Intentional Growth #352: [SUCCESS STORY] How Servant Leadership Helped Charlie Merrill Take Kontek from Near Bankruptcy to a Valuable Company with $20 Million in Revenue and 40% Margins
Ep. #4 [THEME NINE]
Someone once told me that you could identify a true leader when their team would do anything to avoid disappointing them. There was no need for a heavy hand because there was a huge amount of respect and trust in the shared vision and team.
I believe that statement to be true, and today I could see that quality in my guest.
Today, I have Charlie Merrill and Billy Amberg joining me. Charlie is the CEO of Kontek, who turned a near-bankrupt company into a thriving $20 million business with 40% gross margins through the power of servant leadership. Charlie's people-centric approach and dramatic pivots across industries enabled Kontek to rise from the ashes, transforming from a supplier of concrete foundations for cell towers to a provider of innovative security solutions that protect organizations from terrorist attacks.
In this awesome conversation with Charlie and his friend and client, Billy Amberg from Bloomberg Capital, you'll hear about the real impact of servant leadership in creating a fun and trust-filled work environment, all while driving virtually zero turnover and impressive financial returns. Charlie's wisdom, backed by his mentor and grandfather's teachings, demonstrates the incredible potential of what real servant leadership can do.
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10 Key Takeaways:
- Learn how servant leadership transformed a near-bankrupt company into a thriving business with $20 million in revenue and 40% gross margins.
- Discover how Charlie Merrill's people-centric approach and dramatic pivots across industries enabled Kontek to rise from the brink of bankruptcy.
- Understand the importance of asking for opinions and ideas rather than pushing your own when managing people.
- Explore the benefits of offering high wages and big performance bonuses to create a team atmosphere and encourage self-management.
- Learn about Kontek's journey from supplying concrete foundations for cell towers to protecting organizations from terrorist attacks.
- Hear inspiring stories about Charlie's mentor and grandfather, who instilled in him the values of servant leadership.
- Realize the true impact of servant leadership on fostering a positive work environment with virtually zero turnover and impressive financial returns.
- Find out how Charlie's approach to leadership led him to consider selling his company to an ESOP.
- Discover the Intentional Growth Financial Scorecard, a valuable tool that helps you evaluate how well you're running your company as a financial asset.
- Understand the transformative potential of servant leadership in the world of business and its ability to drive growth and success.
// Sign up for the Intentional Growth™ Starter Kit: the kit has intro videos on each of the 5 Intentional Growth™ Principles, the Intentional Growth™ Financial Scorecard along with videos reviewing a case study on how to project out the value of your company, and the entire Intentional Growth™ Podcast Library.
Bio:
Charlie Merill is the CEO of Kontek Industries. Charlie led the growth on Kontek from going almost bankrupt to $20 Million in revenue and 40% margin.
Billy Amberg is a managing director of Corporate Finance Associates (CFA), an international investment banking firm specializing in the middle market, as well as owner of Bloomwood Capital, which provides highly differentiated land conservation investment services. He has embraced the entrepreneurial spirit throughout his career, making an impact at elite wall-street firms as a principal in venture capital and private equity, and starting and running several successful businesses. Billy has also successfully performed in the three key roles for any transaction: owner, investor and banker.
Interview Quotes:
09:33 - “We’re here to serve. We look for outstanding employees and we treat them outstandingly well.” - Charlie Merrill
14:28 - “It’s okay to have people working for you that are smarter than you.” - Charlie Merrill
15:36 - “Never do that. Because the moment you say.’I think [blank],’ everyone quits thinking and agrees with you.” - Charlie Merrill
15:59 - “If you have the right people sitting around you, each one should know more about their area than you know. So the trick is to pull out their knowledge and make a soup that everyone wants to eat.” - Charlie Merrill
20:24 - “The trick in life is to figure out how to get a good outcome with your idea.” - Charlie Merrill
20:42 - “You’re way more likely to go from LOI to term sheet with the same terms if the deal was the buyer’s idea. If the terms were the buyer’s idea.” - Billy Amberg
30:30 - “Very little of what Entrepreneurs do makes sense.” - Charlie Merrill
36:51 - “My dream was to not be needed as the CEO.” - Charlie Merrill
40:36 - “If you’re at the center of the wheel and you turn just a very small amount, the people on the edge of the wheel are turning at a ridiculously fast rate. Be really careful that you’re not overturning that wheel.” - Charlie Merrill
50:00 - “The best players produce 2-3x the output of everyone else.” - Charlie Merrill
Links and Resources:
Reach out to Charlie: cbmerrill4@sbcglobal.net
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