Based in the Houston, Texas metro area, Nancy Mills specializes in transition planning, exit strategies, and succession planning for business owners. She uses a proven process to ensure clients maximize the value of their businesses, whether they are planning an internal or external sale, or are undecided.
Key components of her exit strategies include goal definition, market value assessment, business value enhancement, contingency and succession planning, and legacy planning. Nancy prioritizes personal values in her approach to prevent post-exit regrets, understanding that the most common regrets are not monetary.
A native Texan, Nancy brings over 20 years of global business experience, with expertise in international marketing, sales, strategic innovation, and mergers and acquisitions. She excels in managing human capital and facilitating the smooth integration of merged companies.
Nancy holds an MBA from Thunderbird School of Global Management and a BA in Mass Communication, summa cum laude. Outside of work, she enjoys theater, swimming, boating, walking her dog, gardening, and birding.
This transcript is machine transcribed by Sonix.
TRANSCRIPT
Intro: Broadcasting live from the Business RadioX studios in Houston, Texas. It’s time for Houston Business Radio. Now, here’s your host.
Trisha Stetzel: Hello, Houston. Trisha Stetzel here bringing you another episode of Houston Business Radio. It is my pleasure to have such an amazing guest on with me today. Ms. Nancy Mills with Lowenberg Consulting. She’s based here in Houston, Texas, in the metro area. She helps business owners through transition planning, exit strategies, and succession planning. She uses a proven process to make sure you get the most out of your business, whether you want to do an internal or external external sale, or you just don’t know yet. Nancy’s going to guide you to a successful business transition. Nancy, I’m so excited to have you on the show. Welcome.
Nancy Mills : Thank you. Trisha. I’m so excited to be here.
Trisha Stetzel: And I think, if I’m not mistaken, it was Thomas Gilman that may have introduced us in the first place. And we we both know Thomas through a lot of networking. And I think that getting to know people and building relationships is not only important when it comes to networking, but also building businesses. And I’m so glad that we were introduced to each other. Me too.
Nancy Mills : It’s true. It was Thomas.
Trisha Stetzel: Okay, good. Well, I’m glad that I was right about that. I meant to ask you before we get started today. Um, so, Nancy, I really want to dive into, you know, business transition planning, why it’s important, why we should be doing it. But, um, before the show, I was telling you, I talked to a lot of people who don’t know exactly what m and A means. You hear it a lot. It’s thrown around a lot. And I’d love for you to kind of give us a definition around what M&A means and how that plays into this transition planning that you do.
Nancy Mills : Great foundational way to start the conversation, Trisha. M&a stands for Mergers and acquisitions. It’s definitely a buzzword these days because of so many business owners, because of the aging population, because so many businesses, um, are businesses are owned by baby boomers who are looking to one day retire and don’t know how they will do it. And so everybody seems to be interested in the topic, but they might not know what it means or what it entails. And I would just like to clarify that we don’t officially sell businesses, so we might be in that space, but we don’t sell businesses. So an investment bank does. So they could be officially an M&A business because they help a company to acquire or sell. But that’s not what we actually do.
Trisha Stetzel: Okay. So then let’s talk about transition planning, because I do think that that is the primary space that you’re playing in with these businesses. So let’s talk about what business transition planning actually is.
Nancy Mills : Yes. Thank you for that question. And so at a sale is a transaction and everybody knows what that is. It’s a transaction. But the process that a business owner will go through is a transition. And a lot of it is is emotional. And it can it can be a very emotional experience for a business owner. And I would like everyone to understand that. And it’s normal and natural to have a lot of mixed feelings about something that you have created and nurtured, um, over time and spent the majority of your adult waking hours building up typically. And then a business owner has created a family in their employees. And that’s what I love about working with small and midsize businesses. And we call it midsize. Up to even 100 million in sales is because they have created something in their community that they’re proud of, and that a lot of people are happy to come to work for. And I love to see the impact that these small and mid-sized business owners have in their community. And so we prepare them to eventually step aside, either handing over the reins to the next generation or to somebody they don’t even know who they are yet. And we help them in many aspects.
Trisha Stetzel: Okay. And so let’s I’ve got two questions coming from what you just talked about there. And you know, one is about that, the care and the nurturing of the emotional process of Transition versus transaction. Thank you for clarifying that I love that. And then, you know, the the other piece of it is when should I start thinking about putting a plan together. So let’s start with the first question, which is more around that emotional, nurturing piece of these business owners who have put blood, sweat and tears into their business. They have spent their entire lives nurturing this baby that they now have to part ways with. So what is how does your, um, program help them get through that transition?
Nancy Mills : So many, so many good things that could be said in response to that excellent question. The time to start thinking about it really is even when you start your business, people don’t realize that, that even if they have a startup, a startup is more valuable with a written exit plan. Investors want to invest in companies that have a written transition plan and succession plan in place because, as you know, we never know what may happen at any minute. And so if an owner becomes unable to fulfill their job and to lead their company, what will happen? Who can make decisions? Who should do what? So we need everything documented. We need everything spelled out to be ready for this, this eventuality, and especially a business owner that’s been doing this a while. If they’re in their 50s, minimum, they need to start thinking about it. The best time to get an exit strategy in place is when they’re clear headed. They have no crisis because once a crisis hits, it’s too late really. And then we look at fire sales and a discount or even shutting down the company. And that just breaks my heart to see companies shut down because the owner wasn’t prepared and didn’t think ahead.
Trisha Stetzel: Begin with the end in mind. We talked a little bit about that before we started recording today. And I think that’s so important. And you know some people say well I’m I there is no end for me and I’m going to have this business forever. And I don’t think any of us get into business thinking that we’re just going to walk away from it in the end. Right. Right. We we all pour the blood, sweat and tears into our business so that it will leave a legacy either for a new person who may come in and purchase it, or a family member who may take it over. Uh, and I think that’s so important. So tell me the difference, then, Nancy, between, uh, me going to someone who’s just going to do the transaction, I’m going to go to the bank and I’m going to sell my business to somebody, and they’re going to buy it versus having an advisor like you on their team to get them through the process.
Nancy Mills : Let’s think about why they would need to do that. Because we it’s so normal for someone to think about. I’m starting my business. I’ll work until the end, which is great. I love it that people don’t want to retire. They people tend to think about retirement equaling death with people in great in, you know, having a great physical condition, great mental condition. They find their vitality through their work and through their interactions with their employees. That’s a wonderful thing. That’s a beautiful thing. We never encourage someone to walk away from that, but they want everything to be in place for that inevitable something that will happen to them. Because we all exit our businesses one day, in some form or another, we will exit our businesses as we will exit this earth. So do you want it to go the way you plan it, or the way the probate court is going to decide for you? We want you to be prepared. And so the other part of your question on that was please remind me.
Trisha Stetzel: Yeah. No that’s okay. Having an advisor versus not having somebody on your team.
Nancy Mills : Yes. So people think will work will work will work. One day we will market the company and then we’ll get this big chunk of cash and we’ll do our next thing, whatever that next thing is what we know. If this is true year over year, the statistics don’t change. A maximum of 30% of companies marketed for sale actually sell. Trisha. Wow. This is an eye opening statistic. Usually the numbers are as low as 20%. I mean, I’m talking about for decades this has held true. And the smaller the business, the harder it is to sell because it’s so reliant on the owner. And so if they can start to work at least three years in advance to plan for this transition, even if they want to stay for the rest of their days, that’s great. But if they have a timeline, that timeline should start three years in advance. And then we know that we can reach their goals, their financial goals, their timing goals, and their values based goals, which is will my people be taken care of? Will my family be taken care of? Will my legacy be secured? And that is what they need to be doing, is it? We recommend at least three years in advance, and there’s very specific reasons for that.
Trisha Stetzel: Okay. Yeah. Thank you for sharing that. And 30% only sell that. That is just mind blowing to me that you know we’ve got if we have 100 businesses for sale out there, only 30% of them are going to transact and the rest of them may close, I’m assuming, or okay, right.
Nancy Mills : Or close and, you know, be just, um, you know, anything that can happen that’s not what the owner would want. And then the other important statistic to keep in mind, Trisha, is that 75% of business owners have regret after they sell, and that regret is usually not about the money. It’s usually about something in their values that involves people that they care about. And so we work to avoid regret and to maximize their odds, and to maximize the value of their company before it sells. So if they just wait until they’re tired or burnt out or have some kind of crisis, then they go and talk to a banker and say, I want to sell. They’re not ready. They’re usually not ready. There’s 21 areas of their business that need to be looked at to see if they’re actually sellable, and if they’re not sellable, what can they do? There’s always things that can be done to make it sellable and to make it attractive. And you don’t want just one buyer. You want a number of buyers to be interested. You want the maximum value you want. You want the ideal buyer. You want to say, this is the person I want to take over. Not like, please take my company. Please please take my company. You don’t want that situation. You want to be in control and have power and have something that multiple buyers want. That is what we work towards.
Trisha Stetzel: Absolutely. I’ve heard you talk about values based many times, and I think that’s why you and I connect so well, because there’s something about the culture of a business that is so important, and that’s the people. And being able to take care of those people as you move on or move forward or go into a transition like this. Um, I’d like to talk then a little bit about people who are listening right now, maybe, maybe thinking, oh my gosh, I didn’t think about beginning with the end in mind. Where should I start? I think I might want to sell my business in five years or even in ten years. Nancy, what advice would you give to those people on getting started with the planning now?
Nancy Mills : Yeah. Great question. Get started. Perhaps with a valuation, a third party valuation. It doesn’t have to cost a lot of money. It can be just it won’t cost a lot of money. But then compare that valuation. Get advice as to what you would reasonably net after taxes, because remember, what you might sell it for is not the same as the amount of money you’re going to get. That’s the that’s a really good first step.
Trisha Stetzel: Okay. So after the valuation. So I need to go and hire somebody to do that for me. So I could use a resource like you, Nancy, who could point me in the right direction if I’m not, if I don’t feel like I’m in a position to go out and get the valuation right now, what are some of the housekeeping items that I might do inside of my business in preparation for that?
Nancy Mills : Given that every business is unique, it’s really hard to answer that question. But for example, be thinking about the key players in your company, who they are, and who would be their successor. If they’re anywhere Are near retirement age, or you think there’s any danger that they might leave? And then especially who is your successor or ideal replacement so that if you even if and start taking longer and longer vacations. So the longer you can take a vacation, the better off your company is, because there’s transferable value already. If it can operate without you, the owner.
Trisha Stetzel: Okay, I love that. I love to tell people to go on vacation, take some time off and the more you can do, less dependent, your business is on you. I love that, yes, and when.
Nancy Mills : You take that vacation, don’t be answering phone calls all day.
Trisha Stetzel: Because the business is still dependent on you. So stop it.
Nancy Mills : That’s right, stop it. Nobody wants a company that relies on just one person, especially the departing owner.
Trisha Stetzel: Yeah, absolutely. Um, what what piece of advice would you give to any business owner who or let’s say, who wants to be a business owner. And we already talked about begin with the end in mind. What does that look like? So I want to start a business. What should I be thinking about right now as I go into this new place where I’m buying a business? When it comes to thinking or preparing for the end?
Nancy Mills : Yes. Again, I would say don’t let it rely just on you. Who is the team? What does the team look like? What are the processes and systems that are either in place or that you can put in place to make it something that is transferable? They need to be documented. They need to be the who, what, when, where, why and how. Type documentation ideally online. So don’t even think about buying a business that’s buying a job.
Speaker4: Because.
Nancy Mills : It’s not attractive to anybody else. Yeah. And then think of scale versus growth. Scale is something that can be done without a lot of extra investment That doesn’t need a bigger infrastructure to support it. So scale is can I replicate what I’m already doing in other in other geographic areas and other markets to other types of customer segments?
Trisha Stetzel: Okay. This information has been so valuable. So you just have one more two part question. One, is there a specific industry or area that you prefer to work in in your business? Like where where would you find those clients and how do you market your business?
Nancy Mills : Yes, we can work. I can work with any type of business that is, um, that has more than, um, one employee. Ideally at least 25. So if it’s a sole proprietorship, I can guide them for free and give them free advice. But I can’t do a lot because there’s not a team to support them for the reasons we were talking about. And then ideally in the United States. But since I’m in Houston, I like to work with my clients at least partially in person. So it’s great if they’re in the Houston metro area, but it’s not a requirement. And then what was the other question, Trisha.
Trisha Stetzel: Marketing. How do you market your business?
Nancy Mills : Oh, I do a lot of education through, um, presentations and networking to educate business owners, to know that there’s so much they can do starting today to make their company more sellable. And I love to educate business owners on that so that they’re not caught off guard one day thinking they’re ready to go and they’re not, and they have a rude awakening, and then it’s almost too late. They go through due diligence process and they’re woefully unprepared. And then they lose a year in a sale process where it all falls through. I want them to avoid that at all cost to work with somebody like me. It doesn’t have to be me to start to think about this well in advance. And it doesn’t need to take a lot of time. It just needs to take a little bit of time. And just as they think about it before it’s too late.
Trisha Stetzel: This has been so valuable, and I know that you provide a lot of value on your LinkedIn page and a lot of information that people can absorb there. So if anyone’s listening and wants to connect with Nancy on LinkedIn, it’s Nancy Mills is how you’re going to find her. Nancy Mills on LinkedIn. Nancy, are there other ways that people can engage with you?
Nancy Mills : Yeah. Lowenberg consulting is spelled l o w e n b e r g. It’s all e’s. There’s no u, and I think that’s a good place to go as well, because there are a lot of Nancy Mills. They might find me better through my company name, and I’m happy to answer any questions that anybody has at any time. I give plenty of free advice, and I just love to help people to achieve their their dreams and their goals and to leave a legacy in their communities because we depend on the business owners to make a difference in the communities. And that’s what I love about what I do.
Trisha Stetzel: Yeah, absolutely. Nancy, thank you so much for being on with me today. I know that everyone who’s listening today, or even the recording back, will absolutely find value in this. We have a lot of business owners out there listening. Any last thing that you’d like to say or give back to the audience listening today?
Nancy Mills : Just thank you for having the courage to be a business owner. Thank you for being a leader. And I support you and I salute you.
Trisha Stetzel: Wonderful, Nancy, thank you again for being here. And that’s all the time we have for today’s show. Join us next time for another exciting episode of Houston Business Radio. Until then, stay tuned, stay inspired, and keep thriving in the Houston business community.
