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In this episode of The Exit Podcast, host Steve sits down with Lee Smith, an acquisition entrepreneur at Verdani Capital with 12 years of M&A experience. Lee shares hard-won lessons from acquiring 20+ businesses and reveals what buyers really look for when evaluating companies for acquisition.

KEY TOPICS COVERED:

The #1 Red Flag Buyers See (And How to Fix It)
Lee reveals why owner-dependency kills deals and how to build transferability into your business 2-3 years before exit

Inside the Valuation Process
Real multiples for blue-collar businesses (2-4x true profit, not EBITDA) and why adjusted earnings can backfire

Deal Structure That Works
How Lee structures acquisitions to align incentives: buying 60-80% stakes with future upside potential that often doubles the founder's payday

The Biggest Deal Mistakes
From buying distressed companies to discovering hidden equity agreements 30 minutes before closing—lessons learned the hard way

The £1 Business Acquisition Strategy
How Lee has purchased 20 businesses for just one pound, including a remarkable turnaround that saved a founder from £500K in debt

When Concentration Risk Isn't a Deal-Breaker
Strategic approaches to handling clients that represent 60-70% of revenue, including key customer clauses in SPAs

Building Trust in M&A Deals
Why "two ears, one mouth" matters more than spreadsheets when structuring successful acquisitions

The EOS Framework for Integration
Using simple systems to manage acquired businesses without disrupting teams or culture



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Lee Smith is a values-driven entrepreneur and dealmaker with more than 25 years of experience and a respected track record in UK M&A. After completing his first acquisitions in 2014, he went on to buy and turn around nine underperforming companies before founding Verdani Capital, where he continues to acquire and scale larger UK businesses. To date, Lee has completed 26 acquisitions across sectors such as Manufacturing, Professional Services, Construction, HVAC, and IT Services, supported by training from leading M&A mentors in the UK and US. His current portfolio generates over £2M in annual profit with a clear path toward £10M, strengthened by three strategic exits in 2024. Grounded in spirituality and conscious leadership, Lee combines substance, strategy, and long-term thinking in every partnership.

Website - https://www.leeasmith.co.uk/


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The Exit—Presented By Flippa: A 30-minute podcast featuring expert entrepreneurs who have been there and done it. The Exit talks to operators who have bought and sold a business. You’ll learn how they did it, why they did it, and get exposure to the world of exits, a world occupied by a small few, but accessible to many. To listen to the podcast or get daily listing updates, click on flippa.com/the-exit-podcast/