Episode Overview
Selling a business is one of the most significant financial and personal decisions a founder will ever make. In this episode of the DevReady Podcast, Anthony Sapountzis, CTO and Co-Founder of Aerion Technologies and DevReady.Ai, sits down with Simon Bedard, Managing Director of Exit Advisory Group, to unpack what it really takes to sell a business for maximum value. Simon brings decades of experience from investment banking, private wealth, and hands-on business ownership, offering practical insights into business valuations, exit planning, and mergers and acquisitions.
Throughout the conversation, Simon explains why most business owners underestimate the complexity of selling their company and how early preparation can dramatically improve both deal value and terms. This episode is essential listening for founders, owner operators, and leaders considering a future exit, whether that decision is months or years away.
From Investment Banking to Business Exit Advisory
Simon Bedard’s journey into exit advisory began in the world of investment banking and private wealth, where he worked closely with high-net-worth individuals to build long-term value. Over time, Simon transitioned into business ownership himself, buying, growing, and selling companies firsthand. This experience exposed a major gap in the market, where business owners lacked access to professional, end-to-end support when preparing to exit.
Exit Advisory Group was founded to address this problem. The firm focuses on business valuations, sell-side mergers and acquisitions, and strategic advisory services designed specifically for business owners. Simon’s approach is grounded in helping founders understand what their business is truly worth today, what it needs to be worth in the future, and how to bridge that gap through deliberate planning.
Why Selling a Business Is More Complex Than Founders Expect
One of the key themes of the episode is the mismatch between founder expectations and the reality of selling a business. Simon explains that business owners are naturally comfortable with risk and uncertainty, which serves them well while building a company. Investors, however, approach acquisitions with a fundamentally different mindset that prioritises risk identification and mitigation.
This difference often leads to tension during negotiations. Founders see opportunity, growth, and potential, while buyers focus on vulnerabilities, dependencies, and downside scenarios. Simon uses clear analogies to show how two parties can view the same business through entirely different lenses. Understanding this dynamic early allows business owners to prepare more effectively and reduce friction throughout the sale process.
Emotional Attachment, Legacy, and Exit Decisions
Anthony and Simon also explore the emotional side of selling a business. For many founders, their company represents years or decades of effort, personal sacrifice, and identity. This attachment can influence decisions around price, buyer selection, and deal structure.
Simon explains that some owners prioritise legacy, choosing buyers who align with their values even when higher offers exist. Others approach the sale purely as a financial transaction. Most founders sit somewhere between these extremes, with emotions fluctuating throughout the process. Recognising these dynamics in advance helps business owners make clearer decisions under pressure.
Selling Small Businesses Versus Larger Companies
The episode highlights the differences between selling smaller owner operated businesses and larger corporate-style companies. Smaller businesses often attract a wider pool of potential buyers due to affordability, yet owners typically lack the time, resources, and transaction experience required to manage a sale effectively. Many founders end up running their business full time while simultaneously navigating a demanding sale process.
Larger businesses tend to have stronger internal teams, established systems, and access to experienced advisers. Buyers in this segment are usually more sophisticated and familiar with mergers and acquisitions. Simon notes that although the buyer pool may be smaller at higher valuations, the quality and capability of buyers often increases, improving the likelihood of a successful transaction.
The Risk of Unsolicited Acquisition Offers
Unsolicited approaches from buyers are increasingly common, particularly in a market with record levels of available capital. Simon warns that while these offers can feel flattering, they often place business owners at a disadvantage. Buyers typically operate within well-defined sales-driven processes designed to maximise outcomes for the acquirer.
Without independent advisers and a seller-led strategy, founders can lose control of the process, endure months of due diligence, and still face unclear or unfavourable offers. Emotional fatigue and time pressure weaken negotiating positions, leading to reduced valuations and compromised terms. Running a competitive process with multiple buyers helps protect value and leverage.
Founder Experience and the Right Advisory Support
Another key discussion point is the importance of lived business experience in advisory roles. Simon explains why advisers who have built and sold businesses themselves are often better suited to support founders during an exit. Large consulting firms may excel with scale, but their models are not always aligned with the realities of mid-sized and founder-led businesses.
Simon shares a real example of a business owner who paid a significant fee for advisory support that lacked hands-on execution. The mismatch between business size and advisory model resulted in poor outcomes. Choosing advisers whose incentives, experience, and operating style align with the business is critical.
Preparing Your Business for Sale Years in Advance
Anthony asks Simon what business owners should prioritise when preparing to sell. Simon stresses that exit planning should begin three to five years before the intended sale whenever possible. Early preparation allows owners to reduce dependency on themselves, improve systems and processes, and address risks that negatively impact valuation.
Key risks include key person dependency, customer concentration, and supplier concentration. Simon explains how high reliance on a single customer or supplier can significantly reduce deal value and buyer confidence. Addressing these risks takes time, which is why delaying preparation often results in lower outcomes.
Time Versus Value in Business Exits
The episode concludes with a discussion on the trade-off between time and value. Simon explains that founders must decide whether they prioritise exiting quickly or maximising sale price. Rushing a sale often forces compromises on valuation and terms, while allowing time creates opportunities to grow value and reduce risk.
Unexpected life events, health issues, or market changes can remove time as an option entirely. This reinforces the importance of proactive exit planning, even when selling feels distant or abstract.
Key Takeaways
- Selling a business is a complex process that requires planning, structure, and experienced advisory support.
- Business owners and investors view risk very differently, which directly impacts valuation and deal terms.
- Early exit planning, ideally three to five years ahead, significantly improves outcomes.
- Key person dependency reduces business value and often forces founders to remain involved post-sale.
- Customer and supplier concentration increase perceived risk and can materially lower valuation.
- Unsolicited acquisition offers often favour buyers and reduce a seller’s negotiating power.
- Running a seller-led, competitive process helps protect value and control.
- Choosing advisers with real business ownership experience leads to better alignment and execution.
- Time and value are closely linked, and delaying preparation usually results in compromised exits.
Useful Links
Exit Advisory Group | LinkedIn
FAQs
How early should I start planning to sell my business?
Most business owners benefit from starting exit planning three to five years before selling. This allows time to reduce risk, improve valuation, and negotiate better terms.
What reduces the value of a business during a sale?
Common value reducers include key person dependency, high customer or supplier concentration, weak systems, and lack of documented processes.
Should I accept an unsolicited offer to buy my business?
Unsolicited offers should be approached carefully. Without independent advice and a competitive process, business owners risk undervaluation and loss of control.
Why do investors view businesses differently from founders?
Founders focus on opportunity and growth, while investors prioritise risk, sustainability, and downside protection.
Do I need professional advisers to sell my business?
Yes. Selling a business is complex and high risk. Experienced advisers help protect value, manage negotiations, and guide the process effectively.
