Episode 129-Buying and Selling Businesses with Michelle Seiler Tucker
In this high-impact episode of The Prospecting Show, Dr. Connor Robertson interviews Michelle Seiler Tucker, a leading authority on mergers, acquisitions, and business exits. Together, they dive deep into what separates companies that sell successfully from those that never reach the closing table. The conversation is packed with actionable insights for entrepreneurs who want to scale with purpose, build transferable value, and eventually achieve a life-changing exit.
Dr. Robertson opens the discussion by addressing a truth many business owners overlook: “Building a great product doesn’t guarantee a great exit. It’s the systems and structure that determine what your business is worth.” Michelle nods. “Exactly,” she says. “Most entrepreneurs build a job for themselves, not a business that can operate without them. Buyers don’t buy jobs—they buy assets.”
The Mindset of an Exit-Ready Entrepreneur
Michelle begins by explaining that every business should be built with the end in mind. “You don’t wait until you’re ready to sell to start planning your exit,” she says. “You build your company to be sellable from day one.”
She adds that most owners think about selling only when they burn out or face financial stress. “That’s the worst time to sell,” she says. “The best time is when your business is thriving.”
Dr. Robertson agrees and adds that strategic entrepreneurs think like investors. “You’re not just managing operations—you’re managing value creation,” he says. “Every system, process, and person should contribute to your eventual exit multiple.”
Michelle explains that her process focuses on what she calls the “6 P’s Framework”—the six pillars of value that determine a company’s worth.
The Six P’s of Value
Michelle breaks down the six critical elements that make a business sellable:
- People – “A business is only as strong as its team,” she says. “If your company depends on you, you don’t have a sellable business—you have a glorified job.”
- Product – “Your product or service must be competitive, in-demand, and adaptable,” she explains. “Markets change, and so must your offer.”
- Processes – “Documented, repeatable processes are what make a business scalable,” she says. “They’re the foundation of consistency.”
- Proprietary – “This is where the real value lies,” she says. “Trademarks, branding, patents, contracts, and intellectual property create leverage and protect margins.”
- Patrons – “Your customer base must be diversified,” she warns. “No single client should represent more than 20% of revenue.”
- Profits – “Profitability is the validation of all the other P’s,” she concludes. “Buyers pay for performance, not potential.”
Dr. Robertson connects this framework to a universal business principle. “If your business runs without you, scales without you, and profits without you—you’ve created freedom,” he says.
Why Most Businesses Don’t Sell
Michelle shares a sobering statistic: over 80% of businesses listed for sale never sell. “That’s because they aren’t built to be transferable,” she says. “The owner is the business.”
Dr. Robertson notes that this often comes from emotional attachment. “Founders fall in love with their creation,” he says. “But buyers care about the engine, not the story.”
Michelle agrees. “It’s not personal—it’s financial,” she says. “The more emotionally detached you are, the more successful your exit will be.”
She adds that lack of documentation, weak financials, and dependency on key clients are the biggest deal-killers. “If you can’t show clean books and predictable revenue, buyers will walk away,” she says.
Dr. Robertson summarizes the takeaway: “You can’t sell what you can’t systemize.”
Building Value Before the Exit
Michelle advises owners to start exit planning at least three to five years before they intend to sell. “It’s not just about finding a buyer,” she says. “It’s about building something worth buying.”
She explains that her firm often performs “business valuations with a roadmap.” “We don’t just tell you what your business is worth—we tell you what it could be worth and how to get there,” she says.
Dr. Robertson connects this to his own philosophy of building strategic assets. “You should always be creating optionality,” he says. “When your business is built on strong fundamentals, you have freedom—freedom to sell, scale, or step back.”
Michelle adds that timing the market is less important than timing your readiness. “Buyers will always exist,” she says. “The question is, will your company be ready when they come knocking?”
The Art of the Deal
Dr. Robertson asks what separates good deals from great ones. Michelle explains that alignment is key. “Great deals happen when both sides win,” she says. “The seller gets rewarded for years of effort, and the buyer inherits a thriving operation with predictable cash flow.”
She emphasizes the importance of clarity and transparency during negotiations. “Surprises kill deals,” she says. “You should know your numbers better than anyone in the room.”
Dr. Robertson agrees and adds that preparation builds leverage. “When your data room is organized, your contracts are clean, and your financials are verified, you control the narrative,” he says. “That’s how you negotiate from power, not pressure.”
Michelle notes that every sale comes down to confidence. “Buyers pay a premium for certainty,” she says. “Your systems, staff, and strategy must make them believe in a seamless transition.”
Common Mistakes Sellers Make
Michelle outlines the most common mistakes she sees business owners make during exit planning:
• Waiting too long to prepare for a sale
• Underestimating the importance of documentation
• Letting emotions interfere with negotiations
• Failing to hire professional advisors
• Ignoring post-sale tax and wealth planning
Dr. Robertson highlights that mistakes during the sale process can erase years of hard work. “A single bad decision can cost millions,” he says. “Preparation isn’t optional—it’s essential.”
Michelle adds that sellers often overvalue their companies based on sentiment rather than structure. “Your business is worth what a buyer is willing to pay for its systems, not what you feel it’s worth,” she says.
The Power of Strategic Buyers
Michelle explains that not all buyers are created equal. “There are three main types: first-time entrepreneurs, private equity groups, and strategic buyers,” she says. “The last group usually pays the highest multiple because they’re buying synergy.”
She gives an example of a company acquired by a larger competitor looking to expand market share. “When your business fills a gap for someone else, your value skyrockets,” she says.
Dr. Robertson connects this to the idea of positioning. “You don’t need to be the biggest,” he says. “You just need to be the missing piece for the right buyer.”
Michelle adds that strategic positioning starts years before a sale. “Every decision—from branding to client acquisition—either increases or decreases your attractiveness to buyers,” she says.
Life After the Exit
Dr. Robertson asks how owners should prepare emotionally for life after selling their business. Michelle responds that post-sale identity crises are common. “Many entrepreneurs don’t realize how much of their identity is tied to their business,” she says. “They go from running 100 miles an hour to suddenly having nothing to do.”
She recommends planning the next chapter early. “Whether it’s investing, mentoring, or starting a new venture, have a purpose waiting for you,” she says.
Dr. Robertson agrees and adds that fulfillment doesn’t come from the sale itself but from what it allows you to create. “Freedom without direction becomes frustration,” he says. “You have to design your next mission.”
Lessons for Listeners
As their conversation wraps up, Dr. Robertson and Michelle summarize the most important lessons for entrepreneurs preparing to buy or sell a business:
• Start building your exit strategy long before you need it.
• Focus on systems and documentation—it’s what buyers value most.
• Keep emotions out of financial decisions.
• Surround yourself with advisors who’ve done it before.
• Always plan what comes after the exit.
Dr. Robertson closes the episode with a reflection that captures the heart of the conversation: “A successful exit isn’t the end—it’s a reward for building something that can thrive without you.”
Michelle smiles and adds, “Exactly. Selling your business isn’t losing control—it’s gaining freedom. The key is to build with intention from the start.”
Their discussion is a masterclass in long-term entrepreneurship—rooted in discipline, vision, and the belief that true wealth is created not by building endlessly, but by building strategically.
Listen and Learn More
Listen to the full episode here: Buying and Selling Businesses with Michelle Seiler Tucker