Welcome to the “Show Me The Way” podcast with David Seitter
In this episode of “Show Me The Way,” Dave sits down with Denise Logan, author of The Seller’s Journey, to discuss the journey of selling a business, what work provides other than financial stability, and why she works on a fixed amount rather than a success fee.
Ep. 13 — The Sellers Journey with Denise Logan pt. 1
Introducing Denise Logan and Her Journey
Dave begins by asking Denise to discuss her history, finding similarities between their upbringings.
- Denise discusses multiple moves she has had throughout her life, and what those moves are associated with.
- She adds that initially she worked as a mental health professional, helping those with work and financial disorders, and the study of thanatology.
- She says eventually she became a lawyer and built a law practice, and after almost 15 years of practicing law, she merged with a larger law firm.
- After some time off to travel, she joined a friend’s business that had been poised to sell on three separate occasions, but was unable to do so.
- Denise said this experience inspired her to research and study why business owners get stuck in the selling process, and how best to help them with the emotional side of selling your business.
- In her book, she talks about how when we focus on work, money, and meaning, we leave a much better legacy than if we focus on only one.
Denise continues her line of thinking by describing how she came to helping business owners in the process of selling their business.
- Denise talks about how she knew she needed to sell her business long before she actually sold it.
- After working with consultants, she realized that many of them are not truly listening to the desires of the business owner.
- She then tells the story of one of her previous clients and why he struggled emotionally to sell his business.
What Work Provides You Other Than Money
Denise says that there are a lot more things a job provides to someone other than money and financial security.
- Denise then asks Dave for 15 examples of what work provides for him, other than money and financial security.
- After Dave answers, Denise discusses other answers she commonly hears including intellectual stimulation and friendship, and deeper emotions such as power.
- She notes that there are often a lot of other people that will be affected by the selling of a business.
- Denise says that business owners have not created a plan for what they are going to do after the sale of their business.
- She adds that business owners need to think about where those other needs that are being fulfilled by work, will be met, and uses Tom Brady as an example.
Dave follows this chain of thinking, noting that many people ascribe their worth to their business, and rather than retiring, people need to learn how to rewire.
- This leads Denise into another story of a previous client who wanted to change the terms of the agreement last minute, and then went into hiding.
- She discusses her process of getting into the weeds with that business owner, and finding the true root of the problem.
Success Fees vs. Fixed Amount Payments
After Dave asks if she got a success fee from that deal, Denise discusses her pay structure.
- She says she doesn’t work on success fees, but rather on a fixed amount because she doesn’t want the business owner to think that is distorting her priorities.
- She also notes that she doesn’t work on an hourly basis because that might cause the business owner any more undue stress by them thinking her help will cost them another hour.
- Denise says this also allows her to move seamlessly between the deal teams, really focusing on the emotional piece of the transition.
- She draws parallels between the transition between selling a business and when parents become empty nesters.
- Dave agrees, saying that with business owners there are both carbon-based children, and a legal-based children.
This podcast is provided for educational purposes. It does not constitute legal advice and is not intended to establish an attorney-client relationship. The recommendations contained in this podcast are not necessarily appropriate for every individual or business. In determining the best course of action, business owners should consult with an attorney on their distinct circumstances.