We recently connected with Mitch McGinley and have shared our conversation below.

Hi Mitch , thanks for joining us today. We’d love to hear the backstory behind a risk you’ve taken – whether big or small, walk us through what it was like and how it ultimately turned out.

The biggest risk I’ve ever taken was to leave my career in hotels to buy our favorite yoga studio. It was 2012, I had just finished my MBA, and I was in on the ground floor of a startup that I loved. I had equity in boutique hotels that we were buying, fixing up, and then selling. I was learning the transactional side of the industry while being responsible for managing the hotels. We were doing really well. One day my wife Karson received a call from the owner of our favorite yoga studio, who said “I want to sell the studio, and I want to sell it to you”. We were in shock. It was our dream, and everything about it sounded absolutely perfect – except that the studio itself was not profitable. We wanted to start a family, and felt like my career in hotels was finally going to provide some much needed stability and upside. But I was also exhausted, and worked some insane hours for not a lot of money. So we talked about it a lot, and ultimately decided that owning the yoga studio would provide the lifestyle that we really wanted to live, promoting connection and wellness in our community, together. We knew we could improve the financial health of the studio, but all we had was faith in ourselves, and the unwavering support of our parents. So I left my career in hotels – walking away from equity and benefits – to take out a loan for fifty thousand dollars, and buy our favorite yoga studio. It wasn’t easy! Buying it or running it. Money was extremely tight for a year or two, but we turned things around, ultimately made six figures, and then sold the studio for almost five times what we bought it for. Ever since I’ve helped thousands of others do the same.

Great, appreciate you sharing that with us. Before we ask you to share more of your insights, can you take a moment to introduce yourself and how you got to where you are today to our readers

We owned our studio for six years. Halfway through I needed a new challenge and a friend asked me to help with some consulting work for other studio owners. That work quickly became a certification as a Mindbody Business Consultant, which connected me to studio owners all over the world, helping with things like Pricing Strategy and KPIs. Shortly thereafter I added the title of Mindbody Education Faculty, teaching in that same consultant certification program, as well as Mindbody University, a traveling roadshow of multi day business intensives for studio owners which took me as far as London and Sydney. Throughout that time, Karson and I had a few conversations about selling our studio, but in year six, we knew we were ready. I had a friend and colleague I had spoken to several times over the years about buying it, and I called him to tell him we were ready. A few months into the negotiation I was randomly contacted by a local business broker asking if I would be interested in selling. I had to laugh and told them I was literally in the middle of selling it myself, but if it didn’t work out for any reason I would contract them to list it. Fortunately it all worked out with my buyer. But shortly thereafter the broker followed up, and much to my surprise, ultimately invited me to come in for an interview, saying I would be a perfect fit. Being a business broker wasn’t something I had ever considered before, but having participated in several transactions, both as a buyer and a seller, I was intrigued. When I went in to interview, I pretty much fell in love with the idea and the people. It’s a lot like being a real estate agent, but for my favorite small businesses. We’re all independent contractors, around the same age, with kids the same age, and I am perpetually impressed with how successful and knowledgeable each person on our team is, while being so humble and kind. I am so fortunate to be surrounded by such ideal colleagues and mentors, who also have such great perspectives on work / life balance. Our group of 15+, led by Sean Seaman and Dustin Sigall, recently split off from that national business brokerage and created SD Business Advisors. We prefer to call ourselves Advisors as the overwhelming majority of the value we provide lies in advice. We assist with everything from planning an exit strategy years in advance to actually completing a transaction. It is a long, complicated and emotional journey with each client.

It starts with putting a plan in place to maximize your value when it’s time to exit. That ideally begins years in advance and includes identifying potential buyers, timelines and goals, as well as some standard day to day business consulting. When it’s time to sell, we conduct a Market Price Analysis, or Valuation. If the seller is in agreement about the timing and asking price, we sign a contract much like a real estate agent would. We then advertise the business for sale (oftentimes discreetly) on a number of websites, and / or through private channels. We handle NDAs, Confidential Business Profiles, and answering prospective buyer inquiries. We host prospective buyer seller meetings, and assist buyers with everything they need to do to successfully purchase a business. We provide Letters of Intent (LOIs), Asset Purchase Agreements (APAs), and most other legal documents necessary to complete a transaction. Once a deal is reached and a contract is signed, we open escrow. During escrow, we facilitate everything necessary to complete the transaction including Due Diligence, Lease Assignment, Franchise Assignment, and Financing. We are the centerpiece for communication between buyer and seller, landlords, attorneys, CPAs, lenders and SBA. Escrow usually takes several months, and is a nail biting experience. We’re there to hold everyone’s hands, keep everyone on the same page, and make sure emotions don’t derail the transaction. That’s the thing I’m most proud of that I feel really separates me and us from others. It’s funny to say, but a lot of what we do is like being a therapist, or a coach. We’re there to pick up the phone, listen, and comfort anyone and everyone involved in a deal. We’ve been there many times before. We’re often figuring out creative ways to solve problems and differences. Most importantly, we’re there to make sure each person involved knows what their options are, the pros and cons of each option, and feels empowered to confidently make the best decision for themself.

Can you share a story from your journey that illustrates your resilience?

I have so many stories….my job is a pressure cooker, and it’s a constant effort to keep everyone calm and positive. Deals often fall apart, only to come back together. But a recent one was the longest escrow of my career, which happened this year. It took six months to close escrow after a Purchase Agreement was signed, on a very simple deal. It was all because the landlord was terrible – a corporate landlord that didn’t care about the tenant at all. We were applying for a simple lease assignment. They dragged us out for two months barely responding, and then dropped the bomb that they were going to sell the building and we would have to negotiate with the new landlord. But THAT deal wasn’t even close to being done! So for six months, I did everything in my power to coordinate with everyone involved, the buyer and seller, the lender, and both landlords. Escrow lasted through summer, which ended up having an almost devastating effect on the financing. Banks always ask for updated financials, and July and August are usually the slowest months in the fitness industry. That slowness made the bank reconsider the loan. Meanwhile, our buyer was pregnant, and due very close to our closing date. In the end, it all worked out. But that buyer, in a nod to resilience, scheduled her induction one week after closing. And then closing got delayed again. She signed the closing paperwork the day after she had the baby. I have never seen such a determined, focused, positive, diligent, impressive human being. Erin, if you’re reading this, you’re the most resilient person I’ve ever known!

Any stories or insights that might help us understand how you’ve built such a strong reputation?

My reputation is staked on a few simple truths: I am honest, kind, competent, and perhaps most important, empathetic. I’ve been there. I started as a Front Desk Agent, then became a Manager, General Manager, Teacher, Buyer, Owner, Consultant, Faculty, Seller, Broker and Advisor. I’ve also been a Landlord. It’s easy for me to relate to how each person feels. Buyers are often paranoid. Sellers are often defensive. Landlords just don’t want to be bothered. I get it! But that doesn’t always make for the easiest conversations. Fortunately, I can relate to each person. And make each party feel heard. It’s hard to overstate the value of being a good listener. I genuinely care about my clients, and feel the weight of everyone’s happiness and success in my hands. I had a mentor once tell me to be more empathetic and less sympathetic. I’m still working on it. But buying or selling a business usually accompanies other larger life transitions. And being there for my clients often means being there for them in a much greater context, and that’s what sets me apart.

Contact Info:

• Website: https://boutiquefitnessbroker.com/
• Instagram: https://www.instagram.com/boutiquefitnessbroker/
• Linkedin: https://www.linkedin.com/in/mitchmcginley/

Image Credits
Lynn Renee Photography