Intentional Growth

Kevin Short is the author of Sell Your Business for an Outrageous Price: An Insider's Guide to Getting More Than You Ever Thought Possible. A must-read for business owners who need to do some real homework on the sale process. During today’s episode, Kevin tells me why he wrote the book and why companies are willing to pay outrageous prices for an acquisition. He walks me through Clayton Capital’s process and has some deal breakers and keys to performing good due diligence. He also has insight into the current market and why the climate is changing and should be taken advantage of now. What you will learn: Why Kevin wrote his book. The difference between financial and strategic buyers. Why a seller should avoid financial buyers. How the Clayton Capital team finds the right buyer. How a client’s inside market knowledge is beneficial to Kevin and his team. How Kevin aligns client wants with the right buyer. The difference between business brokers and investment bankers. Things that are deal breakers for a buyer. Why due diligence is so important to a buyer. The role of a good experienced financial team. What is a 330 H-10 Election? Advice for telling employees about a sale. How to cope with deal fatigue. Takeaways: Hearing these stories will build your knowledge and prepare you for your business sale. Links and Resources: GEXP Collaborative Sell Your Business for an Outrageous Price: An Insider's Guide to Getting More Than You Ever Thought Possible by Kevin Short Clayton Capital Partners About Kevin: Kevin Short is the Managing Partner and CEO of Clayton Capital Partners, a St. Louis-based investment banking firm specializing in merger and acquisition advisement. Beginning in 2007, Thomson Reuters, FactSet Mergerstat and Investment Dealers’ Digest all ranked Clayton Capital Partners as a top U.S. M&A firm. In 2017, Acquisition International M&A Awards awarded the firm the distinction of being the Best M&A Investment Banking Firm. It was also named a 2017 finalist for U.S.A. Boutique Investment Bank of the Year by the M&A Atlas awards. Clayton Capital Partners is also the winner of the Wealth & Finance Investment Bank of the Year. Kevin is also the author of Sell Your Business For An Outrageous Price published by AMACOM. The book has received 11 awards, including the Axiom Book Award Bronze Medal for Entrepreneurship, Indie Book Award, USA Best Book Award, The Great Midwest Book Festival Award, San Francisco Book Award, National Indie Excellence Award, New England Book Festival, International Book Award, The London Book Festival Award, Book Excellence Award and was a New York Book Festival Finalist. Many of the awards are from international competitions! The book synthesizes Kevin’s experience in selling mid-size companies ($10MM - $250MM in value) for twice the industry average EBITDA multiple. Recognized as a leader in purchase and sale transactions of mid-size businesses spanning a wide range of industries, Short has orchestrated more than 150 purchase/sale transactions with an aggregate value of more than $1 billion. Years of experience (both as a business owner and as an adviser in this marketplace) enable Short to aggressively pursue his clients’ objectives during the turbulence that characterizes every transaction. As an expert in mergers and acquisitions, Short has been named a judge for the M&A Advisor Award, an annual national award that recognizes excellence in dealmaking, restructuring, and finance. He writes and speaks frequently on these topics to groups of business owners, advisers to business owners and academics. Groups include Business Enterprise Institute, Inc., the St. Louis Association of Evaluation Professionals, Edward D. Jones, St. Louis University Entrepreneurship Program, Enterprise University, Business Intelligence Institute and Washington University in St. Louis. In addition to contributing to various national trade and business publications, Short is also the co-author of Cash Out Move On: Get Top Dollar–And More–Selling Your Business (Business Enterprise Institute, Inc. 2008). Mr. Short devotes his free time first to his family, and second, to the education of children from low-income families. He serves as the Chairman of the Board for the Today and Tomorrow Educational Foundation, the Chairman of the Finance Council of the Archdiocese of St. Louis, the Vice-Chairman of the Show-Me Institute, a board member of the Mercy Hospital System and The Children’s Scholarship Fund. In 2018, Mr. Short was a recipient of the Elizabeth Ann Seton Award from the National Catholic Education Association, honoring his lifetime commitment to the education of children in poverty. He is also a recipient of the FOCUS St. Louis “What’s Right With The Region” Award.

Scott Fritz is the author of The 40 Hour Work YEAR, a short read about his POD model. Scott gives talks on his method of exiting a business that is both beneficial to you and healthier for the business. He shares the triggering events that led to this life-changing system. Some would say Scott’s story is impossible but his approach is logical and actionable. If you are considering exiting your company but you are too tied up in it to make it a reality, Scott has a method that you really need to know. What you will learn: Scott’s presentation Transition, Position, Acquisition. Why he wrote The 40 Hour Work YEAR. Scott’s “mirror moment” and what he did about it. The Transition Plan out of the business, the beginning. How to create a culture of intrapreneurs. How 9/11 slowed things down. What ego really means in business, and getting past it. Scott’s rule of thumb for engaging his employees to step up. The #1 metric that Scott considered the most important. Scott’s “weed-eaters” and how it improved the business. The importance of an organizational chart. The POD model and how it works. Why your culture could be the problem. The team that helped Scott exit. The types of buyers that approached Scott. Scott’s 3-step process to Angel Investing. Scott’s final thoughts. Takeaways: Start thinking about transitioning out of your business. Reframe how you view your business. Look at it as if you are working out of it. You'll be happier and more successful. Links and Resources: GEXP Collaborative Growth Connect The 40 Hour Work YEAR by Scott Fritz Scott Fritz on LinkedIn Scott’s email About Scott: Scott Fritz currently oversees acquisition funding and strategy for SGI Property Management. SGI operates in 3 states and manages over 1,300 properties. In 2010 Scott authored The 40 Hour Work YEAR. The book chronicles Scott’s entrepreneurial journey first-hand as he shares strategic business methods, action-focused exercises and the mindset philosophy that allowed him to achieve The 40 Hour Work YEAR and become a passive investor in his own business. Using his book as a platform, Mr. Fritz facilitates workshops and is a keynote speaker for dozens of groups every year. Mr. Fritz acquired Atlantic Insurance, a property and casualty agency, in 2010. After rebranding and repositioning, the agency was sold in December of 2012. Scott founded Growth Connect in 2008. By leveraging business coaching and exit planning services, Growth Connect specializes in transforming businesses into assets. Since 2008 Scott has facilitated over 400 strategic focus sessions. As an active Angel Investor since 2001, Mr. Fritz has invested in over thirty separate ventures. His involvement with these companies ranges from a passive investor to a business coach and advisory board member. Mr. Fritz founded Human Capital in 1997. He grew the company into a nationwide player with 2007 annual revenues of $170 million dollars. This hyper-growth landed Human Capital and its affiliate division on the INC. 500 list in 2003 and 2004 with growth rates in excess of 1,000 percent. Human Capital was sold to a nationwide staffing firm in 2007. In addition to various business pursuits, Scott held multiple local and global volunteer positions within the Entrepreneur’s Organization (EO) between 2001 and 2011. Mr. Fritz is also an EO Certified Facilitator which allows him to pursue his passion of working with leading entrepreneurs in the areas of strategy, sales, leadership, people, and finance.

Buckle up for a long episode this time. I promise though you will walk away from this one reflecting on your personal situation and maybe it will help you make some decisions. My guest is Steve Harlamert, at the age of 24, Steve’s father died suddenly, leaving the family business to both Steve and his sister. The business was a grocery supplier and there was no clear roadmap for the company. Steve decided to stick with the business but his sister wanted out. After she left, Steve set about learning everything he could and humbled himself to be mentored by the more experienced people in the business. Steve grew the business successfully and built something he could be proud of. That story is inspirational in itself, but then Steve sold his company to a private equity firm and changed the lives of many of his employees. We discuss the emotional fallout of leaving a company and how Steve has coped with that loss. He also has insight into what his experience has taught him about people, business, and life in general. What you will learn:   Inheriting a business at 24 and coping with unexpected death. How Steve moved on even without a roadmap from his father. The lessons he learned from the company’s more established leaders. Why Steve’s sister left the business and the buyout. The common problems within a family business. The employees become family. Steve’s advice about how to avoid building a dictatorship. How to better serve your customer. Why Steve made an acquisition to grow the company. So many executives rush to restructure, that’s a bad idea. How to have diversity in your feedback but still be respectful. Things that CEOs should do. Steve’s tips to success. The ESOP (Employee Stock Option Plan) that changed everything. Mistakes Steve made with his successor. The pros and cons of the ESOP. The 2 ½ years Steve took structuring a private equity deal. His experience with the firm. The hard transition to life after the business. The hurt feelings and reconnections that have made the experience worthwhile for Steve. Takeaways: What do you want? What's important? Is it a combination of money, legacy? What kind of exit will line-up with those wants? Links and Resources: GEXP Collaborative Steve on LinkedIn Steve’s email About Steve: Steve began his career at the age of 18, the second generation to work for the family business, Harlow Marketing, Inc., a food brokerage company that sourced, marketed, and distributed products to The Kroger Co. Shortly after he earned his BA degree in marketing from the University of Dayton, the untimely death of his father resulted in an accelerated learning curve when Steve stepped into leadership, assuming the role of vice president. In 1997 Steve became the president of Harlow Marketing, where he began to oversee all operations of the company. On the company’s 25th anniversary, Steve purchased HRK Sales & Marketing, Inc., which led to a merger of the two businesses, re-named Harlow-HRK Sales & Marketing, Inc. Under Steve’s leadership, the company grew from 60 employees to over 300 employees in 24 states. Steve sold the company in 2014 to his employees via an ESOP and then again in 2016 to a Private Equity Firm, fully retiring early to focus on raising his young family.

Mike Jackness is a hardcore entrepreneur who has built and exited many e-commerce brands. Mike began with affiliate marketing and cut his teeth in the online poker world and grew into legitimate e-commerce businesses. He started with Treadmill.com, Color It, Icewraps.com, Wild Baby, and then took his experience and shaped it into Ecom Crew. Ecom Crew is Mike’s podcast and blog that provides real-world value to business owners and e-commerce professionals. He tells me what he learned from his multiple exits and why he is always moving forward and avoiding boredom. What you will learn: Mike’s experience with entrepreneurship. How he got into affiliate marketing and the online poker business. The reasons Mike walked away from his poker business. How he exited the company and managed to set up a passive income. The lessons he learned from affiliate marketing. Entrepreneurship is an addiction. The 6-month hiatus that led to Ecom Crew. Why Mike returned to entrepreneurship. What is Ecom Crew? How Ecom Crew has changed Mike’s view on business. Entrepreneurship is not for everyone. How to be real with your audience. How to build strong brands. The downside of creating an office culture. The sale process of Color It. Mike’s plans for the future. Takeaways: Reflect on why you have your business before burnout sets in, what's the point? What do you need financially to be successful? What are your options? Links and Resources: GEXP Collaborative Ecom Crew Ecom Crew email The One Thing by Gary Keller Conscious Capitalism by John Mackey The Entrepreneur Roller Coaster: Why Now Is the Time to #JoinTheRide by Darr en Hardy About Mike: Mike has been involved in online marketing for over 10 years. During the poker craze of the early 2000s, he ran one of the largest poker affiliate companies in the world with over 60 employees (He even owned part of the Canadian Poker Tour!). After Black Friday (the day congress basically made it illegal for Americans to gamble online) he ventured into e-commerce with Treadmill.com. He sold that company in 2014 and have since then started multiple other e-commerce brands with total revenues over $7million annually. Today he’s based in San Diego but he lived throughout the world including Las Vegas, the Cayman Islands, and out of a Class A motorhome while touring North America.

Father and son team Chris and Graham McConnell are the founders of Nth Round, a software platform that allows business owners and potential investors to find each other. Nth Round allows employees and outside investors to bid for shares in a company. The idea is that the platform simplifies the process of getting funding and liquidity for a business. Chris and Graham tell me how they created the blockchain system Nth Round is built upon. We discuss who benefits from this platform and why they felt it was needed in this current market. Nth Round strives to “level the playing field” for all parties involved and take the flow of capital away from private equity firms and smoke-filled back rooms. These guys are being hailed as game changers, tune in to hear why. What you will learn: Graham’s background in software and finance. Chris’s background in business and private equity. The problems the guys saw within the private equity world. How Nth Round was developed to fight these problems. How Nth Round works. How companies come to an agreement on the value of their business. The 3 target markets Nth Round appeals to. How Nth Round equals the playing field for everyone involved. How their system is different from private equity and M&A. Why venture capitalists have mixed reactions to Nth Round. The goals for the company moving forward. How video is a great tool to keep business owners and investors in touch. The FCC’s reaction to Nth Round. Takeaways: People are trying to fix the market. Private companies are the backbone of America and the system is broken. If you need liquidity or investment in your business don’t just settle for the first answer you get. If you know what you want, there is a way to get it, just use all the resources you can to do it. Links and Resources: GEXP Collaborative Nth Round About Graham: Graham is an entrepreneur with strong passions in finance and technology, especially software development, cyber-security, and blockchain protocols. After stints at TA Instruments and Savana, Inc., Graham joined Relay Network, where he served as a product owner, managing priorities for a team of twelve software developers and test engineers. Drawn to finance, Graham then joined AJO Partners ($25B AUM), a top-tier quantitative investment firm, where he oversaw software development. Today Graham runs all aspects of NthRound operations: from product development to sales and marketing, to customer support. About Chris: Chris is a recognized technology entrepreneur and executive. He has extensive experience with blockchain programming, artificial intelligence, surface science, process control, and public and private finance. After starting at Dow Chemical, Chris co-founded CFM Technologies, a global semiconductor capital equipment manufacturer that grew to $80 million in sales and 400 employees. It went public in 1996 (NASDAQ: CFMT). Chris went on to form The Founders Group, and later Adondo Capital, a quantitative equity hedge fund based on computational linguistics. He holds eighteen US patents. For NthRound, Chris focuses on strategy and technology.

Peter Lehrman is the CEO of Axial, an online platform that connects business sellers and buyers to find the best merger and acquisition partnership possible. Peter comes from an entrepreneur family. He studied at Stanford and learned the ins and outs of M&A through the private equity industry. During his time in private equity, Peter saw a very inefficient process that inspired him to develop Axial. He shares how his platform closes information gaps for both sellers and buyers. We discuss the wealth of information business owners can utilize to be better prepared for the M&A process and how Axial promotes those resources. What you will learn: Peter’s time in business with his brother and early experience. His time in private equity and what he learned. The inefficiencies that Peter hoped to correct with Axial. Who does Axial serve? Peter’s opinion on the “Baby Boomer Exodus.” The 2 major information gaps Axial tries to fill for their clients. The importance of reputation in M&A transactions. How a seller can find a serious buyer. Axial’s commitment to educating their clients. Selling a business cannot be delegated out to someone else. The 3 drivers of business value. Takeaways: Use resources like GXP Collaborative and Axial to educate yourself on the selling process. You are the owner of your exit experience and the more homework you do the smoother the process. Links and Resources: GEXP Collaborative Axial Middle Market Review Peter’s email About Peter: Peter is CEO of Axial, responsible for driving the company’s vision to be the trusted platform where private companies connect with capital. Prior to Axial, Peter worked in private equity at SFW Capital Partners and was part of the founding team at Gerson Lehrman Group, where he helped build the company’s dominant global technology platform for on-demand business expertise. He earned his undergraduate degree from the University of Virginia and received his MBA from Stanford Business School.

Ilan Jacobson is the Founding Partner & CEO of FirePower Capital. It has become the largest independent mergers and acquisitions firm in Canada. During today’s episode, Ilan tells me what he suspects will happen in the M&A market and why the current system is really overly complicated. The economy is going to be undergoing some major changes over the next few years. M&A and private equity firms are going to have to look at smaller businesses and deal with a totally different type of business owner. Ilan explains how these private equity firms are going to have to adapt and what you the business owner need to be aware of when considering the M&A and P.E. route. What you will learn: The beginnings of FirePower Capital and Ilan’s background in Venture Capital. The importance of a healthy company ecosystem. Why debt to equity is stupid. How private growth capital is going to change the M&A market. Why Ilan focuses on enterprise value. The dumb ways to rationalize the burn of money. Ilan’s market predictions for the private equity sector. How the P.E. market will change. How people can prepare for these changes. 3 tips to make your business marketable and valuable. Takeaways: If you are considering private equity and mergers and acquisitions for your business, use your common sense. Trust your gut and surround yourself with people who can help and guide you through the process. Links and Resources: GEXP Collaborative Ilan Jacobson on LinkedIn Ilan’s email 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 30+ strong investment banking 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 Investment Banking 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 private debt or equity and helps them complete their most critical transactions.

My guests today are Chris Shipferling and Jason Somerville both of Global Wired Advisors. Chris and Jason have a combined background in merger and acquisitions and digital marketing. Global Wired Advisors specializes in e-commerce businesses looking to diversify into traditional marketplaces. Chris and Jason tell me how they take their experience, that usually is used for huge, monstrous companies and make it accessible to the lower end of the multi-million level companies. They share some examples they have seen within their business and the opportunities that many businesses seem to be overlooking. Including traditional brick and mortar businesses making their brand available to the online market path. What you will learn: Chris and Jason’s backgrounds and meeting a need for their clients. The more choices you offer, the more value you can provide a buyer. How Global Wired Advisors is different from traditional M&A. The hit and miss nature of the e-commerce space. The change in thinking within the market regarding risk-pricing. How the market, in general, is evolving. The various strategies to diversify your business. The 3 keys buyers look at when considering purchasing your business. The importance of educating yourself before selling. Jason and Chris’s process when they start with a new client. Things you can do to prepare your business for diversification. Takeaways: If you are a brick and mortar business call someone like Quiet Light Brokerage, or Global Wired Advisors and discuss your options. The online space is a cheaper option that won't last for long. If you are on the flip side on the online e-commerce side then start taking your business in a more traditional direction. There is a lot of opportunity for diversification. Links and Resources: GEXP Collaborative GEXP Accelerator Program Global Wired Advisors Life After Business Podcast About Chris: Chris Shipferling is a Founder, Managing Partner and Head of Business Development for Global Wired Advisors. Chris began his career 15 years ago in consumer product sales and has held various Sales and Digital Marketing Executive roles at companies ranging in size from $20 to $300 million. Since 2013 Chris has focused on high level consulting for multi-million dollar omnichannel, digitally native, and Amazon-based private label and re-seller brands. Chris is adept at both Vendor Central and Seller Central Amazon businesses and that experience is why Chris has come on board with Global Wired Advisors. Chris brings rich multi-channel digital expertise, helping both sellers and buyers reach their full potential by maximizing sales on their native platform before and after the sale. Whether entering or exiting the internet space, we seek to make that transition as profitable as possible for both sides. About Jason: Jason is one of the Founders and Managing Partners of Global Wired Advisors. Jason began his career in investment banking almost 20 years ago and spent the first ten years of his professional life executing capital markets transactions for Fortune 500 and Fortune 1000 companies. After completing hundreds of transactions with a total value of over $150 Billion, he became a serial entrepreneur. For the next seven years, he bought, built and sold small and medium-sized online and traditional businesses. In 2016, he started Global Wired Advisors with Joe Hogg, Chris Bodnar, and Chris Shipferling so that, together, they could use their depth of capital markets, mergers and acquisitions and e-commerce business building experience to assist internet entrepreneurs with exiting their businesses at the maximum possible value.

Ben Vandenwymelenberg (VW), is the founder of Woodchuck USA and the author of The World Needs Your F*cking Ideas. Woodchuck USA specializes in wood products that can be presented as unique gifts. Items like customized wood paneling, journals, and other stationery are getting people’s attention because of the Buy One, Plant One program. The Buy One, Plant One program is the driving mission of Woodchuck USA. When a customer buys a Woodchuck USA product, Ben and his team plant a tree somewhere in the world. It is a business with a purpose and the future of a millennial driven economy. Ben tells me what inspired his book and why he thinks more people need to “release their inner entrepreneur.” What you will learn: How Woodchuck USA began. The products and services provided by Woodchuck USA. Woodchuck USA’s social mission. The Buy One, Plant One program. Why the Buy One, Plant One program works. Finding the “why” in your company mission. Agreeing on a collective why company-wide. Why Ben believes social capitalism is the future of business. The 3 misconceptions Ben found when writing his book. How to release your inner entrepreneur and make a difference. Why you need employees who share your why. The concept of a Conscious Circle and how changing it can make all the difference. Takeaways: Does your company have a “why?” You should! Having a mission in your company adds value and profit to your company’s bottom line and reputation. Social capitalism is the future of business and essential for reaching the millennial consumer. Links and Resources: GEXP Collaborative GEXP Accelerator Program Ben’s website Woodchuck USA The World Needs Your F*cking Ideas: How to Start a Business That Will Save Our Universe by Ben VW Conscious Capitalism, With a New Preface by the Authors: Liberating the Heroic Spirit of Business by John Mackey About Ben: Ben Vandenwymelenberg (VW) made his first wooden phone case in college. That unique item soon grew into a successful business that created creative wood products and a passionate mission. Ben and his team wanted to create American jobs and encourage a love of nature. Woodchuck USA’s Buy One, Plant One program has done just that. To date, Woodchuck has planted over 2 million trees worldwide and has become a flag carrier for the social capitalism movement.

Brent Beshore is the CEO of Adventur.es, a private equity firm. Adventur.es has a totally different approach to private equity that makes them stand out in the industry. Brent and his team have even written a book to help business owners navigate the tricky and messy world of Mergers and Acquisitions. We discuss the book and why Brent thought it was important to write it. He explains why he prefers employees who don’t have previous experience in the private equity space, and how it makes Adventur.es different from the traditional private equity firm. What you will learn: How Brent stumbled into private equity. How Adventur.es raises money. The lessons Brent learned in the early days of his business. Why Brent and his team wrote The Messy Marketplace. What makes Adventur.es unique in the market. The benefits of over-communicating with your clients. How Brent treats his clients. What normally goes wrong in a private equity firm’s approach. The 4 key elements Adventur.es keeps in every deal. You shouldn’t need a Ph.D. to understand your deal structure. Why Adventur.es doesn’t use traditional financing. The broken private equity system what it means for the market. Why lower markets can’t get traction in this culture. Brent’s “do no harm” rule. Takeaways: M&A is a messy world and Brent’s book is a great resource to help business owners get a grip on the complicated ins and outs of private equity. Do your due diligence and take the time to really research your prospects before you jump into anything. If you are interested in the accelerator program, then you can reach out to me at ryan@gexpcollaborative.com or LinkedIn. We also have a page on the website with more information. Links and Resources: GEXP Collaborative GEXP Accelerator Program Brent on Twitter Adventur.es The Messy Marketplace: Selling Your Business in a World of Imperfect Buyers by Brent Beshore How To Acquire Your First Small(er) Company by Brent Beshore Buy Then Build: How Acquisition Entrepreneurs Outsmart the Startup Game by Walker Deibel Conscious Capitalism by John Mackey About Brent: Brent leads the Adventur.es firm, and more specifically the acquisition and diligence teams while supporting portfolio company operators. Brent serves on the Shepard Poverty Program board of directors at his alma mater, Washington and Lee University. He also sits on the Tandy Leather (TLF) board of directors and is active in Love INC, a mid-Missouri-based non-profit. Brent is raising two young daughters with Dr. Erica Beshore, participating in church activities, and occasionally enjoying competitive tennis and bad golf.