Business leaders’ often most complex decisions are when to scale, when to bring in outside capital and when to exit. Yet, these moments also present the greatest opportunities to create lasting value. 

I recently spoke with Todd Dutkin, former CEO and current chairman of Fresca Foods, a natural foods manufacturer based in Boulder, Colorado. Todd led the company from under $1 million in revenue to nearly $100 million and around 500 employees, ultimately guiding it through a successful acquisition.

Our discussion highlights what it takes to scale responsibly, build a leadership team and go through the intricacies of a transaction while protecting long-term value.

Watch the interview to hear more.

FROM RISK TO OPPORTUNITY

Todd acquired Fresca Foods in 2001 under difficult conditions. Then, shortly after the acquisition, the company lost its largest customer and placed significant financial pressure on the business. Rather than retreat, Todd focused on building a culture founded on shared ownership and purpose. He extended equity to key leaders to align incentives and create a basis for long-term growth.

“If a business wants to do something meaningful, the work has to be meaningful for the people on the team,” Todd explained. 

Key Takeaway: Ownership structure and leadership alignment are important early decisions that can directly impact scalability and value creation long term.

SCALING REQUIRES LETTING GO

As Fresca grew (consistently exceeding 35% annual revenue growth), operational strain became evident.

“On paper, it was our best year. Operationally, it was one of our most challenging,” Todd said.

Growth exposed gaps in systems, infrastructure and leadership capacity. In turn, Todd recognized that his own evolution as a leader was necessary. 

“If I did not elevate the team, I was limiting the business,” he shared.

Key Takeaway: Sustained growth requires more than just strong revenue. It demands a reinvestment in systems and a willingness for founders to sometimes relinquish control.

TRANSACTION READINESS IS A MULTI-YEAR JOURNEY

Fresca’s path to exit included two unsuccessful sale processes before ultimately completing a transaction with Cerealto. Each attempt revealed critical gaps, from valuation expectations to timing and operational readiness. By the third process, the company was better prepared with:

  • A clear articulation of its value  
  • Defined criteria for the right partner 
  • Strengthened financial and diligence readiness 
  • Improved operational infrastructure 

Key Takeaway: Failed transactions, when leveraged correctly, can actually strengthen positioning and improve outcomes.

LEADING WHEN WHAT IS NEXT IS UNDEFINED 

The transaction process created significant emotional and organizational pressure.

“There were moments where I was not sure the deal would close,” Todd admitted.

He emphasized the importance of maintaining stability and alignment across the organization. With just under 500 employees, the stakes extended far beyond the deal.

Todd stated, “We were responsible for nearly 500 people’s legacies — and the futures tied to them.”

Key Takeaway: Transaction leadership requires emotional resilience, transparency and team cohesion.   

DEFINING SUCCESS BEYOND THE DEAL

When the transaction closed, Todd found success was measured far beyond financial outcomes.

“The overwhelming feeling I had when the transaction was done was joy knowing the business and its people were positioned for continued success,” Todd said.

Todd transitioned to chairman at the company, with a focus on future opportunities rather than looking back.

“I did not want to be in a position where I was looking backward. The goal was to be prepared for what comes next,” stated Todd.

Key Takeaway: A successful exit is defined by continuity, leadership transition and long-term impact.

ADVISORY INSIGHT: VALUE IS BULT LONG BEFORE THE PROCESS BEGINS

One of the most common misconceptions is that value is created during a transaction process. In reality, the process simply reveals what has already been built — or exposes what has not. Exit outcomes are largely determined years in advance. The companies that achieve premium valuations and strong partner alignment are those that have been intentional about building scalable infrastructure, disciplined financial visibility and a leadership team that can operate independently of the founder.

When it comes to selling a business, owners must see the company through the lens of a buyer, and often well before they are ready to sell. That perspective changes decision-making and shifts the focus from short-term performance to sustainable, transferable value.

This includes asking difficult questions early:

  • Can the business scale without disproportionate risk? 
  • Can its financial reporting back decisions and help the company be diligence-ready? 
  • Does the leadership team beyond the founder inspire confidence?  
  • Are risks understood, mitigated and clearly articulated? 

In Fresca’s journey, the early transaction attempts did not work out, but they were still valuable as diagnostic moments. Each process clarified gaps, refined positioning and ultimately strengthened both the business and the outcome.

Preparing for an exit is not a parallel workstream, but rather a byproduct of building a better business. GHJ’s Transaction Advisory Services Practice supported Fresca during its successful sale and throughout the phases of this journey. The team helped Todd and Fresca leaders prepare for diligence, refine its positioning and find the best buyer for their needs.

Ultimately, transactions do not define a legacy — the decisions leading up to them do.

Read more from Anant Patel to learn what his legacy looks like in practice and how curiosity encourages him to explore what exists beyond the familiar.