Jim Stein Sharpe

When Your LOI Falls Apart

When Your LOI Falls Apart

Having a transaction fall apart can be devastating in a number of ways to a searcher. Since it takes an average of 3.1 LOI’s, and many months, to get to closing (See blog post Getting…

Continue Reading
Preparing Your Search Brochure

Preparing Your Search Brochure

Creating a “leave behind” document for a prospective seller is a very personal and unique opportunity to get your message across to a business owner. A single page presentation is also useful for the intermediary…

Continue Reading
Pricing for Value

Pricing for Value

Developing, and executing an effective pricing strategy has a more immediate impact on profitability than increases in volume, which take much more time, energy and patience. As CEO, your leadership role in pricing is paramount….

Continue Reading
Your significant other

Your Significant Other

The support you receive during your search will come not just from your investors, other searchers, personal friends, and advisors, but also from the “significant other” in your life, whether that be your spouse if…

Continue Reading
Wearing Your Sales Hat

Wearing Your Sales Hat

With the title “owner” on your business card, you will become the most effective salesperson your company has. For me, learning this lesson took quite a while, until I discovered that being the company’s “face”…

Continue Reading
Getting to Closing

Getting to Closing

Getting to the closing date is a lot more challenging than most searchers think. Many things can happen that cause deals to fall apart. Just knowing what to expect during the closing time-frame is helpful…

Continue Reading
Strategic Partnerships

Strategic Partnerships

Strategic partners can be very important to your business. By ignoring this opportunity to gain significant resources may limit your growth and learning. I was not naturally a partnering kind of entrepreneur and wanted control,…

Continue Reading
Searcher Identity

Searcher Identity

Conveying “who you are” during your search is both a lot easier and more challenging with the advent of the Internet. There are now a myriad of ways to put yourself “out there” to attract…

Continue Reading
Growing Revenue

Growing Revenue

Striving for growth on the top line of your business rarely yields immediate results. Achieving profitable growth at a reasonable pace (GARP) is a more manageable objective. You want to be a “profitable company that…

Continue Reading
Searching Efficiently

Searching Efficiently

The search process is very time constrained; you will inevitably run out of your own money or, for funded searchers, your investors’ money. Two years might seem like a long time, but it goes by…

Continue Reading

Posts – Most Recent

Posts – Contemplating a Search

Posts – Launching a Search

Posts – Conducting your Search

Posts – Being CEO/Owner

Random Quote

45-“Strategic partners” are very important to the business searchers.You want to rely on some trusted providers to support your business, you can’t do everything yourself!(See Blog Post-Strategic Partnerships)

42-Start early on legal documents, they often delay closings while under LOIBoth the searcher and the seller are plowing new ground and it takes a while to comprehend the meaning of all of the legal details .(See Blog Post-Getting to closing)

63 Searchers make promises they can meet to build trust with sellers. It is important to provide incremental opportunities to show that you can be counted on to deliver.(See Blog Post-Building Trust with Sellers)

34 Searchers who get access to employees before closing are more likely to close. Once the seller begins to confide in their employees about the sale of the business and introducing you as the “new owner”, they are more likely to proceed to finalize the transaction than to change their mind at the last minute.(See Blog Post-Getting to Close)

07-You are not a PE firm, don’t act like one!
Potential sellers resonate with your taking over their legacy, a PE firm is simply adding to their portfolio. Make sure your website looks personal and non-intimidating.

04-Fight Seller Fatigue in Due Diligence!
Sellers get worn out in this process. It is highly emotional for them, probably their first time at relinquishing their “baby” to someone else. During LOI stage, make it a practice to communicate with them, in person or by phone, every 2 days.

53-Holding monthly “all-hands” meetings indicates your transparency. Trust employees with what is going on with the business and they will trust you more .(See Blog Post-Communicating with Employees)

06-Use metrics to drive decisions
Track what is most important for your search – getting in front of prospective sellers to make offers to buy their business. Track the number prospects, IOI’s, LOI’s and set goals for yourself! If you measure it, you can improve it.

22-When in conflicts arise, remind professional advisors they work for you.
Inevitably, you will disagree with some advice you are getting. After checking multiple sources, do what feels right to you and move forward. You will have to “live” with your own choices, not the professionals!(See Blog Post-Professional Support)

18-Every day that goes by during Due Diligence raises the chance that you won’t close!
Time is of the essence when it comes to moving from a signed LOI to closing on your business. Seller fatigue sets in as the closing date gets extended and the seller constantly re-evaluates their motivation to sell. Only you can push the process along.(See Blog Post-Due Diligence)

44-Plan ahead, give thought to the small details of how you present yourself as the new owner. The first introduction to the employees of the business has a huge impact so you want every word to be rehearsed!(See Blog Post-Taking over the business)

50-Don’t expect immediate “loyalty”, the previous owner earned it, it takes time. You will need to earn the trust of your employees by your actions, not your words. (See Blog Post-Seller Tranisition)

35-Searcher CEO’s need to be prepared to walk away from volume orders if margins will decline. It takes a forward thinking CEO to seek out higher margin, value added opportunities to grow profits, not revenue.(See Blog Post-Wearing the sales hat)

09-Learn from others – read case histories
Over 40 case histories have been written about funded and self funded searchers in a variety of industries and historical settings. Each have great “lessons learned” and are worth the $10 cost to read them. Searchers are learners!

39-The business seller is “hiring” you to run their business. The owner trusts you enough to turnover the “legacy” of their business to you. (See Blog Post-Searcher Profile)

Subscribe to Jim's Blog via Email

Enter your email to receive notifications by email.

Follow me on Twitter