“Insights of a Maverick Exit Advisor” is a collection of diary notes to start a new career as an exit advisor and CEO coach. Visit Us:- https://entrepcoaches.com/

1. INSIGHTS OF A
MAVERICK
EXIT ADVISOR
ISTVAN ‘STEVE’ PREDA

3. The diary of 12 years
of investment banking
in Central Europe
and the United States
INSIGHTS OF A
MAVERICK
EXIT ADVISOR
ISTVAN ‘STEVE’ PREDA

4. “This is an entrepreneurial wisdom-book that helps you understand
how to get into a business and how to create and execute an exit
strategy. A senior-level graduate course in entrepreneurship, with
clear examples and in simple language, that allows you to digest the
theoreticalideaspresented.”
MatthewMarek,FounderandCEO,
GoodNeighborCommunityServices
“Insights of a Maverick Exit Advisor is a straight-to-the-heart diary
ofaninvestmentbanker.Steve'sstyleishonest,transparent,andraw,
and each of his essays contains valuable lessons from start-up
founders to the most experienced CEOs. If you are interested in
buying, selling, or starting a business, this is a must read. No need to
learn these lessons the hard way when you have Steve's insights to
lightyourpath.”
RyannLofchie,CEO,FrontierAcademy;
Owner,TheFrontierProject
“Whether you are considering becoming an entrepreneur, growing
your company, being a better leader, or exiting your business, you'll
findinsights,inspirationandvaluethroughoutthebook.Mr.Preda's
style is straightforward, honest and often bold. The book can be a
quick read or you can chew on the words, reflect and revisit chapters.
Iencourageeveryentrepreneurtoreadthisbook.”
TerryFink,CEO,PlanetCentral
Praise for
“Insights of a Maverick
Exit Advisor”

5. “Steve's unique international background and diverse group of
clients make 'Insights … ' an intriguing read. From creating the
business you have long been thinking about, to growing it and then
to cashing out, Steve covers ideas, concerns and things to watch out
for. An enjoyable and thought-provoking read no matter where you
areonyourownbusinesstimeline”
MarkA.Smith,Owner,MidasofCentralVirginia
“I found the book to be a unique read and difficult to put down. A
whimsical collection of vignettes, each providing one or two
poignant business truths. Entrepreneurs and business people alike
havemuchtogainfromSteve'sinsightsandperspectives.”
DavidP.RomigII,President,TCSC/ForensicAdvantageSystems
“Welcome addition to other successful business strategy resources.
The golden nuggets embedded in Steve's experience are priceless and
his practical advice is a solid foundation for any business owner
considering a sale or even the “what next” when dealing with a
businesstransitionplan.”
JeriTurley,President,BCGCompanies

6. © 2016 by Istvan ‘Steve’ Preda. All rights reserved. No part of this publication may
be reproduced, stored in a retrieval system, or transmitted in any form or by any
means electronic, mechanical, photocopying, recording, or otherwise, without the
written permission of the author or publisher.
Library of Congress Control Number: 2016920070
Published by: Amershire Publishing
Websites: www.entrepcoaches.com, www.imapmb.com
Illustration: Ákos Kiss, Rajzákos
Book Design: Zoltán Ember, a4-design
Text Editor: Erzsébet Aponyi
Publisher’s Cataloging-in-Publication data
Preda, Steve: Insights of a Maverick Exit Advisor. The Diary of 12 Years as an
Investment Banker in Central Europe and the United States.
Includes index. | Glen Allen, VA: Steve Preda Entrep Coaching, 2016.
Subjects: LCSH Business planning. | Sale of business enterprises. | Sale of small
businesses. | Entrepreneurship. | Family-owned business enterprises. | Success in
business. | Private companies – Planning. | Leadership. | Strategic planning.
Corporations – Valuation. | BISAC BUSINESS & ECONOMICS / Leadership
BUSINESS & ECONOMICS / Entrepreneurship
Classification: LCC HD2746.6.P74 2016 | DDC 658.1/6–dc23
Identifiers: ISBN: 9780998447810 (Paperback), ISBN: 9780998447803 (eBook)

7. To my parents,
István and Beáta
for your faith
and support

8. “Insightsof a MaverickExit Advisor”is a collectionof diary
notes I wrote while selling my investment banking business in
Europe and moving our family to the United States, to start a
newcareerasanexitadvisorandCEOcoach.
These mini essays recorded my thoughts and experiences
working with over one hundred and fifty entrepreneurs and
CEOs over a timespan of fifteen years, advising them on
growing, funding and scaling their businesses. In most cases,
they were looking to harvest the value they built up in their
companies by way of selling to a private equity group or a
strategic buyer. In other instances, they wanted to create more
robustbusinessesthatcouldbehandedovertofamilysuccessors
ortoaprofessionalmanagementteams.
Ihopeyouwillenjoyreadingtheseshortstoriesasmuchas
I did writing them. If you would like more, check out the
SuccessionSecretspodcastoniTunes,
oritstranscriptsatwww.successionsecrets.com.
Foryourentrepreneurialsuccess,
Istvan‘Steve’Preda
Preface

9. ENTREPRENEURSHIP
Mortgage and Payroll
Turns Handicap into Advantage
Can’t Make GREAT? Let it Go!
Whatever Gets You to the Light
From Trauma Through Strength to Weakness
Entrepreneurial Bug
Cuddle Losers, Piss off Winners
Effectiveness in Art and Business
The Three “C”s of Entrepreneurship
Ground Your Feet and Springboard
Non-Core is Not Waste
Passion, Sex, Entrepreneurship
Industry and Frugality
Power Over All Things
The Lifestyle Trap
Ideas vs. Resources
Conviction of Value
LEADERSHIP
Lead, Follow, or Get Out
Love’em, if You Want to Sell’em
You Live for Today, I Worry About Tomorrow
Inspiration
Horse and Rider
GROWTH STRATEGIES
Little Advantages
Technology or Contracts
“Profit” is Spelled “Repetition”
Wanna Rock? Spend 10% on Marketing!
Shortage of Capital
Hostages to Fortune
The More Aggressive Wins
Growth or Cash
Lethal Profits
Follow the Competition
Break Even and Stay Present
Systems Replace Experience
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Contents

10. ACQUISITION / INTEGRATION
Who Buys Cheap May Overpay
Spend a Fortune on Nothing
Fix to Sell, or Sell to Fix?
Buy Skills, Not Customers
Would they Care if it Sank?
Uncertain vs. Sure Synergies
Too Big to Chew
PRIVATE EQUITY / VENTURE CAPITAL
Wind Behind the Sail
Watch the Return on Assets
Angels Better than VC?
Companies Family Offices Buy
Eat Your Buyout Cake and Keep it
Healthy Pressure
Better Sales than Your Client
The Time to Use Leverage
SELLING A BUSINESS
How to Sell for More than it’s Worth?
The Strategy of Overpaying
Credibility Account
Caught With Your Pants Down
Knee-Jerk Reactions
Whatever You Resist, Persist
Fearing Phantoms
Crosshairs Life Insurance
Macho Entrepreneur
Breezes and Bruises
Empty Wheelbarrow
Deal With Peace of Mind
NEGOTIATION
Trust
The Best Lie is the Truth
Merger Negotiations: How to Win by Losing It?
False Characters
Swingers and Singers
Playing Fool for Gold
When Harry Met Sally
FAMILY BUSINESSES
Investing the Family Silver
Stress, if You Don’t Enjoy it
Wonder, Thunder and Blunder
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11. ENTRE
PRE
NEUR
SHIP

12. usiness Man” – read the status description of a former
Bcolleague on an association website. Last I checked, he
was the employee of a bank… and sure enough, he still
workedforthesame.
“Intrapreneur” – quipped a retired executive upon my
question of what he did for a living. “This is what you call
individuals who autonomously create businesses inside
companies”–heexplained.
A couple of my friends started an internet business when a
conglomerate funded their business idea. The enterprise lasted
untiltheseedcapitalranout.The“founders” thentookrefugein
middlemanagementjobsatalocalbank.
My own mindset was similar fifteen years ago, when in
charge of the corporate finance department of a Central
European commercial bank. Management knew little of the
investment banking business and I enjoyed substantial
autonomy in picking colleagues and going after clients. “Heck,
why be an entrepreneur when I can enjoy all the freedom AND
besureofasalarycheck?”–Ithought.
My euphoria lasted until the bank was hit by a slow
summer, and on an early September Friday afternoon, I and my
deputy got fired. My staff was shocked and promised to jump
with us to a competitor… but by Monday all was forgotten. “My
intrapreneurialbusiness”turnedouttohavebeenjustajob.
The ensuing years have taught me what entrepreneurship
is all about. It has nothing to do with building a business… That
can be done by a hired hand who enjoys the confidence of, and
gets a budget from, their employer or investors.
Entrepreneurship begins where your business hits a rough spot
and you commit family silver to keep it alive. When you
Mortgage
and Payroll
INSIGHTS OF A MAVERICK EXIT ADVISOR
10
“

13. ENTREPRENEURSHIP
mortgage your house to survive a downturn… dip into
retirementsavingstomakepayroll…forgosalariesformonthsto
stemlosses.Thesearethetruetestsofentrepreneurship.
On the other hand, nothing fosters creativity like being
desperate. Are you prepared to go there to stay in business? Are
you strong enough to hang in through a drought with no
income? Do you believe in your venture enough to put your
financialfutureontheline?
If yes, than you are, or have what it takes to become, an
entrepreneur.
11

14. INSIGHTS OF A MAVERICK EXIT ADVISOR
12

15. Innovation often springs from the frustration of the
handicapped,whoisdesperatetoovercometheiradversity.
One unpleasant example is Hitler, who channeled his
frustrationasamediocrepainterintoapoliticalcareer.
He won over his faithful by turning his feeble persona and
pitched voice into a messianic icon of the reparation-opressed
maninthestreet.
The actor, Marlon Brando, overcompensated his
mumbling by inventing coolness and becoming a sex symbol of
hisgeneration.
The eight-times Grand Slam champion tennis player,
Andre Agassi, turned his relatively small height into a powerful
weapon by developing the Agassi ground stroke that made his
opponentsrunincircles.
I thought of these handicaps-turned-advantages when
browsing Sheryl Sandberg’s new book Leaning In. Sandberg, the
COO of Facebook, is leveraging her womanness to rebrand
herself from an operative executive into a political figure, the
global champion of women. Stepping out of the shadow of
Facebook founder Zuckerberg, she is turning a potential
handicapintoanadvantage.
A handicap can be a blessing for the up-and-coming
entrepreneur too, if he can embrace it. The idea of being an
underdog can trigger a visceral desire to heroically throw off the
shackles of disadvantage and to succeed against the odds. The
challenge inflates the self-image of the oppressed, turning him
intoalion.Amuchstrongerdrivethanfortheleadertomaintain
heredge.
Aspiring entrepreneur, – go embrace your handicap and
givetheleadersarunfortheirmoney!
Turns Handicap
into Advantage
ENTREPRENEURSHIP
13

16. Anaïs Nin, an American author born to Spanish-Cuban
parents quipped: “Anything I can not transform into something
marvelous, I let go”. This quote is itself marvelous, as it
compressesmultipleideas,applicableforbusiness.
The first is to always shoot for the extraordinary. Anything
lesswillnotinspiretheexcitementandenergyneededtoturnan
initiative into a profitable business. Entrepreneurs are
optimistic by nature, and their business idea will almost
certainly cost more, run into obstacles and be more difficult to
sell than initially thought. Warren Buffet claims that any
investment must have a downside buffer to be feasible.
Marvelousnesscanbethatbuffer.
Second is the entrepreneur’s own input. Entrepreneurship
is like art, a deeply personal activity. The idea has to offer
personal synergies to the artist, allowing a full emotional
commitment to executing it. A clinical approach creates neither
artnoramarvelouspieceofbusiness.
Richard Branson brings his passion to any business he
touches and it is his personality that turns it into an
extraordinary success (e.g. Virgin Megastore), or occasionally, a
colossal failure (Virgin Cola). Virgin Megastore was brought to
life by Branson’s larger-than-life attitude. Virgin Cola just
proved that even big thinking can fail when it runs up again
marketinggiantswithunlimitedresources.
The third is letting go. As much as belief is an
indispensable quality, it has to be tempered by sobriety to
recognize if something will not work and get out before losing
an arm and a leg. Thick skin helps here to shake off the
disappointment and humiliation of having gone all out for the
Can’t make
GREAT?
Let it go!
INSIGHTS OF A MAVERICK EXIT ADVISOR
14

17. wrong idea. (The insecure will hang on too long and lose their
capitalinthevainattempttopreservetheirreputation.)
Lastly, it helps to believe that life abounds with
opportunity. Rather than settle for a GOOD business, keep
tweakingituntilitbecomesMARVELOUS.
ENTREPRENEURSHIP
15