For more information on this guest podcast, see the show notes on The Biz Mafia’s website linked here

In this guest podcast featured by the BizMafia podcast, hosts Bryan Taylor and Pat Linden engaged in a captivating conversation with Kirk Michie, the mastermind behind Candor Advisors. The discussion revolved around Michie's unique approach to investment banking, focusing on authenticity, client advocacy, and challenging the status quo.

Highlights from the Conversation

1. Contrarian Thinking and Client Advocacy:

   • Kirk Michie's way of doing investment banking is different—he puts clients first, especially in sell-side M&A. He challenges old ways of thinking to get better results for his clients.

2. Candor Advisors' Success:

   • Candor Advisors, started by Michie, has handled over a billion dollars in M&A deals and raised another billion dollars for founders and entrepreneurs. They help founders and families tackle strategic hurdles, ensuring they meet their goals for selling their businesses.

3. Role of an Advisor:

   • Michie breaks down his role into three parts: guru, guide, and gladiator. or. He explains that it's crucial to be an expert in the field (guru), offer experienced advice (guide), and even push back against clients' current views for their future benefit (gladiator). This approach helps clients handle the challenges of M&A transactions well.

4. Importance of Preparedness and the LOI:

   • Michie stresses the need for careful planning before diving into M&A. He recommends business owners learn market terms, broaden their customer base, and improve financial measures. He also points out the significance of the Letter of Intent (LOI), as it shapes the final purchase agreement and should be clear and negotiated well to prevent problems later on.

5. Educational and Service-Oriented Approach:

   • Through Candor Advisors, Michie focuses on educating founders through weekly updates on LinkedIn and an insights section on the company website. This approach aims to take the guesswork out of complex financial terms and processes, making them accessible to entrepreneurs and business owners alike.

Unique Terms in Selling a Business

• Sell-Side M&A: The process where investment bankers represent the seller in mergers and acquisitions. The primary goal is to secure the best deal terms and valuation for selling the client’s company.

• Adjusted EBITDA: Earnings before interest, taxes, depreciation, and amortization, adjusted for one-time expenses or non-recurring revenues. This is a special way of looking at a company's earnings. It takes out certain one-time costs or rare incomes to give a clearer picture of how well the company is running and how much it might be worth to potential buyers.

• Transferable Economics: This means being able to transfer the money-making parts of a business, like steady income or ideas, from the old owner to the new one. It's about showing the hidden value that buyers want when they buy a business.

Kirk Michie's approach to investment banking and transaction advisory services is all about being genuine and advocating for clients. This stands out in an industry known for its rigid ways. His success at Candor Advisors and his focus on educating and preparing business owners highlight his commitment to getting the best results for his clients.