The Exit Plan: Mergers and Acquisitions for Creative Entrepreneurs – Détails, épisodes et analyse

In this conversation, Ben Fitter-Harding shares his entrepreneurial journey, detailing the inception and growth of his first business, Cardboard Fish, a communications technology company. He discusses the challenges and successes of navigating the acquisition process, the emotional impact of selling a business, and the transition to his new venture, Dodgems and Floss, a creative agency. Ben reflects on the lessons learned throughout his journey and the importance of foresight in business planning.   takeaways

• Ben started Cardboard Fish out of curiosity and experimentation.
• The rise of mobile technology significantly impacted their business model.
• Acquisition was a natural progression for the business as it matured.
• The M&A process was organized and facilitated by a specialist.
• Post-acquisition, the team experienced both growth and challenges.
• Ben transitioned to consulting after the sale, allowing for flexibility.
• The new venture, Dodgson and Floss, focuses on bespoke branding and design.
• Ben values the work-life balance more in his current role.
• He emphasizes the importance of understanding the exit process early.
• The journey has been fulfilling, with opportunities for personal growth.

Connect with Barnaby on LinkedIn: https://www.linkedin.com/in/barnabycook/

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In this conversation, Greg Moyer, CEO of Blue Chalk Media, shares his extensive career journey in the media industry, from his early days in journalism to his pivotal role in launching the Discovery Channel. He discusses the founding of Blue Chalk Media, emphasizing the creative freedom it provided him and the challenges of running a media company. Moyer reflects on the growth of Blue Chalk, the development of his team, and the impact of industry changes on their business. He also delves into his succession planning and the recent sale of Blue Chalk, expressing optimism for the future under new leadership.

takeaways

• Greg Moyer's career began in journalism and evolved into media production.
• He was part of the founding team of the Discovery Channel.
• Blue Chalk Media was founded to explore more soulful content.
• Creativity thrives within constraints, not in a vacuum.
• The first commission for Blue Chalk came from the Weather Channel.
• Team development was crucial for Blue Chalk's growth.
• Industry changes have forced media companies to adapt.
• Succession planning was a key focus for Moyer before selling Blue Chalk.
• The integration process with new leadership is seen as an opportunity for growth.
• Moyer expresses satisfaction with the sale and future prospects of Blue Chalk.

Connect with Barnaby on LinkedIn: https://www.linkedin.com/in/barnabycook/

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Tulips & Company, a corporate film agency, was founded in 2002 by Laure Cousin and Charles Drouin. They started the business in the attic of Laure's house with a focus on creative storytelling. Over the years, they grew the company and gained recognition through awards. In 2018, they decided to sell the company to its employees in a unique way. They created a new company called Ortus, owned by the employees, which gradually buys shares in Tulips using profits from the company. This allows the employees to become shareholders without taking on debt. The transfer of ownership will be complete in 10 years, with the employees owning 65% of the company.

• Tulips & Company was founded in 2002 as a corporate film agency with a focus on creative storytelling.
• The founders, Laure Cousin and Charles Drouin, decided to sell the company to its employees in a unique way.
• They created a new company called Ortus, owned by the employees, which gradually buys shares in Tulips using profits from the company.
• The transfer of ownership will be complete in 10 years, with the employees owning 65% of the company.

Jacqueline O'Donovan OBE shares her journey of owning and growing a waste management business, O'Donovan Waste Disposal, after her father's passing. She discusses the challenges of taking over the business at a young age and the close-knit dynamic of working with her siblings. Jacqueline highlights the importance of a strong work ethic and cohesion within the family. She also talks about the growth and success of the business, becoming an employer of choice, and leading the industry in sustainability and digitalization. The conversation concludes with the decision to sell the business and the process of finding the right buyer. Jacqueline O'Donovan shares her experience of selling her waste management company and transitioning to a new chapter in her career. She emphasizes the importance of relationships and due diligence in the selling process. Jacqueline discusses the challenges of finding the right buyer and valuing the business. She also talks about her current ventures, including her PR marketing agency. Jacqueline encourages women to be confident and assertive in their careers.

• Taking over a family business at a young age requires resilience, adaptability, and a strong work ethic.
• Building a successful business involves continuous learning, innovation, and staying ahead of the competition.
• Creating a positive work environment and being an employer of choice can attract top talent and contribute to business success.
• Selling a business requires careful planning, finding the right buyer, and maintaining a good relationship with advisors throughout the process. Building strong relationships and conducting thorough due diligence are crucial when selling a business.
• Finding the right buyer who understands and appreciates the business is essential.
• Valuing a business can be a complex process, and it's important to have a clear understanding of the factors involved.
• Transitioning to a new chapter in one's career can be exciting and challenging, but maintaining a strong work ethic and adaptability is key.
• Jacqueline O'Donovan's current ventures include a PR marketing agency and investments in various industries.
• Women in business should be confident, assertive, and supportive of one another.

Connect with Jacqueline O'Donovan on LinkedIn: https://www.linkedin.com/in/jacqueline-o-donovan/

Connect with Barnaby on LinkedIn: https://www.linkedin.com/in/barnabycook/

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Loreta Tarozaite is a marketing communications consultant and executive coach with a background in news anchoring. She helps business owners and executives improve their on-camera and on-stage presence, particularly in using video as a medium. Loreta emphasizes the importance of personal branding, especially on platforms like LinkedIn, and encourages the use of video to build rapport and trust with the audience. She advises starting with simple videos, such as recording oneself describing the scenery or talking through a cooking process, to get comfortable with being on camera. Loreta also offers coaching on presentation skills for both on-camera and on-stage appearances.

• Loreta helps business owners and executives improve their on-camera and on-stage presence, particularly in using video as a medium.
• Personal branding is crucial, especially on platforms like LinkedIn, to build visibility, authority, and trust.
• Starting with simple videos, such as recording oneself describing the scenery or talking through a cooking process, can help build comfort with being on camera.
• Loreta offers coaching on presentation skills for both on-camera and on-stage appearances, emphasizing the differences between the two mediums.

Connect with Loreta on LinkedIn: https://www.linkedin.com/in/loretatarozaite/

onnect with Barnaby on LinkedIn: https://www.linkedin.com/in/barnabycook/

Join The Exit Plan mailing list: http://eepurl.com/iC8sIY

 

Mike Silver, the founder of an experiential agency called Stretch, shares his journey of setting up an experiential marketing agency called Stretch in Cape Town, South Africa.  We talk about its growth, a merger with another agency in Johannesburg and it’s eventual sale to a WPP affiliate. He discusses the challenges, learnings, and post-sale experiences, offering valuable insights for entrepreneurs considering a similar path.

Takeaways

• Invest in growth and take risks to achieve exponential growth
• Stay focused on the core business and strategy during the acquisition process
• Prepare for a different dynamic post-acquisition, with a shift in responsibility and accountability

Connect with Mike Silver on LinkedIn: https://www.linkedin.com/in/experiencemike/

Connect with Barnaby on LinkedIn: https://www.linkedin.com/in/barnabycook/

Join The Exit Plan mailing list: http://eepurl.com/iC8sIY

 

Tim Drake, a semi-retired agency owner, shares his journey of building and selling his agency for £20 million. He discusses the various pivots his agency went through, from graphic design to websites to mobile-first business. Tim emphasizes the importance of finding the right business partner and maintaining a ruthless focus on building and selling. He explains the earn-out structure of the deal and how they exceeded expectations. Tim also highlights the significance of culture, agility, and a deep understanding of running a business in achieving success. He encourages agency owners to consider different approaches to achieve their financial goals.

Takeaways

• Pivoting and adapting to new technologies and market demands is crucial for the success of an agency.
• Finding the right business partner who complements your skills and shares your vision is essential.
• Maintaining a ruthless focus on building and selling can lead to significant financial success.
• Culture, agility, and a deep understanding of running a business are key factors in achieving success in the agency industry.

Connect with Tim on LinkedIn: https://www.linkedin.com/in/tim-drake-6b41569/

Connect with Barnaby on LinkedIn: https://www.linkedin.com/in/barnabycook/

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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/

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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/

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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/

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