EP46: Preparing for M&A

The Conscious Entrepreneur

“A bit of a puzzle around finding the right piece to fit and being willing to say no to the pieces that don’t—that was what got me excited about the M&A process,” says Brenda Jacobsen, the managing director of STS Capital Partners. “The last piece is just creating a win for all because there’s nothing worse than making someone who’s given up or agreed to sell you their life’s work and feeling like they were cheated out of what they feel it was worth,” she adds, emphasizing that transparency and realistic valuations are crucial to prevent either party from feeling shortchanged, thus fostering trust and successful outcomes in M&A deals.

In this episode, Brenda joins Alex Raymond to explore the intricacies of mergers and acquisitions. Brenda shares her extensive experience in M&A, stressing the importance of transparency, realistic valuations, and building strategic partnerships. She attributes much of her professional success to mindfulness and conscious leadership principles, which she learned from the Conscious Leadership Group. These principles have helped her navigate her career with resilience and responsibility.

The episode touches on Brenda’s experiences in the healthcare sector, where she led acquisitions of physician-owned practices, highlighting the importance of trust and transparency in these deals. She advises entrepreneurs to prepare for exits by focusing on profitability, growth, and reducing dependency on the founder. She also shares insights on raising capital and the significance of a supportive community, such as the Young Presidents’ Organization.

Join Alex and Brenda for practical advice and insights on navigating the complexities of M&A, grounded in mindful and conscious leadership principles.

Quotes

• “I have a very high threshold for staying uncomfortable for as long as I need to in order to make decisions. As an entrepreneur and a leader in any company, but especially in earlier stage companies, that is incredibly valuable.” (06:10 | Brenda Jacobsen)
• “One of the things that makes M&A scary, both for companies being acquired and for companies acquiring, is that no matter what you’re buying, you are also buying this talented group of people that make that company work. You may not have plans for all of them to continue on in the new entity, but you need them for a certain amount of time, even if it’s just for the transition. By really thinking people first through that process, it doesn’t have to be hard. It just has to be intentional.” (23:02 | Brenda Jacobsen)
• “I think bringing in outside capital can feel like market validation, but I see it as giving away what you’ve invested blood, sweat, tears, and sleepless nights into, often at a valuation that’s not favorable to you in the future. I try to encourage people to think about using the proceeds from the business to reinvest and grow, even if that means the pace is slower, because then the upside is yours instead of someone else’s.” (42:57 | Brenda Jacobsen)

Links

Connect with Brenda Jacobsen:

LinkedIn: https://www.linkedin.com/in/brendajacobsen/

Connect with Alex Raymond:

LinkedIn: https://www.linkedin.com/in/afraymond/

Website: https://consciousentrepreneur.us/

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