218: Why Buying and Selling a Business Is a "War over the Numbers" Featuring Clint Bundy of Bundy Group

Manufacturing Happy Hour

M&A may look like a numbers game on the surface, but there’s a lot more going on behind the scenes. According to this episode’s guest, selling a business is as much about psychology and emotions as it is about the facts and figures.

In this episode, we welcome Clint Bundy, Managing Director at Bundy Group, who shares his experience, advice, and stories on helping people sell their businesses. We kick things off with Clint’s most memorable M&A experiences and why the reality of selling can be an emotional rollercoaster.

Clint shares his expertise on how to understand the true value of your business, what buyers are looking for, and how to win the numbers game when coming to a final price agreement. He also talks about what businesses can do to prepare for a sale and why utilizing tech and great systems is the most important step to take. Whether you’re planning your exit soon or far in the future, there are some great take-home points from Clint in this episode. After all, his advice is to plan way ahead of time, so give this episode a listen before you even think about getting that For Sale sign!

In this episode, find out:

• Clint shares his wildest M&A stories from his career, including one poor guy who fainted from the stress of selling his business
• How his background as a financial analyst prepared him for a career in investment banking
• The one thing Clint wishes he’d done a better job of when starting his career in his 20s
• Why selling a business is “a war of numbers” with buyers and sellers both wanting the best price (which means different things to each)
• How companies are using automation and new tech to build better systems and the impact this has on a business’ sale
• A breakdown of the top steps in selling a business and what goals sellers should strive for
• Why a lack of preparation is the number one mistake sellers make
• Surprising facts about preparing a business for sale that will really appeal to investors
• Why selling a business is mostly about psychology, not just numbers
• The four signs of a good company that investors look for
• The current state of M&A in the automation space, including who’s buying and selling
• What it’s like helping a business sell when the market conditions aren’t ideal

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Tweetable Quotes:

• “Motivation is the foundation of transactions – a motivated buyer + a motivated seller.”
• “We want to show the strongest possible financials and the strongest possible story, past, present, and future, to get the seller an above market price.”
• “We have to remember when a buyer is buying a company, they are buying the future.”

Links & mentions:

• Bundy Group, a boutique advisory firm with an industry-focused senior team and over 200 successful transactions
• The Old Fields, formerly The Old Garage, this Southfields London pub is situated on Southfield High Street just a minutes walk from the Underground station, and close to the Wimbledon Lawn Tennis Club

Make sure to visit http://manufacturinghappyhour.com for detailed show notes and a full list of resources mentioned in this episode. Stay Innovative, Stay Thirsty.