Focus on the execution

Welcome back to another edition of The Wise Exit!

I’m Brian Dukes, a Managing Partner at Exitwise. 

In today’s newsletter, I’ll cover: 

• 3 lessons from Kim Perell about her exit from FrontlineDirect 📣 

• Business-specific valuations 💲

• How not to regret selling your business 💡

• Interesting books, podcasts, and more 📚

Let’s dive in!

Featured Founder

Name: Kim Perell

Current position: CEO & Founder, 100.co

Books: JUMP: Dare to Do What Scares You in Business and Life and The Execution Factor: The One Skill That Drives Success

Accolades: named one of Entrepreneur Magazine’s Women of Impact and Ernst & Young Entrepreneur of the Year (plus many more)

Philosophy: Pay it forward – helping other entrepreneurs, especially women in business 

In a nutshell: Kim has been a tech CEO for 20 years, starting her first company from her kitchen table and becoming a multi-millionaire by 30 years old. Two of her companies were co-founded with author and podcast host, Jay Shetty. She has talked about her experience on shows like Good Morning America, The Today Show, The Drew Barrymore Show, and CNBC. 

Kim Perell is most known for her digital marketing firm, FrontlineDirect. She grew it to $100 million in annual revenue and successfully merged it with Adconion Media Group. 

AdconionDirect was then bought by Amobee (owned by Singtel) for $235 million. 

Perell now leads an impressive number of ventures, notably investing in over 100 startups and selling more than 12 of them for a total of $500 million.     

M&A Lesson 1: Be willing to pivot

With so much M&A experience, Perell understands the necessity of allowing businesses to evolve. She says that 90% of the companies she’s been involved with have had to pivot at least once to survive.

This was usually due to market changes or unexpected opportunities – she had to be nimble enough to pivot on a dime, even if that meant changing some fundamental aspects of her company or starting completely from scratch.

I would add that pivoting also requires an understanding of the value that you’re building in your business. As you pivot, have an awareness of what your customers (or eventual acquirers) are willing to pay for.

M&A Lesson 2: Focus on the execution

“An idea is only as good as how well you can execute it,” says Perell. Thankfully, execution is a skill that can be learned. 

This reminds me of one of my favorite quotes from Thomas Edison: “Strategy without execution is hallucination.” Execution is the key to delivering value to your customers.  

As a fellow founder, I’ve always found it helpful to find a co-founder with complementary skills. Enabling each other’s super powers to shine through (dreamer & creator vs implementation & execution). 

No matter what stage your business is in, being able to execute on your plan is something that all potential buyers will look for.

M&A Lesson 3: Know what stands in your way

It’s fair to say that little in life unfolds as planned. When it comes to M&A, that probably drops to almost zero. 

Perell recommends taking the time to think about what the potential obstacles might be that could impede your plan or set you back. 

I’m reminded of another favorite quote of mine, this time from Maya Angelou: “Hope for the best and be prepared for the worst”. Maybe to a fault, I’m consistently trying to understand the dynamics and drivers of the worst possible outcome, and designing solutions to those problems before they arrive.  

It’s not good to obsess, but visualizing what may impede progress and understanding how to avoid those roadblocks has always served me well. 

Featured Blog 📰

My colleague Todd and I have been busy writing some business-specific blog posts on valuations. These get into the best practices, market trends, valuation methodologies, and strategies for selling these types of businesses.  

I strongly believe in tailored M&A advice, so I hope these guides will be helpful for those of you who are in the industries we’ve covered so far.

Read more about selling veterinary practices, law firms, biotech companies, dental practices, car dealerships, and chiropractic practices. Or read our general blog here.  

M&A Tips from Brian Dukes 💡

75% of founders regret selling their business. I wish I could say I was surprised when I discovered this statistic, but the truth is, I hear stories about failed transactions all the time in my work. 

To prevent this from being you, understanding what drives you will help guide your decisions when exit opportunities arise. 

For more M&A tips from someone who’s been there, follow me on LinkedIn.

What I’m Reading 📚

Traction: Get a Grip on Your Business, by Gino Wickman

This book is a must-read for founders and entrepreneurs. (You can thank me later.) I re-read it at least once a year. It's that good. Here are 5 lessons I’ve learned from Traction: 

1) A Clear Vision. Not just you but your entire team needs a clear vision for the future of the company and what their role is in getting there. A clear vision will keep your team focused and moving in the right direction. 

2) The Right Team. When you have a passionate team that is good at what they do, success is inevitable. Take the time to find the right people. Because time invested in finding them will pay dividends. I guarantee it. 

3) Be Honest. Regularly audit your business to uncover your strengths and weaknesses. Be honest and open about what you struggle with, and don't be afraid to ask for help. 

4) Data Rules. When making decisions, don't guess or go with a gut feeling. Instead, study your data and make decisions based on what it’s telling you. Data is everywhere. Use it. 

5) Problem Solving. Have you noticed a problem in your business? Don't bury your head in the sand. Tackle it head-on. Problems will occur daily, so focus on finding solutions and encourage your team to do the same. 

That’s all for now. 

Tune in next Wednesday for another set of M&A lessons, and have a great rest of the week. 👋

Best,

Brian Dukes, Managing Partner