Understanding Your Why in M&A

Welcome to another edition of The Wise Exit.

I'm Brian Dukes, Managing Partner at Exitwise.

In today's newsletter we'll cover:

• A big thank you to our readers.

• Understanding your WHY with Meighan Newhouse.

• Am I emotionally ready to let go of my business?

Let's dive in!

THANK YOU!

First, I want to give a big thank you to all our readers who took part in our two polls last week.

Here are the results:

It seems most of our readers are business owners or founders, which is fantastic.

And you want future issues of The Wise Exit to feature:

• Case studies and stories of previous founders.

• Tools and tech to help you run your business.

You've spoken. We've listened.

And we're working hard in the background to give you more of what you want, so stay tuned.

We'll also announce the winner of the $100 Amazon Gift Card, so keep an eye out for the next issue of The Wise Exit.

Featured Founder

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Name: Meighan Newhouse

Title: Co-founder and former CEO of Inspirant Group

In a nutshell: Meighan co-founded Inspirant Group in 2016, a disruptive management consulting firm. After five years of growth, Meighan and her co-founders decided to sell Inspirant Group to a tech-focused firm called 10 Pearls, which had previously acquired several other consulting businesses. The deal was completed in March 2023, with Meighan and her partners staying on to continue growing the business.

Inspirant Group was built with a focus on people, processes and technology. Their secret sauce? Finding talented people, treating them well, and creating a unique culture that sets them apart in the management consulting sector

M&A Lesson 1: Clearly define your "why" for selling.

Before selling Inspirant Group, Meighan and her co-founders took the time to reflect on their reasons for selling and what they hoped to achieve from the sale.

They all wanted to continue growing Inspirant Group for themselves and their team, but they realized they needed outside help.

Meighan and her partners drew up a list of non-negotiables and defined their end goals. By doing so, they stayed true to their values and found a buyer who shared their vision.

M&A Lesson 2: The buyer must align with your culture and values.

Meighan and her co-founders wanted a buyer who would put their people first. They built Inspirant Group on a foundation of transparency and had a close-knit team. The acquirer needed to share those values.

10 Pearls was a perfect match. They had a track record of founder-led acquisitions and putting people first. This cultural alignment was evident from their very first meeting and played a big role in the success of the acquisition.

M&A Lesson 3: The need for experienced M&A advisors.

This was Meighan and her partners' first exit. They knew they needed experienced people around to guide them through the process. So, they engaged a brokerage firm and a talented legal team to help them navigate the deal's complexities.

And it paid off. Even though they found a buyer with a great track record of acquisitions, they still relied heavily on the advice and guidance of their advisers. Part of this was structuring an earn-out that incentivized them to continue growing the business post-sale.

M&A Advice from Brian Dukes

Am I emotionally ready to let go of my business?

Selling your business is not just a financial decision; it's an emotional one as well. As a founder, you've poured your heart and soul into building your company, and letting go can be incredibly difficult.

Ask yourself if you're prepared to hand over control and watch someone else change your company. If the thought of walking away fills you with excitement rather than a sense of loss, it may be a sign that you're emotionally ready to sell.

However, if letting go feels overwhelming or causes significant anxiety, it might be worth taking more time to work through those emotions before embarking on the sale process.

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

That’s all for now.

Tune in next Wednesday for another issue of The Wise Exit.

Brian Dukes

Managing Partner