E257: What Does It Take to Close a Deal? Jordan Wagner's Multi-Million Dollar Deal Secrets EXPOSED - Watch Here

About the Guest(s):

Jordan Wagner is the CEO and founder of the Exit Group, a firm specializing in assisting private equity firms and large corporations in acquiring businesses. With a career grounded in experience gained from working at a competitor straight out of college, Jordan has established himself as a seasoned professional in the mergers and acquisitions sector. The Exit Group, which he started over a decade ago, has grown to closing 35 to 40 multifaceted deals each year, averaging $40 to $50 million. His expertise lies in savvy deal-making, industry analysis, and curating strategic business acquisitions.

Episode Summary:

In this engaging episode of the How2Exit podcast, host Ronald Skelton sits down with Jordan Wagner, the insightful CEO of the Exit Group, to unravel the complexities of buying, selling, and exiting businesses. Bringing his storied career into focus, Jordan shares his journey from a budding entrepreneur living with his parents to spearheading a firm that concludes dozens of high-value deals annually. A standout theme in their conversation is the power of youthful optimism and resilience in overcoming the early hurdles of entrepreneurship — particularly when deals don't close and finances are tight.

Jordan delves into the varied structures of transactions his firm deals in, ranging from founders selling off entirely to private equity-backed majority buyouts. He explores the importance of recurring revenues and market growth for securing premium payouts during exits. North of typical discussions, Jordan opens a window into the lesser-seen world of unique businesses that thrive by deftly servicing mundane needs, demonstrating the diverse ways companies achieve success. Through shared anecdotes and industry expertise, the episode builds a comprehensive guide to the underpinnings of successful business exits.

Key Takeaways:

• Youthful Advantage: Starting a business young comes with the benefit of fewer risks and the ability to endure early failures.
• Deal Variety: Majority buyouts are common, with business owners having the opportunity to retain equity and benefit from future growth.
• Unique Businesses: Successful companies often thrive on fulfilling everyday needs in niche markets, unnoticed by the average consumer.
• Consistent Growth: Premium valuations in company sales hinge on predictable revenue and growth, amid a booming market.
• Entrepreneurial Risk: Founders begin businesses with uncertain outcomes, taking chances many would avoid.

Notable Quotes:

• "The biggest advantage we had at that point was being young, you know, low 20s, not having a lot of expenses." - Jordan Wagner
• "90% of the time, if you or I or a family member heard that idea, like, I'm going to leave and start this company…it was like, that's a pretty bad idea, right? And it worked." - Jordan Wagner
• "There's a lot of boring businesses that you can make a lot of money doing." - Jordan Wagner
• "The more that business looks like a company that's pretty safely going to climb, the more they're going to pay for it." - Jordan Wagner
• "The challenge there is, it's not always so obvious for anyone, whether you're taking some risk either direction." - Jordan Wagner

Article:

Unlocking Success in Business Exits: Insights from Industry Leaders

Key Takeaways

• Foundations of Success: Starting a business often requires the ability to take risks and learn from failures, an insight highlighted by Jordan Wagner's journey.
• The Role of Relationships: Building and maintaining strategic relationships is crucial in facilitating successful business transactions.
• Value of Unexpected Niches: Identifying and capitalizing on niche markets can lead to massive success, even with seemingly mundane businesses.

The podcast episode featuring Ronald Skelton and Jordan Wagner of the Exit Group takes us on an engaging exploration into how companies can successfully navigate acquisitions and exits. They discuss lessons learned from the trenches, the unpredictable paths to success, and the intricacies of professional deal-making. Below, we delve into three significant themes, each offering valuable insights for entrepreneurs and investors alike.

The Journey from Failure to Success

Jordan Wagner’s story is a testament to the tenacity required to thrive in the competitive world of business acquisitions. Starting from scratch, Wagner, alongside a small team and with the initial support of his father, faced years of potential failure—the first two years brought no closed deals, testing their resolve. "We really started to hit our stride…and now we're kind of up to…35 to 40 deals a year," Wagner recounted. This pivot underscores the importance of resilience and learning from early mistakes.

This theme perpetuates the reality faced by many entrepreneurs: initial ignorance can be bliss. "I often say there's brilliance in ignorance," Skelton quipped, emphasizing how new entrepreneurs often benefit from not fully comprehending the difficulties ahead. The underlying message is clear: enduring tough times without letting setbacks deter the vision can eventually pay off.

Building Strategic Relationships

Navigating the realm of mergers and acquisitions demands more than just financial acumen; it requires cultivating lasting relationships. Wagner describes how he works closely with private equity firms and large corporations, originating deals that align with their strategic visions. "We dig into the industry, learn everything we can about it," he explained, detailing the nuanced approach taken by the Exit Group.

The importance of relationships is further highlighted through the methods of outreach—trade shows, personal visits, and tailored communications all play a role. Wagner’s team not only identifies potential acquisition targets but also educates business owners about the transaction process. This comprehensive relationship-building ensures smoother transitions and successful closings, with Wagner citing, "For us, it's really about the research."

The impact on the business exit environment is profound, as trust and clear communication often result in more favorable outcomes for all parties involved. This approach highlights the broader business principle that well-nurtured relationships can often unlock doors to opportunities previously unseen.

Finding Value in Unexpected Niches

An intriguing theme that emerges from the discussion is the discovery of value in unexpected business niches. Wagner shared multiple examples of businesses thriving in ordinary industries, often unnoticed by the mainstream but profitable nonetheless. From emergency battery packs for commercial lighting to specialized software for managing social cases, these businesses showcase how niche markets hold lucrative potential.

"It's interesting how many times different scenarios like that come up," Wagner noted, pointing to the abundance of unique business ideas that achieve success. These stories underline a critical lesson for entrepreneurs and investors: Big ideas don't always have to revolutionize industries. Sometimes, providing a unique twist on a common service can generate significant profits.

Wagner identifies these niches as an "advantage," finding ways to add value to existing markets with either innovative approaches or enhanced service delivery. For aspiring business owners, the message is clear: Don't overlook the mundane. With creativity and commitment, there’s potential to scale beyond expectations.

Achieving Optimized Business Exits

Reflecting on the key points discussed, it's apparent that foundational principles—resilience, strategic relationships, and identifying niche opportunities—can significantly enhance the likelihood of a successful business exit. Wagner’s advice aligns with a broad view of the entrepreneurial journey: Understand where the real value lies, whether within relationships, within the market, or within your unique story.

While the initial path might be riddled with challenges, those who persevere—like Wagner and his team—often find that calculated diligence and maintaining a curiosity about how businesses succeed can lead to rewarding outcomes. Just as the unexpected niches offer untapped potential, the right blend of insight, strategy, and timing can guide both new and seasoned entrepreneurs toward successful exits in the business world.

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