Intentional Growth

Mike Mooney, the author of Reputation Shift joins me today to discuss something that affects all of us. Reputation. We discuss how your reputation affects your business, your sale prospects, your future connections, and a ton of other things you don’t think about. Mike defines what reputation means to him and how you can be more aware of your own reputation. What you will learn: Mike’s background in the motorsports industry. The generational attitude toward reputation and the impact of social media. Mike’s definition of reputation. The 2 keys to reputation. The Reputation Equation. How to consciously build your reputation. The 3 steps to designing your reputation. How to be proactive in your reputation building. Why you need to manage your reputation yourself. Takeaways: As the leader of your company, you need to be mindful about how you treat people. Your business culture reflects on yours and your company’s reputation. Be positive, be authentic, and be proactive in creating a reputation you want. Links and Resources: GEXP Collaborative Mike on Instagram Mike on Twitter Mike on LinkedIn Mike’s website Reputation Shift: 5 High–Performance Truths for Success by Mike Mooney About Mike: He has developed a trusted reputation over the last 25 years at senior-leadership posts in the fast-paced and high-profile world of motorsports where he delivered dynamic business results and – more importantly to him – nurtured long-standing relationships. Having led numerous crisis and reputation management efforts over his career, Mike is a go-to resource for those in repair mode, but also those wanting proactive-branding and business-driving strategies. Mike’s experiences in motorsports led him to write the acclaimed book Reputation Shift – 5 High-Performance Truths for Success.  The book delivers actionable strategies and step-by-step plans for readers to protect, harness, and strengthen one of their most valuable and precious assets – their reputations! Mike is a graduate of Elon University where he earned a degree in Corporate Communications and where he was lucky enough to meet his future wife. He, his wife and three children live in Charlotte, North Carolina.

Walker Deibel began his entrepreneurial journey like a lot of us, with a startup. But by 2004 Walker had found a far more effective business model called acquisition al entrepreneurship. During today’s episode, Walker tells me how he stumbled onto acquisitional entrepreneurship. We also discuss what he looks for in a potential purchase. He promotes his book on the subject Buy Then Build: How Acquisition Entrepreneurs Outsmart the Startup Game and shares what he hopes to create from it. What you will learn: Walker’s business background. Why it is harder to build a startup from scratch. The 3 types of startup entrepreneurs and the difference between them. What is an acquisitional entrepreneur? The 4 types of businesses in the Acquisitional Entrepreneur Matrix. Why Walker likes to focus on online businesses. Why you shouldn’t assume a business’s circumstances till you get all the information. How to recognize opportunity and take advantage of it. The lessons Walker learned from the sell of his first company. Why you need to sell your business before it peaks. The types of businesses that Walker really likes to buy. Takeaways: Your business looks totally different to a buyer. Go online and check out a broker’s site. Get a feel for your current market and see your company from the buyer’s perspective. You will see so many opportunities for value building and growth. Links and Resources: GEXP Collaborative Buy Then Build: How Acquisition Entrepreneurs Outsmart the Startup Game by Walker Deibel Buythenbuild.com About Walker: Walker Deibel is an acquisition entrepreneur. He has co-founded three startups and acquired seven companies. Walker is the Managing Director for Centra, which currently owns and manages three companies. In addition,  Centra is a partner in over a half dozen firms covering: distribution, manufacturing, education, childcare, film, and television production, enterprise Software, online content, and eCommerce. Walker is the bestselling author of Buy Then Build: How Acquisition Entrepreneurs Outsmart the Startup Game He holds an MBA from the Olin School of Business at Washington University in St. Louis where he received the Declaration of Accomplishment in Entrepreneurship from the Skandalaris Center of Innovation and Entrepreneurship. He is a Certified M&A Advisor, former SEC licensed stockbroker, and helps online entrepreneurs exit their firms as an advisor. Walker has produced almost a dozen films and had premieres at some of the world’s most esteemed festivals, including Sundance, SXSW, and Toronto International Film Festival. He lives in St. Louis, Missouri with his wife and their three children.

Dr. Tom Deans and I discuss a topic that is way too common in the business world. Gifted family businesses. This traditional approach to business is still very much alive and well, but Tom is of the opinion it is a practice that needs to die. The author of Every Family’s Business is a firm believer that every business should be sold, including to family members. Tom presents a logical and compelling argument that business owners need to get out of their own way and allow their company to go to market. Buying your family company is a much healthier model that makes sure that the right people own and run the company.  Tom defends his position and explains how he came to his opinion. What you will learn: Tom’s professional background. Why the book is considered controversial. The 2 camps that have the strongest resistance to Tom’s message. The typical family business story and what’s wrong with it. Why Tom joined his family business. The importance of family meetings and open conversations. Tom’s goal for the book. How to redefine the term “legacy.” Lessons all aging founders need to take away from Tom’s book. How to discourage family animosity and misunderstanding. Tom’s second book, Willing Wisdom. The conversations every family needs to have regarding the business. How to run a family meeting. Give your family the freedom to be themselves. Takeaways: Sit down with your family and have a family business meeting. Discuss all the financial stuff, all the past and current disagreements, and just try to get to an open and healthy place. For the sake of your family and the business. Links and Resources:   GEXP Collaborative Every Family’s Business website Willing Wisdom website About Tom: Tom Deans Ph.D. is the author of Every Family’s Business: 12 Common Sense Questions to Protect Your Wealth, selected by the New York Times as one of the Top Ten Books Business Owners Should Read. With more than a million copies in circulation, Every Family’s Business is the best-selling family business book of all-time. The sequel, Willing Wisdom is also an international best-seller that answers the question “How prepared is your family to inherit?” His research and thought leadership on the subjects of wealth transfers, preparing heirs and family dynamics has made him an in-demand speaker. Since the release of his first book in 2008, Tom has delivered more than 1000 paid speeches in 20 countries. He has also provided advanced training to advisors employed by the world’s largest financial institutions, law firms, and accounting firms. His thought-provoking and contrarian approach to business succession planning and family wealth transitions leave audiences motivated to take action and to work closely with their advisors. Dr. Deans is also the Founder of the Willing Wisdom IndexTM a new digital client engagement tool for advisors to use with prospects and clients to answer the question: “How Prepared is Your Family to Inherit?” The Willing Wisdom Index is offered as a subscription service to advisors who want to build a bridge to the next generation of inheritors. It is also used by advisors as a sales wedge to pry HNW clients from advisors who offer no estate planning support. For more information on the Willing Wisdom IndexTM, visit www.WillingWisdomIndex.com Dr. Deans is a frequent guest commentator on the subjects of business succession planning and intergenerational wealth transfers. He has appeared on all major national TV and radio news shows and has been featured in the New York Times, Entrepreneur, Inc, Fortune, and the Wall Street Journal.

Today I am joined by Dave Kauppi, an investment banker with MidMarket Capital. We discuss the technology/software industry and what makes it different than traditional companies. Dave specializes in M&A (mergers and acquisitions.) He explains how he got into the tech industry and shares some examples of deals and business models he has seen over the course of his career. We explore what makes a company worth the investment to a buyer and how you can make sure you use that value to your advantage. It is very important that you do the due diligence for your company so you know what makes you different and how that difference can be leveraged. What you will learn about this episode: Dave’s career background. Who MidMarket Capital serves. How the tech industry has changed over the years. The pros and cons of the recurring revenue model. How to convert your company to a recurring model. Companies that are accidental software providers. How the market dictates the value of a software company. Common contingents that are included in tech company sale deals. Dave’s Kindle book. Dave’s tips for negotiating with experienced buyers. Dave’s parting words for the audience. Takeaways: It is very important that you keep an eye on the big picture. You need to know what makes you different in your field and how that is valuable to a potential buyer. Then you need to use that value to negotiate terms that are also good for you. Create a business that is sellable and can go on without you and educate yourself about your industry market. Links and Resources: Selling Your Software Company: An Insider’s Guide to Achieving Strategic Value by Dave Kauppi MidMarket Capital GEXP Collaborative Dave’s email269-231-5772 About Dave: Dave began his Mergers & Acquisitions practice after a twenty-five-year career with a Multi-Industry background that included banking, high tech, and services. While in the leasing industry he gained a reputation for “finding a better way” through creative deal structure. During one fiscal year, Dave’s region successfully negotiated over $200 million in financing transactions. He was instrumental in negotiating three multi-million dollar strategic partnerships in the service industry and launched and managed a very successful division. In his M&A practice, Dave has completed transactions that range from succession planning exits to finding strategic buyers for healthy, rapidly growing companies seeking a partner to provide scale, to division divestitures, to troubled companies. His career focus has been in sales and sales management and he has received numerous awards for sales excellence. He brings his strong negotiating and facilitating skills to his practice, successfully managing transactions to a win-win result. Dave graduated from The Wharton School of Business, the University of Pennsylvania with a BS in Economics with a concentration in Finance. He received an MBA with a concentration in marketing from DePaul University. Dave is a Certified Business Intermediary (CBI), a licensed business broker, and a member of IBBA (International Business Brokers Association) and the MBBI (Midwest Business Brokers and Intermediaries).

ITR Economics’ senior consulting advisor Alex Chausovsky speaks to me today about the current and possible future U.S. economic predictions. We discuss the slow down on its way during the 2020s and the chance of depression in the 2030s. Alex explains why he believes these trends are possible and what a business owner can do to be prepared. Alex explains how ITR gets their data and what services they offer their clients. These services include consulting, market forecasting, and public speaking. What you will learn: My visit to the Vistage Summit. Welcome, Alex Chausovsky to the podcast. Alex’s business background. ITR Economics’ mission. How ITR collects their data. The current state of the economy and what to expect in early 2019. The economic slow down of the 2020s. The economic crash of the 2030s. Why recession cycles are predictable. How trade policy affects the economy. The 3 factors that drive an economy. Why immigration is important to the U.S. The industries that are suffering at the moment. The reasons a depression or recession happen. Why timing is everything. Recessions are times of opportunity. How other global economies affect our economy. The steps that can extend government programs such as social security. How healthcare contributes to the problem. “People behave the way they are incented to behave.” Alex’s parting thoughts. Takeaway: You need to build your business to sell. Think ahead and plan for economic downturns, upswings, and be a step ahead of any predictions. Learn to be nimble and adjust with the economy. Links and Resources Big Debt Crises by Ray Dalio GEXP Collaborative How The Economic Machine Works by Ray Dalio Summary: Factfulness: Ten Reasons We’re Wrong About the World–and Why Things Are Better Than You Think by Hans Rosling Prosperity in The Age of Decline: How to Lead Your Business and Preserve Wealth Through the Coming Business Cycles by Alan Beaulieu & Brian Beaulieu             Vistage Summit Alex on Twitter Alex on LinkedIn ITR Economics Alex’s email About Alex: Alex Chausovsky is a highly experienced market researcher and analyst with more than a decade of expertise across subjects including macroeconomics, industrial manufacturing, energy efficiency, automation, and advanced technology trends. He has consulted and advised companies throughout the US, Europe, Brazil, China, and Japan for the last 15 years. Alex is currently responsible for providing reliable industry and company forecasts, presentations, webinars, and economic consulting services for small businesses, trade associations, and Fortune 500 companies across a spectrum of industries. In his prior role, Alex led a group of analysts covering the industrial manufacturing domain. He was also the lead analyst for 3D printing at a major international firm. Alex regularly delivers keynote addresses at leading industry conferences and association events.

Tom Stewart is the Executive Director of the National Center of the Middle Market. He joins me today to talk about the silent majority of middle market companies in the economy. Tom and his team research a segment of business that little is known about. Through this research, the Mid Market Center has found critical data that all business owners should know about their company. Tom and I discuss the 7 factors of growth, the 3 types of entrepreneurs, and the 9 value points that all businesses need to consider when they are assessing their company. Tom explains the methods that lead to this information and how business owners can benefit from the data collected. We also dive into a study Tom was recently involved in regarding M&A (Mergers & Acquisitions) and the information gleaned from it. If you are a middle-market company or you have hopes to be one someday this episode will offer a roadmap for your business growth. Tune in to hear how you can use this data to take your business to the next level! What you will learn: What is the National Center of the Middle Market? Who is the “middle market?” Tom’s background in business. Why middle market companies are important to the economy. The 3 purposes of the Mid Market Center: Education, Research, and Outreach. How innovation happens in business and what does the middle market have to do with it. The importance of having this knowledge about your company for investors. The cluster analysis and surveys conducted by the Mid Market Center. The 7 Factors of Growth. The 3 Groups of Leader Types. The 2 factors that are uncontrollable by management. A recent M&A study and the findings. The 9 value points of fitness for a company. Tom’s final thoughts. Takeaway: Take advantage of all the resources GEXP Collaborative and the National Center of the Middle Market have to offer. This data is a playbook for business growth. Pay attention to the 7 growth factors, which type of entrepreneur you are, and look at all 9 of the value points mentioned today. This information is important for a healthy growth strategy. Links and Resources: GEXP Collaborative Tom Stewart on LinkedIn The National Center of the Middle Market About Tom: Thomas A. Stewart is the Executive Director of the National Center for the Middle Market, the leading source for knowledge, leadership, and research on mid-sized companies, based at the Fisher College of Business at The Ohio State University. Stewart is an influential thought leader on global management issues and ideas: an internationally recognized editor and publisher, an authority on intellectual capital and knowledge management, and a best-selling author. Before joining the National Center for the Middle Market, Stewart served as Chief Marketing and Knowledge Officer for international consulting firm Booz & Company (now called Strategy&), overseeing the firm’s intellectual agenda, major research projects, and strategy + business magazine. Prior to that, he was for six years the Editor and Managing Director of Harvard Business Review, leading it to multiple finalist nominations for a National Magazine Award. He earlier served as the editorial director of Business 2.0 magazine and as a member of the Board of Editors of Fortune magazine. His new book, Woo, Wow, and Win: Service Design, Strategy, and the Art of Customer Delight (co-authored with Patricia O’Connell), was published by Harper Business in November 2016. He is also the author of Intellectual Capital: The New Wealth of Organizations and The Wealth of Knowledge: Intellectual Capital and the Twenty-first Century Organization, published by Doubleday Currency in 1998 and 2003, respectively. He has contributed chapters to four other books and published articles in Harvard Business Review, strategy + business, Fortune, Business 2.0., Inc., Financial Times, The Hill, Industry Week, Ad Age, and elsewhere. A twelve-time participant in the World Economic Forum, he has delivered lectures and seminars across the U.S. and in more than two dozen countries worldwide. Stewart is a summa cum laude graduate of Harvard College and holds an honorary Doctor of Science degree from Cass Business School, City University London.

Michael Dash is the CEO and President of Parallel HR Solutions. He is a life-long entrepreneur and the ultimate example of just how messy a business partnership break-up can be. We talk about the early days of Parallel HR and how a six-month commitment turned into eleven years. Michael also tells me about how he got tangled up in a six-year lawsuit and nearly lost his sanity in the process. After discussing his fall, he shares how he found peace of mind again and changed his life for the better. Today’s episode is a cautionary tale about how to keep your ego in check and when to know to cut your losses. What you will learn: Michael’s business background. How Michael got into the staffing service business. The early years of Parallel HR and the move to Utah. How Michael and his partner structured the business. Why he decided to buy his partner out of the company. How the buy-out led to a lawsuit and a counter lawsuit. The danger of emotional decision making. The 2 people not to ask advice from during a lawsuit. How flow consciousness helped Michael make positive changes in his life. The importance of small changes. The power of positivity. How the six-year lawsuit was settled. Michael’s future plans moving forward. The 5 principles of activation. Michael’s final thoughts. Takeaways: Make sure your business structure is set in stone. Have the hard conversations and discuss how a big business change will be handled before tempers flare and lawyers are called. Avoid ambiguity and lay it all out in the beginning. Keep your ego out of business decisions. Logic is the key to running a business, know why you are in the business and keep the why in mind so you don’t get sidetracked by personal feelings. Links and Resources: GEXP Collaborative Ignite Journeys Michael’s Thrive Global Articles FATE: From Addict to Entrepreneur Michael Dash on Instagram Michael Dash on LinkedIn Michael Dash on Facebook Michael Dash’s website About Michael: Michael grew up in a small town in New Jersey where he developed his passion for entrepreneurship while working with his father. Michael learned the value of hard work and the importance of a strong worth ethic during this time. He went on to study at the University of Maryland. He began his career in sports advertising and soon began working with a childhood friend in the staffing business. In 2007, he followed a  business opportunity to Utah. This was the birth of a thriving technology talent acquisition firm called Parallel HR Solutions where he is the CEO and President. Michael is also an active community member and philanthropist. He supports and is a member of the Leukemia Lymphoma Society’s Team-in-Training fundraising group. He is also a part of several national organizations such as Young Entrepreneur Council (YEC) and The Founders Organization. He has plans to finish his book Chasing the High early next year.

This episode concludes my 3 part series on evaluating your business. To recap, my first episode on this topic was about improving the value of your business. Brandon Hall discussed his experience with business valuations and why they are important. The second episode featured Ryan Turbes, Ryan is a CPA who painted a realistic picture of payout and what a buyer looks for in a deal. This episode focuses on value building and the 8 key value drivers that buyers consider when purchasing a company. John Warrillow returns to my podcast to explain the value builder system and how it streamlines the due diligence process. There are a ton of resources and tools we will share with you during this episode, so tune in to learn how to create a clear roadmap to getting the best price possible for your business. What you will learn: A recap of my business evaluation series. The importance of creating a company that will run without you. John’s background in business. The beginnings of The Value Builder System company. What his company does. The Built to Sell podcast. The Value Build survey and what it means for your business. John’s typical customer. Industry standards have nothing to do with company value. The 8 key drivers the Value Builder System uses. What to fix first based on your value builder score. Why earn-outs are an imperfect tool. What are vendor take-backs and how do they work? The benefits of a high value builder score. The cash flow teeter-totter and how it affects a deal. How to find recurring value in your business. What is monopoly control? John’s advice on how to avoid shiny object syndrome. John’s parting words for the listeners. Takeaway: Obviously, you need to get your value builder report and see the areas your business needs to improve. Value builder reports are free, only take a few minutes to complete and give you a roadmap that will make your sales process smoother. Link and Resources Built to Sell Podcast GEXP Collaborative The Value Builder System John Warrillow on Twitter Built to Sell: Creating a Business That Can Thrive Without You by John Warrillow The Automatic Customer: Creating a Subscription Business in Any Industry by John Warrillow About John: John Warrillow is the founder of The Value Builder System, a company that helps business owners improve the value of their company. As of 2017, The Value Builder System has served 40,000 users. John is the author of the bestselling book Built to Sell: Creating a Business That Can Thrive Without You, which was recognized by both Fortune and Inc Magazine as one of the best business books of 2011. Built to Sell has been translated into four languages. John’s next book, The Automatic Customer: Creating A Subscription Business In Any Industry was released by Random House in February 2015. Prior to starting The Value Builder System, John started and exited four companies, including a quantitative market research business that was acquired by The Corporate Executive Board (NYSE: CEB) in 2008. John has been recognized by B2B Marketing as one of the top 10 business-to-business marketers in the United States. John was born in England and grew up in Canada. He now lives with his family in Toronto.

I continue my 3 part series on company valuation with a conversation with Ryan Turbes, the CPA manager for Boulay Accounting. The last episode we talked about certified valuations. Today’s episode focuses on how much you actually walk away with after a sale otherwise known as the net proceeds. Ryan is a numbers guy and he tries to make today’s topic accessible to the audience. We discuss the standard process Ryan and his team follow and the various caveats that pop up from time to time. He has worked both sides of the deal structure. so he shares what both the seller and the buyer are looking for during a negotiation. Net proceeds are a tedious journey and nobody gets their money upfront. However, Ryan can help you get a realistic picture of what to expect from your sale. What you will learn: Why Ryan chose to be an accountant. How the buy-side and sell-side differ. Why you need a transitional CPA for a business sale. What is EBITDA? The steps Ryan and his team follow in the early stages of negotiation. What is an add-back? When should you make changes to your business? How working capital affects the process. When not to use a 12-month revenue measurement. How to prepare for the net proceeds process. The variables that affect the deal structure. Why buyers want an asset deal. Why sellers want a stock deal. When to use a 338-H10. What is a waterfall? How installment payment agreements work. How earn-out agreements work. How employment agreements work. The importance of a good negotiation team and attorneys. The importance of a 1031 exchange. How the 2017 tax law changes have changed the sale process. Why you need to start planning early. Takeaway: The first thing you need to consider when planning to sell is how much money you will need in retirement. If you haven’t listened to my interview with Brandon Wood about lifetime cash flow, then check that out before you start. You’ll find more information on business value in my previous interview with Brandon Hall. Ask yourself what your business needs to be worth and take steps to get to that goal. There are a number of tools that can help you at least begin the important net proceeds conversation. You’ll find those resources on GEXP’s website. Tune in for my last installment of this series with John Warlow to get the full benefit of today’s episode. Links & Resources GEXP Collaborative Boulay Group Ryan’s emailRyan’s direct line – 952-841-3104 Basic Waterfall & Net Cash Proceeds About Ryan: Ryan is a manager at Boulay and is one of the leaders in the firm’s transaction advisory services practice. In addition to working with transaction services, he specializes in attest, tax, consulting and accounting services for clients in a wide variety of industries including construction, professional services, manufacturing, and insurance agencies. Ryan is proactive in helping his clients with their accounting needs and leads attest and transaction engagements. He prides himself on providing cost-efficient and practical solutions to his clients. He presents creative ways to help clients achieve their goals and make the right decisions. Boulay works with individuals, closely-helps businesses and publicly traded companies who are, or who aspire to be financially successful. Its focus is to protect its clients’ businesses, build their wealth and secure their future by partnering with them and integrating its depth of experience in accounting, tax and financial consulting services designed to “help them get there.”

Welcome to the first episode of my three-part series about evaluating your company. I start my series with Brandon Hall, the owner and founder of BGH Valuation. Brandon and his team access businesses so they can comfortably go to the negotiation table. We discuss how Brandon evaluated businesses and that means for the business owner and their company’s prospects. It is important for you to know your company’s worth. Brandon can help you get your numbers and be more confident when you approach buyers, loan officers, other legal processes (such as divorce.) What you will learn: The other guests I will be including in my 3 part series. Brandon’s beginnings in accounting and the beginning of BGH. Why people come to Brandon and his team. What is a certificated valuation? How technology has changed valuations. Common misconceptions about the process. Why people need valuations. How valuations are like investments. The role EBITA plays in a valuation. The two things owners need to consider during an evaluation. How the income method works. What to look at when comparing markets. The importance of defined end goals. Takeaways When you get an evaluation of your company, you need to consider your buyer’s point of view. Don’t make it complicated and know when to ask for help. Educate yourself on the process so you aren’t blindsided. Visit our GPX site for some resources and look into valuation. Links and Resources GEXP Collaborative BGH Valuations Brandon’s email763-777-7140 About Brandon Brandon Hall, the owner of BGH Valuation Services, LLC, resides in Monticello, MN with his wife, Gloria and four children Piper, Rowan, London, and Leo. Brandon worked for various small construction companies growing up and has always possessed an entrepreneurial spirit. Brandon received his Bachelor of Science in Accounting at Saint Cloud State University. Brandon started his accounting career in public accounting, where he worked for two firms over the span of 3 years providing tax and auditing services. Brandon then continued his career working for Polaris Industries, Inc. In his time there Polaris acquired 4 companies and Brandon had the opportunity to be involved with different aspects of the acquisitions. Brandon also worked at Best Buy Corporate where he provided accounting support for the Information Technology division. Brandon has obtained his Certified Valuation Analyst® Designation and is a proud member of the National Association of Certified Valuators and Analysts (NACVA). Brandon has also obtained his Certified Machinery & Equipment Appraiser Designation with Nebb Institute. Brandon also is a Certified Business Mentor with Score Mentors.  Brandon continues to enhance his status, credentials, and esteem in the field of business valuations, financial forensics, and other related advisory services. Brandon enjoys golf, hunting, sports, and spending time with his family.