The Business of Meetings – Episode 230: Navigating High Stakes: Conner Young on Selling, Buying, and Surviving
I am delighted to welcome Conner Young, co-founder of Kairo, one of the fastest-growing acquisition companies in the US, as my guest on the show today.
I often talk with business owners who want to know about selling, merging, or acquiring a business. So Conner joins us today to dive into the steps to take when preparing a business for sale, the process of selling a business, and the key factors buyers consider when purchasing a company. We also explore how to manage a business while dealing with a challenging health problem.
Stay tuned for Conner’s valuable insights on those subjects.
Early Life and Career
Conner grew up in San Antonio, Texas. He attended Texas A&M University, and in 2016, he moved to Austin, where he started working in traditional investments, dealing with wealth management and financial planning.
Shift to Alternative Investments
In 2020, due to global changes, clients began seeking alternative investments, like commercial real estate and private equity. Initially inexperienced, Conner and his team conducted thorough research and analysis, which led to their successful investments in small businesses, which their clients greatly appreciated.
Building Deal Flow and Overcoming Challenges
To address the challenge of deal flow, Conner’s firm developed an internal database of over 80 million businesses. That effort involved extensive data collection and experimentation, enabling them to tailor outreach strategies to different business types.
Market Trends and Predictions
Conner saw that many business owners, particularly baby boomers, were considering selling their businesses without having a succession plan. He realized that most business owners who consider selling their businesses contemplate the sale for 18 to 24 months, providing a significant window for potential buyers to negotiate directly and build relationships with sellers.
Importance of Relationships in Off-Market Deals
Conner highlights the importance of maintaining a relational approach in negotiations for off-market deals. That method often results in mutually beneficial agreements without the pressure of competition, compared to brokered deals that usually involve lengthy preparations and higher fees.
Evaluating Business Value and Owner Involvement
Conner advises that the degree to which a business owner involves themself in daily operations can impact the value of the business. Creative deal structuring can address issues where owners are heavily involved, potentially allowing them to remain involved post-sale, allowing for a far smoother transition.
Integration of AI in Business Operations
Looking at the impact of AI on business operations, Conner explains that AI can assist business owners, from improving data accuracy in their internal database to streamlining the documentation process for business sales, as AI tools significantly enhance efficiency and reduce the time required for closing deals.
Financing Options for Business Acquisitions
Discussing various financing options, including SBA loans and private credit funds, Conner emphasizes the importance of partnering with knowledgeable and flexible lenders to navigate complex business acquisitions.
Personal Health Challenge
In January 2024, Conner was diagnosed with a brain tumor, which was successfully removed in May. That experience shifted his perspective to prioritize his faith, family, and meaningful work over business metrics. He reduced his workload significantly, delegating responsibilities to his team to ensure everything would continue running smoothly.
Impact of Health Challenge on Business Operations
During the months leading up to his surgery, Conner relied heavily on his wife for logistical support while he took care of maintaining business operations. Post-surgery, he focused on his recovery and allowed his team to take on more responsibilities. That ultimately led to improved systems and delegation within the firm.
Bio:
Conner is the co-founder of Kairo, the first acquisition platform to help searchers and investors find, finance, and close on their next deal. They have served over 210+ clients in the last 5 years making their dream acquisition as simple as possible, as well as thousands more with direct access to deals and business data. Early success is great but the attitude of ‘overcoming every obstacle’ to build a business that always beats every challenge comes from Conner’s own experience in beating brain tumors and having brain surgery while running the fastest-growing SMB acquisition company in the US. Conner and Kairo are headquartered in Austin, TX.
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