The Boardroom Buzz: Grow, Sell, or Exit

Succession plans may sound easy compared to the alternatives. Hear how ripping off the Band-Aid compares to family buy-outs with strings attached. From managing the business to managing their health, Jeff Phillips's parents never enjoyed their golden years in retirement. It may be an extreme reaction, but at 47-years old, Jeff decided it was time to exit after his dad’s passing.  Although his father is no longer with us, his wisdom lives on in this Boardroom conversation. From 'build it to sell' to 'do something and do something very well', Jeff's dad personified the Blue Chip mentality. After taking over as Blue Chip leaders, Jeff and his sister, Kim, ran an efficient business. Measure and manage. Routing, recurring, and responding to leads were a handful of monitored metrics. Knowing their numbers helped them when it came to save on overtime. Scott Stevenson, Doug Stevenson, Court Parker, and Sean McCauley. Now add Jeff to the list of U Groupers appearing on The Buzz. By picking up on the lessons while not making all the mistakes, hear how his peer group experience enhanced his bottom line. When it was time to make changes, Jeff realized that customers much like dropped children are resilient. There were times that Jeff found he already had the secret sauce. When scheduling headaches became a problem to solve, his business adopted exterior only service before it was popular. In terms of marketing, pest control is not sexy. It's about front of mind awareness. Jeff shares the balance between office location and paid remarketing ads. Co-Produced, Edited, and Mixed by Dylan Seals of hdaudiopost.com

Step into The Boardroom to hear how Sean McCauley built his empire. As the owner of Aantex Pest Control, Sean is now on pest control company number three. While pest control runs through his veins, it's not the only ‘egg in his basket’. Sean has monetized his previous pest control investments to venture into other assets. Sean shares his opportunistic outlook: there are different advantages in every regime. Hear how to detach from the business, when to run into the fire, and where to find opportunities. This week's guest brings his crystal ball into The Boardroom. He sees a V-shape recovery. Will you heed Sean's advice to chill out and ride the wave?  Put your economics hat on before stepping into this session. You will think about the bank after this episode. Whichever cards you think you are holding, remember the bank is the 'apex predator'. Paul questions Sean on who has the most to gain in an inflationary environment. With no topic off limits, it may surprise you to hear our guest's take on Millennials. Speaking of funny money, Fannie and Freddie aren't imaginary friends. Is the government-backed duo holding down interest rates? Sean even reveals terms for his commercial real estate notes. Sean finds he has a lot to gain underwriting entrepreneurs, in addition to his hard asset portfolio. It is one way he has found to diversify his net worth. Listen for how Sean and Paul get their returns on time invested. This is the unintended follow-up to Episode 14's buy-side conversation. From someone that will "never have to work another day in my life", Sean will encourage you to get un-lazy. Go out and find the deals. If you've made it this far, you may survive Professor Paul's Econometric After Party. Diversification 201 is in session. Sit back and hear how zombies do exist. Sean says we live our life in unrealized gains. Does that saying go deeper than a real estate metaphor? Co-Produced, Edited, and Mixed by Dylan Seals of hdaudiopost.com

There was little warning before WorkWave CEO David Giannetto walked into The Boardroom. Patrick's past PestPac experience sets the tone for this real conversation. Since all the skeletons are coming out, why not spin an extra 'nickel and dime' into the chat? David stepped into the CEO role two years ago. Support tickets counts ran high, and the tech became more indebted by the day. The customers were not the only ones frustrated by slow resolve.  There must be reasons to sneak a vendor into The Boardroom. David announces PestPac's partnership with Target Specialty Products. This alliance can put even more money into operators' pockets. Another announcement he shares is WorkWave's promotion from IFS to parent-fund, EQT.  David admits PestPac's intermittent communication. When rolling out $1.5 billion WorkWave Payments, he managed the bloody murder calls. After accepting the change, the native payment platform padded dollars into most of the end users' bottom lines. Is there enough in savings and increased productivity for PestPac to pay for itself? Migrating from customization to toolsets, PestPac commits to modernizing. It's interesting to hear PestPac's move from customization to configuration. Listen for the Executive Steering Committee's role on roll-outs. This Boardroom conversation doesn't end there. From high switching cost handcuffs to competition in software to and scrutiny over shared interests, this chat packs in a lot. Co-Produced, Edited, and Mixed by Dylan Seals of hdaudiopost.com

The ink is still wet and the emotions are raw. Jason Byer opens up about his team and the guilty conscience he hid last year as he sold the family business. Jason led Suburban Exterminating up to and through their sale to Rentokil in late 2020.  The service and billing decoupling discussion returns to The Buzz, but Suburban was unique. Listen for how Door Knockers rang-in a new billing method. If you can't beat them join them. Jason even considered putting summer sales to work in his business before the sale.  Moving forward, Jason and his team are learning the Rentokil way. How is this longtime family business transitioning into corporate culture? Hear how as a sophisticated business, Suburban has integrated into the new environment. Jason recognizes his team and their ability to adapt. Good or bad, what is the Rentokil-effect on the front line employee? He shares his excitement about the upgraded resources and ability to grow. Jason represents succession assumed in a family business. As a minority partner AND a son, what is his take on risk and reward?  Paul preaches from previous experience on this parental pest control paradigm. In contrast, Paul recalls another family situation with hyper communication. Co-Produced, Edited, and Mixed by Dylan Seals of hdaudiopost.com

Mike Stanczyk makes time between closings for an encore appearance in The Boardroom. On this occasion, Mike fields shareholder agreement questions. From formal arrangements to napkins to none, hear how preparation and sophistication varies. Don’t feel alone if you find yourself without a proper agreement in place. Learn from others. Have these discussions. Proper agreements are borne from previous poor personal planning.  You know by now that family business in pest control is a reoccurring theme. Paul gives notice; verbal only arrangements are bad and corporate welfare is worse. Parenting advice uncovers family business trends and inherited titles via surname similarity. Options are prolific in the tech industry, but Paul asks Mike about their place in pest control. The conversation is peppered with tax implications. Do options have their own tax advantages? Paul recalls when a sale was discovered with derivatives in the balance. You’ll hear how a ‘free and clear title’ isn’t a phrase unique to the auto industry.  If Patrick wasn’t having a hard enough time keeping up, Mike and Paul play a rhetorical game of tag-along and drag-along. Patrick can be difficult to deal with, but it’s the guest dragging Patrick along this week.  Following Paul’s judge and jury soapbox last week, what will this week’s legal disclaimer entail? Is Patrick the only one asking who an attorney represents? Should you find yourself calling Mike, remember that he is NOT LegalZoom. There is more than one takeaway in this public service announcement of an episode. Whether you’re in a family business or not, always remember Mex’s Rule #1: don’t suck at life.  Co-Produced, Edited, and Mixed by Dylan Seals of hdaudiopost.com‍

Patrick survives the un-Texas weather to only later hear Paul tell him what he’s (not) worth. Between upcoming tax rate hikes and inflated valuations, wouldn’t you know that Paul is keeping busy (or at least The Angry Mex is)? In other current events, Patrick *felt* special for a hot minute. You'll hear how about "a top pest control provider in the southeast that is actively seeking to expand its current service area. Our client is in the top 10 nationally in terms of annual sales and is privately held.  Knowing that yours is one of the best and fastest growing in the area...". Paul talks Patrick down from his Rising Star pedestal. Patrick recalls a one-time project in which he had to research recurring vs reoccurring. Leave it to Patrick to chase that into a food frequency free-for-all. If Paul can make it past the Compound, he can show how his one (and maybe never) trip to Waco explains the reoccurring difference. Paul goes on to distinguish reoccurring and one-times. Patrick questions Paul about saying no to Aunt Suzy. Paul questions Patrick’s question. It may be a Buzz word, but there are 'opportunity costs'. Service Agreements. Yes or No? Paper or Digital? Early cancellation fees? Termite work? Paul recalls days of yesteryear when due diligence teams sampled service agreements. What happens when a service agreement doesn’t line up with what is being delivered? You may not find yourself in a class action lawsuit but it may happen to the acquirer. The disclaimer Paul gives is one for the ages. He repeats what he has heard from attorneys. Do NOT take what Paul says as investment advice or legal advice, or prepare to stand before the judge and jury.  Episode 42 guest, Jeff Bain, must be an instant classic, or maybe it's an easy reference. Be like Jeff; define what makes your business different. Make sure to RSVP for Paul's upcoming customer retention presentation (email theBuzz@potomaccompany.com). Donation to The Human Fund not required. Co-Produced, Edited, and Mixed by Dylan Seals of hdaudiopost.com

Jeff Bain knows how to learn from others. Taking notes from his insurance colleagues, Jeff knew he had to build an annuity-based pest control business. His top priority was to protect the residential-heavy business from wild seasonality as he took over the reins at Bain Pest Control. During Jeff’s collegiate days, he found himself getting paid to learn from American Pest’s former leader, Jay Nixon. Similar to previous Buzz guest Jim McHale, Jeff even shares a nod to the Sameth family and their Residex reps’ willingness to help shape the recurring business model.  Relationships, referrals, and pricing chatter abound during this time in The Boardroom. When it comes to building a client base, Jeff takes over as teacher during this sit-down session. Listen for how Bain Pest Control’s retention rate and marketing budget stray from the norm. Jeff even makes time to answer a listener’s question about selling in the Northern climate. Over 100 years after the Ukrainian immigrant entered the USA via Ellis Island, Jeff Bain found himself realizing it was time to sell the family business. When it was time to select an advisor to sell his business, Jeff decided on the advisor that had his best interest in mind. His high trust relationships led him to having several employee discussions before selling the near-centenarian business. You’ll hear how Jeff had his employees’ opportunities in mind while deciding on Rentokil as the best acquirer for the business. There are too many emotions to list in this Boardroom sit-down. Speaking of emotions, Jeff goes on to share a story that shows the soft-side of Potomac’s chief negotiator.  Co-Produced, Edited, and Mixed by Dylan Seals of hdaudiopost.com

Step into the Boardroom with one of Paul’s favorite pest control people. Mitch Smith discusses experiences which shaped his management style. He shares leadership lessons learned throughout his 35+ year career. This Boardroom guest started in the industry as a technician and rose in the ranks at both TruGreen and Centex. Before Mitch’s current position as COO of Edge, Mitch was the Pacific Division President at Orkin. Mitch brings an interesting perspective to the ‘lawn vs pest’ discussion. He shares the direct connection between business maturity and universal technicians. Service specialist salesmanship may sound like an oxymoron, but trust and unrefinement go hand in hand. While personality profiles find their way into this culture conversation. What are the betting odds when against forcing a square peg into a round hole? Mitch preaches that influencing company culture is more than attending a two-week seminar. It turns out that learning from direct reports and self-reflection has a lot to do with leadership. Mitch recalls a realization moment when a mentor taught him to look in the mirror. Sports analogies abound as running, juggling, and lifting get shared in this sit-down discussion. Hear how Mitch describes spending energy units for high growth and high service delivery standards. Mitch brings management metrics into focus as he shares his tenured strategy. Do you come to this conversation with buy-side in mind? Tune-in to hear Mitch’s post mortem metrics following an acquisition. Perceived value is critical to keep the recurring revenue wheels turning. Before you listen, ask yourself, ‘how do I measure world class service?’ Co-Produced, Edited, and Mixed by Dylan Seals of hdaudiopost.com

The U Group held its semi-annual meeting in Tampa, and called on Paul Giannamore to present. Call it a press pass or Paul’s paparazzi; Patrick managed to find his way into the meeting. Even the Senator Scott Stevenson made the drive to hang out with Paul, Patrick, and his U Group colleagues. While in Tampa, Paul made time to visit Seth Garber’s Pest Daily studio for some buy-side lessons. What happens when a potential deal stalls in due diligence? It gets interesting when it’s not one of Paul’s deals and a prominent strategic acquirer calls on Paul for help. Patrick asks Paul to draw the line in the sand between brokers and sell-side advisors. What about Patrick’s conflict of interest hunch between buy-side and sell-side work? A sell-side client gets the duo discussing what’s better than a best and final offer. Paul also reveals his personal connections with the Dunning-Kruger effect. Standing on the shoulders of giants, even M&A-experienced private equity partners call on advisors. In life, you learn to expect the unexpected. As a negotiator, you learn to expect the opposite of the expected. Which title does Paul find himself donning? Paul the Picasso Purveyor? Paul the Peacemaker? Paul the Point of Indifference Pusher? Patrick's phone call with a tenured strategic buyer, turns the tables as Paul asks Patrick what he learned. You'll hear how Patrick finds himself bearing the advocate role for other pest control owners. Trust and credibility are common threads woven into this Boardroom conversation. Would you have the discretion to turn down $1 million in overtime? Which pop culture reference will Paul drop in The Boardroom this week? Don’t worry. Patrick didn’t catch this one either. Co-Produced, Edited, and Mixed by Dylan Seals of hdaudiopost.com

Set aside what you think about routing for two hours, and step into the Boardroom with Pam Blauvelt of PCT Top 100 Griffin Pest Solutions (now a Rentokil company... finally). What Doug Stevenson is to financial systems, Pam is to operational efficiencies. Find the path to the Holy Grail as you consider same-day scheduling changes. Tune-in to hear how an acquisition accident left Pam and her business partner, Jeff Spencer, scrambling. Borne out of crisis, Griffin was forced to implement a four-day workweek. A necessity turned into demands echoed from Griffin guys and gals. Murphy's Law #14 in pest control states that your technician's schedule puts him at a restaurant during the lunchtime rush. Not so with Pam's PestPac Pro Parameters. Other than a four-day workweek, what other lessons did Pam learn while making acquisitions? What would Pam not outsource during due diligence? Production versus hourly pay? Ask yourself how many technicians you'd be willing to lose if making the change is the best thing for your business. If you've ever found yourself saying 'talk to me like an adult' to a technician, then you'll enjoy time spent in this Boardroom. Co-Produced, Edited, and Mixed by Dylan Seals of hdaudiopost.com