The Private Equity Playbook and How To Create Generational Wealth | Adam Coffey

The Wise Exit

E37: On today's episode of Cashing Out, Todd Sullivan speaks with Adam Coffey, a CEO, Board Member, Best-Selling Author (x2), and Acclaimed International Speaker.

Adam is a respected mentor to MBA candidates and a sought-after speaker at UCLA. He brings diverse expertise from commercial and industrial service businesses, alongside being a licensed general contractor, pilot, former GE executive, and US Army veteran.

Adam admits his career as a Private Equity backed operator has been a thrilling and highly lucrative journey. But today, he's more interested in sharing his knowledge with business owners on how to maximize their outcomes when selling their businesses.

In our discussion, Adam offers his advice in three areas where business owners can improve their outcomes when selling to private equity sponsors:

1) how to get smart about the sales process to private equity
2) how business owners can leverage private equity buyers to create generational wealth

3) how hiring experienced advisors at every stage of the exit process will yield your best results

Episode Highlights:
6:04 Where it all started for Adam - learning servant leadership in the US Army
11:31 How should founders think about selling to a Private Equity firm?
18:15 The value of having the right experts in your corner - would you go to your dentist to get brain surgery to save a few bucks?
20:10 As a founder, how should you deal with inbound interest - what do you do when that phone call comes from an interested buyer
25:40 What is rollover equity, and getting a "second bite at the apple"?
26:58 Adam Coffey's "law of 130" when looking to sell your company
33:05 How being part of a private equity platform can get you an incremental arbitrage opportunity with your money?
34:36 What is EBITDA multiple arbitrage in private equity?
40:24 Leveling the playing field when selling your company
45:08 Getting high-value, competitive intelligence from you Investment Banker

Episode 37 Required Reading:
Three Things You Can Do To Strengthen Your Business For A Possible Recession, Adam Coffey in Forbes (5/2/23)
Three Things To Consider When Deciding If It’s The Right Time To Sell Your Business ("the law of 130"), Adam Coffey in Forbes (7/12/22)
The Exit Strategy Playbook
The Private Equity Playbook
Who Should You Hire to Help Sell Your Company?
Unveiling the Power of Rollover Equity: Empowering Founders, Entrepreneurs, and Business Owners in M&A

Where To Find Todd Sullivan (Host):
LinkedIn: https://www.linkedin.com/in/toddfsullivan/
Twitter: https://twitter.com/Todd_Sullivan

Where To Find Adam Coffey (Guest):
LinkedIn: https://www.linkedin.com/in/adamecoffey/
Twitter: CEOAdvisoryGuru
Website: AdamECoffey.com

Episode Sponsor:
Thanks to Doeren Mayhew for sponsoring this episode of the Cashing Out podcast! Doeren Mayhew is one of Forbes best tax and accounting firms in the United States. Check out their Quality of Earnings (QofE) offerings, and everything else they can help you with at doeren.com.

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