In this episode, Jason Gabrieli is joined by John Buxton, founder of Options2Exit and former owner of Legacy Roofing. John shares how he grew Legacy Roofing into one of the country’s largest roofing companies before selling the business and eventually using that experience to help other trade and home services owners prepare for their own exits. They discuss choosing the right buyer, building a strong advisory team, creating competition among potential buyers, preparing years before a sale, and the operational qualities that can make a business more attractive to acquirers.
In This Episode, You’ll Learn:
Why the highest offer may not always come from the best buyer for your business.
How the right legal, tax, wealth, and sell-side advisors can affect an exit.
Why preparing for a sale well before receiving an offer can create more options and value.
What buyers look for in trade and home services businesses, including strong processes, management independence, and a clear focus.
What we discussed:
[00:00:00] Introduction.
[00:01:44] How John grew Legacy Roofing from a startup in 2012 to a top-100 roofing company with four locations and roughly 130 employees.
[00:03:11] Why John originally viewed his business primarily as a cash-flow generator rather than an asset he would eventually sell.
[00:04:21] How acquisition inquiries helped John recognize the enterprise value he had created.
[00:07:40] What surprised John about private equity buyers and why understanding a buyer’s vision matters.
[00:10:00] Why sellers should vet potential buyers just as carefully as buyers vet their businesses.
[00:11:34] Why the best partner is not necessarily the one offering the highest headline price.
[00:13:20] The importance of preparing a company for sale and exploring multiple potential buyers before making a decision.
[00:14:45] What John would do differently if he were selling Legacy Roofing again and what he believes he did right.
[00:16:23] Why an owner’s existing attorneys, wealth advisors, and other professionals may not have the specialized experience required for an M&A transaction.
[00:18:56] How John’s post-sale experience ultimately led him to create Options to Exit.
[00:22:25] The specialized M&A language and deal terms that can leave first-time sellers at a disadvantage.
[00:25:07] Why Options to Exit aims to increase enterprise value by preparing financials, identifying buyers, and creating a competitive process.
[00:26:55] How the Under Advisement program helps owners who may still be several years away from selling.
[00:32:38] How business-sale preparation can work alongside an owner’s personal financial and wealth planning.
[00:35:25] How quickly the M&A market can change as buyers enter, pause acquisitions, adjust strategies, and react to industry conditions.
[00:38:44] Two qualities that can make a company more attractive to buyers: operating without constant owner involvement and remaining focused on what the company does best.
[00:41:54] Why owners considering an exit should evaluate their inner circle of advisors well before beginning a transaction.
3 Things To Remember
Preparing for an exit before you are ready to sell can give you more time to strengthen the business, understand its value, and compare potential buyers.
The best transaction is about more than the largest headline number; the buyer’s strategy, terms, culture, and plans for the company can be equally important.
A business with strong processes, capable leadership, limited dependence on its owner, and a clear operational focus is generally easier for a buyer to understand and integrate.
Memorable moments
“In all honesty, I think it’s a mixed bag. I think it’s really, really important that if a company has shown interest in you, which they did when I was selling my business, that you’re vetting them out just as much if not more than they’re vetting you because you’re trying to figure out what would you do with this?” – John Buxton (00:10:00)
“I was very bored. I decided, hey, you know what? I’m going to invest in real estate. I’m going to invest in commercial real estate out there and do some passive investing. This would be the way to get some capital work and do some things that way. At the end of the day, sitting back and waiting for annual or quarterly returns of X amount of dollars versus owning, operating, and building things, I missed it.” – John Buxton (00:18:56)
“Yeah, so one of the things that you can do is you can turn on and make sure the business runs by itself without you where you can take vacation for two weeks, because if you do that, what you’re doing is you’re solving a bigger problem out here, which is that your company has good solid processes.” – John Buxton (00:38:44)
102 WEST HIGH STREET, SUITE 200 GLASSBORO, NJ 08028 HFM Investment Advisors, LLC is a registered investment adviser. All statements and opinions expressed are based upon information considered reliable although it should not be relied upon as such. Any statements or opinions are subject to change without notice. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. All investments involve risk and are not guaranteed. Information expressed does not take into account your specific situation or objectives and is not intended as a recommendation appropriate for any individual. Listeners are encouraged to seek advice from a qualified tax, legal, or investment advisor to determine whether any information presented may be suitable for their specific situation. Past performance is not indicative of future performance.
Michael has more than 37 years of experience helping business owners and individuals take the next step of their financial journey. Michael’s job is to make the financial side of your life easier so you can build the personal and family life you’ve been working so hard to achieve.
Disclosure: HFM Investment Advisors, LLC is a registered investment adviser. All statements and opinions expressed are based upon information considered reliable although it should not be relied upon as such. Any statements or opinions are subject to change without notice. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. All investments involve risk and are not guaranteed. Information expressed does not take into account your specific situation or objectives and is not intended as a recommendation appropriate for any individual. Listeners are encouraged to seek advice from a qualified tax, legal, or investment advisor to determine whether any information presented may be suitable for their specific situation. Past performance is not indicative of future performance.
