Intentional Growth

Today I talk with a guest that is back on the show, Ilan Jacobson (the founding partner and CEO of Firepower Capital, based in Canada). Ilan is colorful, straight-forward, intelligent, and brilliant entrepreneur with an amazing background in finance and geneology. Ilan is on the ground floor and has lots of exposure to the M&A marketplace. At Firepower Capital, they have an M&A sell side advisory team does deal between $10M - $250M as well as an investment arm that deploys their our own capital in Canadian companies through venture, gap & bridge term debt, as well as private equity with deal sizes $1M - $20M (fun fact – they own one of the largest battle ax throwing companies ;-) We cover some of the biggest questions up in the air right now: What will our new normal look like? How will consumer behavior and the business landscape change? What impact does the debt levels on consumers and business have on the recovery? Our conversation was a blast and rich with insight about how the pandemic could impact the future of the economy, business valuations, private equity and more. Some of the things we discuss in today’s episode – What the new economic normal might look like How and when things might bounce back The high levels of debt and how that will impact the recovery How the shutdown is impacting business and private equity Changes in business valuations Ways business might change post-COVID-19 How the CARES act and stimulus money will be deployed How corporate incentives could / should change when companies receive the money What industries are benefiting from the shifting of how business is getting done Where are the potential opportunities and value in the marketplace Ilan’s predictions for later this year and post-COVID-19 Where to find Ilan and about his new podcast, “The Dealmaker’s DNA”   Main takeaway Make sure to pull from all of the resources available for you out there. That way you can start synthesizing information and start figuring out what your new norm is going to be. One of the resources you should check out is our Mastering Your Cashflow Mini-course. Also check out the digital course for our bootcamp.   Quotes: “The pandemic threw a wrench in the system in a real hard way. But the lack of lubrication was being seen. The squeaks were being seen before this.” - Ilan Jacobson “It’s really shown, in a very real way, the flaws in our system. But I honestly think those flaws existed prior to us seeing them.” - Ilan Jacobson  “We are only as safe as the lowest common denominator. And I don’t trust the lowest common denominator.” - Ilan Jacobson  “We are, actually, as an entire global population, learning new skills. Which is quite interesting.” - Ilan Jacobson  “The commercial real estate market is going to be so different.” - Ryan Tansom  “This is the best case study of supply versus demand economics. Like, if people don’t wake up and buy shit every day, there is no machine.” - Ryan Tansom   Resources: Ilan Jacobson, LinkedIn ARKONA Boot Camp Reach out to me if you have questions about the boot camp! You can also reach out to me via email at rtansom@arkona.com, on my LinkedIn, or you can call me at 612-720-6530.   About Ilan: Ilan Jacobson is the Founding Partner & CEO of FirePower Capital and has transformed the firm from a small 4-person family office into a 40+ strong M&A advisory and private capital powerhouse. Ilan leads FirePower Capital in all its endeavors, setting its strategic direction, providing top-level guidance on key transactions undertaken by the M&A division, and assessing new direct investments for FirePower’s Private Capital funds. Under his leadership, FirePower invests in Canada’s entrepreneurs by financing their growth directly with venture debt or private equity and helps them complete their most critical transactions. Ilan is sought after for his expertise on topics related to entrepreneurship, private capital, and M&A, and has appeared at numerous events as a speaker, moderator, and workshop leader. Previously, Ilan was a Portfolio Manager at a leading venture capital firm in Toronto, where he sat on numerous boards. He received his MBA from the Ted Rogers School of Management at Ryerson University, and has an Honors Degree in Science with a specialization in genetics from the University of Western Ontario.   Check out the next Intentional Growth™ Boot Camp - Because of the current situation Pat and I are working on a digital video course on the Intentional Growth™ 5 Principles. It will be the best of our material that we have in our 2-day Boot Camps that normally costs 5k for $995. Text the word Intentional to 66866 to get on the waiting list of the digital course.   We’ll teach you how to build a valuable company with the end in mind using our 5 Intentional Growth™. In principle #2 - You’ll learn everything about how companies are valued, deal structures and how to calculate net proceeds (this helps if you want to know how much your company is worth, looking to buy a company or eventually want to sell) In principle #3 - You’ll learn how the 5 major exit options (Internal, ESOPs, PE and more) work & the implications of each Principle #4 - you’ll learn how to increase your multiple by derisking your company and building value for the long term build a financial model that ties to your strategic plan and what it takes to grow value for the long term.

The world is so chaotic right now. Amidst that chaos, a lot of companies are struggling to make ends meet. If you’re in that scenario or if you’re trying to prepare for that possible outcome, today’s episode is for you. Jeff Sands (author of “Corporate Turnaround Artistry: Fix Any Business in 100 Days) is chatting with me today. We both commiserate over our expertise in this area, but we also talk about what we’ve learned through the process. Jeff’s love of business and being a turnaround consultant is in high demand in these worrisome times. He shares some of his secrets with us as well as some stories about his experiences in the field. As the world has come to a stretching halt and revenues have shrunk dramatically, the need to manage your cash, build a short-term game plan and revise your long-term strategy is more important than ever. No matter where you fall on the spectrum of the impact that COVID-19 has had on your company’s revenues, this episode is a must listen.  It will teach you what you can do to pull out of a nosedive, get your foundation in order and then capitalize on the opportunities that will inevitably present themselves. What you will learn: What it takes to turnaround a business that is out of money How to generate cash, fast. How to build alliances with your stakeholders during a turnaround How to identify your cash conversion cycle Typical vanity metrics that most entrepreneurs talk about Why cash is a business oxygen and how to keep a business alive How to build a 13-week cash flow statement What should go into your cash flow forecast How to plan for growth once you get out from your turnaround How your mindset is your biggest asset during a turnaround How to get out of the cross hairs of the bank and become the “A Student” Ways to hit the accelerator once you have your financials in order The Takeaway: No matter where you fall on the spectrum of the impact that COVID-19 has had on your company’s revenues, this episode is a must listen. It will teach you what you can do to pull out of a nosedive, get your foundation in order and then capitalize on the opportunities that will inevitably present themselves. We are in unprecedented times where revenues have dried up and cash is king, HOWEVER a plan is even better. Now is the time to get your foundation in order, make hard decisions and build a plan for when things "normalize". If you put the best practices in place you’ll be able to pull ahead of your competition and be the one ready to win the clients and even acquire the companies that were not able to sustain through the crisis.    The reason I love this episode is it hits very close to my heart based on the experience I have I started at the family business during the 2009 crash and that year we lost well into the 6 figures. The next 5 years we spent every waking minute juggling cash while trying to keep the business alive. What took us almost 6 years to do could have been done in less than 6 months if we would have had a rule book for how to manage the turnaround.    Jeff has packaged all his experience in turning around companies into his book and shares his experience and stories on the show. Quotes: “And here is another book on Steve Jobs so you can not feel like him ever...” - Jeff Sands “I keep having to remind myself that the world is not on fire.” - Jeff Sands “I know all about that business, more than anyone else, because I know the cash flow..” - Jeff Sands “Always thank people three days early. Always pay in 27 days. [My dad] did this for 15  years cause he said, ‘Someday, I’m going to need a favor and what’s 3 days to me now?’” - Jeff Sands Resources: Corporate Turnaround Artistry: Fix Any Business in 100 Days, by Jeff Sands, Amazon ARKONA Boot Camp Reach out to me if you have questions about the boot camp!  You can also reach out to me via email at rtansom@arkona.com, on my LinkedIn, or you can call me at 612-720-6530. About Jeff: Jeff Sands is a corporate turnaround specialist who has devoted his career to saving businesses, jobs, and the communities they support. He was first rudely introduced to the concept of corporate turnarounds in his own business which he eventually lost in the wake of Hurricane Katrina. Since then he has focused solely on saving other businesses and has developed a reputation as the best guy to call in the worst situations. Jeff is a Certified Turnaround Practitioner (CTP) who was awarded a coveted TMA Turnaround of the Year Award in each of 2017, 2018, and 2019. In 2020 M&A Advisor named him the Turnaround Consultant of the Year. Jeff consults select clients and pursues distressed industrial acquisitions on a global basis.

This episode (also in video) breaks down the $350 Billion in relief funds for small businesses owners in the PPP and EDIL, who qualifies and how to access the money. What will you learn in today’s episode – The difference between the Paycheck Protection Plan (PPP) and the Economic Injury Disaster Loan (EDIL) The insights of a Top Tier Mid-West CPA and Business Advisory Firm What’s going on in the market as of 2 days ago Who qualifies for each the PPP and the EDIL How to apply for both programs How Bankers fit into the mix The loan amounts available in each program and how it is calculated How to deploy and where to use the loan proceeds What loans are forgiven and how The interest rates, terms and deferments in each program Ways to access emergency grant money ASAP Which loans are personally guaranteed and what is not Options available for current SBA loans  Main takeaway / Why I liked the episode – There is a lot of money that is going to be deployed in the next two months and the sooner you can get your ducks in a row and submit your application (the right way with the right requests) the sooner you’ll be able to receive your funds. We have the video available on our website along with a list of additional resources and links that we will do our best to update as things change and evolve. Even though there is going to be unprecedented access to funds that does not mean you have the luxury to sit around and wait for them. Our suggestion for every business owner out there is to: Gather your info and submit your application ASAP, then… Build your 13-week cash flow statement Revise your 2020 forecast the best you can Have conversations with all your stakeholders Lean on your closest advisors and Start working on your strategic plan to get you out of this crisis and then capitalize on the opportunities that will inevitable arise when our new “norm” settles in  Links, Resources and Downloads – Watch the webinar of this podcast Schedule a call with Arkonato discuss a 13-Week Cash Flow template and Action Plan  Jim Stelten, LinkedIn BerganKDV Website BerganKDV Guide to the CARES Act, PPP and EDIL US Chamber of Commerce Guide to the CARES Act, PPP and EDIL SBA CARES, PPP and EDIL Loan Application Resources Borrower Paycheck Protection Program Application  PPP Paycheck Protection Program - Borrower Information Fact Sheet- 3.31.20 PPP Paycheck Protection Program -Overview-03.31.20 About the guest – As a Business Value Add Partner, Jim is responsible for building client relationships and solving client’s business challenges. At an early age, Jim worked in his dad’s retail business. His dad taught him to make a difference—even in a small way—for their customers and this has been Jim’s mantra ever since. He is tireless in his pursuit to make a difference for the clients he serves. Jim believes in always driving value beyond the assignment and providing an experience deserving of referral. This mindset has allowed Jim to grow an incredible network in the Twin Cities region and beyond.  Always forward thinking, Jim leads the firm’s innovation team, paying close attention to mega trends occurring outside of the firm’s four walls and predicting how these trends will affect our clients and how we as a professional services firm can assist.  Jim received his bachelor’s degree in accounting from the St. John University and is active in several CEO/President and CFO peer-to-peer groups. He is involved with the Randy Shaver Cancer Research and Community Fund, American Institute of Certified Public Accountants (AICPA), Minnesota Society of CPAs and the AICPA G400 Executive Group. He is also a Certified Exit Planning Advisor to help business owners develop an exit strategy that focuses on building, harvesting and preserving family wealth for generations to come and integrating best-in-class business practices into daily operations.  Things to keep an eye out for in the next few weeks: Because of the current situation Pat and I are working on a digital video course on the Intentional Growth™ 5 Principles. It will be the best of our material that we have in our 2-day Boot Camps. Text the word Intentional to 66866 to get on the waiting list of the digital course. We’ll teach you how to build a valuable company with the end in mind using our 5 Intentional Growth™. In principle #2 - You’ll learn everything about how companies are valued, deal structures and how to calculate net proceeds (this helps if you want to know how much your company is worth, looking to buy a company or eventually want to sell) In principle #3 - You’ll learn how the 5 major exit options (Internal, ESOPs, PE and more) work & the implications of each Principle #4 - you’ll learn how to increase your multiple by derisking your company and building value for the long term build a financial model that ties to your strategic plan and what it takes to grow value for the long term.

In today’s episode I got to speak with Scott Shay who runs the 40th largest bank in the US and has also been through the 87’ stock market crash, .com bubble, 9/11, 2008 financial crisis and now the 2020 COVID-19 pandemic.    I loved this episode because I was able to geek out about economics, the financial impact of our situation and what his thoughts are for what the future could hold. I was able to cover a lot of ground with someone who is at the ground floor of the economic impact that the pandemic is and will have on our country’s economy.  There are two truths that keep our world going round, The belief that the future will be better than the present and past  People will leave their homes and go out and buy goods and services.  We are currently living in a reality where these two truths are in major jeopardy.    With the quarantines happening nationwide, American’s are not able to consume… therefore, leaving businesses without revenue and the profit to keep people employed who in turn can’t pay their bills, and so on.    Roughly 70% of the US’s growth is based on the American consumer… if people don’t wake up and purchase goods or services, then the entire system is vulnerable to a collapse.   The country has tons of leverage (debt). Public companies, Small Businesses, Private Equity firms and American households have been borrowing from the future to fuel their needs. This equation works just fine when you have confidence in the future and people are consuming… until there is a bump in the road…    What you will learn: How Scott grew Signature bank from scratch to a publicly held company with 1400 employees and $50 Billion in assets Scott’s thoughts on the economic after math of COVID-19 Why Scott decided to build the bank from scratch versus starting through acquisition How to have conversations with different stakeholders (your bank, vendors and suppliers) while in a cash crunch What could happen to business valuations going forward Why we need to recalibrate the discount rate The potential impact of a recession on Private Equity and Pension Funds Why the 2020 recession is much different than 2008 What the government bailout might mean to small businesses and the economy The Golden Rule of Banking If it makes sense to acquire a company in an “efficient market” Why we need to go back to the basics in business Where good economic policies come from How to get people different opinions of religion, politics and policies to talk Why Scott wrote a book about religion in his “free time” The Takeaway: If you are wondering about the potential economic impacts of the country’s shut down from COVID-19 and what our new reality might look like, then listen in on today’s interview with Scott Shay. Quotes: “Thank god this isn’t the influenza of 1918!” - Scott Shay “Everything in modern life is so convenient and yet, becoming more and more fragile and it’s a serious concern.” - Scott Shay “We’re in a global economy. All these countries are, you know, bleeding with debt and we’re all intertwined with the investments we have.” - Ryan Tansom “Are you going to have more value or not? Or is it just, in the short game, to hand off the bag to someone else?” - Ryan Tansom Resources: Scott Shay, official website Scott Shay, LinkedIn Scott Shay Ted Talk, YouTube In Good Faith: Questioning Religion and Atheism by Scott Shay, Amazon Antifragile: Things That Gain from Disorder (Incerto Book 3) by Nassim Nicholas Taleb ARKONA Boot Camp Reach out to me if you have questions about the boot camp!  You can also reach out to me via email at rtansom@arkona.com, on my LinkedIn, or you can call me at 612-720-6530.

Today on the podcast, I have Mike Frommelt the Founder and CEO of Keystone Search. Mike has been featured in Gino Wickman’s book Rocket Fuel because of his tenure helping companies hire their top-level executives and more importantly their replacement (this could be the title of Pres ident / GM / COO / or Visionary / Integrator as EOS refers to it). If you have thought about what it would be like to replace yourself from the day to day (i.e. your role not your ownership) and don’t know where to start, then this episode is for you. Whether you have a $1M business or $100M business and your goal is more freedom from the day to day, or are looking for ways to decouple yourself for an exit years down the road, it’s a HUGE decision to find your successor. If done wrong, all the anxieties about the subject and horror stories you play in your head could come true BUT if you do it right and take the time to learn what you need to do BEFORE you make any decisions then true magic can happen. Not only for your personal life BUT also for the business. You will have a more valuable company that gives you the freedom and time to think, plan your long-term strategies while only working in the parts of the business that give you energy. One of the MOST important things you can do to build a more valuable company AND give yourself more freedom is find someone to replace your role and transfer the tribal knowledge that you have in your head. What you will learn:  Where to start the journey when you are ready to replacement for your day to day role How to determine whether you have your replacement internally or if you need to find someone from outside the company How to separate your ownership role from your day to day working role How to figure out how much visionary vs integrator your replacement needs to have What qualities a president of a company should have What the resume should look like of someone t The opportunity cost of replacing your role How to pay a president and different compensation structures you should think about The process to find, court and onboard a president How to discuss hiring your replacement with your executive team Quotes: “The first place that I like to start is making sure that I understand and they understand what it is that they’re really doing in the business.” - Mike Frommelt “You want to incentify [the leadership team] to grow the business while you’re doing what you want to do, whether you’re becoming the chairman of the board or you’re on a beach somewhere.” – Mike Frommelt   “This is not about putting yourself out to pasture.” – Ryan Tansom  “I think that if you have too much operational and you leave the magic of the visionary aside, things can implode, which I think a lot of people will also see.” – Ryan Tansom “Choices, choices, choices equals freedom, freedom, freedom.” - Ryan Tansom The Takeaway: One of the MOST important things you can do to build a more valuable company AND give yourself more freedom is find someone to replace your role and transfer the tribal knowledge that you have in your head (this doesn’t mean you have to go out to pastor or become irrelevant, just that you have transferred your knowledge and the company’s reliance on you so you can have the freedom to work in the areas of the business that give you energy AND have more options to do what you want with the business because you have created a more sustainable business with more transferable cash flow. Resources: KeyStone Search, website Rocket Fuel by Gino Wickman, Amazon ARKONA Boot Camp Reach out to me if you have questions about the boot camp!  You can also reach out to me via email at rtansom@arkona.com, on my LinkedIn, or you can call me at 612-720-6530. About Mike: Mike Frommelt Co-founded KeyStone Search in early 2002 based upon the belief something was missing in the search industry; A focus on cultural fit as a key indicator of executive success. KeyStone works exclusively with privately-held businesses who understand the importance of cultural fit. KeyStone also has special expertise working with companies who are employee-owned (ESOPs) as well as companies utilizing EOS/Traction.

Entrepreneur and family office investor Andy Billman faced death head on when he was talking to the surgeon who was removing a tumor from his skull… while he was wide awake! After a lifetime of doing deals (at one point he did 14+ acquisitions in the course of 5 years) Andy was faced with devastating news that he had brain cancer. Since his brain surgery, Andy has made it his life’s mission to help entrepreneurs understand how to take their obstacles, recalibrate their minds, and use their businesses and their lives to help change others. On the show he talks about the ups and downs of his career (buying a company, getting sued, going bankrupt, acquiring 14 companies in 5 years, and how he ended up at a family office) and why having a good perspective on life is the one thing that can make the whole ride worth it.     What is the first thing you would do with your business if you were faced with horrible news? Would you try to sell everything tomorrow or would use that news to put into action all the things in your business and life that you’d been holding out on? Andy shares his experience of facing death, so we can understand the importance of reflecting on what’s important for you, your life, and your business. Life is finite and the best thing you can do is come to grips with that. Once you do, you will have a lens to view the world with that helps you prioritize what’s really important. It can help you transform your business and life while allowing you to enjoy the ride. What you will learn: Why leaning into challenges can be one of the greatest gift’s life can give you Lessons learned from over 12+ acquisitions on the buy side The most important question you can ask about a potential company you want to buy How Andy changed his perspective on life and business after brain surgery How Andy is using his diagnosis to enjoy M&A and his business ventures What it was like to buy into a company and have it go bankrupt while getting sued What Andy looks for in a good acquisition How to be optimistic on deals and why you need to surround yourself with detailed and cautious people What Andy refers to as the “bull shit meter” The power of telling the truth and being transparent The difference between short term and “patient” capital Why the purchase price should be the table stakes and how to focus on the intangibles in the terms and conditions Questions to ask yourself if you didn’t have the business as part of your life Quotes: “I just kinda smiled and said, ‘Well, my mom always told me I was special.’” - Andy, about having rare brain cancer. “I share my story with complete strangers because I hope that I can make an impact in whatever they are going through.” - Andy “Life is finite. People are also people. How do we integrate business and humans and the long game of life into one journey that we enjoy and that makes and impact on others.” - Ryan The Takeaway: Life is finite and you have the ability to realize that. One of the most useful life tips I’ve incorporated into my life was from Benjamin Franklin (when I read his biography). He explained that ⅓ of his thoughts were on the fact that life is finite in order to calibrate the things that he dealt with. Resources: Andy Billman, LinkedIn Andy Billman, email: ajbillman86@gmail.com Finish Big: How Great Entrepreneurs Exit Their Companies on Top [Kindle Edition] by Bo Burlingham, Amazon ARKONA Boot Camp Reach out to me if you have questions about the boot camp!  You can also reach out to me via email at rtansom@arkona.com, on my LinkedIn, or you can call me at 612-720-6530. About Andy: Andy Billman is a results-driven, passionate senior executive with over 25 years of leading transformational change and delivering exceptional results. Bottom line, and customer-focused leader with a proven track record in a variety of roles. Skilled at establishing operational and commercial excellence within culturally diverse environments. Accomplished in strategy deployment and problem-solving.

  Understanding the real reason WHY a buyer is willing to sit across the table from you and write you a big check is THE most important thing you can do.   Today Todd Eberhardt is on the podcast sharing with us how he boot strapped a company with his partner into a multimillion dollar company (named Comm-Works) that maintained double-digit growth for years and why/how they eventually sold to a Private Equity Firm.Todd shares his challenges with rapid growth, buying out a partner, a few failed attempts to sell the business and then how they finally chose their private equity buyer. Post closing, the story unfolded differently than Todd intended (both financially and ultimately with his role) and he is on the show to share with us everything he learned so you can better understand how to: do as much reverse due diligence on the potential buyer as you possible can to figure out WHY they want the business and what they plan on doing with it, align what they buyer what's with your business with what is important do you (personally and financially) get as much money up front as you can and make sure you are comfortable with that number in case things don't go as planned post closing.  Great quote from Todd in the interview:“People buy for their own reasons and, you know, you need to figure that out when you’re making a sale because, in my experience, as an owner and working with dozens and dozens and dozens of other owners that go through it, when you strip everything else away, there are two things that become important. Once is certainly the size of the check. The other is the legacy that you’re leaving behind.” - Todd Eberhardt What you will learn: Lesson’s learned from double digit growth and a sale to a private equity firm What could happen after the sale even if you roll equity Why companies buy for their own reasons How to be mindful of what creates long term value Why a growing company is a hungry animal for cash Where to invest your cash to create a higher valuation Why “letting go” and delegating to management fuels growth Why thinking about taking the chips off the table in the middle of double-digit growth is a good idea Why doing your due diligence on investment bankers is important Why you should be happy with “the first bite at the apple” if you sell to a private equity firm Why the average CEO on the Inc. 5000 only lasts 6 months Questions to ask yourself, your team and any future buyer Things to ask yourself besides “how much money do I want” How to get a clear picture of what things are going to look like on the other side of the deal Quotes:  “You don’t know whether you’re going to get the earn note or get the rolled equity cause everything changes when it’s no longer your business.” – Ryan Tansom “Until you get good customers, everybody is trying to make contacts--make sales.” – Todd Eberhardt  “After a number of trials, we came up with a simple statement, which was, ‘Give us your worse. Give me your crappiest site.’ They sent us to these crazy places as a test.” – Todd Eberhardt  “Until you’re willing to say no to something, it’s really not a strategy, is it?” -Todd Eberhardt  The Takeaway: Dive into your own education. This is about understanding the way the world works, why your company will be valued, why people would want to buy it, and then build your own growth plan that allows you to connect all the dots with the exact things that you want, not only for your personal legacy and your lifestyle, but also for your financial target. Resources: Todd Eberhardt, LinkedIn Dynasty Leadership Podcast, Apple Podcast Page Todd Eberhardt, email: Todd@dynastylc.com Todd Eberhardt, phone: 621-845-0276 ARKONA Boot Camp Reach out to me if you have questions about the boot camp!  You can also reach out to me via email at rtansom@arkona.com, on my LinkedIn, or you can call me at 612-720-6530. About Todd: Todd Eberhardt is the founder and CEO of Dynasty Leadership Consulting, which is a company that works with the CEOs of mid-size entrepreneurial companies in transition. He is also the founder and CEO of the Sonic Management group and was the co-founder of Sunset Dental Technologies, Comm-Works, TailWind Voice & Data, and was the Regional Sales Representative for Dun & Bradstreet. 

If you want to learn how to monetize your growth instead of giving your soul (and company) to an investor or bank, then this episode is a must listen to.  Justin Erickson from EsseX Capital explains how local cities outside of major metropolitan areas are looking to attract smaller privately held companies into their communities… and they’re willing to put their money where their mouth is.   Why?  Smaller cities are looking for ways to stimulate their local economy through job growth and new developments. They are attracting businesses by helping find labor, giving very attractive real estate incentives (tax credits, renovation funding, capital, etc.) and even forgivable business loans. You might be thinking that you need to pick up and move yourself, however that is not the case. There are very logical ways to tap into these hidden markets and funds in a way that makes sense for you and your business. Justin explains how these strategies apply to a business with a few remote workers at a service company up to a manufacturer looking to expand their footprint.   I am a huge fan of creativity and learning unconventional ways to tap into savings and capital sources… and this interview sheds some light on strategies I think very few entrepreneurs know of. I’ve realized that--more than “life after business”--this podcast is about being intentional and growing your business so you can have more options and more freedom in your journey. So my question is, if the name of the podcast changes from “Life After Business” to “Intentional Growth: How to Grow the Value of Your Business with an End in Mind”, would that throw you for a loop? The topics and content would still be the same, the only difference would be the title. Your opinion is so important to me. Please reach out to me if you have any questions or comments.  You can contact me via email at rtansom@arkona.com, on my LinkedIn, or you can call me at 612-720-6530. What you will learn: The 3 ways you can tap into local governments to fuel your company’s growth Why smaller cities are coming to the table with great incentives for smaller private companies How to monetize your growth instead of giving up equity or personally guaranteeing your live away Why you should look at a smaller community for your next location / relocation How to find an untapped labor pool that is ready to work hard How smaller communities are using small private companies to fuel their economies Why you should look at a local city for capital How cities are using tax incentives to entice companies to build in their community How local communities are using forgivable loans to attract companies into their city How to use a company like EsseX to do all the research and analysis for you for free Where the incentives coming from and how they work Quotes: “I tell the company, ‘You don’t have to. I can do the legwork. I can find the options for you. And I can bring the communities to you, physically or otherwise.’” – Justin Erickson “It is fun to see the impact beyond, just engaging with companies, and clients and just getting a paycheck.” – Justin Erickson “It doesn’t matter what the size of the privately held company that wants to expand, (from labor or building or manufacturing or whatever), should think about this stuff.” – Ryan Tansom Takeaway: Always ask. If you know what you want and you can go ask for it and you know who to ask, people like Justin, who know the strings to pull, look at the things that you can do. Another big takeaway is that knowledge is power. If you want more power, check out one of our two-day boot camps. Links and Resources: EsseX Capital, website Justin Erickson, LinkedIn Justin Erickson, email: Justin@essexcapitalllc.net Justin Erickson, phone: 621-281-4648 ARKONA Boot Camp Reach out to me if you have questions about the boot camp!  You can also reach out to me via email at rtansom@arkona.com, on my LinkedIn, or you can call me at 612-720-6530. About Justin: Since 2006, Justin has worked on economic development projects throughout the continental U.S., helping companies determine where to locate operations based on their specific needs.  With a background in finance, coupled with experience working at Fortune 500 companies, a non-profit and private business, Justin is well-suited to work with clients, large and small, in identifying suitable locations for a project. An affiliated business, Community Venture Network (www.communityventurenetwork.com) has also given Justin an understanding of the motivations of state-based organizations, development agencies, and individual communities, giving him insight not only into the needs of company clients but also in understanding how the public side of these projects work. Justin was raised in Albert Lea, MN and received a BA in Finance from the University of Minnesota.  He now resides in Edina, MN and is married with two children.

This week’s guest was a lively, truthful, and colorful entrepreneur, Steve Prefontaine. Steve partnered with his dad 25 years ago and bought Skaff Cryogenics, where they purchased, rehabbed and sold large cryogenic tanks (essentially HUGE yeti’s as Steve put it). The business was only doing $500,000 at the time they took over in the 90s and recently sold it for $12,500,000 in an all cash deal to a public company. Steve shares with us how they grew the company and his approach to busienss… keep a “real real tight and simple business and pay down debt”. Around 10 years before they sold, they asked themselves “what do we want from this business”. Their question helped shape their move to go national, build out a trailer leasing business, pick up an international partner and more. Along their journey they got random offers, took the company to market (then took it off), doubled down on their growth strategy, paid down an insane about of debt and finally pinned 5 competitors against each other to ultimately sell to Chart. Steve had the ability to walk away from all the offers and continue making money for another 15 years but because of his leverage he was able to pick the exact buyer that he wanted with an all cash deal… while being himself every step of the way (and even to this day while he works at Chart).   Listen in to hear how your ability to walk away can be your biggest asset. What you will learn: Why a “real tight and simple” business sold for $12,500,000 all cash up front How Steve partnered with Dad for 25 years in 3 companies and never fought Why complete devotion to customer service made Skaff appealing and valuable to the competition Why building out the leasing business from the repair business helped with cash flow and viability of the repair business How loyalty to employees paid off right before they sold the company Why Steve decided to take the company off the market to double down on growth How paying down debt played into their business strategy Why 5 competitive buyers came to the table to bid on Skaff Why having the ability to “walk away” was Steve’s biggest asset How Steve negotiated directly with the CEO of a public company to close the deal The Takeaway: If you want to do what you want, when you want and how you want, you have to grow a valuable business that others envy, kicks out cash and also gives you the flexibility to do what you want. Resources: Steven Prefontaine, LinkedIn Skaff Cryogenics, website Chart, website ARKONA Boot Camp Reach out to me if you have questions about the boot camp!  You can also reach out to me via email at rtansom@arkona.com, on my LinkedIn, or you can call me at 612-720-6530. Quotes: 72:34 – “A lot of my stress, and a lot of entrepreneurs are probably going to say the same thing, a lot of my stress came from looking at a business not just for myself but I looked at the business (and I’ve always conducted myself this way) every single decision that I make, affects my employees and their families and their children and everything they do. And that was my stress. I wanted to make sure that I was getting up every morning and making the right decision.” - Steve Prefontaine 19:15 – “You get beat up enough like that. I’m sure we all get our bumps and bruises owning a business, that’s for sure. And getting beat up like that, doing it all over again with a small business. [stumbles] When we sat down and he said, ‘Listen, I’ve been through the problems. I’ve made the same money at 1 million as I did when we were doing 10 million in sales, with 10 times the headache. So what we’re not going to do is, we’re not going to do that again. That’s my only advice to you so grow the business slow and smart.” - Steve Prefontaine 81:40 – “If you want to be yourself and have the freedom and the choices to do what you want, when you want, with who you want, you have to build a valuable business that gives you the option to have those choices. If you have a company that’s highly reliant on you, that doesn’t give you the financial flexibility cause it’s not worth what you need it to be worth to be financially free, then you’re going to be stuck making decisions that you don’t want to make and/or you’re going to have to sacrifice things that you don’t want to sacrifice.” - Ryan Tansom

If the "project" of acquiring a company is managed correctly, due diligence will be easier, closing the transaction will be faster and integration will be more fruitful for both the buyer and the seller. Kison Patel is on the show today to share stories about billion dollar acquisitions being done on spreadsheets and why the Merger and Acquisition industry needs to catch up to the 21st century. Kison is the founder of DealRoom (an M&A project management software) and has been through countless transactions himself that add up top hundreds of millions of dollars over his tenure, and it showed him how inefficient the actual process of acquiring and integrating a company is. He explains how AGILE (a project management methodology that originated from the software industry) can help close deals faster and maximize the value post closing by getting all the stakeholders on both sides (executives teams, advisors, etc.) on the same page.An AGILE approach can help keep the deal on track as things change, more people get involved and information flows (and tee up post closing integration to hit the ground running). What you will learn:   Why the M&A industry is falling behind and how technology and innovation can help  Why the traditional selling/acquisition process isn’t always a smooth process The evolution of managing the project of acquiring / selling a business  How to get all the stakeholders involved in selling/buying a business on the same page Why the post-closing integration team should be involved in due diligence How the software industry and the AGILE method of project management can be applied to M&A  How to close deals faster and maximize the value post-closing for both the buyer and seller   Resources/Links: Agile M&A, website DealRoom, website The Agile M&A Practitioner’s Guide, Kison Patel, website Kison Patel, email: kison@agilema.com ARKONA Boot Camp Reach out to me if you have questions about the boot camp!  You can also reach out to me via email at rtansom@arkona.com, on my LinkedIn, or you can call me at 612-720-6530. About Kison:  Kison Patel is the developer of Agile M&A as well as CEO and Founder of DealRoom, a project management solution for complex financial transactions. With nearly a decade of experience as an M&A advisor, he devoted his time to realizing and building solutions for more innovative, efficient and people-driven M&A. Through developing technology, educational content and industry training, He aims to bring better process management and methods to an industry with growing market pressures, transaction values, and competition.  Quotes: 19:57 – “The thing that I see a real lack of is, a real definition of what an operating framework is. Because we just go pursue an M&A deal and we don’t have a formal project management methodology in place. And that’s where a lot of these friction points happen. Thinking of that early on is probably one of the first and foremost things to do.” - Kison Patel 24:17 – “An easy way to look at AGILE is ‘adapting to what’s actually happening as it occurs.’ And if you look at the traditional way of doing things, you tend to map everything out all upfront and create this detailed plan. And then you basically follow the plan, which works when you know all the steps are there and you know what the end state looks like and everything is very predictable. ” - Kison Patel 01:12 – “One thing that I’ve learned after three and a half years of doing this podcast, in all of the education that I’ve had--consumed, honestly-- since we’ve sold the business, the whole mission was to learn everything I wish I would have known before we sold.” - Ryan Tansom 57:03 – “If you’re a seller or a buyer, you’re probably very excited about the transaction. Seller, you’re looking forward to some money while reducing some responsibility and getting some chips off the table. As a buyer, you’re looking forward to propelling your company and your professional career into the next level and through the infrastructure, or the clients, or the rate of return that you’re going to get on the sale. But the reality is, this is where the rubber hits the road.” - Ryan Tansom