Coffee with Jon: Preparing Your Business for Sale with Lee Smith, Director at Verdani Capital

On today's Coffee with Jon, Lee Smith (Verdani Capital) told me the #1 mistake owners make before selling.

They never replace themselves. No systems. No marketing engine running without them.

Best time to fix that?

Today.

THINK BIG.

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Top Three Mistakes Owners Make Before Selling

- Failure to Replace Themselves: Many founders are too emotionally and operationally connected to their business. Lee emphasizes the importance of succession planning and hiring individuals with the drive to take over key roles, effectively removing the founder as a critical bottleneck (1:22 - 3:20).

- Lack of Systems and Processes: Businesses need to be "plug and play." Documenting operations in a manual—similar to the McDonald’s model—allows new staff to step into positions without constant oversight (3:34 - 4:13).

- Absence of a Growth Marketing Strategy: Relying solely on word-of-mouth is a weakness. Buyers look for a scalable marketing system that consistently generates leads and business growth (4:13 - 5:58).

Additional Insights

- Mergers and Acquisitions (M&A): Lee discusses the "virtual merger" concept, where companies share a holding structure but maintain separate brands to avoid complex, often painful cultural integration (8:26 - 9:12).

- AI Integration: Lee and Jon discuss the necessity of embracing AI, particularly for marketing automation, website builds, and operational efficiency. They agree that businesses not utilizing AI risk being surpassed by competitors (10:08 - 14:46).

- Timing: The best time to start preparing a business for sale—including documenting systems and automating processes—is today, regardless of when a sale might actually occur (9:27 - 10:05).

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With over 25 years of entrepreneurial experience, Lee Smith has spent the last 12 years focused on one discipline: acquiring and growing great businesses. He is one of the UK's most active independent acquirers in the HVAC, Renewable Energy and Construction sectors - with 30 completed M&A deals behind him and a current portfolio of seven companies.

His reputation in UK M&A circles is built on something that sets him apart from most buyers: a values-driven approach that puts the seller's legacy at the centre of every deal. Lee's preferred structure is a partnership acquisition - where founders retain meaningful equity, stay involved on their own terms, and see their business grow rather than be absorbed.

Verdani Capital is the vehicle through which Lee brings together operational businesses, experienced leadership and millions of pounds deployed across deals - with a singular focus on long-term value creation over short-term returns.