Sell Your Agency & Get the Best Deal By Checking Your Ego at the Door with Jordan Choo | Ep #771

Sell Your Agency & Get the Best Deal By Checking Your Ego at the Door with Jordan Choo | Ep #771 Speaker 2: I want you to stop working for free. If you're tired of getting ghosted on proposals, the endless follow-ups and We'll think about it as a response. There's a better way. The top agencies aren't sending proposals. They're getting paid to pitch and close bigger deals way faster. I want you to grab this free resource I just put together at agencymastery360.com slash strategy. That's agencymastery360.com slash strategy and you'll learn how to flip the script if you want to get paid for your expertise instead of giving it away for free. Hey, Jordan, how are you doing? Speaker 1: Doing well, doing well. It's nice to be chatting with you today, Jason. Speaker 2: Yeah, I'm excited to have you on the show. You know, we've known each other for a long time. And for those that have not met you yet, who are you and what did you used to do? Speaker 1: So my name is Jordan Choo. I am a recovering agency owner now. I used to run a company called Cognita. We did digital marketing for local companies that are trying to profitably and predictably grow without the BS. Speaker 2: Awesome. And I always refer to you as kind of patient zero. For those that were like, what are you talking about, Jason? Many years ago, how many years ago was this? Like seven? That you came to an event I had in Atlanta and Jordan got sick toward the end, but got everyone else sick. And so the flu just started spreading throughout everyone. Like we could see like, Oh, this person's going to get it. Unknown Speaker: Boom, boom, boom, boom. Speaker 2: And so for, for many years, Jordan was in our mastermind and I called them patient zero. So that's the context there. Speaker 1: And I think I spread it as far as Australia, if I'm not mistaken. Speaker 2: Yes. Australia is not going to let you in the country anymore. But well, congratulations on selling your agency. I'm glad you're recovering. How did that process start? Were you actively looking to sell or did someone reach out to you? Because there's a lot of agency owners listening that they always get that email, right? Hey, I want to buy you. And it's always a sales call. So how did this come to fruition? Speaker 1: Yeah, so it was actually through an introduction from another agency owner that I know. And it wasn't a acquisition introduction. It was more of a, hey, this other agency I know they're looking for, you know, a white label partner to provide these marketing services to, you know, they only do website design development. So they're looking to kind of scale and grow and kind of extend their lifetime value. And then as I had More and more conversations with this agency, it actually made sense for them to acquire us rather than for us to partner together on a long-term basis. And it was very organic. It wasn't necessarily forced. Neither of us kind of went into it with the intention of buying or selling. It just kind of fit really well with How we were positioned, how we structure our company, our culture as well, how we approach client services. So it ended up being a really good match for a merger. Speaker 2: Did they bring it up or did you bring it up? Speaker 1: I actually brought it up. I'm like, Hey, this, what are your thoughts on you buying us? For me, just to kind of be curious and the other half kind of being serious. And then as we continue that conversation, it felt more and more like, yeah, like, let's actually go ahead and do this thing. Speaker 2: I asked that because a lot of times the people that will buy you are already people you already know. The company that bought my first agency, we started that way. We knew them. They knew us. And then we tried out some kind of strategic partnerships and then they were like, we want to buy you. And it has to fit your personality too, right? It's like, you should buy us one day. And it just, you kind of seed, seed it. And then they'll be like, maybe they, maybe Jordan is right. Maybe Jason is right. Right. And then they start talking. So, okay. So you kind of joked around with them and then how long was the process from when you kind of said that to A letter of intent. Speaker 1: So we were talking maybe August, September ish. And then we ended up getting kind of like a, a more formal letter of intent, I'd say signed around December, January. So there was, I would say, a lot of going back and forth and just really understanding from a fit level, how well do we mesh? One of my biggest concerns is not necessarily for me, but how well is it a fit for my current client portfolio? How good of a fit is it for the team members who are currently in place? At the end of the day, we're professional service providers, and the team has to be happy because clients can see that. If the team's not happy, then it's going to show with the quality of our work, with how we deliver our services, how clients are treated, retention, and all that downstream stuff. Speaker 2: How much back and forth did you go back and do the dance with, you know, what are they going to be offering you? Speaker 1: Yeah, so from an offer perspective, I had in mind a, I wouldn't say a number, but a very clear multiple range of EBITDA. That I had in mind and when I spoke with my now boss, it ended up being very in line with how he was valuating us. So I'm very, very thankful that there wasn't a lot of going back and forth on what that number should be. And I think part of that is also a function of I have an understanding that ego really can kill a deal, whether it's with an acquisition, whether it's with clients or whatever. So I really had to put myself in a state of this is a business transaction. These are the numbers and this is what realistically I should be valued at versus I feel like I should be worth 10x of what I'm doing. Speaker 2: Well, yeah, both parties need to be educated or at least the seller needs to be educated and the buyer can be an idiot and then you can sell it for a lot. That does happen, right? Like I'm always looking for a stupid buyer. Like, oh yeah, you can give me a 20X on this. All right, here, take it. I am glad that you mentioned you got to kind of take ego out of it. And you know, one of the big challenges that I had When I was selling, I associated myself as an agency owner. That was my identity versus, you know, this is what I do, but I'm not selling myself as, you know, I'm still going to be able to be creative and innovative and helpful and that kind of stuff. And I can find something else. I just don't know what it is. And that was some of the, one of the things too, as you were going through this process and we were chatting, I went, Jordan, do you know what you're going to do next? Because if you don't. Don't do it because I was depressed. I didn't know what I was going to do next. It took me a little while to find this or a couple of years, honestly. Speaker 1: So it makes sense, right? This is such a core part of who you are and how you identify yourself. It's almost like you're losing an arm and a leg. I see it very in line with Olympic athletes. They train their whole life for this one event. They go do it. They get a gold and it's like, okay, now what? Who am I after this? Speaker 2: Hey listeners, I know what it's like feeling alone and isolated and imprisoned by your agency. In fact, it's the exact reason why I do what I do today. Our mission has always been to be the resource I wish I had back when I was running the first agency. And that's why I put together a free page of resources for you to check out. If you go to agencymastery360.com slash training, where you'll find free courses on generating more leads and converting more clients. No strings attached. A few helpful resources to really get you out of the weeds so you don't have to be so lonely in trying to grow your agency. Agencymastery360.com slash training is where you can access the free training on marketing and sales for your agency. Looking back from when you started, you know, like everything has a start, a middle and an end. So you've gone through that on all of this. What would you change in the start of your agency? Speaker 1: Oh, that's such a good question. Delegation was a big one. I personally had a lot of difficulty letting go and delegating things out. I would also say that, you know, a classic one is high or slow, fire or fast. I can definitely attest to that. Yeah, I would say people, the people at the end of the day that you bring on your team will define how quickly or slowly that you grow. And I think I significantly misunderstood how large of a factor that is. Speaker 2: It all comes down to having the right foundation. We all start pretty much by accident. We knew how to do something cool and then we're off to the races and we did it all in the very beginning. We signed the client, we managed the client, we grew the client, then the rollercoaster ride. And when I look back at the start, first came up with what do I want? Before hiring someone, because I can hire people all day long, but if I can't give them the direction now, they're just going to drag me along. And they're going to be kind of an anchor because they're going to be coming to me because I am the bottleneck because no one can make a decision without me. So I always looked at it as after all my years of stress, I'm like, if I knew where I was going, I can build the right foundation. Then I could bring in. The right people that goes to what you were saying, the delegation, where I am delegating the outcome I want rather than delegating the task I tell them to, which is a big difference. That's kind of what I would look. So, so I think that's what we would change in the, in the start. Is that the same in the middle too, like you think, or would you change anything in the middle? Speaker 1: Oh, you know, I'm in the middle and I feel so cliche saying this is really treating working on your agency rather than in it. Because like for me, like, I love the strategy. I love like chatting with clients like doing the work. And that's like, I feel like a lot of agency owners. That's how we started, right? That's kind of our default. And we don't really focus on that growth perspective and how we need to change as agency owners from being in the weeds doing the things we love to, you know, maybe doing things that we aren't so great at, like the sales, like the marketing, you know, like the SOPs that we all know we have to do, but aren't doing. Speaker 2: Yeah, I, you know, when I, when I look back to, I agree with that. I look at it as you're really kind of transforming yourself from, from an owner to a CEO. We're already assuming we have people and we have the right people. How do I make them better leaders? How do I make them into leaders and coach them and build those strategic relationships where only I can as the CEO? Or what are the things I need to do? Do I need to create I mean, how many times in the mastermind when I tell people to do a podcast, it was like a drinking game. I felt like I was like, oh, we're freaking drunk. Now, as Jason said, do a podcast or create content because. You know, people want to hear what your company believes, like you're steering the ship. And so I always looked at it, you know, that way, you know, looking back, you know, that's kind of where we are aligned in the middle. So is there anything that you would change? From that process that you wish you did to be like i should do this from the exiting process you still in the honeymoon stage two so i get that. Speaker 1: You know what i would have spent more time on really fleshing out. And integration plan and i think that's one thing that is not prioritized enough is like how do we make sure everything is just like super like buttery smooth throughout the process. Speaker 2: The process of selling or the process, the day one, once you're sold? Speaker 1: The first 90 days after being sold, like, what does that really look like from a step by step process? I don't think I would change anything in the kind of negotiation back and forth process. You know, I, by being able to take ego out of the equation, I think one of the things I'm very happy that I did is I looked at the purchase agreement and the, I'll call it kind of like employment agreement as almost like two separate entities and two separate negotiation opportunities and not letting them get muddled up. Because I know again, ego can get very, very involved, especially with that post employment engagement. Speaker 2: Yeah, I'm glad you mentioned that because yeah, people do skip. What does that integration look like? Because I remember on day one, I was like, I sat in this new office. What do you want me to do? Like, we didn't even have a title for me. We totally didn't even talk about that. I was like, this was a big transaction. This was a big purchase. I'm like, And I'm just like, Oh, let's sit here. And man, I was so bored. I started counting down the days. Yeah. And my tour duty was for two years or the event that we sold again. I was just lucky that nine months later we sold again. And I was like, I'm freaking out. So really understanding that and understanding why. They're buying you, not the reason what they tell you, but like, why do they want to buy us? What is that reason? Because that will dictate so much going forward because They'll be like, oh, they want to buy you for X, but if it's totally some Y, then you're like, well, then you don't need me for this. Like, why am I going to sit around and be bored? No, you're not even in the agency space anymore. Like, and I asked you, you know, in the mastermind, I was like, what are you going to do next? Like, don't do it if you don't. So what do you want to do now after this is all like your tour duty has ended? Speaker 1: Yeah. So, so after my tour duty is up, Definitely taking a nice long sabbatical. Just going to sit on a beach, soak up the sun. Speaker 2: That'll last two weeks. Speaker 1: Yeah, after that, it'll be something. It won't be agency services. I mean, like, let's pretend I don't have that non-compete. It wouldn't be an agency. What I've really found and like, you know, going back to my why and like why I started things is I really enjoy growing companies, growing businesses, growing something. So I really see myself Focusing on like a single brand, whether that's starting one myself, or, you know, working in house, and just really growing it. Because like, as much as that did kind of scratch my itch as an agency owner, you are kind of dividing your time amongst all these other companies too. So it'd be nice just to kind of like throw all of my energy, all my effort at just one thing and really, really skyrocketing it. Speaker 2: Awesome. Well, this has been great, Jordan. Is there anything I didn't ask you that you think would benefit listeners listening in? Speaker 1: I think I wouldn't say questions that you didn't ask me. I'd rather emphasize something that you mentioned in that foundational portion is really understanding your why and why you started because that will kind of dictate how you grow your agency, right? If you're starting it for a lifestyle, then you don't have to worry about a lot of things compared to if you're starting it If you want to exit, you have to make sure your books are airtight. You have to make sure you're showing consistent profitability. You're not writing off a lot of things as the owner. So really kind of keep in mind where you want to head and that will dictate how you grow and how you approach your agency. Speaker 2: Well, I'm so happy to have seen the growth and you to get to kind of the pinnacle part in order to sell and be able to really kind of write your ticket to whatever you want to do next. So congratulations again on that, Jordan. And for everyone listening, if you want to really kind of make sure you're building your agency the right way, where you have an option If you want to sell and you want to get outside guidance and be really kind of surrounded by the right agency owners, I'd love for you guys to go to agencymastery.io and reach out to us. You know, hit that orange button. It says, yes, I want to scale and let's set up a time to chat. This is not a sales call at all. We want to kind of guide you in the right direction, regardless if it's us Or someone else we recommend, but take the action, you know, in order to make a difference and, you know, go to agencymastery.io and let's have a conversation. And Jordan, congrats again on all that success. Until next time, have a Swenk day. Take care, guys.