Hilton Misso is one of Australia’s most accomplished entrepreneurs, lawyers, and philanthropists. In his new book, How to Manifest Success, he provides 50 proven lessons for turning ambition into achievement. In this exclusive extract, Hilton looks at why entrepreneurs need to be prepared to walk away.

By 2006, Trilby Misso Lawyers had grown from a modest suburban family practice into a formidable force in the Australian legal landscape. We’d revolutionised access to justice with our ‘no win, no fee’ model, and our brand recognition was through the roof. But success, as they say, breeds its own challenges.

We were facing a critical issue: succession planning. The partners were ageing and without a clear path to capitalise on the firm’s value, we risked losing everything we’d built. Traditional buyouts were unfeasible due to the firm’s size and there was no way forward. It was a ticking time bomb and needed to defuse it fast.

Enter Project Elvis, a project to analyse all options as to how we would navigate these challenges and move forward. What flowed out was our ambitious plan to initiate a public listing of the firm to solve the succession problem. It was a groundbreaking idea as we would be the first law firm in the world to go public.

This was a strategic effort carefully calibrated to ensure the best exit for the law firm. The rapidly approaching retirement of the law firm’s key players required us to find a buyer with both financial integrity and the ability to afford what had become a very valuable business. We had identified an IPO as the best exit methodology.

However, Slater and Gordon heard about our plans and immediately flew to Brisbane to discuss the prospect of us listing together. We all agreed it was a great idea.  We spent two years poring over financials, streamlining operations and preparing for what we thought would be a great dual listing.

As the two-year period came to an end and the negotiations were coming to a close, I made the decision to withdraw from the the dual listing. It became clear to me that, as a Queensland firm and the smaller party in the arrangements, we would always be relegated to a minority vote in the combined entity. This was not a position I was willing to accept. I was not prepared to sacrifice a lifetime of hard work and dedication only to find my firm in a subordinate role with limited influence over the future direction of the business.

I told the Slater and Gordon people that the joint listing we had been planning would not go ahead as intended. I assured him that I had no ego about being the first law firm to list and suggested they move forward with their IPO. I even mentioned, somewhat boldly, that there might come a day when one of us would buy the other out – and I was serious about the possibility of our modest suburban firm one day acquiring the Victorian giant.

In 2007, Slater and Gordon went ahead with their listing and became the first law firm in the world to formally list on the stock market. Their IPO was a resounding success and while I was happy not to have been a part of it, I was disappointed that the GFC intervened and derailed our plans to list the following year.

The GFC wasn’t the only challenge during that period. Three significant events – two personal disappointments and the global economic crisis – hit us in tandem. Yet, instead of breaking me, these challenges built my resilience and inner strength.

At the height of the GFC, when banks were pulling loan facilities across the board, I applied for two separate lines of credit – totalling $45 million – from two major banks. Both were approved on my terms. I personally did all the negotiations based on the skills and experiences I had honed on negotiating smaller and simpler matters.

This was an extraordinary outcome and it reinforced the principles I had always adhered to in business: maintain credibility and deliver on your promises.

The takeaway

Walking away from a deal – especially one that’s years in the making – takes courage. But sometimes, the price of staying is greater than the price of leaving. When your values, vision or influence are at risk, it’s a sign to reassess. The best decision isn’t always the one that looks good on paper – it’s the one that keeps your integrity intact and your long game alive. Stay open. Stay strategic. And know when to run your own race.

Edited extract from How to Manifest Success by Hilton Misso (Wiley, $34.95). Find out more at https://think2be.com.au/manifest-success/

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