M&A Lessons From A 3x Entrepreneur | A.J. Lawrence

The Wise Exit

E32: Join Todd Sullivan as he interviews A.J. Lawrence, a self-proclaimed journeyman entrepreneur with multiple exits under his belt. A.J. sold his first web development business to an ad agency a few years out of college. He then moved into I.T. hardware and sold his Wi-Fi router business to his main hardware supplier. AJ capped it off in 2021 by building and selling a multi-million dollar digital ad agency which made the Inc. 500 twice.
Today, A.J. is a student of the entrepreneurial mindset. Given his success, he is intent on better understanding what makes founders succeed and fail. To this end, A.J. acquired the Beyond Eight Figures podcast to explore and share what makes entrepreneurs tick and how we can all improve our skill sets through the experiences of our fellow founders. In today's discussion, A.J. and I discuss how his companies were valued by strategic acquirers, his understanding of why terms are more important than price in an M&A transaction, and the value of family support when building and selling a business.

Episode Highlights:

• (3:32) AJ's beginning as a serial entrepreneur
• (8:26) The details behind AJ's first exit, and the strategic partnership that created it
• (13:49) "Your Price, Our Terms"
• (16:45) The Creation of business #2
• (18:52) From near failure to a seven-figure exit
• (25:29) The importance of defining your "why" in the early days of your startup
• (29:17) The creation of the JAR Group, and the emotional toll it took on AJ on his team
• (33:32) Losing his revenue whale at JAR, and the realities of the business left behind
• (35:04) A burned out CEO, and a fortunate negotiation that led to a significant earnout
• (42:11) Buying a podcast with BITCOIN
• (47:19) Final M&A perspectives from a 3x entrepreneur
• (51:12) The role that friends and family play in an entrepreneur's success

Where To Find Todd Sullivan (Host):

• LinkedIn: https://www.linkedin.com/in/toddfsullivan/
• Twitter: https://twitter.com/Todd_Sullivan

Where To Find A.J. Lawrence (Guest):

• LinkedIn: https://www.linkedin.com/in/ajlawrence3/
• Twitter: https://twitter.com/ajlawrence

Episode 32 Required Reading:

• What Is Seller Discretionary Earnings ("SDE")?
• Beyond 8 Figures podcast | A.J. Lawrence
• Built To Sell | John Warrillow
• Buy Then Build | Walker Deibel
• 4 Ways to Calculate the Value of Your Business
• Startup Savant Podcast
• TRUIC: Guides To Start And Grow Your Small Business

Thanks so much for joining us this week. Want to subscribe to the CASHING OUT PODCAST? Have some feedback you’d like to share? Connect with us on iTunes and leave us a review!