Why the Right Team Makes or Breaks a Deal

Transcript

Andy and JT welcome you to another episode of The Deal Board Podcast. This week, they break down why building the right team is critical when buying or selling a business, and how to find your key players. Tuning in, you’ll learn why deals are not a solo act and the key roles every buyer or seller should consider, from internal management to external advisors. The conversation explores how the strength of the team already running the business, also known as management depth, impacts valuation and buyer confidence, and why having the right people in place can make or break a deal. They also walk through the role of a business broker and how brokers help set expectations, price businesses correctly, and guide deals from start to finish. Beyond brokers, they cover the importance of CPAs, attorneys, lenders, and financial advisors, emphasizing the need for experienced, deal-focused professionals. Tune in to learn how the right team can protect value and help you successfully close your next deal!

Listing of the Week:
A well-established hardscaping and landscaping business in the Chicago area is now available for purchase! Family-owned and operated for over 30 years, this business has been built by the same owner and generates approximately $250,000 in earnings. Priced at $825,000 and supported by a solid base of equipment and a long-standing reputation, this is an excellent opportunity for a buyer to step into a proven operation with room to grow as the owner prepares for retirement. For more information, call Tony Sansone, of Transworld La Grange, at (708) 571-3373 or email [email protected].

Deal of the Week:
A thriving landscape design and maintenance business in South Shore, Massachusetts, has found the right buyer! With a strong reputation and experienced team, the business attracted a larger local company looking to expand. The buyer was able to seamlessly integrate the operation while retaining staff and minimizing disruption for customers, creating a strong fit for both sides. Another successful transaction for Transworld Boston! To learn more, call Brook Hartnett at (617) 860-4980 or email him at [email protected].

Key Takeaways

[00:30] Today’s topic: Building the right team.

[01:30] Considering the type of business you’re buying and its management depth.

[04:18] Why you need a business broker during the buying and selling process.

[12:05] The role of a CPA in preparing and supporting the deal.

[14:15] Selecting the attorneys you’ll need, depending on your business.

[15:21] Choosing the right lender and understanding financing options.

[18:41] Common mistakes to avoid when choosing your team.

[20:35] How the right team protects value and keeps deals moving.

[21:33] Why you need a financial advisor as a seller.

[22:06] Deal of the Week: Brook Hartnett (Transworld Boston) sells a landscape design and maintenance business to a strategic local buyer.

[23:49] Listing of the Week: Tony Sansone (Transworld La Grange) is selling a 30-year hardscaping and landscaping business with approximately $250,000 earnings.

Show Notes

Quotes:
“The first thing is, the broker is going to help set the expectations. The second thing is, they’re going to help you set the price.” — JT Tatem [0:06:02]

“We have found that if the price is off over in excess of about 15%, the business will never sell.” — Andrew Cagnetta [0:06:43]

“The broker is working very hard to make sure that they find the right buyer to meet with. Because – you’re not going to meet with 100 buyers. They’re going to filter it down to the ones that they think are the most serious or best fitting, and then set up those meetings.” — Andrew Cagnetta [0:10:57]

“The broker in the beginning is the quarterback on the whole thing. And if they’re doing a good job, they’re communicating with the attorney, the CPA, the lender, all through the process. As the buyer and seller, you want to give them permission to do that.” — JT Tatem [0:18:26]

Mentioned in This Episode

• The Deal Board Podcast
• The Deal Board Podcast YouTube Channel
• United Franchise Group
• Transworld Business Advisors
• Transworld on LinkedIn
• Transworld on Facebook