers don't
want to pay taxes, they'retrying to avoid the tax bill.
So a lot of a lot of companieswill uh stop depositing checks
uh in November and December andpush off the checks and pay down
all the expenses, uh, and so itjust throws off the numbers.
(13:02):
Um, I'm I'm dealing with acompany right now that that's
doing that, and the the numberslook distorted.
I've on a three-year trail, itlooks very distorted.
And um, yeah, I mean we're we'regetting offers on it, but the
same questions keep coming upall the time.
So do not do that.
You know, that's why if youprepare for sale in advance, you
know, three or four years inadvance, you can get off that,
(13:24):
you know, delay delay your salesuntil next year.
Uh, because like I said, it'syou it's hard for a uh buyer to
get a real understanding of yournumbers if if you're playing
that type of game, you know.
SPEAKER_02 (13:38):
Yeah, no, another something I talked to to Dustin
about um on his podcast was inregards to businesses that are
cash heavy and and and notreporting cash to avoid taxes,
right?
How that that's detrimental tothe like people don't think
about that as they're goingthrough the business.
They're not looking at 10, 20years down the road when they're
selling, but all that adds up onthe books and it devalues your
(13:59):
company.
SPEAKER_00 (14:00):
Yeah, I mean, when you when smaller businesses do
see more of more of that whenwe're dealing in MA, um, you
really can't throw the cash intothe quality of earnings that
they don't want to hear aboutit.
Yeah, yeah.
Um that's yeah, a lot of at thislevel, everything's really
legit.
Um, and you know, when I didthat large roofing deal a couple
years back, the the seller gotrebates from the contractors, uh
(14:23):
from the suppliers.
So um, so if you if you'rebuying you know millions of
dollars worth of supplies from aroofing supplier, they would
give them rebates.
And I was like, well, you know,is that a legitimate ad back?
And in the quality of earnings,they did take back the supplier
rebate because the goingforward, they were gonna get the
same rebate, but the the privateequity group is gonna put it on
(14:46):
the books where where therebates sometimes never never
hit the books with with the theseller, you know.
So um, so yeah, so supplierrebates can be counted towards
the quality of earnings for thefinal EBITDA, you know.
So there you go.
There's a perfect example.
But in smaller businesses, umcash businesses, you know, the
(15:07):
owner plays around, no doubt.
SPEAKER_02 (15:10):
Yeah, so important to be super organized and
document all this stuff, likelike getting the habit from when
like speaking to all those outthere that are actually just
just now starting a business orlooking to start a business in
the future.
These are things that aren'tnecessarily on your radar when
you're starting off, but it canget so difficult down the road
to deal some of these issuesdownstream when when if you just
(15:33):
develop the habits when youstart off of keeping everything
organized and putting systems inplace and taking the time.
SPEAKER_00 (15:38):
Get your books, put money into your accounting, make
sure.
And obviously, as businessesgrow, sometimes you grow out of
your accounting person, yourCPA, and you need better higher
quality.
You know, there's differentlevels of accounting people.
So sometimes you grow out of theperson that you hired the first
(15:59):
time, and you got to get to thenext level.
SPEAKER_02 (16:02):
You don't want to get to the point where you need
to hire a forensic accountant toclean up the mess.
SPEAKER_00 (16:06):
Yes, it's gonna get really no doubt about it.
You know, but so just be awarethat you know, if you if you're
growing your company, um, don'tbe afraid to change.
Don't be uh people sometimes areafraid to change their CPAs.
So I don't understand why.
Um you get comfortable, you getcaught in your ways, you're
getting bad relationships, youdon't want to one of the weird
things about business ownerscan't change their CPA.
(16:29):
Never understood why I'vechanged accounting people all
the time, you know.
SPEAKER_02 (16:33):
You know, I mean I've done probably because it's
it's one of those subjectsthat's so close to home, right?
It's the lifeblood of thebusiness, it's the financials,
it's the money, it's sopersonal.
And the thought of trying tofind somebody new and go through
that process of building therelationship with that person
and getting comfortable withthem is a lot deeper than you
know, something that's moresurface level.
SPEAKER_00 (16:53):
Yes, people don't want to have that conversation,
probably.
I'm not firing it.
That's probably it.
SPEAKER_02 (16:58):
I mean, the same the same is true for like for for
wealth advisors, wealthmanagement people as well,
right?
Like once someone's managing allyour wealth for a while, like
they know you, they know yourgoals.
It's like yeah, it's takes timeto build that relationship.
Uh, I do want to get to thewealth advisor.
I also want to um like when itcomes to the attorney.
So, as a business owner, let'ssay I have a good a good
(17:20):
attorney that I trust that Iwork with, like a civil
attorney, a little you know,business attorney, whatever it
is.
Um, are you also just like thefractional CPA?
Are you bringing in, I'dimagine, a attorney that
specializes in these deals,especially for the larger ones?
But like, what about thesmaller, like a business, you
know, few million dollar deal?
Are you bringing in a specificattorney for that?
Or if I have my own, can I usethat attorney?
(17:41):
What's the best course ofaction?
SPEAKER_00 (17:43):
Yeah, and in these MA deals, you this is really
specialized.
Just understand on the otherside, the buyer is hiring in a
high-powered MA attorney thatreally knows the space.
You need to have, I'm nottelling you to go out and hire
some someone equal, but getsomeone who knows MA
transactions, the nuances,because they're the if you don't
(18:04):
get the right person, they'regonna start fighting this MA
attorney, and it and guess whogets to pay the bill?
You're gonna their deal won'tclose you, and you're just gonna
have a monster bill.
And let me put it this way I'mgonna make it really simple.
If you have a heart problem, youdon't go to a podiatrist for the
heart problem.
So think about it.
When you're selling yourbusiness, okay, and and you have
(18:26):
one of the you're selling yourlargest asset, probably one of
the biggest windfills of moneyin your life.
Hire a specialized MA attorneythat knows the business, okay?
Because they speak the language,they understand it, they've been
through it before, theyeverything that's coming from
(18:47):
the buy side attorney, okay,they know what's right and
what's wrong, and they know whatthey can they can battle and
what they can't battle.
So it's very important to get aspecialized MA attorney.
If you are hiring, uh I I hadanother roofing deal where they
hired an attorney that thatreally should have never been
their attorney, and and the dealjust took went on forever.
(19:07):
It took a year to close.
It really should have never gonethat and it it was extremely
frustrating.
When when we when we had the$100million roofer, we got the MA
attorney, it it went incrediblywell, it went incredibly smooth.
Um, and and because it was avoluminous of information and
contracts and disclosurestatements, but but yeah, it is
(19:29):
so important to get the right,like once again, to get the
right team that knows whatthey're doing.
You don't get a divorceattorney, don't get a state
attorney, get an MA attorney sothey know this is what they do,
and you're gonna feel a lotbetter about it.
Uh, I'm telling you right now.
SPEAKER_02 (19:47):
So, this is why it's so important in my mind to have
somebody like yourself, right?
The point man for this deal,somebody that I can go to build
a relationship with, and then Idon't have to worry about all
these external things.
You could tell me, hey, Jeremy,this is the guy you need to use,
the attorney.
This is the fractional CPA we'regonna bring in.
These are great people.
I've worked with them before,they have a great track record
of success.
Give me the peace of mind,right?
(20:07):
I don't, as a business owner, Idon't need to be out there
having conversations andinterviewing specific attorneys,
specific uh fractional CPI.
That's that's what you're therefor, right, man?
SPEAKER_00 (20:16):
Yeah.
I mean, we've you know, we arebattle tested, we're in the
trenches on these deals, and weknow how to get it to the to the
closing table.
So just follow us, listen to us.
You know, you're paying us.
So just you know, I you know, Iwant to work for my for my
commission.
So, you know, a lot of sellersjust want to do the deal, you
(20:39):
know, they they just want totake over the deal.
That's their that's their youknow, they have control.
So, but you know, yeah, utilizeyour MA advisor on every angle,
and and doesn't say you have totake my advice, but I'll give
you my advice.
You know, you make the decision.
You've made millions ofdecisions over the course of a
career.
Um, so yeah, get the right team,get the right team together.
(21:01):
That's very important tosuccess.
SPEAKER_02 (21:05):
Now, if I've reached a point where I'm selling a
business for millions ofdollars, chances are I have a
team, wealth management teamthat that I'm working with, or
at least an advice financialadvisor that's that's been with
me for a while.
When it comes to the wealthadvisor component to an MA deal,
are you is that something Iwould think that I'd be good
(21:27):
with the person I have in thatin that situation to try to, or
are you also bringing in peopleto your team to look at things
through a different lens to tryto uh leverage the sale in some
positive way that could beoutside the scope of the person
that I'm already working with?
SPEAKER_00 (21:40):
Yeah, I mean, listen, a lot of a lot of
sellers have their financialadvisors there and they're very
happy.
If we get a situation wherethey're kind of open-minded,
then then I do have, you know,uh, you know, Morgan Stanley, uh
Goldman Sachs, uh JP Morgan typepeople, uh, all you know, all
the top firms that are thatwould love to, you know,
strategize and tax plan.
(22:02):
Um, a lot of sellers areconcerned about the tax
consequences at the end of asale because capital gains is
20%.
And there's a couple of pointsfor the Obama healthcare um tax,
you know, there's an additionaltax.
So you can be running, you know,20, 23% on the sale of a
business.
So there's tax strategies whereyou can defer the defer the
(22:22):
capital gains.
Um, it's called a deferred salestrust.
And I I like bringing it upbecause sometimes sellers say, I
can't close on the deal becausemy taxes are too high.
Well, if I could, you know, if Ican get you all the money at the
closing table and defer the taxand you can invest all that down
payment money into an investmentvehicle, then you know it could
(22:46):
be worthwhile for you.
So having tax strategies isimportant.
Um, so we have people that uhthat I refer that handle the the
uh deferred sales trust, it'scalled.
Uh, but if if you don't want todo that, you know, we can make
references to many differentfinancial advisors that would
love to earn your business.
Uh and and obviously it's alarge sum of money.
(23:07):
So, you know, make sure,especially in what's going on in
the world today.
I think unfortunately, uh thingsare evolving very, you know, you
know, a hundred-year cyclecoming to a close.
We have a lot of unusual thingshappening in this in the you
know, you got gold prices at alltimes high, silver prices
all-time high, and you got thestock market all-time high.
(23:30):
So you got a lot of things thatare, you know, bubbles.
You got a real estate marketthat's bubbles.
Uh, so you got a lot of uhde-dollarization going on in the
world right now.
So you you better be aware thatyou know what was going on in
the past 50 to 70 years, thatwas the norm, is now changing.
Uh, I know this is kind ofgetting off track, uh, but this
(23:50):
will probably age really well.
Um, so uh, you know, I'm I'm I'mnot a hundred percent certain I
would want my money sitting inUS bonds or the stock market
right now.
So you gotta, you know, you youknow diversify, baby.
Diversify if and I'll bring thissomething up.
I think Stanley, uh um MorganStanley just changed the 6040
(24:12):
portfolio from 60 stocks, 40%bonds to 60 2020, which is now
20% gold.
So that's a major gift ofbecause every financial advisor
is saying 6040, it is now 602020.
And I think that's a a major redflag that's going on right now,
in my opinion, that that we areheading into major headwinds uh
(24:36):
as a as a country.
Uh, hate to say it, um just tellme what I think and what I know
and what I've studied.
Um, so I think you a lot ofbusiness owners have to think
alternative differently comparedto what they've been thinking
all their life right now.
So that's that's why you have tohave open-minded on who's your
financial advisor, uh, becauseyou don't want to be the exit
(24:58):
liquidity of someone else'ssale.
SPEAKER_02 (25:01):
Yeah.
All good stuff.
So you're you're you're raisingawareness, you're you're making
me uh you're shining a light onsome of these topics for me, and
I appreciate the insights.
Now I could uh I could leavethis podcast and go diversify my
my portfolio even further.
Thank you, Russell.
Yeah, yeah.
Yeah, no problem.
(25:21):
I want to send you a bill.
What what do we miss here?
So we got we got the MA advisor,um, we have the CPA, the
attorney, wealth advisor.
Are there any other components,any other outside parties to to
the team, to the deal?
Anything, any other finalthoughts that you want to add?
SPEAKER_00 (25:41):
Uh a lot of times uh business owners have business
coaches along the way.
Uh right.
I mean, uh you got to this levelmaybe because you're a smart
business person, but maybe therewas a coach involved, and that
coach has been with you everystep of the way uh to help you
grow.
So have have the coach involvedwith the team, uh, just another
(26:01):
smart person.
Usually these coaches have beenvery successful business owners
and and and you know, gray hairand been doing it for you know
35, 40 years in their 60s and70s, you know.
Uh, you know, they say wisdomdoesn't begin until you're 35,
and you're not an expert untilyou have about like like 35,000
(26:22):
hours in a career.
So you know, surround yourselfwith people that have a lot of
hours, and and I I think you'llget the right advice.
SPEAKER_02 (26:30):
Yeah, the the gray is uh the the gray coming
through are signs of wisdom.
SPEAKER_00 (26:35):
Wisdom I noticed that over the time frame we've
been doing this podcast is thegray coming in.
SPEAKER_02 (26:41):
Yeah, the the the for me the wisdom lies in the
fact that I I the more I theolder I get, the more I realize
how little I know abouteverything, right?
Like I know what I know and Idon't know what I don't know,
and I'm very humble when itcomes to that.
And many times a lot of thethings that I think I know, I'm
actually wrong on.
So I'm like really, reallyopen-minded.
I'm always interested to hearother others' perspectives
(27:01):
because who knows, I could bewrong.
That's right.
Yeah, well, my daily dose ofwisdom.
SPEAKER_00 (27:06):
Can't know it all, but you pick a few topics where
you want to know all.
SPEAKER_02 (27:09):
If you're really good at that, yeah, yeah, I know
that.
All right, cool.
Well, let's let's leave it atthat.
This was really insightful.
Uh, everyone, thanks so much fortuning in.
Uh, if you found this contentuseful, please don't forget to
like, subscribe.
Uh, if you've had your own uhforay into the sale of a
business, like let us know someinsights in the comments.
Was there anything that wemissed, anything that you'd like
us to address, let us know aboutit, and we will pick it up on
(27:31):
the next episode.
Again, everyone, thanks fortuning in, and we will catch you
all next time on the nextepisode of the South Florida M
⁇ A Advisors Podcast.
Take care, have a great day.
Thank you.
unknown (27:42):
All right.
SPEAKER_01 (27:43):
Thanks for listening to the South Florida MA Advisors
Podcast.
For more information, visitSouth FloridaMA.com or contact
954 646 7651.
Yeah, it does sir.
SPEAKER_01 (00:01):
Welcome to the South Florida MA Advisors Podcast,
your trusted MA team.
Here's your host, Russell Cohen.
SPEAKER_02 (00:13):
Hello, hello, everyone, and welcome back to
another episode of the SouthFlorida MA Advisors.
Jeremy Wolf here, alongside yourhost, Russell Cohen.
Russell, always good to see you,my man.
Yeah, Jeremy, it's great to seeyou too.
It's been a while, so here let'sdo it.
Yes, yeah.
So okay, I want to I want tostart this off.
I want to paint a nice, prettypicture for you to kind of
(00:35):
outline the topic for today.
So I'm only 45, but let's fastforward, let's say 20 years from
now, right?
Retirement age, 65, maybe alittle a little later nowadays.
I'm 65.
I spent the last 35 years of mylife building my empire, right?
My business is my baby.
We've talked about this before.
But now it's time for me to sailoff into the golden age of
(00:59):
retirement.
Right?
But what am I gonna do with thebusiness?
Time to sell.
We need an exit strategy, do wenot, Russell?
SPEAKER_00 (01:05):
No doubt.
SPEAKER_02 (01:06):
All right.
So there are basically fourcomponents to the exit strategy,
right?
Things you need to think about.
First, right, we need the MAadvisor.
We're gonna need a goodaccountant involved, we're gonna
need an attorney, and we'regonna need a wealth advisor,
right?
Four prongs.
So I want to get into that inthis episode.
I want to unpack each of thoseand give our listeners some some
tips and tricks around how theycan structure this so that they
(01:28):
can maximize the potential ofthis deal.
So start start with the MAadvisor.
This is what you do.
When it comes to selling abusiness, why is it so important
to have a strong team startingwith an MA advisor and just not
go at it alone?
SPEAKER_00 (01:43):
You know, you just built your business over 30, 40
years, and this is one of yourlargest assets outside of your
home.
Uh, your business is uh not aliquid asset outside, you know.
So this is now the time to startpreparing the business for sale.
You just can't wake up onemorning and say, hey, it's time
to sell.
You got to plan, especiallythese larger MA deals, you
(02:04):
really got to plan years inadvance to get the business in
preparation.
And getting your deal team is isvital.
Obviously, uh, you know, if youwant to start with the MA
advisor, you know, basically acouple couple years out, so they
can come in and uh like a personlike myself will come in and
point out the holes in thebusiness, and so you can plug up
(02:25):
those holes.
Because with with when you'redealing with private equity
groups, they are working off gapaccounting, generally, uh
accepted accounting principles,and every business that I'm
dealing with is not on gap.
So there's going to beinconsistencies, and that
they're not expecting you to beon gap accounting, but you your
your books and records better beas close as possible, as clean
(02:49):
and revenue recognition, alldifferent types of accounting
that that you're not aware of.
Uh the seller has probably hasignored over the years.
So when you're dealing withthese professional buyers,
they're running on gapaccounting and you're not.
So I come in, uh, you know, lookat from a legal, I can, you
know, ask questions about alegal, all different angles to
(03:10):
really point the holes in thebusiness so they can plug it up.
So a couple of years later, whenI come in and do sell the
business, uh, you know, we'renot walking into a firestorm,
into a quality of earnings withthese large accounting firms.
So it's important to link up toa uh MA advisor, uh, get the
know and trust.
That's very important, know andtrust.
Uh making sure that they're outfor your best interest to drive
(03:33):
the highest possible pricewithin the marketplace will
allow.
And and they, you know, I'm I'mgonna be your best friend for a
year.
You know, you're gonna talk tome daily, weekly, as often as
you want, uh, in person, onZoom, on the phone, texting, uh,
you know, uh, so yeah, so you'regonna get to know me really,
really well.
And that's important.
(03:54):
Uh, you're probably gonna talkto me more than you talk to your
wife.
Yeah, first of the year.
So, yeah, so the MA advisorcoming in early is very
important because uh that buyside has a weld engine machine
team that knows what to lookfor.
And if you're not prepared,you're you're gonna get eaten
alive in that in that processthat you're gonna go through.
(04:18):
So, very important to bring inthat MA advisor early.
SPEAKER_02 (04:21):
How should I be looking at finding the right MA
advisor, right?
If you're thankfully, I knowyou.
So if I have to sell a business,I'm I'm just gonna go right to
you.
But let's say I don't know anyMA advisors, there's none in my
networking circles or what haveyou.
I I need to go out there.
Like, what are some things tolook for when searching for an
advisor?
Um, and then once you find one,are there any signs that you
(04:45):
might be working with the wrongone and that they're not a good
fit for you?
SPEAKER_00 (04:48):
I mean, listen, you got to decide if you want
someone local that can show upin person when you're when
you're hitting that wall in thedeal, uh, you want to have that
face-to-face interaction.
Or are you gonna hire uh MAadvisor that's in another state
and it's gonna be 100% Zoom?
You know what I mean?
And they're never gonna show upat any of the meetings.
So that's your decision.
(05:09):
Also, you know, you might have aspecialty type business, so you
might want an advisor that hasexperience in the particular
industry.
Probably not absolutelynecessary.
Um, but you know, sometimessellers feel comfortable, you
know, if a MA advisor has avertical uh, you know, like if
you sell veterines for a living,then then yeah, maybe it's
(05:30):
better off to hire an MA advisorthat sells veterinary practices,
you know.
So um, you know, at the end ofthe day, it's feeling
comfortable with the personyou're talking to, trusting
them, the integrity.
Or if you're if you're justhiring an advisor to just get
you the highest possible priceand and and fight the battle for
you, you know, every everyseller is different.
(05:53):
Uh a lot of sellers run on highintegrity, and some sellers
don't have that high integrity.
Uh, they're, you know, they'reyou know, and those are the type
of assignments I don't want.
I want high quality people uhthat that really want to be on
the other side of ownership.
Uh, very important uh that wehave uh strong integrity in the
deal, and that they're gonnatell me everything up front.
(06:14):
I I need to know about what'sgoing on in the business.
SPEAKER_02 (06:18):
Yeah, I mean, you're you're the point man through
this process, right?
Am I thinking about thisproperly?
Because I think people outthere, everybody knows what a
broker, like a real estatebroker, does in terms of showing
a property, right?
You you you gotta go out thereand promote the property, but
you also in many cases are kindof the point man on the deal and
you're bringing in differentpeople.
Is is that very similar to whatyou do on the business broker
(06:40):
end, or are there any are thereany uh things that lie outside
that parallel, right?
Like things that you do that areunique specifically to business
broker.
SPEAKER_00 (06:48):
Yeah, the MA advisor it's totally different than if
you're selling a smallerbusiness.
It the language is different,the process of finding a buyer.
We have to make investments of$30,000 to$50,000 into
subscriptions to find thoseprivate equity groups, strategic
buyers.
Um, it and it's very much thethe deal process, the structured
(07:09):
transaction process of havingthese private equity groups bid
against each other and try todrive the best possible price
for the seller.
And then getting into the deal,uh, very um, you know, like I
said, high-powered attorneys,accounting firms that are doing
the quality earnings.
Every stone will be unturned,okay?
(07:32):
And and basically they're tryingto cover their rear end uh
because they could be sued.
So we have a very analaccounting and a legal process,
uh, crazy uh nonstop diligencelist that will really uh a
seller will go through one dealand say, one time is enough.
Trust me, I will tell you, it isa very invasive process, okay?
(07:56):
And it's not fun.
Uh, but if you can get to thefinish line, it's a very
rewarding uh for the seller.
Uh life-changing money,generational money sometimes.
Uh, you could change generationsfor you for your family.
Uh, and most important, youknow, after you do your
transition a couple of years,you're free.
You know, you're you take thehandcuffed off.
(08:17):
Yeah, exactly.
You're gonna go travel with yourwife, go see the grandkids, not
have to worry about you knowbeing handcuffed to the business
24-7, thinking about thebusiness.
That's the miracles that we'redoing.
We're giving your life back, andand we're we're gonna take that
asset that you have that's onthe balance sheet and make it
liquid so you can give it to thefinancial advisor to grow for
(08:42):
you.
SPEAKER_02 (08:44):
All right, so most businesses that are at the stage
where they're getting ready tosell, I would say all of them,
right?
They have they have a CPA, theyhave an accountant.
Are you finding when you'rebrought into a deal, are you
bringing in your own team, likean outside CPA that can give a
second look at it?
Or or I mean obviously it's sureit's different for every
business, but generallyspeaking, or if if a business
(09:04):
has a CPA that they're workingwith, is that who you deal with?
Or what's your typical approach?
SPEAKER_00 (09:09):
Um so the CPA, depending on the level of
involvement with the seller,sometimes the CPAs decide not to
be involved on a on a day-to-daybasis in the transaction.
Um, and the reason why isthey're they're you know, they
might be just preparing the taxreturn, uh, they might be doing
other services for the seller.
So what we do is we bring in afractional CFO, uh, and this
(09:32):
fractional CFO, which we'rehoping to get on an interview in
the future, uh, will go throughyour QuickBooks, we'll go
through your PLs and get aprivate equity ready as close to
gap accounting as possible.
And and they will they will, youknow, this a fractional CFO will
tell you where the missing linksand the financials that they're
gonna find in a quality earningsthat could really uh make it a
(09:55):
challenge.
Um and and most important, thisin these MA transactions uh in
these deals, you're includingworking capital.
So a CPA does not want to do thenetworking capital analysis.
That's why we're bringing a uhfractional CFO to do that
networking capital analysis soyou know early on as we're
(10:15):
bringing the business to market,not to market, but out there to
the private equity groups, howmuch money that you typically
need to leave behind when youget to the finish line.
And that's an important number.
If you don't uh understand thenetworking capital requirement,
that could be a major stumblingblock in getting to the closing
table because the networkingcapital will be in the LOI, it
(10:38):
will be part of the qualityearnings, it'll be part of the
agreement, the contract, andthere will be a truth there'll
be a networking capital analysisdone uh during the quality of
earnings and at the end of thedeal, and then a true up.
So the fractional CFO will getthat all put together so we
could all understand it.
And and and the goal of thefractional CFO is to, from an
(11:00):
accounting standpoint, once weget into that quality of
earnings, uh he or she isworking with me to handle the
high-powered accounting firmthat's involved with this
quality earnings, uh, so we cananswer questions.
So the fractional CFO is rightthere with me, and and and
they're we're teaming uptogether to get you through this
quality of earnings, which is avery daunting task.
SPEAKER_02 (11:22):
That makes a lot of sense because whoever is kind of
in-house doing your books,right?
They're seeing things throughtheir lens.
It makes sense to have kind ofan outside party come by and
take an objective look at thewhole situation.
Are there instances though whereyou have like smaller deals
where they just they just havetheir in-house guy do it and
it's not that complicated?
I'd imagine there is there.
SPEAKER_00 (11:39):
Yeah, if you have an in-house controller, and and a
lot of times the in-house uhcontroller knows about the sale
because that's to get theminvolved.
And if they're capable, uh thenyeah, we'll work directly with
them.
And uh as long as they can dothe networking capital analysis
and and they can support theirwork.
And um, you know, with sometimesthey do get critiques, so you
(12:00):
got to be careful of you knowwhat's what's involved in that.
Uh, but yeah, it's veryimportant.
So every every seller has adifferent scenario uh that comes
into play, and we'll we willadjust based on what the seller
wants to do.
And sometimes sellers don't wantto spend the money on a
fractional CFO.
Uh they they you know they wantto keep it to their accountant
or other control.
(12:22):
Yep, every deal is different,and that's what every deal is
different, nothing is exactlythe same.
Yeah.
SPEAKER_02 (12:27):
What what are some of the biggest or the most
common financial mistakes thatyou see owners make before a
sale?
Are there things that owners dothat are uh that jump out at you
right now that say like this isa big no-no?
SPEAKER_00 (12:40):
Oh, yeah.
Um, especially in construction,a lot of times sellers don't
want to pay taxes, they'retrying to avoid the tax bill.
So a lot of a lot of companieswill uh stop depositing checks
uh in November and December andpush off the checks and pay down
all the expenses, uh, and so itjust throws off the numbers.
(13:02):
Um, I'm I'm dealing with acompany right now that that's
doing that, and the the numberslook distorted.
I've on a three-year trail, itlooks very distorted.
And um, yeah, I mean we're we'regetting offers on it, but the
same questions keep coming upall the time.
So do not do that.
You know, that's why if youprepare for sale in advance, you
know, three or four years inadvance, you can get off that,
(13:24):
you know, delay delay your salesuntil next year.
Uh, because like I said, it'syou it's hard for a uh buyer to
get a real understanding of yournumbers if if you're playing
that type of game, you know.
SPEAKER_02 (13:38):
Yeah, no, another something I talked to to Dustin
about um on his podcast was inregards to businesses that are
cash heavy and and and notreporting cash to avoid taxes,
right?
How that that's detrimental tothe like people don't think
about that as they're goingthrough the business.
They're not looking at 10, 20years down the road when they're
selling, but all that adds up onthe books and it devalues your
(13:59):
company.
SPEAKER_00 (14:00):
Yeah, I mean, when you when smaller businesses do
see more of more of that whenwe're dealing in MA, um, you
really can't throw the cash intothe quality of earnings that
they don't want to hear aboutit.
Yeah, yeah.
Um that's yeah, a lot of at thislevel, everything's really
legit.
Um, and you know, when I didthat large roofing deal a couple
years back, the the seller gotrebates from the contractors, uh
(14:23):
from the suppliers.
So um, so if you if you'rebuying you know millions of
dollars worth of supplies from aroofing supplier, they would
give them rebates.
And I was like, well, you know,is that a legitimate ad back?
And in the quality of earnings,they did take back the supplier
rebate because the goingforward, they were gonna get the
same rebate, but the the privateequity group is gonna put it on
(14:46):
the books where where therebates sometimes never never
hit the books with with the theseller, you know.
So um, so yeah, so supplierrebates can be counted towards
the quality of earnings for thefinal EBITDA, you know.
So there you go.
There's a perfect example.
But in smaller businesses, umcash businesses, you know, the
(15:07):
owner plays around, no doubt.
SPEAKER_02 (15:10):
Yeah, so important to be super organized and
document all this stuff, likelike getting the habit from when
like speaking to all those outthere that are actually just
just now starting a business orlooking to start a business in
the future.
These are things that aren'tnecessarily on your radar when
you're starting off, but it canget so difficult down the road
to deal some of these issuesdownstream when when if you just
(15:33):
develop the habits when youstart off of keeping everything
organized and putting systems inplace and taking the time.
SPEAKER_00 (15:38):
Get your books, put money into your accounting, make
sure.
And obviously, as businessesgrow, sometimes you grow out of
your accounting person, yourCPA, and you need better higher
quality.
You know, there's differentlevels of accounting people.
So sometimes you grow out of theperson that you hired the first
(15:59):
time, and you got to get to thenext level.
SPEAKER_02 (16:02):
You don't want to get to the point where you need
to hire a forensic accountant toclean up the mess.
SPEAKER_00 (16:06):
Yes, it's gonna get really no doubt about it.
You know, but so just be awarethat you know, if you if you're
growing your company, um, don'tbe afraid to change.
Don't be uh people sometimes areafraid to change their CPAs.
So I don't understand why.
Um you get comfortable, you getcaught in your ways, you're
getting bad relationships, youdon't want to one of the weird
things about business ownerscan't change their CPA.
(16:29):
Never understood why I'vechanged accounting people all
the time, you know.
SPEAKER_02 (16:33):
You know, I mean I've done probably because it's
it's one of those subjectsthat's so close to home, right?
It's the lifeblood of thebusiness, it's the financials,
it's the money, it's sopersonal.
And the thought of trying tofind somebody new and go through
that process of building therelationship with that person
and getting comfortable withthem is a lot deeper than you
know, something that's moresurface level.
SPEAKER_00 (16:53):
Yes, people don't want to have that conversation,
probably.
I'm not firing it.
That's probably it.
SPEAKER_02 (16:58):
I mean, the same the same is true for like for for
wealth advisors, wealthmanagement people as well,
right?
Like once someone's managing allyour wealth for a while, like
they know you, they know yourgoals.
It's like yeah, it's takes timeto build that relationship.
Uh, I do want to get to thewealth advisor.
I also want to um like when itcomes to the attorney.
So, as a business owner, let'ssay I have a good a good
(17:20):
attorney that I trust that Iwork with, like a civil
attorney, a little you know,business attorney, whatever it
is.
Um, are you also just like thefractional CPA?
Are you bringing in, I'dimagine, a attorney that
specializes in these deals,especially for the larger ones?
But like, what about thesmaller, like a business, you
know, few million dollar deal?
Are you bringing in a specificattorney for that?
Or if I have my own, can I usethat attorney?
(17:41):
What's the best course ofaction?
SPEAKER_00 (17:43):
Yeah, and in these MA deals, you this is really
specialized.
Just understand on the otherside, the buyer is hiring in a
high-powered MA attorney thatreally knows the space.
You need to have, I'm nottelling you to go out and hire
some someone equal, but getsomeone who knows MA
transactions, the nuances,because they're the if you don't
(18:04):
get the right person, they'regonna start fighting this MA
attorney, and it and guess whogets to pay the bill?
You're gonna their deal won'tclose you, and you're just gonna
have a monster bill.
And let me put it this way I'mgonna make it really simple.
If you have a heart problem, youdon't go to a podiatrist for the
heart problem.
So think about it.
When you're selling yourbusiness, okay, and and you have
(18:26):
one of the you're selling yourlargest asset, probably one of
the biggest windfills of moneyin your life.
Hire a specialized MA attorneythat knows the business, okay?
Because they speak the language,they understand it, they've been
through it before, theyeverything that's coming from
(18:47):
the buy side attorney, okay,they know what's right and
what's wrong, and they know whatthey can they can battle and
what they can't battle.
So it's very important to get aspecialized MA attorney.
If you are hiring, uh I I hadanother roofing deal where they
hired an attorney that thatreally should have never been
their attorney, and and the dealjust took went on forever.
(19:07):
It took a year to close.
It really should have never gonethat and it it was extremely
frustrating.
When when we when we had the$100million roofer, we got the MA
attorney, it it went incrediblywell, it went incredibly smooth.
Um, and and because it was avoluminous of information and
contracts and disclosurestatements, but but yeah, it is
(19:29):
so important to get the right,like once again, to get the
right team that knows whatthey're doing.
You don't get a divorceattorney, don't get a state
attorney, get an MA attorney sothey know this is what they do,
and you're gonna feel a lotbetter about it.
Uh, I'm telling you right now.
SPEAKER_02 (19:47):
So, this is why it's so important in my mind to have
somebody like yourself, right?
The point man for this deal,somebody that I can go to build
a relationship with, and then Idon't have to worry about all
these external things.
You could tell me, hey, Jeremy,this is the guy you need to use,
the attorney.
This is the fractional CPA we'regonna bring in.
These are great people.
I've worked with them before,they have a great track record
of success.
Give me the peace of mind,right?
(20:07):
I don't, as a business owner, Idon't need to be out there
having conversations andinterviewing specific attorneys,
specific uh fractional CPI.
That's that's what you're therefor, right, man?
SPEAKER_00 (20:16):
Yeah.
I mean, we've you know, we arebattle tested, we're in the
trenches on these deals, and weknow how to get it to the to the
closing table.
So just follow us, listen to us.
You know, you're paying us.
So just you know, I you know, Iwant to work for my for my
commission.
So, you know, a lot of sellersjust want to do the deal, you
(20:39):
know, they they just want totake over the deal.
That's their that's their youknow, they have control.
So, but you know, yeah, utilizeyour MA advisor on every angle,
and and doesn't say you have totake my advice, but I'll give
you my advice.
You know, you make the decision.
You've made millions ofdecisions over the course of a
career.
Um, so yeah, get the right team,get the right team together.
(21:01):
That's very important tosuccess.
SPEAKER_02 (21:05):
Now, if I've reached a point where I'm selling a
business for millions ofdollars, chances are I have a
team, wealth management teamthat that I'm working with, or
at least an advice financialadvisor that's that's been with
me for a while.
When it comes to the wealthadvisor component to an MA deal,
are you is that something Iwould think that I'd be good
(21:27):
with the person I have in thatin that situation to try to, or
are you also bringing in peopleto your team to look at things
through a different lens to tryto uh leverage the sale in some
positive way that could beoutside the scope of the person
that I'm already working with?
SPEAKER_00 (21:40):
Yeah, I mean, listen, a lot of a lot of
sellers have their financialadvisors there and they're very
happy.
If we get a situation wherethey're kind of open-minded,
then then I do have, you know,uh, you know, Morgan Stanley, uh
Goldman Sachs, uh JP Morgan typepeople, uh, all you know, all
the top firms that are thatwould love to, you know,
strategize and tax plan.
(22:02):
Um, a lot of sellers areconcerned about the tax
consequences at the end of asale because capital gains is
20%.
And there's a couple of pointsfor the Obama healthcare um tax,
you know, there's an additionaltax.
So you can be running, you know,20, 23% on the sale of a
business.
So there's tax strategies whereyou can defer the defer the
(22:22):
capital gains.
Um, it's called a deferred salestrust.
And I I like bringing it upbecause sometimes sellers say, I
can't close on the deal becausemy taxes are too high.
Well, if I could, you know, if Ican get you all the money at the
closing table and defer the taxand you can invest all that down
payment money into an investmentvehicle, then you know it could
(22:46):
be worthwhile for you.
So having tax strategies isimportant.
Um, so we have people that uhthat I refer that handle the the
uh deferred sales trust, it'scalled.
Uh, but if if you don't want todo that, you know, we can make
references to many differentfinancial advisors that would
love to earn your business.
Uh and and obviously it's alarge sum of money.
(23:07):
So, you know, make sure,especially in what's going on in
the world today.
I think unfortunately, uh thingsare evolving very, you know, you
know, a hundred-year cyclecoming to a close.
We have a lot of unusual thingshappening in this in the you
know, you got gold prices at alltimes high, silver prices
all-time high, and you got thestock market all-time high.
(23:30):
So you got a lot of things thatare, you know, bubbles.
You got a real estate marketthat's bubbles.
Uh, so you got a lot of uhde-dollarization going on in the
world right now.
So you you better be aware thatyou know what was going on in
the past 50 to 70 years, thatwas the norm, is now changing.
Uh, I know this is kind ofgetting off track, uh, but this
(23:50):
will probably age really well.
Um, so uh, you know, I'm I'm I'mnot a hundred percent certain I
would want my money sitting inUS bonds or the stock market
right now.
So you gotta, you know, you youknow diversify, baby.
Diversify if and I'll bring thissomething up.
I think Stanley, uh um MorganStanley just changed the 6040
(24:12):
portfolio from 60 stocks, 40%bonds to 60 2020, which is now
20% gold.
So that's a major gift ofbecause every financial advisor
is saying 6040, it is now 602020.
And I think that's a a major redflag that's going on right now,
in my opinion, that that we areheading into major headwinds uh
(24:36):
as a as a country.
Uh, hate to say it, um just tellme what I think and what I know
and what I've studied.
Um, so I think you a lot ofbusiness owners have to think
alternative differently comparedto what they've been thinking
all their life right now.
So that's that's why you have tohave open-minded on who's your
financial advisor, uh, becauseyou don't want to be the exit
(24:58):
liquidity of someone else'ssale.
SPEAKER_02 (25:01):
Yeah.
All good stuff.
So you're you're you're raisingawareness, you're you're making
me uh you're shining a light onsome of these topics for me, and
I appreciate the insights.
Now I could uh I could leavethis podcast and go diversify my
my portfolio even further.
Thank you, Russell.
Yeah, yeah.
Yeah, no problem.
(25:21):
I want to send you a bill.
What what do we miss here?
So we got we got the MA advisor,um, we have the CPA, the
attorney, wealth advisor.
Are there any other components,any other outside parties to to
the team, to the deal?
Anything, any other finalthoughts that you want to add?
SPEAKER_00 (25:41):
Uh a lot of times uh business owners have business
coaches along the way.
Uh right.
I mean, uh you got to this levelmaybe because you're a smart
business person, but maybe therewas a coach involved, and that
coach has been with you everystep of the way uh to help you
grow.
So have have the coach involvedwith the team, uh, just another
(26:01):
smart person.
Usually these coaches have beenvery successful business owners
and and and you know, gray hairand been doing it for you know
35, 40 years in their 60s and70s, you know.
Uh, you know, they say wisdomdoesn't begin until you're 35,
and you're not an expert untilyou have about like like 35,000
(26:22):
hours in a career.
So you know, surround yourselfwith people that have a lot of
hours, and and I I think you'llget the right advice.
SPEAKER_02 (26:30):
Yeah, the the gray is uh the the gray coming
through are signs of wisdom.
SPEAKER_00 (26:35):
Wisdom I noticed that over the time frame we've
been doing this podcast is thegray coming in.
SPEAKER_02 (26:41):
Yeah, the the the for me the wisdom lies in the
fact that I I the more I theolder I get, the more I realize
how little I know abouteverything, right?
Like I know what I know and Idon't know what I don't know,
and I'm very humble when itcomes to that.
And many times a lot of thethings that I think I know, I'm
actually wrong on.
So I'm like really, reallyopen-minded.
I'm always interested to hearother others' perspectives
(27:01):
because who knows, I could bewrong.
That's right.
Yeah, well, my daily dose ofwisdom.
SPEAKER_00 (27:06):
Can't know it all, but you pick a few topics where
you want to know all.
SPEAKER_02 (27:09):
If you're really good at that, yeah, yeah, I know
that.
All right, cool.
Well, let's let's leave it atthat.
This was really insightful.
Uh, everyone, thanks so much fortuning in.
Uh, if you found this contentuseful, please don't forget to
like, subscribe.
Uh, if you've had your own uhforay into the sale of a
business, like let us know someinsights in the comments.
Was there anything that wemissed, anything that you'd like
us to address, let us know aboutit, and we will pick it up on
(27:31):
the next episode.
Again, everyone, thanks fortuning in, and we will catch you
all next time on the nextepisode of the South Florida M
⁇ A Advisors Podcast.
Take care, have a great day.
Thank you.
unknown (27:42):
All right.
SPEAKER_01 (27:43):
Thanks for listening to the South Florida MA Advisors
Podcast.
For more information, visitSouth FloridaMA.com or contact
954 646 7651.
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