E187: Clint Fiore Discusses the Challenges and Strategies of Buying Businesses - Watch Here

About the Guest(s):

Clint Fiore is a seasoned entrepreneur with broad experience in the small to medium business acquisitions and mergers sector. As a family business scion, Clint grew up involved in his family's nursery business in North Texas. His entrepreneurial journey led him through sales and marketing roles and on to a series of startups involving manufacturing and angel investment. Clint successfully founded and sold stakes in several startups before identifying his passion for the business brokerage field. He holds multiple credentials in the business acquisition space and founded Bison Business, specializing in sell-side representation and advisory services for business transactions.

Episode Summary:

In this engaging episode of the "How to Exit" podcast, host Ronald Skelton welcomes Clint Fiore, the founder of Bison Business and an influential figure in the realm of business acquisitions. Fiore shares his journey from early entrepreneurial ventures to establishing a full-service brokerage, touching on the highs and lows of navigating the business acquisition landscape.

The conversation begins with Fiore's backstory, offering listeners insight into the roots of his entrepreneurial spirit and the transformative journey from family nurseries to the competitive world of startups. Clint's pivot into the brokerage world and his mission to rectify his initially unimpressive encounters with business brokers are candidly discussed. He lays out the challenges faced by buyers in the market, emphasizing the importance of pattern recognition and the ability to sift through unsatisfactory financials to ascertain the real value of a business.

Continuing the dialogue, Clint and Ronald delve into the specifics of what makes a successful acquisition entrepreneur, addressing the significance of transferable skills, mindset, and the readiness to tackle different industries. They also explore how Fiore's extensive exposure to various businesses has sharpened his acumen in identifying promising opportunities and preparing businesses for sale.

Key Takeaways:

• Clint Fiore's personal narrative exemplifies the transformative potential of entrepreneurship and the journey from a hands-on family business to tech startups and eventually business brokerage.
• The business acquisition space is rife with learning opportunities, and success often hinges on the ability to discern patterns and hidden value in diverse businesses.
• Transferable skills, such as salesmanship or technical knowledge, are crucial in identifying the right business to acquire and can be more decisive than industry-specific experience.
• Fiore advocates for a first-principles approach, encouraging buyers to dissect an opportunity beyond messy financials and focus on fundamentally sound business attributes.
• Bison Business, under Fiore's leadership, offers a comprehensive suite of services, including sell-side advisory, buyer assistance, and a specialized program to identify and acquire off-market businesses.

Notable Quotes:

• "But I tend to agree, like, a larger target that has a deeper bench might be the best way for them to go." - Clint Fiore on matching skillsets to the size of the acquisition target.
• "The only way to really combat that is with a team and technology." - Clint Fiore on improving the responsiveness in the brokerage field.
• "I'd rather have a light net worth buyer that has a good down payment and a good resume than the super rich buyer..." - Clint Fiore on the importance of fit over financials.
• "I think there's a balance of if you want to stand out from the pack as a buyer and be the top favored buyer on a good deal represented by a broker." - Clint Fiore advising on how to stand out as a buyer in the market.
• "Every business out there, they just have their quirks and especially ones that have been around a long time." - Clint Fiore on the idiosyncrasies of established businesses.

Article:

Decoding the SMB Acquisition Game: Insights from Industry Pro Clint Fiore

Navigating the complex world of small to medium business (SMB) acquisitions can be a daunting task for both seasoned entrepreneurs and newcomers alike. In a candid podcast discussion, Clint Fiore, the seasoned business acquisition expert and founder of Bison Business, shed light on the intricacies of the SMB landscape.

Key Takeaways

• The Entrepreneur's Mindset: Success in SMB acquisitions often relies on an entrepreneur's ability to appreciate the 'game' of business, regardless of industry.
• Transferable Skills: Identifying and leveraging one's transferable skills is crucial for aligning with the right-sized business and ensuring its growth post-acquisition.
• Financial Forensics: Potential buyers should prioritize understanding the true earnings of a business, often requiring constructing a clear financial picture from less-than-perfect records.

The Game Beyond the Industry: Navigating SMB Acquisitions with a Universal Mindset

When exploring the world of SMB acquisitions, Clint Fiore emphasizes the importance of an entrepreneur's passion for the game of business itself. It's the dedication to leading, growing, and transforming companies that sets apart those destined to thrive in this space.

A Universal Entrepreneurial Excitement

The real excitement for acquisition entrepreneurs isn't confined to any one sector. Fiore stresses that, if you've got that entrepreneurial bug, the thrill lies in the challenge, strategy, and human element inherent in any industry. For those true to this path, it hardly matters whether they're dealing with luxury items or an essential service like septic tank maintenance - the buzz is in the build and the impact it has on lives and communities.

Industry Indifference: A Key to Flexibility and Success

This industry-agnostic approach opens up a world of possibilities and avoids the pitfalls that come with tunnel vision on any one sector. Fiore notes that keen entrepreneurs can apply their skills across a broad spectrum of business models. From nurturing teams to interpreting market needs, the qualities that make a business leader successful are often transferable and not restricted by industry boundaries.

Recognizing and Harnessing Transferable Skills

In the SMB acquisition game, understanding your core competencies and how they align with the needs of a potential business is imperative. Fiore points out that buyers should conduct a thorough self-assessment to pinpoint strengths that could be the key to unlocking a company's growth, even beyond their familiar territory.

The Skillset Spectrum for Business Acquisition

Fiore outlines how certain backgrounds can favor prospects in different stages of a business. For example, someone with a sales history can excel in growing startups, while those with managerial experience might be better suited for a more established enterprise. The art lies in matching an individual's skills with a business that can benefit most from them - whether that's a niche technical skill or a broad leadership capability.

Applying Skills Across Industries

The discussion with Fiore reveals that successful business buyers often find opportunities in unlikely places by leveraging their core competencies. He recounts how an aerospace engineer might find a perfect fit in a knife manufacturing business. The underlying engineering principles and management talents are similar, making the transition into a seemingly distinct industry seamless and highly effective.

Financial Forensics and Business Evaluation

Fiore's advice to buyers is clear: do not be discouraged by shaky or complicated financials. Instead, use this as an opportunity to create clarity and establish the true earning potential of an SMB. It’s your understanding and interpretation of a business's financial situation that can turn a dubious deal into a promising opportunity.

The Reconstruction of Financials

Clint Fiore highlights the importance of diving into raw data, such as bank records and payroll systems, to verify a business's financial health. Prospective buyers should reconstruct a clean profit and loss statement from the ground up, disregarding poorly managed accounts in favor of concrete figures. This approach provides a transparent view of what a business could make under optimized management.

Strategic Revaluation of SMBs

A buyer with financial acumen can identify the under-exploited profit potentials of an SMB. Fiore illustrates that instead of nitpicking through tangled financials, focus on the first principles that define a business's value. Strategic buyers can often find gem deals by looking past the surface inaccuracies and visualizing the untapped potential of a business.

Final Reflections

Throughout the conversation, Fiore's passion for the SMB acquisition process shines through. His insights are rooted in honest experience and genuine interest in the entrepreneurial journey. His perspective challenges buyers to think beyond conventional wisdom and bring a creative, industrious mindset to each potential deal.

By championing the universality of entrepreneurial drive, he encourages buyers to see past the industry labels and focus on the core elements that make a business tick. Fiore's guidance to harness transferable skills and disentangle complex finances provides a roadmap for those looking to make their mark in the SMB acquisition space.

With the right approach, mindset, and a dash of financial detective work, Fiore shows how acquiring and transforming an SMB can be an engrossing, rewarding venture. Those ready to play the game, equipped with the insights shared through this dialogue, stand poised to sculpt success from even the most unassuming opportunities.

---- MORE COOL STUFF ---

Are you ready to take your podcast listening to the next level? Subscribe to "DEEPER by How2Exit" newsletter and never miss out on our latest episodes. Join our  newsletter  HERE

Want to stay in touch with what's happening in the Main Street M&A Space?  Subscribe to Growth & Acquisitions(Formerly The Hub)