P47: š Group Call XXI š The Nitty-Gritty on Selling a Business
Video & Audio of Our Call:
Background:
Welcome to Group Call 21 hosted by Austin together with our returning guest, Mr. Raine Mahdi of Hawk Packaging. If you havenāt seen Raineās interview, please check out Raine Mahdi on Episode 145. Raine is currently in the process of selling his company for a large sum of money. Patreon members will get to hear the nitty-gritty process of selling a company and the mistakes that Raine could have avoided in order to sell his company at a much better price value. So, if you are in the middle of selling a company or you want to know more about selling a business, you should not miss out on this Patreon episode. Bring out your chips, popcorn, and drinks because this is a long group call filled with tons of business insights, hard lessons, tips, and advice from Raine, Austin, and our amazing Patreon members.
Hereās a little bit of information about Raine. After the process of selling Hawk Packaging has pushed through, he is planning on building up a new business. He has more than 15 years of experience in Sales, Marketing, and Business Development. Throughout his entrepreneurial and business career, he was more involved in Food, Manufacturing, and Importing industries.
Time-Stamped Show Notes:
- [0:39] Raine: When he goes fishing, he would binge listen to Austinās podcast.
- [4:03] Stephen: He had this moment of crisis until he talked to his mentor, which enlightened him and made a mental switch in his brain.
- [5:50] Raine: offers an analogy between momentum in sports and in business.
- [9:52] Austin: reminds everyone that it isnāt too late for someone to start a business, even if youāre in your 30s or 40s.
- [11:59] Erika: congratulates Raine on selling his company.
- [12:39] Austin: whips out his fog machine and disco lights for Raineās group call.
- [13:19] Raine: explains what an earnout is all about.
- [17:24] Stephen: curious if Raine has a business partner.
- [18:31] Raine: has a broker for selling his company. He explains why a broker can be valuable when selling the company, even if they are asking for a 10% commission. He also remembers this one episode in Austinās podcast, Thomas Smale of FE International, which is about selling and buying companies. According to Raine, most of the things that Thomas said were accurate. You can check out this episode here at Thomas Smale on Episode 186.
- [21:23] Asante: asks why Raine is selling his company.
- [26:59] Raine: has a unique perspective when hiring an employee and choosing the right person to become the next owner of his business.
- [29:46] Austin: wants to know Raineās one simple mistake, wherein he could have sold his company at a much higher price.
- [35:27] Raine: the one mistake that Raine did involves taxes, which came to bite him in the end when he was selling the company. He was also sharing his bad experience with a broker who was trying to sell his company.
- [54:59] Asante: curious if Raine has a business plan that he showed to the broker and buyer.
- [55:29] Raine: he could have written a business but he didnāt see the value in it.
- [57:56] Austin: gives his own opinion about creating a business plan. He also recommends Quickbooks Online.
- [1:01:06] Alex: opens up the issue of trust with employees and everyone surrounding Raineās business.
- [1:02:00] Raine: offers a piece of advice when it comes to trust issues and analyzing people and their personalities.
- [1:05:08] Austin: has one example about meeting a person who is lying and being untruthful.
- [1:08:43] Raine: recalls a hard lesson that he learned when he was working for his previous company. This terrible experience was also the catalyst for creating his own company, Hawk Packaging.
- [1:16:50] Alex: wants to know how he can find a good employee in Upwork.
- [1:17:52] Austin: believes that hiring virtual assistants can really help, especially for new businesses.
- [1:19:03] Raine: talks about what he thinks about Upwork. He also shares his experience when he tried to get virtual assistants at Belay Solutions, which is a company that Austin already interviewed. You can check it out at Bryan Miles on Episode 84.
- [1:22:53] Austin: also has something to say about Belay Solutions.
- [1:30:50] Raine: continues with sharing the process of selling his company, Hawk Packaging. He dives into a more detailed description of his companyās selling process.
- [1:37:58] Alex: switches his question about sales and how he can improve his sales skills.
- [1:39:05] Raine: offers some valuable tips about sales.
Our Members on Group Call 005:
Key Point from Our Group Call:
- Raine: āI would definitely say that keeping good books and being intentional, not fake, but being intentional about showing profits, it will serve you in the long run, if you know that youāre going to sell the business at some point.ā
Resources Mentioned:
Our Member Map:
Secret Resources:
