
2 days ago
02: Unlocking the Second Bite: Maximizing Business Exits with Todd Taskey
Todd Taskey, an M&A advisor and angel investor, joins Bruce Eckfeldt to discuss the nuances of business exits and private equity partnerships. Taskey explains the importance of structuring deals to optimize cash, equity, and earnouts. He highlights how founders can use a sale to accelerate growth rather than just exit, and shares real-world examples of successful second-bite opportunities. This episode is packed with strategic insights for founders looking to navigate the complexities of M&A and maximize the value of their business sale.
Key Takeaways:
- Founders should distinguish between exiting a business and using a sale to accelerate growth.
- The best deals balance cash, equity, and earnout structures to optimize long-term returns.
- Private equity partnerships can provide strategic advantages, but founders must ensure transparency in equity and debt arrangements.
- Overstating future projections can backfire, making it crucial to present realistic financial expectations.
- Retaining equity in a larger company can be a lucrative strategy for entrepreneurs who want to stay involved post-sale.
- The right buyer fit—culturally and strategically—is just as important as financial terms.
- Business owners should have GAP-compliant financials and proper accounting structures in place before seeking a sale.
- Understanding different private equity models helps founders negotiate better terms and avoid common pitfalls.
Links & Resources
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Todd Taskey
https://potomacbusinesscapital.com/podcast/
https://www.linkedin.com/in/toddtaskey
https://potomacbusinesscapital.com/
todd@potomacbusinesscapital.com
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