The Exit Plan: Mergers and Acquisitions for Creative Entrepreneurs

George Hughes, founder of Small Films, shares his experience of starting and acquiring businesses in the video production industry. He discusses the challenges of transitioning from working in the television industry to running his own company and the importance of understanding the objectives of clients. Hughes also talks about how he acquired Maia Films, an education specialist company, during its liquidation process. He explains the negotiation process, the assets he acquired, and the impact on his business. He concludes by reflecting on the lessons learned and the potential for future acquisitions. Takeaways Transitioning from working in a specific industry to running your own company requires understanding the objectives of clients and adapting to their needs. Acquiring a business during its liquidation process can be a strategic opportunity, but it requires careful negotiation and assessment of the assets and liabilities involved. The acquisition of Maia Films has the potential to significantly increase Small Films' turnover and establish the company as a dominant player in the education content industry. Timing is crucial in business acquisitions, and acting quickly can help secure clients and maximize the benefits of the acquisition. Reflecting on the experience, being more aggressive and proactive in the acquisition process could have yielded even better results. Connect with George on LinkedIn: https://www.linkedin.com/in/georgemhughes/ Connect with Barnaby on LinkedIn: https://www.linkedin.com/in/barnabycook/ Join The Exit Plan mailing list: http://eepurl.com/iC8sIY

Steve James Royal, co-founder of The Yard Creative, shares his journey of building and selling a design agency. The Yard Creative is an evidential design agency that focuses on bringing scientific thinking and research into the design process. Steve discusses the challenges and successes of implementing evidential design, including a case study with World Vision. He also talks about the growth of the business, the sale process, and the transition to working for a new owner. Steve shares insights on the importance of growing up as a business owner, the impact of COVID-19 on the earn-out, and his plans for the future. Takeaways Evidential design brings scientific thinking and research into the design process, allowing for more objective decision-making. Implementing evidential design can lead to successful projects and awards, as demonstrated by the case study with World Vision. Growing up as a business owner involves developing processes, understanding the financials, and taking a more strategic approach. Selling a business requires finding the right buyer who aligns with the company's values and long-term goals. The earn-out period can be affected by unforeseen events, such as the COVID-19 pandemic, but open communication and flexibility can help navigate challenges. Transitioning from a business owner to a non-executive role allows for more free time and the opportunity to pursue new ventures. Connect with James on LinkedIn: https://www.linkedin.com/in/steveroyle/ Connect with Barnaby on LinkedIn: https://www.linkedin.com/in/barnabycook/ Join The Exit Plan mailing list: http://eepurl.com/iC8sIY

Arthur Petropoulos, the managing partner at Hillview Partners, discusses his work in mergers and acquisitions and capital advisory for middle market companies. He shares how he got into this line of work and the process of setting up and growing his own firm. Petropoulos explains the importance of building infrastructure and processes in businesses to reach the one million EBITDA mark, which is a key threshold for attracting buyers. He also highlights the factors that make a business attractive to acquirers, including fundamentals, access, capabilities, people, process, and product. Petropoulos shares his experience working with video production companies and the types of buyers in that industry. Arthur Petropoulos of Hill View Partners discusses the number of transactions his firm works on each year, the current state of the market, and the types of companies they typically deal with. He emphasizes the importance of consistent, profitable businesses that generate cash and provide real-world products and services. Petropoulos also explains the split between strategic buyers and private equity in the transactions he has worked on. He provides an overview of how private equity works, their objectives, and the success rate of private equity deals. Takeaways Mergers and acquisitions and capital advisory firms help companies sell themselves and secure capital. Building infrastructure and processes is crucial for businesses to reach the one million EBITDA mark and become attractive to buyers. The attractiveness of a business to acquirers is determined by fundamentals, access, capabilities, people, process, and product. Video production companies can be attractive to buyers, especially if they have specialized capabilities or access to specific industries. Hill View Partners typically closes around 10 to 12 deals a year, but is aiming to increase that number to 20 as the team grows. While flashy early-stage companies and mega deals may get attention, the majority of the market consists of consistent, profitable businesses that generate cash and provide real-world products and services. Private equity firms typically look for businesses they can buy, improve, and sell within a 5 to 9 year timeframe, aiming for a return of around 20%. The split between strategic buyers and private equity in transactions is roughly 40% each, with the remaining 20% being family offices and search funds. Private equity deals have become more institutionalized and professionalized over the years, with a focus on consistent returns rather than high-risk, high-reward strategies. Connect with Arthur on LinkedIn: https://www.linkedin.com/in/arthur-petropoulos/ Watch his YouTube Channel here: https://www.youtube.com/@HillViewPartners Connect with Barnaby on LinkedIn: https://www.linkedin.com/in/barnabycook/ Join The Exit Plan mailing list: http://eepurl.com/iC8sIY

Alex Price, founder of 93 Digital, shares his journey of building and selling his digital agency. He started freelancing in web design at a young age and eventually grew his agency to a team of 35. The agency focused on WordPress and B2B tech clients, and later expanded into digital marketing services. Alex decided to sell the agency when it was in a position of strength and had attracted interest from potential buyers. The acquisition process involved finding the right cultural fit and structuring the deal. After the sale, Alex stayed with the business for a period of time before deciding to move on and explore new opportunities. Starting a digital agency at a young age can lead to significant growth and success. Focusing on a niche market, such as WordPress or B2B tech, can help differentiate an agency and attract clients. Selling an agency requires careful consideration of cultural fit and deal structure. Integration after an acquisition can be challenging and time-consuming. Reflecting on the experience of selling an agency can provide valuable insights for future endeavors. Connect with Alex on LinkedIn: https://www.linkedin.com/in/alxprce/ Connect with Barnaby on LinkedIn: https://www.linkedin.com/in/barnabycook/ Join The Exit Plan mailing list: http://eepurl.com/iC8sIY

Richard Neve, Executive Creative Director at Cognito, shares his professional journey and the acquisition of his agency by Cognito. Cognito is a global agency focused on financial services and financial technology. Richard started as a journalist and later moved into public relations in the financial services industry. In 2017, Cognito acquired Richard's agency in the Netherlands, and in 2022, they acquired a minority stake in a German agency, which Richard now manages. Shortly after the acquisition, the seller sadly passed away, and Richard talks about what happened in the days and weeks following. The future plans for Cognito include expanding their footprint in other countries through similar acquisitions. Takeaways Cognito is a global agency focused on financial services and financial technology. Richard Neve's agency in the Netherlands was acquired by Cognito in 2017. Cognito later acquired a minority stake in a German agency, which Richard now manages. The future plans for Cognito include expanding their footprint in other countries through similar acquisitions. Get in touch with Richard Neve: https://www.linkedin.com/in/richardneve/ Join The Exit Plan mailing list: http://eepurl.com/iC8sIY

In this episode of The Exit Plan, Barnaby Cook interviews Gabe and Jack, co-founders of The Shoots Group, a video agency. The twins share their journey of starting the business, scaling it, and eventually deciding to go their separate ways. They discuss the challenges of running multiple brands, the importance of alignment in business partnerships, and the process of negotiating and finalizing their buyout agreement. Jack is now focused on growing the Finance Shoots brand, while Gabe is exploring new opportunities in the video agency space. Takeaways Starting a business with a partner can be a rewarding experience, but it's important to regularly reassess and align on long-term goals. Scaling a business requires careful delegation and a clear vision for the future. Negotiating a buyout agreement can be a complex process, but it's important to find a mutually beneficial solution. Personal relationships and communication are key to navigating the challenges of running a business with a partner. Finding alignment between the work you want to do, the business model, and your clients is crucial for long-term success. Thanks to Forever Audio for hosting us - check out their facilities here: https://foreveraudio.com/ Get in touch with Gabe Whitehead: https://www.linkedin.com/in/gabrieljwhitehead/ Get in touch with Jack Whitehead: https://www.linkedin.com/in/jack-whitehead-%F0%9F%8E%AC-894ba6150/ Join The Exit Plan mailing list: http://eepurl.com/iC8sIY

Andy Maher, founding partner of Endeavour, shares his career journey and the work his firm does in business advisory and M&A. He discusses the partnerships between Endeavour and Green and Purple, as well as Keystone Lawyers. Andy explains the criteria for taking on a business and the process of identifying potential buyers. He also highlights the motivations that trigger the idea of selling a business and the emotional toll it can take. Andy shares some pitfalls and challenges in M&A deals and discusses the future plans for Endeavour. Takeaways Endeavour is a business advisory and M&A firm that works with global SMEs, agencies, startups, and scale-ups. Partnerships with firms like Green and Purple and Keystone Lawyers help Endeavour provide comprehensive support to clients. When taking on a business, Endeavour looks for founders who have the hunger, grit, and openness to collaborate. Due diligence is crucial in M&A deals to avoid surprises and ensure a smooth process. Motivations for selling a business vary, from wanting to grow with a larger organization to feeling burnt out or wanting to pursue new opportunities. Emotional challenges and personal dynamics can impact the success of a deal. Endeavour is expanding its reach globally and focusing on nurturing clients through the growth phase. Integration is an important aspect of M&A deals, and Endeavour has a partner dedicated to ensuring successful integration for buyers. Get in touch with Andy here: https://www.linkedin.com/in/andywilliammaher/ Join The Exit Plan mailing list: http://eepurl.com/iC8sIY

SummaryIn this conversation, Jordi Pujol, an expert in investment banking and valuation, discusses the process of valuing a business. He highlights the importance of value markers, such as brand and customer list, as indicators of a company's value. Pujol also emphasizes the significance of process in creating value and scaling a business. He advises business owners to focus on attracting, servicing, and retaining customers, as well as attracting and retaining talented employees. By managing for value and implementing effective processes, businesses can increase their long-term value. This conversation explores key strategies for scaling and increasing profitability in a business, as well as preparing it for sale. It emphasizes the importance of outsourcing non-core functions, managing for value, and avoiding value detractors. The discussion also covers the role of the founder in the business and the process of valuation and industry benchmarking. Overall, the conversation provides valuable insights for entrepreneurs looking to maximize the value of their businesses. Takeaways Value markers, such as brand and customer list, are important indicators of a company's value. Process is crucial for creating value and scaling a business. Business owners should focus on attracting, servicing, and retaining customers. Attracting and retaining talented employees is essential for long-term value. Scaling a business involves adding resources that increase revenue exponentially. Outsourcing non-core functions can improve efficiency and profitability. Managing for value involves focusing on revenue, sales strategies, and eliminating time-wasting activities. Avoiding value detractors, such as cutting costs without considering customer experience, is crucial for business success. Streamlining meetings and processes can save time and improve productivity. Founders should work on the business, not in the business, to ensure its sustainability without their constant involvement. Preparing a business for sale requires creating a forecast and establishing its future cash flows. Valuation is determined by multiples based on industry benchmarks and future profit projections. Connect with Jordi Pujol on LinkedIn: https://www.linkedin.com/in/jpujol1/ Join The Exit Plan mailing list: http://eepurl.com/iC8sIY

Trenton, the founder of a UX agency, shares his experience of selling his business. He discusses the background of his agency and the type of clients they worked with. Trenton talks about the growth and turnover of the agency, as well as the ownership structure and share options. He explains the reasons behind his decision to sell, including a difficult financial year. Trenton shares the process of finding potential buyers and negotiating the deal. He discusses the integration and transition period after the acquisition. Finally, Trenton talks about his next steps and the launch of his new business. In this conversation, Trenton reflects on his experience of selling his agency and the pride he felt in overcoming challenges. He also discusses the importance of taking time to appreciate and reflect on achievements Takeaways Selling a business can be an emotional journey, and it's important to consider the fear of what comes next and the impact on the team. Building a strong and attractive business is crucial for a successful sale, and focusing on client relationships and revenue growth can make a business more appealing to potential buyers. Integration after an acquisition can be challenging, and it's important to consider the cultural fit and the impact on the existing team. Leaving a business and transitioning to a new phase can be daunting, but it can also open up new opportunities for personal and professional growth. Reflecting on the experience and learning from the process can help inform future decisions and improve future outcomes. Overcoming challenges can lead to a sense of pride and accomplishment. Business owners often struggle to appreciate their achievements while they are in the midst of running their businesses. Taking time to reflect and appreciate accomplishments can help business owners gain perspective and satisfaction. Join The Exit Plan mailing list: http://eepurl.com/iC8sIY Connect with Trenton: https://www.linkedin.com/in/trentonmoss/

Caroline Johnson, co-founder of the Business Model Company, discusses the importance of transforming business models to stay relevant and profitable in the face of changing market dynamics. She emphasizes the need for businesses to recognize the decline of legacy service-based models and adapt to more scalable and innovative models. Caroline shares case studies of businesses that have successfully transformed their models and achieved significant growth and valuation. She also highlights the role of AI in driving the need for business model change and the importance of cultural transformation within organizations. Overall, Caroline provides a positive outlook on the opportunities and choices available to businesses in transforming their models. Recognize the decline of legacy service-based business models and adapt to more scalable and innovative models. Understand the importance of cultural transformation within organizations to support business model change. Explore different revenue models, such as hybrid models or project-based models, to monetize services effectively. Engage in a business model transformation program to create a playbook and operationalize the new model. Join The Exit Plan mailing list: http://eepurl.com/iC8sIY

In this edition of the Exit Plan podcast, Barnaby participates in a live conversation taped at the Riding House Cafe in Fitzrovia. The panellists are Lisa Paasche, former CEO of Verve Search, Nick Berry, partner and M&A advisor at Green Square, and Joe Lewin, CEO of Foundy, an M&A marketplace. The episode begins with insights into the panellists' experiences selling enterprises, which shed light on the complexities of the exit process. The conversation begins with Lisa Paasche's story of selling her SEO agency to Omnicom Media Group, focusing on the financial motives and hurdles she encountered. Nick Berry discusses his entrepreneurial pursuits and the intricacies of building and selling a production firm, Taylor James. Joe Lewin provides a technical perspective, emphasising the Foundy's role in modernising the business acquisition process through technology and artificial intelligence. The discussion focuses on the motivations for selling firms, which range from financial aims to personal reasons such as family time or overcoming burnout. The panellists discuss the importance of timing, the influence of recurring revenue, and the obstacles encountered during the negotiating and earnout phases. As they share their experiences and perspectives, the audience obtains insight into the complex process of quitting a business. Stay tuned for Part 2 of this conversation in the upcoming episode. Join The Exit Plan mailing list: http://eepurl.com/iC8sIY

In this edition of the Exit Plan podcast, Barnaby participates in a live conversation taped at the Riding House Cafe in Fitzrovia. The panellists are Lisa Paasche, former CEO of Verve Search, Nick Berry, partner and M&A advisor at Green Square, and Joe Lewin, CEO of Foundy, an M&A marketplace. The episode begins with insights into the panellists' experiences selling enterprises, which shed light on the complexities of the exit process. The conversation begins with Lisa Paasche's story of selling her SEO agency to Omnicom Media Group, focusing on the financial motives and hurdles she encountered. Nick Berry discusses his entrepreneurial pursuits and the intricacies of building and selling a production firm, Taylor James. Joe Lewin provides a technical perspective, emphasising the Foundy's role in modernising the business acquisition process through technology and artificial intelligence. The discussion focuses on the motivations for selling firms, which range from financial aims to personal reasons such as family time or overcoming burnout. The panellists discuss the importance of timing, the influence of recurring revenue, and the obstacles encountered during the negotiating and earnout phases. As they share their experiences and perspectives, the audience obtains insight into the complex process of quitting a business. Stay tuned for Part 2 of this conversation in the upcoming episode. Join The Exit Plan mailing list: http://eepurl.com/iC8sIY

The co-founder of Studio Blup, DINES®, tells a gripping story about the agency's path from acquisition to independence in this episode. The discussion provides a thorough examination of the highs and lows they encountered while working for a larger group. At first, Studio Blup was lured in by the prospect of pooling resources and strength as a group, but now they struggle with the tension between corporate demands and their initial creative vision. In order to underscore the internal struggle of striking a balance between financial success and creative integrity, the debate dives into the critical moments when financial demands led to sacrifices in pursuing innovative ventures. The unexpected offer to purchase the entire group after just two years forces Studio Blup to reassess their objectives and consider the real reason for their company as the story develops. The subsequent acquisition's failure turns into a pivotal event that prompts them to decide to regain their freedom. The significance of coordinating professional objectives with personal ambitions is emphasized by DINES®, which offers insights into the negotiating process and the workings of repurchasing the majority stake. The difficulty encountered, the lessons discovered, and the tenacity needed in entrepreneurship are all discussed in this episode. Audience members acquire invaluable knowledge regarding the workings of acquisitions, the effects they have on creative firms, and the need to strike a balance between pursuing one's passion projects and achieving financial success. For company owners traversing the uncertain path of creating and maintaining their creative ventures, the story eventually inspires Join The Exit Plan mailing list: http://eepurl.com/iC8sI

Welcome to The Exit Plan, a podcast for business owners interested in learning more about selling their business. In this episode, the director and co-founder of Green and Purple, Katie Bent, talks with Barnaby about her career path and the distinctive course of Green and Purple. Starting with her early career in accounting, Katie describes her corporate experience and her partnership with Pete, which resulted in the founding of a company that provides flexible financing options for creative sectors. The conversation reveals the M&A trajectory of Green and Purple, starting with their 2019 acquisition by a London-based company, followed by the spin-off of their Cambridge office, and ending with a full management buyout in 2020. Katie goes into great detail about the buyout's financial details, highlighting the need of individual financing and making all of the payments at once. The topic of possible exit strategies is also discussed, as well as the significance of culture and trust in their decision to stick together. We talk about Green and Purple's growth goals for 2024, which centre on internal process optimisation and consolidation, as well as their latest purchase in the life sciences industry. Katie portrays a dynamic path for Green and Purple by demonstrating her dedication to ongoing progress while remaining open to individual directors' specific aspirations. Join The Exit Plan mailing list: http://eepurl.com/iC8sIY

The topic of roll-up deals, the target market for BizCrunch, and the value of acquirer community development are all discussed. Gareth highlights the distinct perspectives that professionals like Jonathan Jay and Jeremy Harbour offer in the field of business acquisition. In closing, Gareth encourages listeners to check out BizCrunch, highlighting the platform's free launch strategy and range of premium plans to improve outreachWelcome to The Exit Plan, a podcast for business owners interested in learning more about selling their business. We are joined today by Gareth, a seasoned businessman and co-founder of BizCrunch. He has extensive knowledge of business purchase and ownership succession. His observations hold the potential to simplify the intricacies of data-driven tactics and SME financing. Watch this space for an exciting discussion! To learn the keys to a smooth ownership transfer, keep listening. Gareth and Barnaby talk about their businesses and the generational shift in SME ownership. While Gareth offers insights into the valuation arbitrage game and the difficulties of effectively accumulating data, Barnaby discusses his approach to buying small video production companies. There is a discussion of ideas such as Sellers Discretionary Earnings (SDE), and Gareth explains how BizCrunch helps buyers find possible acquisition prospects by gathering and evaluating data. Plans to extend services, including support for due diligence, are mentioned, as well as the algorithmic method that BizCrunch uses to estimate turnover from balance sheets. Join The Exit Plan mailing list: http://eepurl.com/iC8sIY Come along to The Exit Plan Live event: https://www.eventbrite.co.uk/e/the-exit-plan-live-tickets-765231597307

Punctuation's co-owner Jonathan Baker discussed the company's function as an adviser focusing on small to mid-sized marketing services organizations on this episode of "The Exit Plan" podcast. During the interview, Jonathan discussed their twin strategy of offering M&A activities, including buy-side and sell-side searches, valuations, and advising services encompassing positioning and lead generation. Baker emphasized the difficulties in valuing companies, especially those with revenues between $1 and $10 million, and stressed the significance of owner wages and the enterprise's long-term viability after a sale. The discussion also included internal transfers, where Punctuation helps customers negotiate sales with staff members and look into innovative deal arrangements. Using a sizable newsletter subscriber list, cold emailing, referrals, and careful research were among the market outreach tactics described. Baker recognized the M&A market's cyclical character and the importance of timing in locating qualified purchasers. The session ended with some insights into typical transaction arrangements, including an earn-out term of two to three years, contingent on performance measures, and an upfront payment of forty to fifty percent. Baker emphasized innovative transaction strategies for purchasers with tight budgets, looking at possibilities like seller-funded working capital and future profit-based payments. In 2024, Punctuation intends to rebrand, launch a digital benchmarking tool, and remain dedicated to offering its customers high-quality service. Emphasizing sound financials and a unique market positioning, the conversation offers insightful guidance to entrepreneurs preparing for a potential sale. Join The Exit Plan mailing list: http://eepurl.com/iC8sIY Come along to The Exit Plan Live event: https://www.eventbrite.co.uk/e/the-exit-plan-live-tickets-765231597307

Nikki Wheeldon, a versatile entrepreneur with a background in acting, shared her journey from a struggling actor to the founder of Jam Pot, a flourishing business providing freelance operational support. Initially managed solely by Nikki and her husband, Jam Pot's unique business model, devoid of retainers, offered flexible operational services across admin, HR, finance, and more. The company expanded, boasting a team of 40 and serving 40-50 clients monthly. The sale decision emerged when Nikki discovered Foundy, a platform facilitating anonymous business listings. Foundy garnered significant interest despite initial skepticism, leading to conversations with potential buyers. The sale posed challenges, forcing Nikki to consider deal structures, terms, and the post-sale impact on her life. Eventually, a buyer aligning with her conditions emerged on Foundy, resulting in Jam Pot's successful sale. Nikki's journey underscores adaptability, resilience, and strategic decision-making in entrepreneurship. In the continuation, Nikki delves into the sale process, emphasizing the importance of understanding one's objectives and setting clear boundaries. The negotiation intricacies, buyer details, and the one-month collaborative handover period are discussed. Nikki shares her plans, considering temporary employment elsewhere and exploring her interest in speaker coaching. She offers valuable advice for aspiring entrepreneurs, highlighting the significance of early preparation and business decisions that enhance appeal to potential buyers. Join The Exit Plan mailing list: http://eepurl.com/iC8sIY Come along to The Exit Plan Live event: https://www.eventbrite.co.uk/e/the-exit-plan-live-tickets-765231597307

In this episode, join Andrew on a riveting narrative spanning nine years as he unveils the dynamic trajectory of Origins of Motion. This video production venture began in the quiet corners of Cambridge. The exit, a management buyout by two videographers, followed Andrew's decision due to remote management challenges. The valuation prioritized mutual affordability, ensuring a smooth transition. Andrew ventured into health and wellness tech, addressing mental health needs after exit. Simultaneously, he found fulfillment consulting for business owners. This shift highlights Andrew's adaptability, transitioning from video production to diverse ventures. His commitment to mental health aligns with contemporary needs. As he navigates, Andrew's journey exemplifies entrepreneurial evolution. The conversation explores financial and legal facets. The somewhat opportunistic sale stemmed from Andrew's desire for a new challenge. Two videographers took over in a management buyout. Valuation focused on mutual affordability, involving upfront cash and deferred payments. Andrew benefited from Business Asset Disposal Relief for tax efficiency. Legal considerations adopted a simple joint process, minimizing costs. The timeline from the selling conversation to the key handover spanned three and a half months. Post-sale, Andrew coaches remotely, exploring e-commerce ventures. Reflecting on selling, he emphasizes upfront planning and understanding the selling process's intricacies. Join The Exit Plan mailing list: http://eepurl.com/iC8sIY Come along to The Exit Plan Live event: https://www.eventbrite.co.uk/e/the-exit-plan-live-tickets-765231597307

Mike Craddock, co-founder and CEO of Kairos Group, underwent a unique journey, transitioning from a successful career as a YouTuber to leading a social creative agency. Established in 2015, Carros Group, with offices in London, Manchester, and New York, specializes in social media and influencer marketing. Mike's strategic approach includes acquisitions, such as Horizon, an esports organization, and an aqua-hire in the U.S. talent management sector. The latter acquisition, while ambitious, faced challenges, highlighting the complexities of navigating growth in the competitive agency landscape. In this episode of The Exit Plan Podcast, hosts Barnaby and Mike Craddock engage in a candid conversation exploring various facets of Mike's entrepreneurial journey and the growth of Carros Group. The discussion unfolds chronologically, starting with Mike's background as a YouTuber, leading to the establishment of Carros Group in 2015. The hosts delve into the evolution of the company from a social creative agency to a major player in influencer marketing, highlighting key milestones such as office expansions and team growth to 110 people. The episode takes a deep dive into Carros Group's acquisition strategy, focusing on the successful integration of an esports organization named Horizon. Mike provides valuable insights into the negotiation process, the structure of the deal, and the subsequent integration of the acquired business. Another acquisition attempt is explored, revealing the challenges and lessons learned, emphasizing the complexities of aggressive growth in the agency landscape. The hosts address financial aspects, including revenue figures and the revenue-sharing model with creators. Mike details the valuation exercise undertaken by Carros Group, involving traditional accountants, brokers, and benchmarking against publicly listed companies. The discussion sheds light on the operational readiness and cultural alignment challenges post-acquisition, offering a nuanced perspective on the importance of thorough assessments. Mike reflects on the cultural clashes that arose, leading to the eventual decision to part ways with the acquired business. The hosts touch upon legal and financial considerations during the unwinding process, providing practical insights into the associated costs. Looking ahead, Mike shares Carros Group's current strategy, emphasizing organic growth in the evolving market landscape. The episode concludes with insights into prospective offers, future plans, and Mike's open stance towards potential future acquisitions. The interview offers a comprehensive exploration of the triumphs and challenges associated with acquisitions, contributing valuable lessons for businesses navigating growth and integration complexities. What We Will Learn: Entrepreneurial Evolution: Explore Mike Craddock's journey from YouTuber to founding Carros Group and navigating its evolution into a major influencer marketing agency. Acquisition Strategies: Gain insights into Carros Group's acquisition approach, including successful integrations, negotiation tactics, and lessons learned from challenges. Financial Dynamics: Understand revenue-sharing models with creators, revenue figures, and the valuation exercise undertaken by Carros Group for strategic decision-making. Operational Readiness: Delve into the challenges of post-acquisition integration, including cultural clashes, operational shortcomings, and the importance of meticulous assessment processes. Strategic Growth: Learn about Carros Group's current strategy, emphasizing organic growth and navigating the ever-changing landscape of social media, influencer marketing, and agency dynamics. Connect With Mike Craddock: https://www.linkedin.com/in/mike-craddock/ Join our mailing list: http://eepurl.com/iC8sIY Come to The Exit Plan Live on the 31st January 2024: https://www.eventbrite.co.uk/e/the-exit-plan-live-tickets-765231597307

Entrepreneur Peter Kemp, MD of Global 3 Digital, has navigated the dynamic landscape of digital corporate communications. With the establishment of his agency in 1999, Kemp successfully led the company through significant growth, culminating in its strategic sale in 2014. Kemp's journey unfolds with insights into the acquisition process, emphasizing a streamlined due diligence period. Beyond the sale, Kemp ventured into a new endeavor, Flint, showcasing his resilience and adaptability in the evolving realm of digital ventures. In this episode Peter Kemp is engaged in a discussion with Barnaby about his journey in establishing, growing, and eventually selling his digital corporate communications agency. Founded in 1999, the agency addressed a market gap by providing websites for quoted companies. Kemp shared insights into the intricacies of negotiating the sale with a larger competitor backed by private equity. The acquisition, which took place in 2014, involved an all-cash deal. Kemp highlighted the critical aspect of a streamlined six-week due diligence process, despite the challenges it posed. The integration phase, while presenting some differences in technological approaches, proved successful, with the acquiring company retaining many of Global 3 Digital's clients seamlessly. Kemp reflected on the impact of personal health considerations on the decision to sell. Post-acquisition, Kemp faced constraints due to a three-year non-compete clause but eventually launched a new venture named Flint with two former colleagues. Flint, a platform built on a proprietary SAS platform, enables the creation of corporate websites for listed companies without the need for web development. The focus is on scalability and a non-immediate plan for sale, showcasing lessons learned from the previous venture. The conversation also touched on Kemp's advice for business owners considering a sale, emphasizing the importance of maintaining open relationships with competitors and keeping meticulous records for due diligence. The episode provided a comprehensive exploration of Kemp's entrepreneurial journey, shedding light on the strategic decisions and challenges inherent in building and selling a digital agency. Join our mailing list: http://eepurl.com/iC8sIY Come to The Exit Plan Live on the 31st January 2024: https://www.eventbrite.co.uk/e/the-exit-plan-live-tickets-765231597307