Welcome to the Roadmap, an ASBN-exclusive resource designed to educate entrepreneurs about the value of growing and monetizing their businesses. Host Lee Heisman is joined by the former owner of Woodall & Broome and ACRS, Scott Woodall on today’s episode to outline his journey while elaborating on the process of selling both of his businesses.
Two companies, one entity
29 years ago, Woodall created the company Woodall & Broome, for corporate and insurance-related clients to offer a broad range of investigative, security consulting, and management services. While ACRS, founded 15 years ago, concentrated on medical expenses and worker compensation. According to Woodall, “ACRS made money by how much it could save on hospital expenses and at what percentage.” But, he made the decision to separate the corporation into its own entity seven years ago, but under the footprint of Woodall & Broome.”
Unfortunately, Woodall was involved in a fatal accident two years ago, which caused him to wonder what his staff would do in his absence. He wasn’t thinking about selling his company at the time, but the call he received in the hospital after the accident caused him to reconsider. Shortly afterward, he adopted the following mindset: “Everything I have, regardless of what it is, is for sale.”
Woodall never considered selling prior to receiving the initial hospital phone call “because I wasn’t ready.” “When I would entertain conversations with brokers, I didn’t like what they had to say,” he continued. However, he considered himself fortunate to have been contacted by an investigative CPR that thoroughly assessed his business and determined that it was worth three times as much as he had believed.
Owners pre-warnings
Woodall advises business owners who have recently sold their company and are looking for current pre-warnings of the difficulties they may encounter during the process as: “If you feel strongly about something, then approach the new owner in the appropriate manner. If it doesn’t work, though, try biting your tongue.” Adding, “you must accept that you are no longer the owner.” To illustrate, he decided to stay with “Broome” for a year after selling both businesses in order to assist the transition of ownership. Nonetheless, his working hours altered and he either agreed or disagreed with some of the decisions made. But in the end, he realized he wasn’t the owner anymore, so he made the decision to “bite my tongue.”
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