“But the longer I looked at it,” Doug continued, “the more I realized that you really need somebody that knows the product – and the product is a viable company – presenting it to the market in such a way that it brings value to the table.”
It was upon that realization that Doug began the search for the right M&A advisor to guide him through the process of selling his most valuable asset. On a referral by a trusted advisor, he selected
John Johnson in IBG Business’s Tulsa office. It was only then that Doug began to appreciate the myriad complexities and challenges of a successful business sale.
First came the groundwork.
“We spent a couple of years just getting our company into shape,” Doug recalls.” It helped me position the company where it was a viable entity on the market.”
Doug credits IBG with identifying and assembling the information and documents needed to properly present the business and effectively tell its story.
“One of the things that you have to do as the seller of a company is put together a mountain of information for the buyer. This is stuff that you've accumulated, in my case, over 25 years. Their help in that effort was immense. We couldn't have done it without them.”
The painstaking preparation by Doug and IBG paid off.
“The opportunity came along, and we were ready to pull the trigger on it,” Doug said. “Had I not worked with John and his group, I wouldn't have been able to do that. The results wouldn't have been the same.”
Next came the negotiation and due diligence, where Doug came to value IBG’s ability to see around corners and over the hills in the process of delivering the best outcome for him.
“During the negotiation process, there were so many things to consider that I didn't even realize,” Doug acknowledges. “We had elements to the acquisition that were completely foreign to me, and [IBG’s] expertise was invaluable. Having someone on board that's able to communicate with the buyer, using their language, facilitated the acquisition process greatly. They have done this numerous times over several years and know where all the obstacles are.”
One of those obstacles in this particular transaction was the difficult history between Doug and his buyer, a long-time competitor.
“There was a certain amount of bitterness going into this thing,” Doug vividly recalled. “IBG was made aware of that, and we addressed it right up front and got it behind us. IBG was really instrumental in making that happen.”
One of the reasons that many business owners try to sell their business on their own is the desire to avoid paying a broker’s commission. While Doug acknowledges that he, too, had to get past that desire, the favorable result of his sale put the commission in perspective: “The fee that we paid IBG was insignificant compared to the value that they brought to the table.”
The value to Doug went far beyond monetary considerations.
“What IBG really brought to the table for me was peace of mind and the ability for me to achieve my lifelong goal: to build this company and retire with finances that hopefully will outlive my life.
“And that is what has brought me the most joy. I'll be able to pass that on to my grandchildren and help them with everything that they're trying to do, and I don't think I could have gotten that value if I hadn't involved IBG.”
View Doug Padgett’s video interview (5:37).
