You Might Be A Boss, But You're Not The Ultimate Boss

05/05/21 • 25 min

“When you have your back against the wall, it’s amazing what strength you can come up with” - Brian Shafton, Founder and CEO of RBC records. Hear how Brian created RBC from scratch with just a computer and cell phone in his living room, grew the business and how he approached BMG which led to a strategic acquisition.

As the acquisition unfolded, Brian discusses some of the synergies between RBC Records and BMG. Specifically, he discusses how BMG’s International presence allowed him to expand his business from only U.S. based clientele to working with artists around the world.

Pay close attention to why an independent company was a non-negotiable must for Brian when negotiating his deal.

He shares his insights on the realities of the due diligence process - how arduous, stressful and time consuming it was. And, how by going through this process, it gave him a better appreciation for his business and how he learned from himself by retracing his steps. Ultimately, in retrospect, he now looks back at it with enjoyment.

Lastly, he shares his 2 action items for owners:

Ask specific scenarios during the courting phase with your potential suitors. Get an understanding how the new buyer will treat your clients and your employees. Additionally, take the time to come away with a clear vision of how the buyer will integrate your systems into their systems.
How to ensure your legacy is preserved when your company is acquired by a strategic buyer.

Pay close attention to why an independent company was a non-negotiable must for Brian when negotiating his deal.

Lastly, he shares his 2 action items for owners:

Ask specific scenarios during the courting phase with your potential suitors. Get an understanding how the new buyer will treat your clients and your employees. Additionally, take the time to come away with a clear vision of how the buyer will integrate your systems into their systems.
How to ensure your legacy is preserved when your company is acquired by a strategic buyer.

Next Episode

Do You Have The Best Team In Place?

“Do we have the cast of characters in the right seats on the bus in order to bring us the next 2-3 years of growth” - Dan Doran, Founder of Value Scout and Quantive.

Hear how Dan’s unique skills as an entrepreneur, valuation expert and M&A advisor help bridge the gap between buyers and sellers.

Dan talks about how owners can overcome their blind spots which might cause them to perceive specific business risk differently than what a potential buyer might see. He shares the importance of having an outsider provide their insight/perspective on the business. For some owners, one way to do this is to consider setting up a non-voting advisory board to bring additional experience, resources and expertise to the table.

Additionally, many owners know they need to grow business value to fund their lifestyle or retirement but aren’t sure how to formulate an actionable plan. It was this disconnect that led Dan to create Value Scout, a platform that helps entrepreneurs and their advisors more deliberately create business value leading up to an eventual exit. Specifically, Value Scout helps owners create a measurable plan to correlates each tactical initiative back to the overall enterprise value.

Lastly, he shares his 2 action items for owners:

“Do you have the best team in place?” He suggests owners surround themselves with the best team possible. The importance of human capital can’t be overstated. It’s what really drives the value of the business and owners should look both at their in house and outside teams.
Understand the rules of the game – you can’t fight the market. Owners need to take the time to educate themselves on the M&A process well in advance of a sale. You don’t want to be the least knowledgeable person room at the time of a transaction.