Intentional Growth

Troy Berg is the owner of Dane Manufacturing. Today he tells me about purchasing the company and how he grew the business by 3x! Troy is a great motivational speaker and has smart advice for my listeners. Troy credits 8 acquisitions for his impressive business growth. He used a combination of organic growth and M&A deals. Troy covers both of these subjects and has some awesome insight. He shares his experience with hiring salespeople and why he believes A-players will pay for themselves. We also discuss why M&A is a broken system and how you can work around that brokenness. We also discuss the baby boomer problem and how young entrepreneurs can court these business owners and help relieve the problem. Troy is a firm believer in a positive attitude and having confidence in your abilities and business vision. There are tons of great takeaways from today’s episode and no matter if you are an established business owner or just getting started. What you will learn: Troy’s career “working for the man.” His shift to the “get in the black or you’re going back” mindset. How Troy approached the deal with Dane Manufacturing. Why it is hard to say no and why you need too. How Dane Manufacturing grew 3 times in 3 years! What is organic growth? How Troy used organic growth to find great team members. The 5 things you need to look at when hiring a top-notch salesperson. Why advisors aren’t interested in completing a deal. The 3 steps to a successful M&A deal meeting. Why attitude and belief are essential. Don’t worry about the money. The benefits of using an SBA and other advice for finding the right bank for your deal. The baby boomer problem and how to combat it. The deal that didn’t happen for Troy and why it didn’t work. Troy’s book recommendations. Troy’s final 2 pieces of advice for the audience. Takeaway: First and foremost, it is important that you have confidence in your abilities and your vision for your business. Do your homework and look for the investors, partners, and advisors that will help you get where you want with your business and career. Links and Resources: GEXP Collaborative Troy on LinkedIn The Entrepreneur Roller Coaster: Why Now Is the Time to #JoinTheRide by Darren Hardy The Compound Effect by Darren Hardy DaneMfg.com About Troy: Troy graduated with a Mechanical Engineering Degree in the 1980s and worked in several manufacturing industries. He worked in the Aerospace and Automotive industry building NASA Space Shuttle and large commercial & military jet systems and then went on to work in the elite production engineering department in a car assembly plant helping launch new car model introductions. While pursuing his Master’s Degree in Operations and Business Management, he decided to leave Corporate America and start his own company over twenty-four years ago. That original start-up company was merged with his current company in 2001 after they purchased Dane Manufacturing. They purchased two other ‘Add-on’ companies to join with Dane in 2007 and 2009. In 2013, they started another division inside Dane that manufactures our own products for the residential green energy markets making Geothermal Heat Pumps called Q Energy Systems. This product is sold through distributors and is starting to gain traction in the US markets. In 2018, they expanded Dane from $13M to $20M and successfully acquired Dantherm Cooling in Spartanburg, S.C. All three entities in 2018 had sales of over $30M. Dantherm Cooling is once again a viable company after our changes and improvements and will help usher in 5G to the US with all of its electronic cooling products. Dane is a four-time INC 5000 recipient and will receive their fifth award this year for the 3X growth we architected over that last three years. Dane controls three manufacturing plants with 140 full-time employees. Other than Troy’s  love for business, understanding successful business models, he keeps busy with his family enjoying outdoor activities, boating, water skiing, biking, snow skiing and playing and ice hockey.

St. Paul & Minnesota Foundations (SPMCF) helps charitable organizations and investors determine the purpose of funds and measure their impact. It gives funds to the right people, for the right reasons. Luther Ranheim is a gift planner at SPMCF. He connects professional advisors, clients, and community members with philanthropic resources to help them reach charitable giving goals. Also, Luther assists non-profit organizations with planned giving and endowment opportunities. Where do you want to put your money? How much should you put in? What’s going to be done with it? What are the tax ramifications? Luther shares how philanthropy, charitable donations, and non-profits give you a sense of purpose and fit into your life after business. Let Luther and SPMCF guide you on your journey. What you will learn: Luther’s background in financial services. Why Luther transitioned to fundraising and philanthropy. SPMCF grants assets to charitable organizations and helps set up philanthropy tools. The definition of philanthropy, and how it works. How conversations identify your passion, purpose, and possibilities. The challenges that come with fundraising and philanthropy. The number of nonprofits that SPMCF works with and success to significance stories. How to find charities and become involved by using your knowledge to make an impact. Who do you know? Who can you call? Connecting with the right people. One of the silver linings with baby boomers retiring is the significant transfer of wealth. How to track, measure, and evaluate return on investment (ROI). SPMCF’s process to evaluate and assess organization’s potential to receive funds. The different ways to address your “why” and financial targets. Luther offers an overview of donor-advised funds and how they are used. What are the different tax implications and write offs? Entrepreneurs who sell their business lose their platform for funding charitable donations. Create a structure to leave a legacy and continue to support the community. Takeaways: Anyone can be a philanthropist. You don’t need to have millions of dollars. Find your passion, something that’s near-and-dear to your heart, to make an impact. There’s a way to include philanthropic planning as a part of the exit strategy from your business. Connect with SPMCF to talk about the possibilities of adding a charitable component to your business transition. Links and Resources: GEXP Collaborative St. Paul & Minnesota Foundations (SPMCF) Luther’s email address651-325-4206 Stephanie Breedlove The Halftime Institute Taxes and Selling a Business: How to Calculate Net Proceeds with Ryan Turbes About Luther: Luther Ranheim was born and raised in Minneapolis. His love for the Twin Cities is an integral piece to his job as a gift planner at St. Paul & Minnesota Foundations (SPMCF). Luther combines his early career knowledge in banking with more recent non-profit development experience. Previously, he worked for Wells Fargo Private Client Services and Bremer Bank. Recently, he has been involved with non-profit development for the MacPhail Center for Music, Greater Twin Cities United Way, Minnesota Orchestra, and Alzheimer’s Association. He graduated from Lawrence University. Currently, Luther serves on several boards, including the Association of Fundraising Professionals and The Singers – Minnesota Choral Artists. Also, he is on the Alumni Council of Greater Twin Cities Youth Symphonies. Luther and his wife support the Twin Cities’ arts community by attending concerts and events. They enjoy spending time with their dog, cheering on the Minnesota Vikings and Minnesota United teams, and grilling food using their Big Green Egg. Luther’s skills include: Philanthropy; Fundraising; Annual Giving

Ken Sanginario is the founder of Corporate Value Metrics and creator of the Value Opportunity Profile. He is also an educator who teaches business owners about the importance of intrinsic value. He has a myriad of certifications and credentials that make him the ideal guest for this subject. If you are a business owner or looking purchase a business today’s episode is chalked full of information about the Value Opportunity Profile and Company Specific Risk. This standard system will help business owners create a business that stands up to due diligence and draws in the ideal buyer. We also discuss the disturbing trend that is surfacing in the market. Many baby boomers are getting ready to go to market, and there aren’t enough buyers to help them all. Because of this issue, only 6-7% of baby boomer sellers get a favorable outcome from their sell. Ken is quick to explain how his assessment system is important to the baby boomer issue. He also explains how the assessing process came about and how it has reached an international audience. What you will learn: Ken’s time as a business consultant. His experience as a CPA, CFO, and his multiple credentials. How Ken designed the Value Opportunity Profile. Why Ken felt the need to create a standardized process. The Company Specific Risk metric and what it means. The 3 traditional approaches of value assessment. Why the market approach is a shaky approach and multiples are meaningless. Why the income approach is considered the one true method. The pros and cons of value assessment approaches. The 3 parts of the discounted cash flow method. The 8 primary categories to create maximum value. The 50 subcategories that are based off the prime 8. How Ken’s system is connected to due diligence. The 2 components of cost of capital. What is intrinsic value? The difference between a financial and a strategic buyer. The baby boomer issue and how younger business owners can help. Run your company at the highest quality at all times. Takeaways: If you are a business owner, Ken’s program is essential to maximizing your business’s value. You need to focus on intrinsic value and create a business that is ready to sell. The more work you put into your value building, the more confident you’ll be at the negotiation table. Links and Resources: GEXP Collaborative Corporate Value Metrics Ken’s email address508-870-5805 About Ken: Ken Sanginario is the Founder of Corporate Value Metrics, creator of the Value Opportunity Profile® (“VOP®”), and developer of the prestigious new Certified Value Growth Advisortm (“CVGAtm”) training and certification program. Ken has more than 30 years of experience providing executive leadership and strategic advisory services to private middle market companies, developing and executing business improvement initiatives, turning around distressed operations, managing M&A transactions, valuing companies, and securing equity and debt growth capital. He is an instructor in the training and certification programs of the Alliance of M&A Advisors, Pinnacle Equity Solutions, and the Exit Planning Institute, teaching about business value growth in each program.  He also serves on the advisory board of the MidMarket Alliance as its educational leader, and serves on the Boards of Directors of several privately held companies. Ken is a frequent speaker at national and regional conferences and private business owner functions, and has authored numerous articles on business value growth, corporate valuations, mergers & acquisitions, and turnaround management.  He is also the Board President of Solutions at Work, a charitable organization focused on breaking the cycle of recurring poverty and homelessness. Ken’s credentials include: CVGA (Certified Value Growth Advisor); CM&AA (Certified M&A Advisor); CTP (Certified Turnaround Professional); CPA (Certified Public Accountant); ABV (Accredited in Business Valuation); CVA (Certified Valuation Analyst); MSF (master’s degree – finance); MST (master’s degree – taxation)

Matt Boettner is the CEO and President of All Safe Global, a compressed gas company. Matt came into the business in 2009 and bought it from his brother in 2013. Matt shares his story about approaching his brother about joining the company. He came into the company with the mutual understanding that he would buy the company. Matt studied the art of the deal at brokerages he worked for and learned how to build a complex deal structure that benefits everybody. We discuss some of these lesser-known equity tools and how Matt used them to create his deal with his brother. We also discuss the future of All Safe Global and what Matt gives advice for business owners considering finding equity partners. What you will learn: Matt’s first attempt and failure in the tech sphere. What he learned from this failure. The lessons learned from his jobs afterward. What he learned from his time at a brokerage firm. Matt’s opinion about brokerage firms and how to find a good one. Matt’s time with WinMark. How he became involved in All Safe. A brief history of the company. Why Matt saw opportunity in the compressed gas industry. The beginnings of the deal structure he made with his brother. The methodology they agreed upon. How Matt’s M&A background came in handy. The capital stack they agreed upon. The types of debt that are available. Why debt can work well for a company. The levels of debt Matt used in his deal with his brother. The importance of an intercreditor agreement. Matt’s strategy to repay his creditors. Why you need a cushion in a deal. How Matt found equity partners. Lenders are not one-size-fits-all, do your homework. Matt’s goal for his business in 2019. The importance of good financial records. Takeaways: There are tons of tools out there to create a deal structure. As a business owner, you need to know about those tools. Understand what options are available to you and create a deal structure that suits your situation. Links and Resources: GEXP Collaborative Matt on LinkedIn About Matt: Matt Boettner began his career in the tech industry. After his first company failed he embraced his talent for financials. He learned how to structure deals at a mid-market brokerage firm and became quite comfortable with complex deal structures. In 2009, Matt joined his brother at All Safe Global. He came into the business with the understanding he would buy his brother out. In 2013, that buy out went through. Matt is an accomplished leader with experience in start-up, private and public company roles. He is an expert in general management and leading growth initiatives for mid-size operations. He has experience with leading acquisitions, IPOs, business valuations and public/private company debt and equity financing.

Stephanie Breedlove was the CEO of a payroll and tax accounting firm for households. The focus of their company was families that wanted to legally pay their nannies and caregivers of elderly family members and have a reliable system for it. This new market took off and the company grew to impressive numbers. After 25 years, Care.com approached Stephanie about purchasing her business. She takes me on that emotional journey and gives some great insight on how the process worked. She is very open about the financials of the business. One of the most open guests I have ever interviewed. Stephanie tells me how she and her husband saw a need for what was at the time a novel industry. This episode is a great look into the nuts and bolts of merger and acquisitions and what it really takes to do it right. It is also a great example of even if you do put in the work, there will still be snags and problems that come up along the way. Stephanie shares how she navigated those and why she’s glad she took the time to know what she needed from the sale for herself and the good of the company. What you will learn: Stephanie’s background in business and entrepreneurship. The beginnings of her payroll and tax firm. The 2 year, 4 month growth trajectory and bringing Stephanie’s husband into the business. How they found their first clients. Switching their mindset from “small firm” thinking to “big business” thinking. How Stephanie and her husband learned about their industry and market trends. Why “what-if” talks were beneficial to Stephanie and her husband when discussing the future of the business. How they went about preparing the company for growth. The conversations Stephanie and her husband had before going to market. Why they decided to sell. How emotion and ego can ruin a deal. The relationship with Care.com and how the sale negotiations started. Why Stephanie and her husband didn’t tell their executive team about the sale. The team of advisors that Stephanie took into her negotiations. The start and stop talks with Care.com and how Stephanie handled it. The hang-ups that stalled the sale and how they were resolved. What it was like to work for Care.com. The positive effects of Stephanie’s earn-out and why it was good for the company. Stephanie’s book All In. What she does now to keep busy. The natural high of entrepreneurship. What’s next for Stephanie? Takeaways: Stephanie is a rock star example of how to do a merger and acquisition right. Even if you are well versed in business, it still important to keep learning. Figure out what you want from your business and what you would want from a sale of that business and you will be better prepared for the process. Keep in mind, even if you do put the time in and do everything right, there are going to be hiccups along the way. That’s just reality. Links and Resources: GEXP Collaborative All In: How Women Entrepreneurs Can Think Bigger, Build Sustainable Businesses, and Change the World by Stephanie Breedlove Stephanie on Twitter Stephanie’s website About Stephanie: Stephanie is an authentic voice for women entrepreneurs. She has been walking the walk of a successful entrepreneur for over twenty years. After launching a career in corporate America with Accenture, she found her true calling as co-founder and CEO of Care.com HomePay (previously Breedlove & Associates), the nation’s largest and most comprehensive household payroll and tax firm. Her startup grew to national leadership, was later acquired for more than $50 million, and plays a vital role in the quality and professionalism of the in-home care industry. Breedlove and her husband founded and self-funded their entrepreneurial endeavor with no prior experience running a business. During the journey of building a company, she also built a life that integrated family and business as complements, not competitors, to one another. To create the life she desired, she often found herself at major crossroads—the kind that alter the direction and outcomes of life and require you to go all in to get to where you want to go.

Today’s episode is a change of pace. I recently did an interview with the Quiet Light Podcast and I wanted to share it here. The founder of the Quiet Light Brokerage, Mark Daoust speaks to me about my experience with selling our family business and what I learned from the process. Specifically, we talk about strategic sales. I have learned a lot about building a good pitch for a buyer and I share that with Mark. If you aren’t familiar with my story and the path that led to Life After Business and GEXP Collaborative, this episode will answer a lot of your questions. What you will learn: My entrepreneur journey and joining my dad in the family business. The reasons people leave money on the table during a deal and how to avoid it. Why due diligence is so important and will kill any deal if done wrong. Strategic sales vs. marketplace sales How to think like a buyer and present your best pitch to a potential buyer. How to get your financials and value adds in perspective for the buyer. Know your market and be proactive in finding potential partners and buyers. The pros and cons of strategic sales. The circumstances when a strictly financial sale makes more sense. Good growth strategy is good exit strategy. The importance of having a great team of advisors. Takeaway: I really enjoyed my time on the Quiet Light Podcast. Mark and his team are really good at what they do. You can contact them through the Quiet Light Brokerage site which is down in the resources section. You can also reach me through LinkedIn and the resources I gave Mark during our interview. Just check out the resources section below. Links and Resources: GEXP Collaborative Life After Business Podcast Quiet Light Brokerage Quiet Light Podcast Me on LinkedIn (In case you want to feature Quiet Light Brokerage and/or GEXP Collaborative) About GEXP Collaborative: Ryan, Brandon, and Jim met at a National Exit Planning Conference. We hit it off with a shared extreme passion to change the way business owners look at the growth and exit of their company(s). We come from different backgrounds (Entrepreneur, M&A Attorney and Investment Advisor) but hold the same belief that the advice that business owners receive is fragmented and doesn’t align in a comprehensive plan. We created the GEXP Collaborative™ to bring together an ecosystem of different skills and perspectives to ensure that each business owner that we work with achieves the successful growth and exit of their businesses.  From experience, we provide our business owner clients with recommendations based upon good judgment to achieve their objectives. About Quiet Light Brokerage: Late in 2006, Mark Daoust, received a call from a good friend and fellow entrepreneur who was considering selling his 8-year-old web hosting website. Just 10 months prior Mark had sold his own profitable website and was looking for a new direction. Quiet Light Brokerage was founded with this phone call. A lot changed since that first phone call in 2006. Today, entrepreneurs recognize Quiet Light Brokerage as a leading voice and authority in the emerging niche of selling and buying profitable websites. Today, over 500 websites have been sold and Quiet Light has over $100,000,000 in total transaction value. Even though they are recognized as one of the most successful website brokers in the marketplace, they still take an attitude of continual improvement to their processes.

Colin Engstrom is my guest today. Colin is the former owner of a Bozeman, Montana commercial cleaning company. He bought the company off of Craigslist and took a disassembled business and grew it to forty-three employees.  He also made some crazy profits with the company. Colin and I discuss how he grew the company and the goals he had at the beginning. He explains why he sold the company and what he learned from the process. Colin is genuinely curious about entrepreneurship and asks some great questions. He has learned some helpful lessons and he is still willing to learn more, this was a really fun interview. What you will learn: Colin’s move to Bozeman. How Colin found his cleaning business on Craigslist. How buying from Craigslist worked. Colin’s goals for the business in the beginning. How he structured his company. How Colin grew the business. Colin’s ideal employee. How Colin dealt with clients. Why Colin decided to sell the business. Why he didn’t try outsourcing. Why Colin wishes he hired a broker. What he would have done differently. The factors Colin will consider with his next deal. Should you tell the employees? Colin’s advice to the audience. Takeaways: If you know you want to sell, know your exit options, growth possibilities, financial targets., and how to maximize your company. Then hire the right people to make it happen. Links and Resources: GEXP Collaborative 617-710-1660 — Colin’s phone number Colin’s email About Colin: Colin Engstrom is the previous owner of Elite Commercial Cleaners in Bozeman, Montana. He purchased the company in 2014 and sold it in 2018.  Colin studied finance at Bryant University and is continually learning more about entrepreneurship every day.

Alex McClafferty moved to the U.S. to join WP Curve in 2013. He poured his heart and soul into the company and grew the company to incredible heights. Slowly Alex and his business partner went their separate ways and GoDaddy came a-courting. Alex describes what it was like to sit down with one of the biggest companies in the internet space. He also goes into how he approached such a big deal and when it was time for him to move on. Alex left a lot of money on the table when he left GoDaddy. He explains why he left and what he would say to other people in a similar situation. What you will learn: Alex’s early career and move to the U.S. How Dan and Alex built WP Curve. When to dissolve a partnership. Alex’s advice for people having partner issues. How Alex prepared for his meetings with GoDaddy. The importance of building a great M&A team. How Alex worked with GoDaddy to make the deal go smoother. The ups and downs of M&A. Why Alex exited GoDaddy before his earn-out was completed. The 2 questions you should ask yourself before changing jobs. Alex’s final thoughts. Takeaways: Alex took a lot of risk with his deal with GoDaddy. If you do your homework and prepare for the meetings you will walk away with a better deal and relationship. If you ever decide to walk away from a business deal, make sure you really consider what you are doing and why you are doing it. Links and Resources: GEXP Collaborative Productize.co Alex’s email About Alex: Alex McClafferty coaches founders of SaaS & productized service companies. In 2013, he joined WP Curve when the company was doing $478 in monthly revenue. By 2015, the company built a remote team around the world and grew revenue to $1MM ARR. In December 2016, GoDaddy acquired WP Curve. With the help of a rockstar team at GoDaddy, the WP Curve team, rebuilt and then relaunched the product as WP Premium Support. Alex left GoDaddy in 2018 to pursue business coaching full-time.

With 2018 coming to a close and the Life After Business podcast in the middle of it’s second year, I figured it was time for an update on how the podcast has been doing and what my favorite episodes were in light of our 5 Growth and Exit Planning Principles. Podcast stats and updates as of Dec 2018: 125 episodes have been recorded A new episode has been launched each week since mid 2016 200,000 total downloads since I started the podcast Life After Business averages 4,000 downloads per episode ZERO marketing dollars have gone into the podcast… it’s been all organic sharing and subscribing! It’s on on the major channels iTunes Google Play Spotify Sticher If you are interested in interviewing for one of the 5 individual consulting engagements I am opening up for 2019, you can schedule your interview here using my calendar link – SCHEDULE NOW The 5 Growth & Exit Planning (GEXP) Principles: Episodes to listen to in each of the 5 GEXP Principles: 1.) Your Vision Employees Are What Make a Company Valuable Build a Platform and Run the Business like You Are Selling Tomorrow 2.) Financial Targets How Much Do You Need to Sell Your Company for? The Goal: Lifetime Cash Flow Business Valuations: Deep Dive with a Certified Business Valuator Taxes and Selling a Business: How to Calculate Net Proceeds 3.) Exit Options Private Equity Recapitalization: How it Works Building a 134-Year-Old Company Using The Purest Form of Capitalism Why You Should Sell The Family Business 4.) Growth & Value Drivers 8 Ways to Increase The Value of Your Business Valuing a Business: The Buyer’s Perspective (Part 1) How EOS® and Traction® Can Help You and Your Business 5.) Team of Advisors How to Hire an Investment Banker to Sell Your Company How Much Do You Need to Sell Your Company for? The Goal: Lifetime Cash Flow Business Valuations: Deep Dive with a Certified Business Valuator Taxes and Selling a Business: How to Calculate Net Proceeds How to Play the M&A Game: De-Risking, Building Value and Selling a Company Protect the Value of Your Business: How to Use Insurance In Your Exit Plan

Tom Heller is a former business owner who reached out to me on LinkedIn. He joins me to tell me about his purchase and sale of his printing company. We discuss how he became an entrepreneur,  how he found the company that would become the core of his identity, and how he began to untangling himself from the business to sell it. Tom’s story is a really common story and he is a great example of how to move forward after your sale. He shares how his life has changed and what he would suggest to lifetime entrepreneurs looking to make the transition out of the daily grind. What you will learn: Tom’s background in marketing. The growth process of Tom’s business. The pros and cons of sudden business growth. The mistakes Tom made at the beginning of the business. Why you need to include an attorney in your business. The importance of embracing who you are in your industry. Why Tom decided to exit his company. The struggle of being professionally unemployable. Why there is no set equation to calculate the value of your business. Why Tom used a value-based price system. Tom’s due diligence process and lessons from it. How Tom dealt with his role change within the company. How Tom transitioned out of the company. Tom’s new life and future plans. Takeaway: When you decide to sell your company, think 1-4 years ahead so you can place your business in a favorable position to sale. To get the best deal and outcome from a sale, you need to be mindful of what you are doing now and how it will affect your company down the road. Links and Resources: GEXP Collaborative Tom on LinkedIn Implementing Value Pricing: A Radical Business Model for Professional Firms by Ron Baker About Tom: Tom Heller has been working in the communication field for more than 20 years. He is a resourceful leader, visionary, entrepreneur, and creative thinker. He has worked with some high profile clients and built some genuine goodwill with clients and stakeholders alike. Tom studied design and visual communications at the University of Minnesota and marketing at the University of St. Thomas. He was the owner of Soulo Communications and exited the company as the executive account director. Currently, he is a martial arts instructor at his local YMCA and is active in his church. He is now the director of marketing for Nativity Lutheran Church and has plans to use his experience and talents to benefit the church and his community.