Building a Process-Driven Company for Prospective Buyers With Max Friar

Max Friar is the Managing Partner of Calder Capital, LLC, a nationally recognized M&A firm. Having entered the M&A space in 2005, he began his career as the Director of Marketing for a Midwest M&A firm. Max has also invested in, bought, and sold closely-held businesses, serving as a Partner and Co-founder at Weinkauf Plumbing & Heating, Inc. and Small Business Deal Advisors.

Here’s a glimpse of what you’ll learn:

[2:24] The origin story of Calder Capital
[5:56] Max Friar’s definition of lower-middle market
[8:28] How implementing processes accelerated Calder Capital’s growth
[12:05] Systems for acquiring buyers and investors
[15:38] Calder Capital’s automation tools
[18:16] The importance of documented processes for prospective sellers

In this episode:

It’s rare for small businesses to document standard processes and procedures, let alone job descriptions. However, this is essential for growth or to sell the company. How can you develop sound processes to attract ideal buyers?

According to M&A expert Max Friar, implementing and documenting systems presents small businesses as organized and operationally efficient, making them more attractive to potential buyers. Investors and buyers look for businesses that can operate independently of their owners, so having repeatable processes increases your company’s value in the market. By transferring your knowledge into comprehensible systems, you can grow your company for an eventual exit.

Tune in to the latest episode of Systems Simplified as Adi Klevit welcomes Max Friar, the Managing Partner of Calder Capital, to discuss developing processes to sell your business. Max shares his go-to automation tools, his system for attracting buyers, and his definition of lower-middle market businesses.

Resources mentioned in this episode:

Quotable Moments:

"Helping an owner through what is oftentimes the most significant events of their life is more significant than having children and getting married."
"If you don't have well-defined standard operating procedures and processes, it's basically impossible to grow."
"We are creating a massive marketplace for every client that we have."
"By being everywhere and then having a process to filter out the 90% of buyers that are not going to be interested, we are maximizing the price."
"The more that the owner can get out of their head and onto paper, the less reliant the business is on that owner."

Action Steps:

Document standard operating procedures (SOPs): Creating and maintaining detailed SOPs ensures consistency and efficiency within a company, making it less reliant on individuals. This is crucial for improving a business’ marketability as it assures potential buyers a smooth transition and operational continuity.
Automate repetitive tasks: Implementing automation tools like CRM systems can streamline communication and follow-ups, reducing the manual workload for staff. This approach helps businesses handle many prospects efficiently, ensuring no opportunity is missed and allowing advisors to focus on high-potential leads.
Conduct thorough business valuations: Before taking a business to market, it's essential to perform detailed valuations to align seller expectations with market realities. This preparation helps set realistic goals and ensures time and resources are invested wisely, increasing the likelihood of successful transactions.
Proactively market to a broad audience: Utilize a comprehensive marketing strategy that includes broad online exposure and a curated database of potential buyers. This step increases the chances of finding the right buyer by maximizing the business' visibility, ultimately leading to a better fit and higher sale prices.
Focus on cultural fit in transactions: Beyond financials, prioritize matching buyers and sellers based on cultural fit and shared values. This consideration enhances the likelihood of a successful transition and continuity, preserving the seller’s legacy and ensuring long-term success under new ownership.

This episode is brought to you by Business Success Consulting Group.

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Businesses simply can’t survive without workable systems and well-documented processes. That’s why our team of experienced professionals takes care of it for you.

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So, what are you waiting for? Do yourself a favor, and cut the chaos out of your business.

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