In this episode of the Expert Network Team podcast, we’re joined by Jeff Eliason, Managing Director at SDR Ventures, to unpack the full process of selling your business—and how to position yourself for not just one, but two potential payouts.
Jeff breaks down what it means to “run a process,” how to prepare for a successful exit, and why recurring revenue businesses are hot in today’s M&A environment. Plus, Jeff Krommendyk shares a firsthand account of navigating an earnout with his own business.
You’ll learn:
- What investment bankers really do
- How to protect your valuation during due diligence
- Why boring businesses with moats attract serious buyers
- What the “second bite of the apple” really looks like
- Why AI and recurring revenue are shaping today’s deals
This episode is a must-listen for business owners exploring succession, sale, or scaling. Geoff S. Eliason, Principal SDR Ventures geliason@sdrventures.com 720.221.9220
Karl:
Welcome to the Expert Network Team podcast. In this episode, we’re continuing our conversation with Jeff Eliason from SDR Ventures. He’s going to answer questions about what the process looks like to sell your business—what he calls “running a process”—and how business owners can get a second bite at the apple. Jeff Krommendyk also shares how that worked in his case. Business owners, pay attention. This could be really exciting for you.
Karl:
You’ve used a phrase I think people would benefit from understanding: What does it mean to be “running a process”?
Jeff Eliason:
Yeah, that’s a great callout. It’s really common investment banking jargon. A process is everything from signing an engagement agreement with a client to the closing table. It’s typically a 9-month timeline.
Here’s how it breaks out:
1–2 months: We get to know the business, owner, values, and priorities. We build a professional 70-slide presentation for investors.
We announce the company’s availability via a one-page teaser. Interested parties then review the deck, ask questions, and get a deeper look.
Around 4 months in, we request Indications of Interest (IOIs), which eventually become Letters of Intent (LOIs).
From there, we pick a finalist, sign an LOI, and begin a 60–90 day due diligence period—what Jeff Krommendyk calls a “corporate colonoscopy.”
Jeff Krommendyk:
(Laughs) Yep. Having been there, done that—that’s the best way to describe it.
Taylor:
It’s like another full-time job for the business owner, isn’t it?
Jeff Eliason:
Totally. We put in over 1,000 hours during those 9 months. Owners can’t afford to take their eye off the business—revenue and earnings need to keep going up, or they risk losing value.
Jeff Eliason:
Once diligence ends, you hit the closing table. From there, integration follows, and potentially a second bite at the apple—aka, the earnout.
Jeff Krommendyk:
We just celebrated our earnout today—that’s why I was late! It’s not just a financial mechanism; it’s an incentive. We had targets for growing EBITDA that earned us additional multipliers. It helps you feel like part of the larger company.
Nathan:
There’s part of me that gets goosebumps talking about this. I only wish we’d been more intentional in preparing our business for sale. In 2021, deals were happening fast—people throwing money around. But today, buyers are smarter.
Jeff Eliason:
Exactly. There’s still a lot of dry powder, but more due diligence and strategic selection. Engaging an advisor like us helps position your business better.
Karl:
You’ve spoken to both my industry (wealth management) and Jeff’s (insurance). These sectors are consolidating rapidly, especially with baby boomer owners aging out.
Jeff Eliason:
Correct. Recurring revenue is hot. There’s consolidation in wealth management, insurance, CPA firms, medical practices—you name it. These fragmented industries with aging owners are ripe for scale.
Taylor:
Do you have a favorite or least favorite type of business?
Jeff Eliason:
My favorite: profitable, boring, niche businesses with moats—like a company that manufactures U.S. military uniforms (must be made in the U.S.). Least favorite? Custom home builders. No recurring revenue, no pipeline contracts—it’s hard to sell.
Taylor:
What about AI? Are buyers factoring that in?
Jeff Eliason:
Definitely. They’re not expecting plumbers to be replaced by AI, but they are expecting tech to enhance scheduling, logistics, diagnostics (via IoT), and more.
Nathan:
So there’s still room to consolidate trades and integrate smart tech?
Jeff Eliason:
Yes, without question. That’s a great opportunity area.
Nathan:
It’s been an hour. Let’s start wrapping up. Jeff—why do clients choose SDR Ventures?
Jeff Eliason:
We’ve got 24 years of experience and an 88% success rate. But more than that, we collaborate with your entire team—CPA, wealth manager, attorney. We don’t box anyone out. Our goal is to position you and your family for life after the sale.
Cost-wise, we typically charge a few monthly fees upfront (3–6 months), then a success fee at closing—anywhere from 1–10% depending on business size.
Karl:
Jeff, how can people get in touch with you?
Jeff Eliason:
Visit sdrventures.com or email me at geliason@sdrventures.com. That’s G‑E‑L‑I‑A‑S‑O‑N. And of course, reach out through any of the ENT members too.
Karl:
Thanks again, Jeff. I don’t know where you were three years ago, but I’m glad we found you now.
Taylor:
Thank you guys. Can’t wait to see you all tomorrow.
Nathan:
On that note—time to send you all home. As Karl always says: Create a beautiful day.