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Authentic Business Relationships Authentic Deal-Making Authentic Negotiating Deal-Driven Growth

Deal-Driven Growth

Stephen Woessner is the founder and CEO of Predictive ROI, host of the Onward Nation podcast, a digital marketing authority, speaker, educator, and bestselling author of two books. He comes from a long lineage of business owners, and the early exposure to entrepreneurship primed him to follow a similar path. After serving in the Air Force for four years, Stephen landed a job with an advertising agency in La Crosse, WI where he became a partner in just three years. There, he honed his craft in digital marketing and devoted his energy to understanding how business owners think, act, and achieve.

Predictive ROI

Predictive ROI has always operated as a digital marketing agency, but over the last ten years, it has transformed into something entirely unique. Predictive’s core services were built to help business owners identify financial opportunities and hemorrhages in the digital space. But recently, Stephen and his team have added podcasting to their service line. Now, Predictive ROI helps business owners build their thought leadership through podcasting and supplementary content, so they can monetize that content with courses, workshops, events, sponsorships, and a variety of other opportunities.

Inorganic Growth in the Agency World

While Predictive ROI’s client base continues to grow organically, the agency is finally at a point where the world of strategic partnerships and acquisitions is finally opening up to them. It means Stephen and the leadership team at Predictive can look into different plays such as acquiring a software company that will increase their analytics capabilities; possibly even absorbing smaller agencies in different verticals with client rosters that are strategically advantageous. But if you are considering inorganic growth as an option, there are a lot of indicators you should be watching to determine if it is the right move.

Will it help you hit your revenue goals within your current timeline?

Are you making the right acquisition or is there a better alternative?

Stephen shares advice for navigating this process in the latest episode of Fueling Deals.

Corey Kupfer is an expert strategist, negotiator and dealmaker. He has more than 35 years of professional deal-making and negotiating experience. Corey is a successful entrepreneur, attorney, consultant, author and professional speaker who is passionate about deal-driven growth. He is also the creator and host of the DealQuest Podcast.

If you want to find out how deal-ready you are, take the Deal- Ready Assessment today!

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Authentic Business Relationships Authentic Deal-Making Authentic Leadership Authentic Negotiating

How to Handle Inauthentic Negotiating Techniques

In the last few solocast episodes of Fueling Deals, we have taken a look at some of the major talking points from my book, Authentic Negotiating. So far, we have covered the Clarity, Detachment, and Equilibrium framework, the top six reasons negotiations fail, and the five steps to becoming a great negotiator. So, if you didn’t get a chance to read the book or listen to those episodes, I highly encourage you to go back and cue them up; there are a lot of great negotiating tips that you don’t want to miss.

In the latest episode of Fueling Deals, we dive into another topic from my book that covers inauthentic negotiating techniques and how to handle them.

The Empty Promise: Somebody makes a promise that they know they’re not going to fulfill in the end. You may choose to challenge their promise upfront to test its validity, then use CDE to keep a level head while you decide how to move forward.

The Big Fish: There may be a difference in scope or size with one negotiating party vs. the other. This can be approached with the notion that even a small fish has leverage because there are alternative plays, otherwise, the negotiation wouldn’t be taking place.

Nibbling: There is always another ask as you get closer to finalizing a deal. Sometimes a candid response is the best approach and it is okay to call them out for adding new terms. Figure out what needs to happen for the deal to move forward, and clarify whether or not there will be additional terms down the line.

Quivering Quill: Similar to Nibbling but it is carried out at the closing table to apply more pressure on the other negotiating party. Don’t get triggered or thrown off your game; instead, step back and evaluate whether the last minute concession works for you and whether this is someone with whom you want to do business.

Limited Authority: The other negotiating party abdicates the decision-making responsibility because of their position in the company hierarchy. While this may be authentic in theory, it is often used as an excuse. Stay calm, don’t let it affect you and decide whether or not they are the right partner for this deal in the first place.

Even ‘good’ negotiating tactics are supplementary to our core dealmaking framework, and no tactics or techniques can be substituted for fundamental skills. But you will frequently encounter authentic and inauthentic negotiating techniques regardless. The bad techniques reek of shady business practices and low credibility. And while you might never use them yourself, you need to know how to spot and deal with inauthentic negotiators on the other side of the table.

You can listen to the full episode here.

Corey Kupfer is an expert strategist, negotiator and dealmaker. He has more than 35 years of professional deal-making and negotiating experience. Corey is a successful entrepreneur, attorney, consultant, author and professional speaker who is passionate about deal-driven growth. He is also the creator and host of the DealQuest Podcast.

If you want to find out how deal-ready you are, take the Deal- Ready Assessment today!

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Authentic Business Relationships Authentic Deal-Making Authentic Negotiating

Deals in a New Industry

Although Neil Rosen started his career as a teacher, he would later be driven to serial entrepreneurship by fate. Neil’s passions culminated in his first business, a children’s furniture store, which grew into five locations that were immensely successful.

The chain of stores provided Neil with the financial means to pursue his next great endeavor, which he ultimately achieved by selling the store to his employees. That was the first major deal Neil did, and it laid the foundation for his next businesses, while also teaching him the fundamentals of dealmaking.

Neil was able to keep the skilled management team on staff while receiving payouts over time, and it was a great deal for every party involved. But nothing would prepare him for doing deals as a pioneer of internet companies.

The School Report

Neil’s next business, The School Report, designed a program to gather 3rd party data about public school districts. That information was then sold to real estate brokerages and shared with potential homebuyers for a win-win-win. Although Neil started the business with his wife in their basement, it grew rapidly and brought a lot of new deals to the table.

He had technical experts providing services for equity. He used a participation interest vehicle to raise more capital without losing equity. He then raised venture capital. There were many different types of deals that Neil had to navigate throughout the lifespan of the business. But the difficulty of doing deals as an early-stage internet company prepared him for every challenge he would face moving forward.

Raising Capital

From the early days of commercial internet, through the boom and bust of the late 90’s and early 2000’s the landscape was changing and the learning curve was getting much steeper. When you are working with venture capitalists, there is an expectation of rapid growth. However, it is much more difficult to sell your ability to deliver in an industry that is just getting on its feet.

VCs were hesitant to work with internet companies at the time and it posed a lot of problems for Neil and his team. They had to pivot numerous times and even renegotiated with their VC to reduce its stake in the company before selling it a short time later. But a lot of valuable lessons came out of the experience, which Neil brought forth into his future endeavors with eWayDirect and Certain Source.

If you want to learn more about Neil’s journey, listen to his episode here: https://www.coreykupfer.com/podcasts/neil-rosen/. You can also connect with him on LinkedIn.

Corey Kupfer is an expert strategist, negotiator and dealmaker. He has more than 35 years of professional deal-making and negotiating experience. Corey is a successful entrepreneur, attorney, consultant, author and professional speaker who is passionate about deal-driven growth. He is also the creator and host of the DealQuest Podcast.

If you want to find out how deal-ready you are, take the Deal- Ready Assessment today!

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Authentic Business Relationships Authentic Deal-Making Authentic Negotiating

Publishing Deals and Finding Your Calling

Navigating a Publishing Deal

Move the Crowd is an entrepreneurial training company that focuses on helping people stay true, get paid, and do good. As the CEO, Rha Goddess works with purpose-driven entrepreneurs who are very clear about their intentions to make a difference in the world. More specifically, they are entrepreneurs who are interested in shifting culture. This can be related to young girls in STEM, female parity in the corporate C-suite, or even racial justice and inequity in our society—everyone Move the Crowd serves is interested in moving the needle to make the world a better place. Rha’s latest book release elaborates on the principle of shifting culture, and have it impact the most people, she chose to do a deal with a major publisher.

Doing Deals with a Publisher

Despite the drastic increase in platforms for people to consume content, the print industry is still highly competitive and difficult to break into. So, if you are not familiar with this industry, you might be surprised by the barriers to entry. For instance, to do a deal with a major publisher, generally, you can’t just go directly to the publisher; you have to work through an agent. However, in Rha’s case, she was able to garner the attention of multiple publishers, who approached her, giving her leverage. Since she already had a deal in motion, Rha had her choice of top agent representation to represent her on her book deal.

Leveraging Thought Leadership to Move Books

One of the main reasons Rha was able to approach the deal this way is because of a shift within the publishing industry itself. The new generation of publishers is seeking powerful voices; and what better way to establish yourself as a powerful voice than to become a known expert in your field? Over decades of work behind the scenes and the huge impact she had, Rha became a thought leader known to highly successful entrepreneurs, change-makers and best-selling authors by getting in the trenches and helping them do the same. She built a reputation and a following simultaneously that caused publishers to seek her out. Rha’s work has yielded countless relationships that are extremely valuable in the publishers’ eyes. And just like any other deal, the publisher must assess the potential for return before they make an investment. If you want to learn more details about what Rha did to prepare herself for a book deal and take it across the finish line, listen to her episode, “Publishing Deals and Your Calling, with Rha Goddess.”

Corey Kupfer is an expert strategist, negotiator and dealmaker. He has more than 35 years of professional deal-making and negotiating experience. Corey is a successful entrepreneur, attorney, consultant, author and professional speaker who is passionate about deal-driven growth. He is also the creator and host of the DealQuest Podcast.

If you want to find out how deal-ready you are, take the Deal- Ready Assessment today!

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Authentic Business Relationships Authentic Deal-Making Authentic Negotiating

Leverage Your Intellectual Property

It might be hard to believe, but there was a time when people had to source knowledge without the help of Google and Wikipedia. There was a market for almost every kind of niche information, but there were not enough publishers to meet the demand. Bill Cates stumbled upon an opportunity where he could fill that need and he found himself in the publishing industry almost overnight.

Deals in the Publishing Industry

Bill’s publishing companies produced highly-specified cookbooks and humor books, and he encountered many types of deals while distributing them. Licensing was a major part of Bill’s revenue. He licensed content to cookware manufacturers that wanted marketing collateral for their products. He also paid for branding rights and created product-specific content for the masses. Very few authors take advantage of those types of deals, but it is important to acknowledge that you need to get creative with licensing to reap the benefits.

Licensing offers the greatest payout over time and Bill sees it as a foolproof, sustainable way to protect your nut. Licenses work continually for you, they have zero cost of sale, and they require minimal time. When Bill got out of the publishing industry and became a professional speaker, he put his training video content to work. Today, he is still generating income by licensing that content to different organizations across the country.

Intellectual property is valuable and it is an asset that you don’t want to give away for free. Business models that are built around speakers can fall apart if the speaker is unable to travel or perform. The income Bill sees from content licensing ensures he will live comfortably if anything unfortunate were to happen. It enables him to bring his expertise to clients in a way that is more affordable and accessible. That is why Bill recommends being proactive in leveraging your IP assets.

Summary

No matter what industry or discipline you are in, you have expertise that other people don’t have. There are a lot of ways to get your knowledge out to the masses, but Bill recommends using a combination of strategies that include monetizing your IP. Leveraging what you already have in place is a much more reliable process. It will generate recurring revenue and grow your brand with comparatively minimal effort.

Listen to the Fueling Deals podcast episode featuring Bill Cates’ interview about how to Leverage Your Intellectual Property.

Corey Kupfer is an expert strategist, negotiator and dealmaker. He has more than 35 years of professional deal-making and negotiating experience. Corey is a successful entrepreneur, attorney, consultant, author and professional speaker who is passionate about deal-driven growth. He is also the creator and host of the DealQuest Podcast.

If you want to find out how deal-ready you are, take the Deal- Ready Assessment today!

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Authentic Business Relationships Authentic Deal-Making

The Lower-Middle Market

Gary Kane found a niche in the lower-middle market which tends to be overlooked by a lot of investment banking firms. Chimera Strategies has been thriving in that space since Kane founded it in 2011. Chimera works with businesses between $3M and $25M that are above the business broker line and below the typical investment banking line.

Kane doesn’t approach his prospects as a glorified business broker, but as a simplified investment banker who understands the need for advisory in a revenue range that can’t attract the attention of investment bankers due to the fee structure. A business broker usually follows something similar to a real estate model with listings on a buy-sell website that are marketed passively. The close rate is only around 20% and the deal is usually facilitated by an independent broker with varying motives. Investment bankers work on much fewer deals with higher close rates through controlled auctions and competitive processes and they use active marketing tactics to find a buyer.

Strategic vs. Financial Buyers

In the lower-middle market, Kane primarily works with strategic deals. Larger investment banking firms don’t play in this space as it is difficult to meet the minimum fees, a significant portion of the private equity buyer pool is not interested in the market, financials of selling firms are usually not audited, the business is often not growing and there are no lenders in that space. So that often leaves strategic buyers.

Strategic buyers are ideally in the same or similar industry and geography which allows them to pick up inventory, locations, and people, and 86% of Kane’s deals are done with those criteria.

Financial buyers don’t play in the lower-middle market because of size since it is essentially the same amount of work to do a $5M deal as it is to do a $500M deal. The other problem is that financial buyers are not operators and in the lower-middle market, many of the businesses lack a second layer of management which means that there is no one to run the business when the owner exits.

Terms

Since there are no lenders in the lower-middle market space, almost all of Kane’s terms include 50-60% cash with a balance of a seller’s note and/or an earn-out. An owner’s note is a promise to pay a portion of the purchase price on the back end and an earn-out is a percentage payout contingent on performance over time.

It is a seller’s market right now and buyers want to put their money to work, so with the help of investment bankers like Gary Kane, business owners are cashing out while the times are good. Just because a business is in the lower-middle market does not mean they have to forfeit quality advisory. Chimera Strategies is consistently proving the difference that it can make.

Listen to the Fueling Deals podcast episode featuring Gary Kane’s interview about Strategic Deals in the Lower-Middle Market.

Corey Kupfer is an expert strategist, negotiator and dealmaker. He has more than 35 years of professional deal-making and negotiating experience. Corey is a successful entrepreneur, attorney, consultant, author and professional speaker who is passionate about deal-driven growth. He is also the creator and host of the DealQuest Podcast.

If you want to find out how deal-ready you are, take the Deal- Ready Assessment today!

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Authentic Business Relationships Authentic Deal-Making Deal-Driven Growth

Strategic Partnerships in Wealth Management

When Lisa Rapuano was twenty-five years old, she managed to talk her way into an investment management position at a startup in Chapel Hill, NC. As the third employee of Franklin Street Partners, Rapuano wore many hats and handled everything from reception and IT to sales and marketing; the experience she gained at FSP unearthed a new passion for investment research, which quickly became her focus and paved the way for her future as a business leader.

Facet Wealth is an RIA that focuses on people with less than a million dollars in investable assets, and that is important to note because $1M is not a significant amount of capital in this industry. Their niche encompasses thirty-three million American households that have between $100k-$1M in investable financial assets, most of which are excluded from the traditional, holistic financial planning side of the business.

A Market-Cooperative Business Model

As CFO, Lisa Rapuano describes Facet Wealth’s business model as market-cooperative because they are driven by highly efficient, back-end technology that enables their financial advisors to provide a wholesome customer experience to lower net worth clients. As a result, peripheral partnerships are developed with other RIAs that focus on more complex investment strategies. Facet Wealth takes the segmented clients off of their partners’ hands to provide adjusted white-glove service without sacrificing the partners’ consumer relationships or causing them to use company resources disproportionately.

If RIAs make too many exceptions for less wealthy clients, their businesses won’t work because they aren’t set up for that. Too many advisors are trying to be all things to all people, but the most successful ones define their niche very clearly and Facet Wealth has done exactly that. Because financial advisors are inherently helpers, Facet offers a way for them to provide less profitable clients with a solution instead of segmenting and leaving them to fend for themselves.

Referral Partnerships and Revenue Replacement Opportunities

Deals are a driving force behind Facet Wealth’s success, and there are two primary types that they use to generate growth. The first is a referral partnership, where Facet pays for referrals if the prospective partner signs a solicitation agreement with them. This offers Facet’s partners a way to continually serve the segmented clients while freeing up capacity and resources to focus on their niche. The second way is a revenue replacement opportunity. This is also a sequential deal where Facet signs an asset purchase agreement with an RIA to acquire their client relationship, but Facet sets terms for how long the revenue will be replaced after the client transitions to them; this is the most transformative for advisors.

Facet Wealth as a Partner

Facet also has a couple of different ways that they’re willing to work with financial advisors who are considering M&A activity on their own. One stage that they can help with is the preparation for M&A. If you enter a partnership with them before you go to market, Facet can acquire your smaller clients to create more capacity, raise margins, and improve the overall value of your business. Another stage where Facet is a great partner is for buyers in the midst of a transaction. Part of the deal might be very attractive, but if there are smaller clients that aren’t a great fit, Facet can help take them off your hands.

There is a lot of consolidation taking place in wealth management and investment management, and it is largely because of the natural evolution of the industry. But, advisors need to consider whether or not they are adding value to their clients, and if they are charging a fair price for the services offered. Personal service is expensive, but it is one of the current trends in this day and age, and companies like Facet Wealth are making it a fundamental part of their strategy.

Click here to listen to Lisa Rapuano’s interview on the Fueling Deals podcast.

Corey Kupfer is an expert strategist, negotiator and dealmaker. He has more than 35 years of professional deal-making and negotiating experience. Corey is a successful entrepreneur, attorney, consultant, author and professional speaker who is passionate about deal-driven growth. He is also the creator and host of the DealQuest Podcast.

If you want to find out how deal-ready you are, take the Deal- Ready Assessment today!

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Authentic Business Relationships News

How ‘I Got This’ Syndrome Can Keep Successful People From Getting What They Want

The traits that entrepreneurs rely upon for success in many areas of business often hurt them when negotiating.

As an entrepreneur since the age of 15, former President of Entrepreneurs’ Organization – NY Chapter and an attorney, consultant, speaker and author whose clients, colleagues and friends are entrepreneurs, I see it every day.

Our strengths in certain areas become our weaknesses in others.

When it comes to negotiating — especially as the negotiations become more important on larger deals with more sophisticated parties — it becomes even more important for entrepreneurs to examine their automatic ways of being.

It’s not that these ways of being don’t continue to be assets to us but that we need to understand where they can hurt us as well. We can then harness them as tools while tempering their unconscious adverse impacts on our success.

Read the rest of my article and tips at Business Insider.

Corey Kupfer is an expert strategist, negotiator and dealmaker. He has more than 35 years of professional deal-making and negotiating experience. Corey is a successful entrepreneur, attorney, consultant, author and professional speaker who is passionate about deal-driven growth. He is also the creator and host of the DealQuest Podcast.

If you want to find out how deal-ready you are, take the Deal- Ready Assessment today!

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Authentic Business Relationships

Six Reasons Why You’re Not Getting What You Want

Most people focus on the wrong things in negotiations. Here’s how to get it right.

You go into a negotiation knowing what you want, but if you walk away without getting it, your negotiating skills might need some work.

“Everybody wants to be a better negotiator–it’s a skill we all recognize is important,” says Corey Kupfer, author of Authentic Negotiating: Clarity, Detachment & Equilibrium the Three Keys to True Negotiating Success & How To Achieve Them. “Unfortunately, most are not happy with their level of skill.”

That’s because we tend to focus on the wrong things. “People study tactics and countertactics, and then countertactics to the countertactics,” says Kupfer, managing principal of Kupfer & Associates, a New York City-based law firm that helps entrepreneurs and corporations negotiate deals. “No matter how much practice you’ve had, that method of negotiating is not going to get you where you want to be. It’s manipulative instead of effective.”

Read the entirety of the article here.

Corey Kupfer is an expert strategist, negotiator and dealmaker. He has more than 35 years of professional deal-making and negotiating experience. Corey is a successful entrepreneur, attorney, consultant, author and professional speaker who is passionate about deal-driven growth. He is also the creator and host of the DealQuest Podcast.

If you want to find out how deal-ready you are, take the Deal- Ready Assessment today!

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Authentic Business Relationships Authentic Conversations About Difference Authentic Leadership

Mentorship: Exploring the Reverse Mentor Concept

What we can learn from changing the status quo

I’ve really enjoyed this series on mentorship. You might have noticed that in general, I prefer serial writing. It’s because while I love sharing my thoughts and insights, the exercise also gives me some clarity and room to deepen the discussion. One thing that’s become clear to me in the ongoing discussion about mentorship is that regardless of which role you assume, it’s fundamentally about learning. Mentors learn more about their past experiences when they impart the wisdom they’ve gathered over the years. Mentees learn how they can grow and improve in the most well-directed ways.

It led me to the question: When do we stop trying to grow and improve like a mentee? Your answer should be “never.” Yet, when we think about mentorship, it feels natural that we age out of the mentee mindset, that after an arbitrary level of experience, or an even more arbitrarily decided age, we transition from mentee to mentor full time.

While I fully support anyone assuming the role of mentor, we shouldn’t let inauthentic qualifiers like age or experience exclude us from learning and growing like a mentee. I was reading a piece by Marcel Schwantes about 6 Traits Smart People Have in Common when his advice on reverse mentors crystallized this notion for me.

The reality is, the world is changing faster now than ever before. Trends change weekly, the conversations we’re having change daily, and the skills and expertise we need to succeed are constantly evolving with the pace of technology and innovation. Fooling yourself into thinking that you can keep up with all of this on your own is a mark of ego.

Yet, there’s a generation who have grown up with this pace of change, who can transition their skills seamlessly with technology, and who speak the language of change better than more experienced generations can. It’s here that embracing a reverse mentor can make a big difference for you.

Navigating the unfamiliar dynamics of the reverse mentor relationship is certainly a challenge, but learning from a “Millennial” is in your best interest. Let’s talk about what the best reverse mentor relationships have in common.

In this context, you’re peers. The expectation of mutual respect should sustain no matter what, but approaching reverse mentorship wearing your “boss” hat is a mistake. Be humble and approach the relationship as a peer. You shouldn’t fear that it will detract from your role as a leader. Rather, seeking a reverse mentor will signal to your team how much you value learning and will set a great example. Additionally, if you do some pre-planning, you can confirm with your reverse mentor the exact dynamics of the relationship and keep your leadership intact while creating a healthy space for learning.

Accept that you don’t know what you don’t know. We stay as updated as we can, but if we think we know everything, what’s the point? It’s very likely that there are developments and technologies that we don’t even know we need to be aware of. A major part of what we can learn from a reverse mentor is emerging trends and how to track them. It’s critical that as leaders we remain aware, relevant and in tune to trends as they are emerging. A reverse mentor can position you for accelerated success when it comes to leveraging new technology, important demographic and market shifts and generational differences.

Understand it’s more than mechanical. Sure, there’s a lot to be gained from becoming more technologically savvy, but as millennials gain buying power and influence in the market, plugging into a more youthful perspective is important. Your worldview is likely very different than a Millennial’s, and appealing only to those people with a similar mindset to yours is a losing proposition. Gleaning a youthful perspective and opening yourself up to a dramatically different worldview will help you think about problems more effectively and devise more pointed solutions.

Mentorship has resulted in some of the most meaningful and impactful relationships in my life. I speak from experience when I say it’s a truly rewarding endeavor, but only with the right approach. I hope this discussion of reverse mentorship helps you abandon your misconceptions of what mentorship can be and how it has to look. We should always work to avoid limiting our learning opportunities. On that note, if you haven’t already, check out some of the mentors who shaped my life and career: https://www.coreykupfer.com/resources/

Corey Kupfer is an expert strategist, negotiator and dealmaker. He has more than 35 years of professional deal-making and negotiating experience. Corey is a successful entrepreneur, attorney, consultant, author and professional speaker who is passionate about deal-driven growth. He is also the creator and host of the DealQuest Podcast.

If you want to find out how deal-ready you are, take the Deal- Ready Assessment today!