This week on [radically candid], we are diving deep into the fascinating world of Mergers & Acquisitions (M&A) with our latest podcast episode featuring Brian Dukes, Co-Founder of Shift Digital, serial entrepreneur, advisor to us here at [cognition], and Managing Partner at Exitwise.
Why are we talking M&A? Because we know you’re building for a reason, and frankly, if you’re buying, managing, or measuring Streaming TV advertising, then you’re early on the trend line of agencies, which means the time to compound exponential value is now.
Why Talk About Exits Early On? 💡
There’s a major misconception: that preparing for an exit too soon signals a lack of ambition.
Brian, however, argues the contrary – that proactive planning for a possible exit/outcome should be a core part of your vision from day one because it puts you in the drivers seat when the opportunity presents itself (vs having to be reactive, missing a deal because of it, or leaving money on the table).
“Preparation for a future exit shouldn’t necessarily be something that we are ashamed of as we build.”
What should you be thinking about it M&A is on the roadmap?
- Document Hygiene: Keep all core documents (agreements, contracts) signed, filed, and easily accessible. Buyers will want to see these.
- Financial Organization: As your business grows, organize financials effectively. Be able to quickly produce an accurate overview of your financial picture.
- Early M&A Sophistication: Consider adding a board member or virtual team member with M&A experience. Their perspective on what acquirers value is invaluable.
“The best place to start is at inception – get into the right process of organizing the core documents of your company.”
The Essential Financial Workbook 📊
One of the most important things you can keep up to date is your Financial Workbook.
What is it?
Brian breaks it down:
- Historical View: Revenue growth, customer growth, and customer churn over time.
- Future Projections: Realistic growth forecasts with associated costs (e.g., hiring, office expansion) and assumed churn. Avoid the “magical hockey stick” projection without accounting for the necessary investments.
- Revenue Details: Breakdowns of product vs. recurring revenue (for SaaS businesses), invoicing practices, and how revenues are accounted for.
- Employee Makeup: Information on W2 vs. 1099 employees, titles, and groupings.
- Customer Concentration: A critical insight for buyers. If one customer represents a large percentage of your revenue, a buyer will want to know.
The goal is to provide a comprehensive, accurate, and easily digestible picture that allows potential buyers to quickly assess if your business aligns with their interests. ✅
“It’s really an extract of your financial picture and organizing it in a way that highlights how your financials are changing over time.”
Who are the winners and losers of M&A?
- The Biggest Tragedy: Founders who build valuable businesses but wait too long to consider an exit. Exhaustion or illness leaves them unable to prepare, often leaving significant value on the table.
- A Common Mistake: CEOs who remain too involved in every aspect. Failing to delegate stifles growth and makes the business difficult to sell, as the owner is the business.
- Key takeaway: “Fire yourself” from tasks you can delegate to empower your team and build a more transferable business.
On the flip side, Brian highlights the upside from preparing early, sharing the story of a CEO who was ready to sell when a buyer showed interest in a small part of their bigger business and because they were organized and prepared, they were able to capitalize on the opportunity while retaining the core business.
“The biggest tragedy… is being too involved in the business when you’re the CEO and having too much rest on your shoulders.”
💬 Why You Should Listen
If your 2025 roadmap includes:
✅ Building a “more sellable” business
✅ Preparing for a successful future exit
✅ Seeing the true value of your business
…then this episode is a must-listen. 🎧
Would love your thoughts after you listen:
- What’s your #1 question on M&A? (Drop it below!)
Talk soon,
Tim Rowe from Marketing
