Business Spotlight with Scott Bushkie of Cornerstone Business Services

Scott Bushkie, founder of Cornerstone Business Services, shares his journey from early sales experiences to leading a successful M&A advisory firm. Growing up in Horicon, Wisconsin, Scott started his sales career selling wrapping paper and napkins as a child. He later excelled in sales while attending UW-Whitewater, winning a Cutco cutlery sales competition and managing a College Pro Painters business. After gaining management experience at Aldi Food, Scott transitioned into business brokerage, eventually founding Cornerstone in 2001. He aims to provide high-quality advisory services for lower middle-market businesses, focusing on valuations, sell-side, and buy-side advisory, filling a service gap between small brokers and large firms.

Scott emphasizes the critical nature of selling a business, noting that owners only get one chance to maximize value. He discusses how Cornerstone works closely with first-time sellers, including family-owned businesses and private partnerships, guiding them through the complexities of business transitions. He highlights the importance of planning, assembling a team of specialists, and understanding a business’s current market value. Scott also reflects on his evolving leadership style, shifting from being hands-on to empowering a strong team. His ultimate goal is to ensure that business owners make the most of their life’s work while preserving their company’s legacy and culture.

 

Podcast Transcript:

Kory Dogs: Hello everyone! This is Coach Kory Dogs from ActionCOACH Business Coaching. I’m excited to have Scott Bushkie, managing partner and founder of Cornerstone Business Services, with us today. Scott has over 25 years of experience in the M&A industry and is a recognized thought leader. He brings investment banking-level services to both buy-side and sell-side transactions in the lower middle market. Scott has successfully completed hundreds of transactions both domestically and internationally, working with private equity firms, family offices, and strategic buyers. As a keynote speaker, Scott has spoken to audiences ranging from national organizations to local trade groups and international delegations, emphasizing the importance of planning for business transition. Cornerstone Business Services focuses on three key areas: valuations, sell-side advisory, and buy-side advisory. Scott will share more about Cornerstone shortly.

A couple of unique things about Scott—first, he won a trophy for selling Cutco cutlery door-to-door while in college in Wisconsin. Second, he was the youngest person at the time to earn a CBI designation from the IBBA and an M&AMI designation from the M&A Source Association. In his downtime, Scott loves spending time at his cottage on the lake with his family and friends and coaching his kids in basketball. He’s especially proud of coaching his three kids over the years. With that, I’m pleased to welcome Scott to the show today. Welcome, Scott!

Scott Bushkie: Hey, Kory, great to meet you!

Kory: Likewise! Let’s jump into some questions and have a good conversation. First, tell us a little about your personal story. Where were you born and raised, and how did you get to where you are today?

Scott: Sure! I grew up in a small town called Horicon, Wisconsin, near Beaver Dam and Kewaskum. I went to school at the Lutheran School there, and that’s where I first got into sales. I had to sell wrapping paper and napkins for Thanksgiving and Christmas. Most kids just sold to their family, but I was out in the dark, walking through the streets of Horicon trying to make sales because I wanted to get the cool toys, like the glow-in-the-dark bouncy ball, by hitting certain sales targets.

Then I went off to college at UW-Whitewater to study sales and marketing. While I was there, I wanted to earn some extra cash, so I did Cutco cutlery door-to-door. I was given a sample set of knives and told, “Go out this weekend and see what you can do. You probably won’t sell much.” Well, I sold a lot, and by the end of the weekend, I had won the sales competition, which was pretty fun.

Between my junior and senior years, I wanted to explore my entrepreneurial side. I saw an ad for College Pro Painters and became a manager there, which was a fantastic experience. Some of you ActionCOACHes may have been College Pro Painters managers in the past! After college, I wasn’t sure what I wanted to do, so I ended up working as a district manager for Aldi Food in Wisconsin, which paid well and gave me some great experience.

Eventually, I realized I wanted to return to sales, but in a smaller company with less corporate red tape. My younger brother’s best friend’s uncle was in the business brokerage and commercial real estate field, so I moved to Green Bay, Wisconsin, to work in that industry. I quickly realized that the model of juggling multiple clients and listings wasn’t the right fit for me. I didn’t like the idea of stretching myself too thin.

So, in January 2001, I founded Cornerstone Business Services, with a focus on quality over quantity. We wanted to help clients make informed decisions instead of just taking on as many clients as possible for the sake of volume. We did some research and found that in the lower middle market—companies with $5-$50 million in revenue—there was a gap in services. Larger firms focused on very high-value companies, while small brokers weren’t equipped to handle mid-sized businesses.

Our mission at Cornerstone is to help businesses through their transitions with integrity and professionalism, creating positive life-changing events for everyone involved. Over the last 20+ years, that’s exactly what we’ve aimed to do.

Kory: That’s impressive! It sounds like you’re really making a difference. So, business owners only get one chance to sell their business, and you’re there to help them maximize that opportunity.

Scott: Exactly! We actually partnered with a film director to create a documentary called M&A. You can see the trailer at MadeCade.com. In the film, we interviewed several business owners, and what stood out to me was how they all said that while you can recover from losing a customer or making a bad hire, you only get one chance to sell your business. Once that deal is done, it’s done. I’ve seen good people with solid businesses make mistakes or fall for unsolicited offers that left millions of dollars on the table. Buyers often reach out first because they know they can get a better deal, and that’s why we’re here—to help business owners navigate their biggest financial transaction with confidence.

Kory: Right, one shot at getting it right. Let’s shift gears a bit—let’s talk leadership. Leadership comes in many forms, whether in our families or workplaces. What’s your leadership style, and has it evolved over the years?

Scott: Yes, it’s definitely evolved. I used to lead by example, being the first in and last out, and wore long hours as a badge of honor. But after some early success, I plateaued for 10-15 years. I realized I needed to shift from making all the decisions to building a strong team around me. In the last five years, we’ve focused on team growth at Cornerstone, which has led to continued success. I’m more of a visionary and strategist, and the key to our growth has been surrounding myself with people who can implement ideas. I was the one holding us back all along.

Kory: You were the lid, yeah? We see that often. Sometimes we don’t even realize it, but we do, right? You’ve shared some about Cornerstone and the numbers—who’s a good fit for you. Can you dive a bit deeper into the types of businesses you work with? Are they family-owned or run by partners?

Scott: Sure. Most of our clients are first-time sellers. We don’t typically deal with professional sellers. These are people who come to us saying, “Where do I even start?” We only work with a limited number of clients, so we can really take the time to help them. Typically, our clients are business owners, often a husband-and-wife team or partners in a privately held company. Most are first-time sellers, although it doesn’t have to be that way. They want to maximize the value of their business or get the deal structure they’re aiming for. Some want to leave sooner rather than later or are interested in a cultural fit with their successor. What’s important is that these owners see the value in surrounding themselves with specialists and are willing to invest in that. Above all, they want peace of mind.

If someone were to say, “I just want $2 million for my business, no matter its actual value,” then that’s probably not the right fit for us. Our clients want to make sure they don’t leave money on the table and that they have the choice in who takes over the business. They want peace of mind knowing they didn’t settle for a low offer. Over the past three to five years, we’ve averaged four to five offers per client. This year, it’s been even better—around 13 offers per client. There’s so much money out there and so many buyers chasing deals right now. We’ve had companies that have generated a lot of interest.

The ideal client for us is someone who wants to sell their business and make sure it’s successful after they leave. They want to be able to choose their successor and know they’re getting the best possible deal, with the right structure. The value may not always be the highest, but it could be a better fit culturally or protect their employees. They also want to work with a team of experts who guide them through the process.

What happens too often is that business owners think they can sell it themselves, make some mistakes along the way, and then come to us after they’ve already hurt their business’ marketability. They’ve taken their focus off the business, and in the process, their sales start to drop. Buyers don’t care about the business owner’s past success. They care about the last 12 months, not how the business was five years ago.

I’ve seen business owners lose 40% of their company’s value simply because they held on a year too long. They didn’t know what they didn’t know, and it cost them dearly. That’s why we emphasize starting the conversation early. There are two key factors to selling a business at a premium: 1) Start planning sooner, and 2) Build a team of specialists.

We’ve seen that most business owners have no idea what their business is worth. They know the value of their car or home, but they’re just guessing with their largest asset, which could make up 80% of their net worth. We help our clients understand the true value of their business in today’s market, not last year’s. Once we know that value, we help them determine what they need to live their ideal lifestyle—what we call their “lifestyle number.” Most business owners wait until after the sale to meet with their financial advisors, but it’s too late then. If their lifestyle number is higher than what they net from the sale, they’ll have tough choices to make. We help them navigate those options so they can make informed decisions with confidence.

Kory: That makes sense. Sometimes when I’m talking to business owners, they haven’t even thought about what they want to do with their business down the road. What’s your goal with the business long term? Some haven’t thought about it at all. Ultimately, I believe the goal should be to sell it at some point, not just shut the lights off.

Scott: That’s why private equity groups tend to get better returns. They won’t buy a business until they have a clear plan: how they’re going to grow it, add value, and eventually sell it. Their plans span five, seven, or even ten years. Business owners, on the other hand, often get started, pay off debts, enjoy a good lifestyle, and then coast. At some point, they don’t know when they want to get out. It becomes a lifestyle business.

I actually wrote a book called Finish Strong: Sell Your Business on Your Terms. One exercise I recommend is setting a target for when you want to sell your business, how old you want to be, and then working backward to understand the numbers. I ask business owners when they want to sell, and most say “in five years,” but when I ask them again a couple of years later, they say the same thing. They’re not ready to let go yet, and that delay can hurt them in the long run. So we work through those 10 critical deal points in the book to help them understand what’s important in a sale and how to plan ahead.

Our discovery calls, which we offer for free, help business owners get a better sense of the process and why timing matters. This is where experts like you, Kory, can make a huge difference. A year of coaching can give a business owner so many more options. It’s amazing how much you can do in just a year to get the business ready for sale. Unfortunately, many business owners only start thinking about selling when they’re burned out or facing other personal challenges. We want them to be in a position to sell when they’re excited, and the company is still thriving.

Kory: It’s great to see how some of our clients who’ve gone through coaching have been able to sell their businesses, especially when they had multiple offers. It’s a life-changing experience for them.

Scott: When we work with clients who’ve partnered with ActionCOACH, we consistently get multiple offers. The business is organized, and you’ve helped professionalize it, reduce risk, and make it much more attractive to buyers.

I once had a client who believed his business, after 16 years of hard work, was worth $1.6 million, but his company was losing money. Despite his efforts, there was no real value because of poor financials. On the other hand, I’ve seen owners with $2 million EBITDA, expecting $10–$15 million, but their business was too dependent on them and a few large customers, which made the company less valuable.

That’s why we recommend getting a valuation now. It helps identify areas for improvement and may even reveal you’re ahead of your goals, allowing you to retire early or live your dream life sooner. I saw this firsthand with my dad, who retired at 60 and lived his life fully until a stroke cut his time short. He was able to enjoy those years because he retired early. By getting a valuation, you can plan ahead with your advisors and make a more informed decision, potentially retiring earlier or optimizing your business value.

Of course, the market is unpredictable, and timing can impact value, but having a team of specialists can guide you through these decisions.

Kory: Valuations are often underrated. Many people only think about them when they’re planning to sell or start a business, but why not do them every year? It’s valuable to know where things stand at any given moment.

Scott: Exactly. That’s why we offer valuations for a three-year period at over $5,000. You get a real valuation of your largest asset from a professional group, updated for three years. It’s a small investment when you consider the value. We also identify two or three major areas that could make your business more saleable or valuable. It’s about understanding where you are today and figuring out the quickest path from point A to point Z. Having a guide along the way is crucial. It’s surprising how many people try to save a small amount now but end up losing much more in the long run. That’s why we focus on educating people—through books, workbooks, articles, and quarterly M&A updates—so they can make well-informed decisions.

Kory: Moving on, in 2001, you planted your flag and started your business. What gave you the confidence to take that leap? Or was it more of a leap of faith?

Scott: I was 26, probably too young and naive to fully understand the risks, but I knew I wanted to try something different. I learned a lot at my previous firm, not just about what to do, but what not to do. I did my research and saw a better way to run things. Back then, everyone was doing everything themselves—answering phones, writing contracts, doing everything solo. I thought, there’s got to be a better way. So, I hired my own assistant. I paid for her out of my pocket, and immediately my productivity soared. That was the moment I realized that having the right team, even just one person, could make a huge difference.

I started being more honest with clients, not telling them what they wanted to hear, but what I thought was accurate. Some didn’t like it, but I wasn’t afraid to lose them to a competitor. Over time, I realized the value of quality and building a team of specialists. With just that assistant, she was able to do things more efficiently than I could, and it was clear that this was a better way to work.

At 26, I had no distractions—no kids, no family, and I moved to Green Bay, knowing no one. In fact, one of the key moments that kept me going was when a top salesperson at my firm told me I was too young and would never make it. That motivated me to prove her wrong. I worked tirelessly—getting up at 5 AM to research, working through the day, and then heading to a bar at night to have a couple of beers and recharge before heading back to work. That hard work paid off when I became the top salesperson within a year, which gave me the confidence to keep going.

Joining the IBBA and M&A Source organizations was also key. Those groups gave me the opportunity to learn from top leaders, and through conversations, I developed a process that became the foundation for my business. Later, I became the chair of both organizations. Without those experiences, I wouldn’t be where I am today.

Kory: Well, I’m glad she gave you that advice!

Scott: Yeah, it was a gut punch at the time, but looking back, it was one of the best things that could’ve happened. It pushed me to work harder and succeed.

Kory: Looking back, is there anything you would have done differently at the start of your career?

Scott: Yes, the biggest thing would be focusing more on hiring. HR is something that small businesses often overlook. We’ve had great people here, but I would’ve been more focused on ensuring a cultural fit, considering both soft and hard skills, not just looking at resumes and answers to standard questions. We use more assessments now, which I believe is key to building a strong team. In the past, it was more about just getting results and moving quickly, but now I understand the importance of nurturing the culture and building the team early on.

Kory: Great insight! Next question: What’s a common myth about being a president, CEO, owner, or founder that you’d like to dispel?

Scott: A common myth is that we have a lot of free time. Yes, there’s flexibility, but I don’t really take days off. Even when I’m not working, the business is always at the back of my mind. It’s like a child that you can’t fully disconnect from. So, while there’s flexibility, there’s definitely no true time off.

Kory: Any interesting advice you’ve learned recently that you’d like to share?

Scott: One of the things I’ve been reflecting on is the importance of having a clear exit strategy. It’s easy to give advice, but you also need to follow your own advice. We’re currently thinking about the best types of buyers for our business, whether it’s a big CPA firm, a bank with a wealth management division, or even an investment bank. It’s essential to start building your company with your exit in mind. The key is not to wait too long to sell. We’ve seen it time and time again—most people sell too late. Once someone hits 70, their chances of a successful exit significantly decrease. They get too emotionally attached to the company or their health suffers, and they can’t enjoy the proceeds anyway. I’ve seen it happen with people in their 80s, and it’s a tough position to be in. That’s why it’s important to start planning early.

Kory: Alright, let’s keep going. On the heels of those stories, what’s something new that you want to learn outside of work? Any hobbies you’re interested in picking up?

Scott: I’d like to become a better basketball coach. I’m working on that and plan to take some clinics for the kids. I’ve also always wanted to get my pilot’s license. Aviation has fascinated me for a long time. The first time I flew was in second or third grade when we went to Florida for a Disney trip. Back then, you could actually go into the cockpit, and I remember talking to the pilots. I was so fascinated—this was the coolest thing ever! One of them gave me his name and address, and I wrote him a letter asking how much he liked flying, how many hours he worked, how much he made, and so on. He responded, and I found out he was making $200,000 back then, which was a lot of money. I was convinced this is what I was going to do. For years, I thought aviation was my future, but eventually, I moved on to other things.

Kory: That’s awesome. Looking ahead to the next 1-3 years, what do you see as the cornerstone of your business growth?

Scott: We’re building out the largest alliance of trusted advisors. Right now, we have about 3,000 advisors, and our goal is to grow that to 20,000-30,000. We’re talking about financial advisors, CPA firms, banks that offer wealth management, M&A attorneys, business coaches—people who can provide valuable content, education, and support. We want to help these advisors start the conversation with their clients earlier and bring us in to handle valuations and other services, while they do what they do best, whether that’s tax planning, value enhancement, or wealth management. This initiative is called our CAPex program, and it’s a key focus for us as we continue to expand and bring in the right clients at the right time.

Kory: And what would you say is your number one challenge right now?

Scott: People getting stuck in their ways. They see the value in what we offer, but then fall back into their old routines and don’t act on it. For example, I’ll often talk to wealth management professionals at conferences, and they’ll say things like, “I wish I had heard you speak two months ago. I just had a client sell their business for $30 million, and even though we had a 15-year relationship, I didn’t help them with any pre-planning or building a team around them.” They think their personal connection is enough to win the deal, but in many cases, another firm with a bigger name swoops in and gets the business. It’s frustrating, especially after years of building relationships, only to see someone else come in with a larger offer. The key is consistent onboarding, education, and staying top of mind. That’s how we’re building this alliance the right way.

Kory: Last question before we start wrapping up—what advice do you have for business owners trying to do it all on their own?

Scott: I always use the analogy that trying to sell your business by yourself is like being the best basketball player in the world and showing up at a golf course to face a local pro who’s played that course a thousand times. Even Michael Jordan wouldn’t bet his entire career on winning against that pro. And that’s essentially what you’re doing when you try to sell your business without help. 

Buyers in the lower middle market are very sophisticated. Their goal is to get the best deal, and they know how to play the game. They might say all the right things at first, but they’ll often come in with a low-ball offer or drag out the process until you’re worn down. We’ve seen many cases where our fees are easily outweighed by the higher price we secure for clients. For example, if your business is valued at $10 million, we often get $13 million or more—far exceeding our cost. It’s about the return on investment—if you can pay 5% in fees but get 20% more for your company, it’s worth it. People just don’t see it that way because they don’t know what they don’t know. I always encourage business owners to reach out for a discovery call. If we’re not the right fit, we’ll tell them right away and refer them to someone who is. I never leave anyone hanging.

Kory: Alright, now it’s shout-out time! I’m sure there have been a lot of people who’ve impacted you on your journey, including that woman who told you to quit. So, who would you like to thank?

Scott: First and foremost, my mom and dad. Also, I have to thank organizations like IBBA and M&A Source—if you’re in business brokerage or M&A and you’re not part of those associations, you need to check them out. They’ve been a huge help. In my local network, people like Terry Fulwiler, who built his company from $4 million to $450 million through 30 acquisitions. Verne Harnish, founder of EO and author of Scaling Up, has been a huge mentor. We also have board members like Bob Petcoff and Craig Dickman, who’ve been invaluable in helping me with different aspects of the business. There are so many people who’ve helped along the way.

Kory: To wrap things up, how can people learn more about Cornerstone? How can they contact you, and what resources do you offer?

Scott: The easiest way is to give us a call at 920-436-9890 or visit our website at cornerstone-business.com. You can also find my book, Finish Strong: Sell Your Business On Your Terms, on Amazon. The Finish Strong Workbook is also available there. If you’re a trusted advisor and want to learn more about our CAPex program, check out capexprogram.com.

Kory: Thanks again, Scott. It’s been a great discussion, and I appreciate your time today.

Scott: Thank you! Have a great day!