What Up and Coming Acquirers Value In A Partnership
This week, Carter Schelling takes a deeper look at Paul Martin's recent interview with Renee Halfhill to reveal what she, and other acquirers like her, are looking for in a potential acquisition partner.
Full transcript
Generated from the episode audio and lightly edited for readability.
Welcome to Studio 3655. I'm Carter Schelling, director of development for Martin Healthcare Advisors. I also have my own consulting firm where for the last 43 years I've been helping business owners build extraordinary companies in ordinary industries. For the last several years I've helped Paul produce his extraordinary series of interviews and seminars, some of which were shot right here. Today I'm doing the opportunities for action following his interview with Renee Halfhill, CEO of Main Street Therapy Partners, 15 clinics in several states. Let's take a look at the opportunities for action on your part that come from this interview.
Number one, what's our context? Who is this woman? Well, although she is one of the upandcomers because her firm has been more active recently in acquiring companies, Main Street's been around since 2011 and she recently sold a company in a very similar industry industry she had for 37 years. Okay, so she's got history. She knows her stuff. How should we interpret her tone? She seems very personable, very polite, very nice, but underneath that exterior, you can tell she's serious. She knows what she wants and she's going to get it.
She also represents an important aspect of the upandcomers. She also, like the others we've learned about, wants to innovate. Innovation is going to be part of her success going forward. And she wants to grow. No question about that. What can we learn from her? What should we do because of her message? Let's take a look at her contribution to your success. Number one, you got to make sure you're sure about your decision to sell. She spoke about more than one owner they'd begun to work with who wasn't sure after all, maybe needed some more time.
That was a waste of her time and theirs. We don't have time for that anymore. Number two, you got to know your numbers. You know, she also mentioned the number of owners who when operating their company take their numbers kind of casually as long as they're making money. She doesn't take numbers casually. When you're around her, you got to know your numbers. In addition, you got to prepare for how an outsider would view your company, your life's work. Most of us talk about our companies from the inside out because that's where we live.
But we're talking to people who look at us from the outside in. Inside out. That's kind of catchy. We ought to use that phrase. Yeah. You got to be ready for how outsiders will judge your baby. You know, you got to bring somebody who wants to innovate. It's clear the newer companies think their way to get a jump on the old legacy companies to do better in leaner times is to have the new idea. And if you have staff who are interested in the new idea, who want to try the new idea, you're going to be very attractive to them.
Next, you got to bring somebody who wants to grow. Now, when I say bring somebody, that can be you as the leader. If it's not you, if you want to get your number, if you want to get best deal possible, you got to have somebody who's going to step in and participate in the upandcomer's desire to innovate, participate in their desire to grow and take your company with their help to the next level. If it's not you got to have a backup because they don't have extra managers to put in your place.
All those people are busy. Finally, you got to bring a great growth plan. You know, one of my clients of like 25 years is selling his company like I think this week and he is an extraordinarily successful and knowledgeable business owner in his industry. The woman who's buying his company and her backers have no experience in his industry. So, they've asked him to stick around for a while and help them get oriented. This week, one of those investors is coming to visit his place. And I said to him, you know, what are you going to tell them about your plans for growth?
He said, well, I have to wait out and wait and find out what they want me to do. I said, what? No, no. They don't want somebody running this company, helping their new owner run this company who's waiting for them to tell them what to do. They don't know the industry. You have to come loaded for bear, ready to spring into action with the things you've been thinking about how their money and your skill could take advantage of unique opportunities in your industry for everybody to make a lot of money.
You have to make the first move. They want to support someone who has fire in his belly, has an unfinished dream. They want to help him or her finish that dream. What's your dream for what your company could become with more resources? What your company could become if you had all your time to invest in developing it, developing your people, making sure your clinical excellence is where it needs to be. What could your company become? That's what the acquirers, especially the upandcomers, want to see on the negotiating table.
That's what they're willing to pay for. And you know what? We can help you develop a dream. We can help you develop a plan and we can help you understand how an outsider will evaluate your present and your future. Let us help you do it. Thanks for your time today. Look forward to seeing you in the next show.
Want to talk about your own business?
Marlton, NJ 08053