Valuations for Exiting Your Business With Nate Lind

Intro (00:09):
Welcome to Innovations and Breakthroughs with your host Rich Goldstein, talking about the evolutionary, the revolutionary, the inspiration and the perspiration, and those aha moments that change everything. And now here’s your host, Rich Goldstein.

Rich (00:33):
Rich Goldstein here, host of the Innovations and Breakthroughs podcast, where I feature top leaders on the path they took to create change. Past guests include Joe Polish, Roland Frazier, and Mike Calhoun. This episode is brought to you by my company, Goldstein Patent Law, where we help you to protect your ideas and products. We’ve advised and obtained patents for thousands of companies of the past 28 years. So if you’re a company that has software or product, or designed you one protected, go to goldsteinpatentlaw.com where there are amazing free resources for learning about the patent process. And you could email my team welcome goldstein pc.com to explore if it’s a match to work together. You can also check out the book I wrote for the American Bar Association that explains in plain English how patents work. It’s called the ABA Consumer Guide to Obtaining a Patent I have with me here today, Nate Lind.

Rich (01:22):
Nate started in real estate, then became a Fortune 100 business consultant before he got involved in e-commerce. He exited his first company in 2016, which was an e-commerce technology to a shopping cart platform online. He sold more than a hundred million in products. These days, Nate helps other people to sell their online businesses as a broker through website closers, the largest marketplace of a million to 150 million internet technology and e-commerce businesses. Nate is also the author of Maximum Exit, the Definitive Guide for Internet and Technology Focused Business Founders. It’s my pleasure to welcome here today, Nate Lind. Welcome, Nate. Thanks,

Nate (02:01):
Rich.

Rich (02:02):
So let’s talk a little bit about your, your background there. So, so you started out, uh, in, in real estate and, uh, yeah. Talk a bit about that.

Nate (02:10):
Yeah, so coming outta college, I had a degree in media art and animation. And, uh, was working in the Federal Aviation Administration downtown in Washington DC and I hated the commute. Um, I had read Rich Dad, poor Dad, and I just love the idea of, you know, not being a, uh, an employee and of being, um, you know, an investor and having passive income. And I went to a Cashflow 1 0 1 game and met, uh, what would then be a business partner of mine for about 15 years. Still a great friend of mine was the master’s ceremonies at, uh, at my, at my wedding in my twenties. And, um, and a colleague, even, even still, we do a little bit of m and a stuff together. Um, but, uh, I start, I had time, but no money. He had money, but not as much time. So I started working with him and, and buying and, uh, uh, buying real estate and residential properties, developing projects, and had about a 10 year career, um, doing transactions related work in the northern Virginia, Washington DC and Maryland area. Um, that, uh, was like really just an incredible run of entrepreneurship for this young 20 something, having a, you know, a a 30 something mentor and, and just exploring the world of entrepreneurship.

Rich (03:26):
Wow. Awesome. And, um, and beyond the entrepreneurship side of things, you also worked, worked in, um, the Fortune 100 arena. Mm-hmm. <affirmative>, the kind of the big players. So, so tell me a bit about what that was like after being involved on the kind of more scrappy level of entrepreneur. Yeah.

Nate (03:44):
Well, it was really interesting because in 2018, or no, 2008, um, I was, uh, essentially unemployed for about eight months. Um, the housing market had shifted so dramatically that, uh, the real estate projects that I was looking to acquire weren’t really attainable. Like they, the, the housing market was just going through its fluctuation. And if I, I was afraid that if I bought something, it was gonna depreciate as fast as it had been appreciating prior to that. So I just kind of, you know, sat on the sideline. So as I watched my savings dwindle and, uh, had a new house and a and, um, my firstborn son on the way, I decided to go ahead and just, you know, throw my hat in the ring to do some consulting. And, uh, got my resume all brushed up, got my, got, uh, some, some consulting, some consulting work, and had a, um, a head hunter helping me find some work.

Nate (04:32):
Ended up consulting with Fannie Mae, Freddie Mac, bank of America, Navy Federal Credit Union, some of the largest financial institutions in the world who really desired my specialty. I had a very unique background of working with, uh, homeowners in foreclosure and dealing with, um, the, the property values of real estate and designing and understanding the valuation metrics of, um, of single-family homes and residential projects that became really helpful for the short sale departments, uh, the, the foreclosure departments and the valuation departments of these massive financial, um, entities that were going through record foreclosures and sh and short sales and REOs. Um, I even spent some time consulting with the United States Treasury Department with their f fa, uh, with their, uh, making home affordable, uh, program through a period of that as well. And, uh, it was really interesting because I, I reread Rich Dad Poor Dad, and I remember reading the part where he went into the military to learn how to lead people, and I kind of attuned that to my situation. Um, I felt a little bit heartbroken that the entrepreneurial aspect of my career, um, had suffered, you know, a setback, but I was also really inspired to learn how to work with other people and how to lead larger groups. And I had, uh, a group as large as 30 people reporting to me, uh, during that time. And it was really a fascinating experience.

Rich (05:52):
And, and, and I imagine also it taught you about valuations. Um, dare uh, you know, like, and not just valuations, but kind of the type of valuations that larger intu institutions, um, you know, the, the type of value that larger institutions would put on things and kind of how to work that world between entrepreneurs and, um, and larger institutions, I guess now private equity firms or, or other, um, you know, um, sources of financing that, of the type that you deal with today.

Nate (06:24):
That’s exactly right, rich. You know, if I think about it that way, I’ve been doing valuations for almost two decades. <laugh> <laugh>, yeah. Hadn’t really considered it, you know, thinking about it, but you’re exactly right. Like, part of the things that I was doing with, uh, at e-Trade for a couple, for, for a long, uh, period of time, I was helping them value their, uh, their real estate, you know, on their books and working with their capital markets, um, uh, gurus, the, the guys up in the capital markets desk, uh, with analyzing the, the portfolios of their, uh, of the entity. And, uh, yeah. Holy cow. That’s, uh, uh, thank you for pointing that out. I hadn’t even considered that. That’s, uh, that’s exactly right. I’ve been doing valuations now, which it, which I guess would explain why it feels so natural to me. I’ve been doing it for so long. Um, yeah, I love that part of numbers. That’s, that was the, also the technology I sold to the shopping cart was essentially valuing my e-commerce business and what was the profitability of the supplements that I was selling and how I was able to sell 109 million worth of it over the course of eight or nine years, uh, when I was doing that. Cuz if you’re not making any money, you’re not selling it for very long.

Rich (07:31):
Yeah, absolutely. And, and, and so the, you had the experience in e-commerce as well by selling products. And then though though, currently, I guess just tying it together, it’s like you, you help to connect value between the small and large, right? Yes. Like, it, it’s like understanding the entrepreneur side of things and understanding, uh, like the value that they’re creating where they can adjust things to make that value more attractive to the larger institutions.

Nate (08:00):
That’s exactly right. And a lot of what I do is free consulting with my clients who have these digital or internet or technology businesses. Um, what we’re kind of doing is creating some curb appeal for it, kinda like in the, the housing world or a single family home. Like we need to, you know, cut down the, uh, you know, some of the overgrown hedges out front. We need to, you know, throw a slap of paint on the outside of it so that when someone stops and takes a gander, uh, they’re not immediately repulsed by <laugh> how dirty it is outside. And that’s usually where I get my hands, uh, get my hands dirty with a, an entrepreneur’s financials. Cause there’s a certain way they need to look and feel. And, uh, and there’s a format to them that’s an industry standard. And, uh, and oftentimes I find that my clients with these, um, oh, what’s called lower middle market businesses, this 1 million to 150 million segment that I serve, um, their financials, uh, the formatting of their financials or maybe the labeling of the chart of accounts is, uh, it’s not industry standard or it’s just, it’s not simple or clear or understandable, and we have to go in and spend a little bit of time, um, making some adjustments.

Rich (09:03):
Right. And so it’s kind of like the value might be there, but it’s not understandable. So yes. So what are some things that they can do to increase the value, uh, and have it understood by potential buyers that there is value there?

Nate (09:16):
Yeah. The, the first thing they can do, and this is, you know, maybe, maybe your audience doesn’t have to worry about this part, but it’s just mind-boggling how many people don’t have professionally prepared financials. They don’t have a bookkeeper, they don’t have a C P a that’s, that’s guiding them through the process. They’re keeping their books on a spreadsheet or not at all. Um, making sure that you’ve got everything inputted into QuickBooks or Zero use an accounting system, um, that like the output, the literally just do export the reports outta QuickBooks or Zero will increase the likelihood of a buyer making an offer just because of the formatting of it. They feel like they can trust that data as opposed to, you know, a spreadsheet that is, you know, looks like it’s kind of been like, worked over on the back of a napkin first and then, you know, put digitally, um, the number one most important thing for buyers is to feel that the numbers are looking at are accurate.

Nate (10:07):
So you need to have accurate data. It needs to, it, it will be reviewed and reconciled to bank statements and it, and, uh, invoices and ex you know, expense reports. All of that stuff will eventually be uncovered. And if it, if you can’t prove that later on, you may as well just spend the time and effort to get that done. Um, that’s the number one thing that people need to do. And then, you know, just having, um, another kind of gem for, for everyone is, you know, having a, a good, uh, sense of customer satisfaction that’s viewable online. So if someone’s gonna Google you, are your customers, are your clients, are they advocating for you or are they condemning you? Um, that’s a big one because a lot of times these are two things that will be looked at when a buyer is, is reviewing the confidential informational memorandum and financials. They’ll review the financials, look to see if they feel professional, if they look accurate or like look like they will stand the, uh, the test of due diligence and then they’ll go do some Googling and see what, what does the world think about you. Uh, those would be two things I think are really, really important for people to consider.

Rich (11:16):
And, and I think both of them kind of speak towards standardization a bit, um, speaking the same language, like knowing the language that, um, that they want to hear it in and speaking it. So it’s kind of like you’re saying like having the spreadsheets be a format that they’re familiar with. It’s kind of like, you know, line 21 of your tax returns a g i, right? It’s like everybody knows what line 21 is, right? And so it’s like you expect it to be in a certain place and then you can compare apples to apples. It’s like if you, if you format things in a way in which, um, it’s, it’s expected and they’re used to seeing, then I guess they’re, they’re able to trust, trust it more. Cuz it feels like they’re comparing apples to apples. And, um, and I guess the same thing when it comes to reviews and such, it’s like, well, um, if your product has 4.9 stars and uh, and 3000 reviews, then we, we know what that means and we know how to compare that to, um, to another business. So it’s, uh, to me it occurs like knowing how to speak the language so that they can trust it, as you said. But to me it sounds more like apples to apples. Let’s just make being able to make an even comparison between things.

Nate (12:26):
That’s exactly right. You know, like on the income statement for instance, it’s always income up at the top, what income, what kind of revenue’s coming into the company. And then right underneath of that it, it’s going to be the cost of sales and cost of goods. Um, then after that it needs to be at the operating expenses and that’s it. It’s real simple. People that like to get qsc about it and move their cost of sales down under their operating expenses or move stuff around it just doesn’t jive with everybody else. So it’s immediately like, it’s like going to a dance and not, you know, it’s like going or everyone else is in a, a tuxedo and a nice ball gown and you show up in flip flops and, and shorts. Yeah. If you want to be the guy that stands out, okay, but this isn’t the place to do that. <laugh>,

Nate (13:10):
If you wanna get asked to dance, if you want someone to, you know, to respect and to treat you like you’re part of the community now, cuz you’re joining a community of m and a professionals, now you’re entering that world. Um, it just makes sense to me that you’d wanna do a little bit of homework and, uh, uh, and, and follow suit or, you know, work with a guide, work with someone like a broker or, or have, uh, a fractional C F O help you through that process. They know what it needs to look like. Any, any C F O fractional C F O or, or shoot, even just A C P A will tell you, you know, what they need to look like. They probably have already told you and you may not have spent the time or the money to, uh, to go through that effort earlier on. And now it’s time to do that.

Rich (13:52):
And so, on the flip side, what are some things that, that either decrease the value or kill the deals that you see?

Nate (13:58):
Well, a big one, rich, really like right in your ballpark, if they don’t have any way to defend themselves, if they’ve got nothing distinguishing or defensible, no intellectual property, no patents, no trademarks. If there’s, if there’s nothing to, to, if there’s nothing that eases the buyer’s concern that after they buy the tran the, the business that it’s going to explode, um, you know, or that it’s not gonna be able to be, to be defendable against the competition, that’s a huge red flag. Um, absolutely recommend people at the minimum trademark your business name or trademark your brand name. Um, you know, you can get a little bit more detailed and, and trademark, uh, product lines that you have as well. Um, if you’ve got anything that’s patentable, that is amazing. I love having sellers that have patented, uh, some of their technology or their innovation or their intellectual property, like, and, and, and putting it in a, if not a utility patent, if it’s like a physical, you know, contraption, then at least a design patent, um, you know, just shows that there’s been an extra level of interest and care put towards the business that that translates very well, uh, to buyers.

Rich (15:07):
It’s like dotting the i’s and crossing the T’s. If you do it there, then, then it tends to show that you’ve probably done it in other areas of your business.

Nate (15:15):
It’s exactly right. It’s just all a credibility game. Like people are, are, they’re looking at your financials, you’re thinking, can I, can I trust this person? And then they’re looking at, okay, they’ve got, they’ve taken the extra steps to defend their, their know how, their knowledge, their products, their skills, whatever, whatever it is. Whether it’s a service or a product. If they’re, if they’re taking the time to patent or trademark or, and copyright their material, that also is like, okay, wow, this person’s gone the extra, you know, the extra nine yards. Um, and the entire process of buying and selling, it’s, it’s, it’s rapport and relationship first and, and trust as well. That’s really what carries these transactions from listing them for 10 million to getting closed and, and sold for 10 million was what, what from the starting point and how we, how we have created a narrative and positioned the business until the buyer has reviewed everything and found that what we said was in fact what is and now they’re paying for it.

Rich (16:16):
Yeah. So it’s like that it all matches up. Yeah. Uh, with, with what they initially thought. And then I guess the other part of what they’re doing is, you know, they’re buying the, the, um, um, the sustainability of the company mm-hmm. <affirmative> and they’re buying the expectancy of possible growth, right? So it’s like if they, if they’re paying a multiple of three mm-hmm. <affirmative>, then it’s like they’re expecting that, um, that whatever profit it’s been making, it’s going to continue for at least three years mm-hmm. <affirmative>, right? Like that’s like the baseline that there’s a certain level of sustainability and it is what you say it is. Right? Um, and then that on top of that, that there is an opportunity for growth. Um,

Nate (17:01):
Yeah, that’s exactly right. We, um, I, I referenced this a number of times in my book, maximum Exit. It, it really is like, there’s, it’s like any sales you have to answer what’s in it for me, for your target audience. And your target audience is someone who’s going to pay you, you know, three times your trillion 12 months, uh, earnings. And for them to pay you three years of income today, they need to know that what what you do can continue for at least three more years without you. And if you can communicate that to them, uh, if they can see that, if they can, you know, if they, they will be constantly making judgements as to whether or not it’s, this is a viable deal and whether the risk is low enough for them to invest the money. It’s all a, a risk versus reward for them or a return on their investment.

Nate (17:49):
And, um, that’s the key piece to these transactions, which, it’s the same thing in real estate or any other marketplace. People want to know that they’re, they’re getting something, uh, in return for their investment. And if you approach this with trying to like win or get something over on someone, please don’t come to me, please. Like, just, you know, reconsider your options. Um, because that’s going to get found out, uh, these, the time it takes and the, and the delicacy and the due diligence that goes into these transactions leaves enough time for unscrupulous motivations to be uncovered and they just fall apart.

Rich (18:24):
Yep. And, and I mean, if it’s not win-win, it’ll ultimately fall apart.

Nate (18:29):
Absolutely. There’s just too much that’s going on. You’re gonna be spending too much time with somebody, um, they’re gonna be reviewing too much material. Um, you, you can’t, you can’t fake it till you make it through these, you, you really just have to be open and honest and then show, you know, show the profitability of the business, show the trademarks and patents and, and intellectual property that you’ve got or run the business. We, we create an offering memorandum that features all of the highlights of the business, and we create a narrative, um, that, you know, it’s putting the best foot forward for the business. We’re not manufacturing or falsifying anything. We are, we are just showcasing, uh, what’s the best aspects of the value of this business for somebody to make that assessment. And then we answer truthfully and honestly every question they have about it. Um, you know, continuing to keep a positive and, and optimistic outlook. Uh, but if there’s things that need to be addressed and, you know, they may have a negative connotation to it, then we have to, we have to discuss that with them.

Rich (19:23):
Yep. Absolutely. And speaking of valuations, let’s talk about like where valuations currently set, um, in the current marketplace. So, so what is it that you, you’ve been seeing these days with regard to valuations and with regard to the sellability of companies or online companies?

Nate (19:37):
Absolutely. So we focus on, uh, cash flowing business businesses, typically growing cash flowing businesses. Uh, they’re all internet technology and, and e-commerce base. So they’re usually able to be operated remotely. So we have a massive network of buyers that are interested in those because they’re not, this isn’t like only businesses for sale in Houston or LA for instance. Um, the network is over 167,000 buyers right now, and they’re paying, uh, you know, anywhere between three and a half and, and six times annual earnings for those businesses, depending on how profitable they are, how fast they’re growing, and what the trend is looking like. If they’re going up and up and up and up and up, they pay more. Um, that tends to be the biggest factor for the, the valuation of businesses. But I do have, um, I’ve got a, a spreadsheet and kind of a self-assessment, uh, uh, worksheet that people you’re welcome to email me, um, directly, and I can give you access to it for, of the 27 factors that come into the multiple it creating valuation, it’s a two-step process.

Nate (20:45):
The first step is uncovering what’s the, the actual earnings of the last 12 months or trailing 12 months. Then we take that and we multiply it by the output that we get from this worksheet. So we take 27 factors that all add up and figure out a, your multiple might be 3.5 or 4.5. So if you’re worth, let’s just say your trillion 12 months profit is a million dollars and this is seller discretionary earnings. And I’ll, I can explain more of that in my book. People can can read that part or I’ll send you the chapter about it. Um, but if, if your seller discretionary earnings are a million dollars and the business multiple is for X, then you’re worth $4 million. And then the structure of those deals right now, we’re still seeing a large component of them being in cash. I’m seeing close to 70, 75% of my transactions are in cash.

Nate (21:37):
So a 4 million transaction, 70% of that would be cash at closing. And then 30% of that might be some component where maybe you hold a little bit of equity alongside the buyer and the next business, and it’s still the same business, but just a new name. Um, there might be some component of seller financing, kind of like in real estate, you know, you might take a position where you’re financing some of it over five years or three years and getting paid monthly, quarterly, or annually, or a component of it could be contingent based on performance. And, uh, it’s what, you know, people hear about is called an earnout. And, um, I try to reduce that as much as possible because that, that creates risk for the buyer or for the seller. I mean, um, it reduces risk for the buyer. So the buyers love that because they, they have, you know, a little bit of the seller’s skin in the game, uh, for compensation after the, after the sale. Um, I try to steer the negotiations more towards guaranteed payments like seller financing, um, or, or equity. Cuz then you’ve got a little bit more control in the upside. Um, that tends to be kind of how things shake out.

Rich (22:44):
Got it. Okay, cool. So, so these days though, there’s a lot, um, it seems like there is a lot more buyers than there are people selling businesses. Yeah, there’s still quite a bit of demand for, um, for businesses that are profitable.

Nate (22:58):
That’s been consistent for the three years I’ve been a broker. I, I was shocked at how many buyers there were. Um, when I, when I joined website closures, you know, I had a, actually it was like at a, one of the masterminds. There’s, over the course of two masterminds, I met Jason, Iran, the founders of the website closers. And, uh, honestly, the first time I had dinner with them, I didn’t believe how big their buyer network was. And then I heard from several people who had sold their businesses with website closers, and I was like, whoa, the proof is in the pudding. Like, uh, <laugh> people that were speaking at my events were selling their businesses with them. Um, you know, I started asking them more questions and then, uh, it was January, 2020 just before the pandemic. Um, I thought it would be a great, um, uh, adjunct to the, the events that I was doing with e-commerce owners.

Nate (23:39):
I decided to go ahead and, and, uh, and become a broker with them. I later bought my own franchise. And, um, and yeah, just was appalled and mystified at how many buyers that there were then and still are. We’ve got tens of thousands of buyers. I get hundreds of responses every listing I have all the best one I had at a hu at 274 responses from buyers. It took me weeks to communicate to everybody. I ended up having, I’ve got two associate brokers that help me on the buy side now just to vet the buyers. Recent listings. Just this year I’ve had over a hundred inquiries in less than a week, uh, with, with people still looking at buying businesses because one of the things that happens even when the markets tend to, to falter is institutional investors and individual investors return to what they know and love as a way to create wealth in the world.

Nate (24:31):
Entrepreneurship. And it’s way faster to acquire a, a business. And, uh, that’s got cash flow, you know, if it’s two or three years old than it is to start over and do spend grind two or three years to try to create that same cash flow. Um, they’re willing to pay three times, four times, five times, uh, your annual income to acquire you because it makes sense to them and they, it oftentimes they’re bigger, so they may be worth 6, 7, 8 times they’re trailing 12 months earnings. They’ll buy you for 3, 4, 5 times you’re trillion 12 months earnings, and then all of a sudden that million dollars of earnings they bought from you at four x for 4 million is worth six x. It’s worth 6 million for them 90 days later or 180 days later, you know, however long it takes to transition and integrate it all. So it’s an arbitrage.

Rich (25:21):
Yeah. So maman, I guess people that are concerned about, um, the ability to sell their business, uh, like, you know, is there something up with the economy that’s going to be negative? I think probably the concern is more about their own business than it is about the selling part. It’s like if they’re, if your, if your business is faltering, you’re not going to be able to sell your business. So you just need to get your things, get your business in line, get it ready, and then there are buyers out there. Um, but what respect, what, what mistakes do entrepreneurs make when they, when it comes to selling their business or getting the business ready to sell?

Nate (25:57):
Bad counsel is one. Um, we work with a lot of, uh, you know, incredible professionals in the world of mergers and acquisitions, but you should not be using your family lawyer or your, uh, your real estate buddy, you know, for valuations. You should, you should not be using people that are fam are not familiar with mergers and acquisitions, uh, to be advising you.

Rich (26:21):
Uh, I have people ask me to, to be involved in such a situations. I’m like, you want a transactional attorney? Yeah, you want an attorney that has experience directly in m and a. Uh, you know, I, I may be be able to consult you, consult with you from, from a business standpoint or from the standpoint of the IP and getting that ready. But when it comes to transaction, you want a, a real transactional m and a lawyer working on it.

Nate (26:46):
Yeah, that’s exactly right. And you know, they’re, they’re not terribly expensive, but they’re not cheap either. You know, we’re, we’re seeing anywhere between, you know, half a percent to a full percent of the transaction is being spent on the sell side attorneys. And, but if you think about it as it relates to real estate, that’s pretty dang fair. Like, you’re gonna be spending somewhere around that for your, uh, your, your title insurance and your title policy and, and, uh, you know, the, the attorney who’s handling that. You, you know, just like in real estate, there’s a broker fee, you know, so you’ve got, you know, a broker fee, you’ve got a transaction attorney. Those are the two fees that you have that you’re responsible for as a seller. Um, so it’s, you know, but it’s, you get the network, uh, you get the expertise and you get everybody, you know, motivated and, and moving you towards the finish line to try to get a deal done as opposed to, you know, other attorneys that may not, it may not be their, um, you know, their, their specialty.

Nate (27:41):
They are going to be very risk averse, and they’re, they’re going to be trying to protect their reputation and their, their license more than they’re trying to get your deal done. And for them having, uh, an asset purchase agreement that has been redlined from page one to page 100, uh, and charging you $20,000 worth of attorney’s fees just, just for, you know, 12 to 36, uh, you know, hours of, of, you know, $360 to $600 an hour, you know, that’s money in their pocket. They love that. And they, you know, they’ve protected themselves, they’ve protected, they’ve protected you, but, you didn’t get a deal done and you spent a ton of money and you’ve off the buyer, the broker, and everybody involved. And, uh, no, every, everyone wants salty.

Rich (28:27):
Yeah, exactly. And that’s the other part of it is like, there are a lot of attorneys that are deal killers and you want one who has experience making the deal. Um, yeah. And, um, ma making it work, working out the differences and not just, um, creating problems out of, out of an extreme risk risk averseness.

Nate (28:47):
Yeah. The other deal killer is the business faltering. You know, if you, if you’ve the best time to sell the business is when you don’t want to, when it’s effortless, when it’s easy, when it’s growing, when you couldn’t see yourself doing anything else, like that’s when people wanna buy you. It’s the same thing for lending. You can’t, like, it’s really difficult to get loans when you need it. The best time to get loans and get credit lines and stuff is when you don’t need it. Um, so considering, you know, an an exit, oftentimes, you know, a lot of people will come to you and they’re bored or they’re burnt out. Um, but you know, it, the best time really is when you don’t, you don’t need the money, you don’t need the exit, and you’ve got the ability to walk away from a bad deal. You know, that gives me a great position to be your guide and your broker, uh, to elicit the best offers from buyers and just tell ’em, listen, you know, rich isn’t selling this thing for anything less than four times his annual earnings, and he doesn’t need to. He’s patient, patient, he’s, you know, this thing, his thing’s cash flowing. He’s got all of the hard work delegated. He’s living his life and enjoying it. You know, Mr. Byer, you’re gonna have to, you know, pull up with a truckload of cash.

Rich (29:51):
That’s right. And, uh, I’ll be here when you’re ready. Yeah. Hey, I’ll be here <laugh>.

Nate (29:55):
That’s it. You know, professional service firms and, and, and attorney firms too. Those are worth, uh, those are worth a pretty penny. Um,

Rich (30:02):
No, maybe not this one, but, uh, but yeah, maybe someday <laugh>. Yeah.

Nate (30:06):
So like that’s really the best time. It, when, when you can sell, if you need to sell, like, you know, you’re, you need money, um, no one’s gonna wanna buy you. Uh, you, you’re gonna, you’re gonna have to really do the hard work. So a buyer is not going to understand how they can resurrect your business or turn it around, um, when you couldn’t. They’ll be happy to try to sell you a consulting package to turn you around and to charge you for it. Um, but I have, and I have found buyers that use the m and a pipeline as a way to go do consulting services. And as soon as I detect that, I smell, sniff that out and cut them off. Um, that’s what I’m doing as a broker. I’m vetting and protecting you, uh, to make sure you’re not spending time with, you know, people that you should not be. Um, but yeah, that’s another big deal coach. It’s probably the two, two big ones. Having the wrong team, uh, that’s advising you, um, you know, with the, I’m sure the best intentions for where they are in their, their lives, but they’re not giving you great advice, uh, or having a business that is, uh, in free fall. Uh, those are deal killers.

Rich (31:09):
Got it. Yeah. All of this is so helpful. So, um, if people wanna learn more about you or get in touch with you, how they go about doing. So,

Nate (31:15):
The best way is to email me. I’m extremely accessible. You can email me, it’s nate website closers.com. Uh, or you can find me on Facebook. Rich and I are connected on Facebook. I, I’m Nate Lind, n a t e l i n d on Facebook. Uh, but yeah, I would say email’s gonna be the quickest way to re I’ll, I’ll respond to you, happy to share with your audience, um, you know, digital copy of my book. Um, happy to do free consultations for Business Valuations. If there’s anybody that’s curious, you know, Mo and most people are you, you usually don’t know how much you’re worth until someone makes an offer. And then <laugh>, it may be too late, <laugh>, you may think that’s a great deal and, uh, you, you really need to get the markets read on you. Um, that’s the other thing that’s for important is you wanna have multiple people bidding on you so you can assess your true value, not just one person saying you’re worth a million bucks. Um, but I do consultations that result in a business valuation for folks for free all the time. I’m, I’m in the process. I’ve got two, I’m, I’ll be working on the next couple hours. Um, I love doing it. I lo and, and as rich as you pointed out to me, I’ve been doing valuations for 20 years now. <laugh> totally for, I didn’t even connect the dots there,

Rich (32:24):
Give you a new messaging,

Nate (32:25):
<laugh>. It is, I’m, I’m completely rewriting all of my messaging. Been in valuations for 20 years <laugh>. So

Rich (32:30):
Yeah,

Nate (32:31):
I love it. I love talking to entrepreneurs. Um, you know, I have had some incredible, uh, exits. I’ve also had some really frustrating, uh, tumultuous shutdowns and, and entrepreneurial failures. And, you know, those make us stronger for each, each new endeavor that we go through. Uh, so very, very empathetic to anyone’s situation that’s out there. If you’ve got something that’s growing that’s at least two and a half year, two years, two and a half years old, and it’s profitable, um, that would be my target audience. If, if the business is, is struggling, if you, if you need, you know, financing, um, I, I can’t really help you there. Um, but I’ll happy to wish you the best.

Rich (33:12):
Awesome. So, uh, again, Nate, thanks so much for taking the time to, uh, be on this podcast. A lot of fantastic information. Um, and um, um, you know, again, thanks for being on the podcast.

Nate (33:25):
You got it, rich. Thanks for having me. It’s nice to reconnect with you.

Speaker 4 (33:32):
Thanks

Outro (33:33):
For listening to Innovations and Breakthroughs with your host Rich Goldstein. Be sure to click subscribe. Check us out on the web at innovationsandbreakthroughs.com and we’ll see you next time.