Intentional Growth

I welcome Daniel Goldstein, the President and CEO of Folience, to the show. Folience is an investment firm that specializes in ESOPs (Employee Stock Ownership Plans). ESOPs are an intriguing business strategy that every business owner should consider. Daniel explains what ESOPs are and why they are a viable option for exiting founders. He has an impressive professional background and he has a unique perspective on ESOPs and family legacy businesses. Daniel outlines what Folience offers their clients and what they look for in the ideal candidate. What you will learn: Daniel’s banking background. Folience’s history and movement to ESOP. ESOPs are not socialist. How company boards operate in an ESOP. What does a trustee do for the board? The legal side of an ESOP. Folience’s goals for their partners. What does Folience do for their companies? How Folience is different from a private equity firm. How watching company demographics can cultivate new talent. When owners and employee owners get their payouts from the company. E stands for “engagement.” Why ESOPs have to pay fair market value and what that entails. What Folience looks for in a possible company partnership. Folience’s success to date. Daniel’s final thoughts. Takeaway: An ESOP is a serious option for business owners and should be looked into. GEXP Collaborative offers an ultimate guide about ESOPs. We also have a ton of resources for company owners who want to learn more about ESOPs. If you are interested in more information, reach out to me or the website. Links and Resources Daniel’s email Folience GEXP Collaborative GEXP Ultimate Guides About Daniel: Daniel Goldstein is President and CEO of Folience. He has 25 years of executive leadership experience that spans five continents and an irresistible wanderlust that’s carried him to more than 50 countries. It’s a spirit for exploration that’s essential as Daniel shares Folience with the world in his role as chief ambassador and educator. Daniel also guides investment strategy, which includes acquiring, integrating and advising each of the brands in the Folience portfolio.

The executive managing director of Watermark Advisors, Hagen Rogers tells me about his approach to M&A (mergers and acquisitions) counseling. He discusses the common issues he saw in the M&A process with is his clients. We explore how these issues changed his approach to M&A and what lead to Watermark’s service model. During today’s episode, we explain why M&A is like a bridge and how Watermark helps their clients across. The “bridge” model is a great visual and simplifies how the M&A process works. Tune in to learn how to cross the bridge and come out on the other side with a great deal and solid business relationship. What you will learn: Hagen’s background in corporate banking. What Watermark Advisors does for their clients. The problems buyers have during the M&A process. The problems sellers have during the M&A process. What are contingency fees? How to avoid these fees. Why people agree to contingencies. What is “the bridge?” The ulterior motives of small investment banking firms. The 3 phases of the bridge. How to make your company a “top athlete.” The 8 items that make a top athlete company. Why strategy is the most important. What is marketing positioning? Why timing is everything. The things that go wrong during the integration phase. How buyers erode a company’s potential. Why M&A is NOT like a marriage. Hagen’s parting words for the audience. Takeaway: Your company is like an athlete. You need to train for your company exit and you need a coach to get you through the process. That’s what Watermark Advisors or someone like them can do for you. Links and Resources GEXP Collaborative February Training (mentioned during the episode) Watermark Advisors Watermark Advisors on LinkedIn About Hagen: The more than 100 client assignments that Hagen Rogers has successfully completed in his 21-year investment banking career include sell-side, buy-side mergers and acquisitions, public and private capital financings, valuations, expert witness testimony, and fairness opinions. Prior to directing Watermark, Mr. Rogers served investment banking clients as Vice President at Wachovia Securities. He began his career with NationsBank in corporate banking and with Chase Securities in investment banking. He is a member of the Financial Executives Network Group. In addition, since 2007 Mr. Rogers has spoken nationally to hundreds of CEOs on the topic of “How to Win in Investment Banking Transactions,” in Atlanta, Birmingham, Greenville, Knoxville, Los Angeles, Louisville, Phoenix, San Diego, and Seattle. Mr. Rogers started Watermark Advisors in 2002.

David Mann is an expert storyteller. He helps companies identify who their customer is and how to communicate with that customer. So many businesses make the mistake of making their marketing and sales pitch about themselves. David proves that a potential client wants to know how you can help them and advance their business. We talk about how to craft your company’s story so that you have a clear vision of the company’s future. If you don’t know how you help the client, how can you help them? This approach also helps with potential exit strategies and finding strategic partners who will carry the business into its new phase without you. David’s technique sounds simple but it is a complex way of thinking that leads to some heavy conversations. If you are struggling to find your audience, David Mann can offer some clarity. What you will learn: David’s background in theatre. Why storytelling is effective. How products use storytelling to make a sale. Why it is hard to translate that method to a service provider. The two things your potential customer cares about. What is a story? How do you fit into the customer’s story? What makes a story good or bad? How to make the customer your main character. The importance of the first impression. How business exits and mergers change your company’s story. The benefits of a live presentation. How to structure the ideal presentation. Are you selling an experience? How your story influences the potential buyers you approach. The questions to ask yourself when creating your company’s story. The importance of an outside perspective during the process. Takeaway: Bottom line, figure out what your customer wants. Once you know what they want, you can meet that need and create a story that will show them that is what you do. If you understand their problem, you can be the solution to that problem. When you decide to exit your business, the problem will help you identify the right buyer for your company and offer a new era of success for the business after you are gone. Links and Resources GEXP Collaborative David’s website David’s email About David: David Mann brings his unique array of talents to every engagement. He’s a playwright, an actor, and a director. He has taught performance skills for 25 years. And for the past decade, he has made professionals across the nation more successful by sharing performance secrets with them. David has spoken at events for many Fortune 500 companies, he has conducted training seminars for corporations nationwide, and he has helped lawyers win millions for their clients – all by using principles he learned as an actor, director, and playwright. David has directed and performed in plays at such internationally recognized theaters as the Guthrie, the Children’s Theater Company, and the Great River Shakespeare Festival. He is a recipient of the Bush Artist Fellowship for Storytelling, and he currently directs classic plays for theaters in the thriving Twin Cities theater scene. A former high school teacher, David is committed to actually teaching his audiences and seminar participants rather than just offering a few glib, empty phrases. His speaking and training approach is based on proven education tradition; he wants his audiences to walk away and use the tools that same day. Because of that drive, he spends a lot of time in advance of the event getting to know the organizations he works with. He finds the exact intersection of their needs and his expertise to provide an inventive, unique, and instantly useful experience. David has a specialized focus on persuasive presentation and storytelling for lawyers. He is on the adjunct faculty of Loyola School of Law in Chicago and the National Institute for Trial Advocacy. He conducts CLE seminars through the Professional Education Group, and he acts as a storytelling and presentation consultant with private firms nationwide. David is based in Minneapolis, Minnesota.

Jennifer Fondrevay is the founder of Day One Ready, a consulting firm for business owners going through mergers and acquisitions. Jennifer specializes in keeping the human element of selling businesses in the forefront. Today, she tells me about her experiences with M&A and how she has met a need that many businesses don’t think about until after the fact. That need, of course, is keeping your employees and more importantly middle managers in the loop about their future with your company once it is sold. Jennifer is in the process of writing a book for these middle managers and other team leaders who may find themselves working for a merged company. It’s called Now What? A Survival Guide for Navigating and Thriving Through Acquisition. You will learn about: Jennifer’s background in advertising and marketing. How she got into M&A. Who her book is for and why she launched Day One Ready. Why M&A is important to a business. Why incorrect valuation is the main reason businesses fail the first year after a merger. The culture clashes that happen after a sale. Painting a clear picture of a company’s future is critical. How Jennifer provides transparency to the M&A process. The types of leaders you need to include in this process. Emphasizing how the employee fits into the new system. The stats of failure for an M&A business during the first year. The steps to considering people first. The importance of respect. Jennifer’s parting advice. Takeaways: The fact is your company will change after a merger. You need to ask the right questions and include the right people in your company to create a uniform and clear representation of how the business will change for the employees just looking for marching orders. If you show respect to your employees it will go a long way. Links and Resources: GEXP Collaborative Jennifer’s website Now What? A Survival Guide for Navigating and Thriving Through Acquisition About Jennifer: From working with a wide variety of Fortune 500 companies, start-ups, and small businesses, Jennifer has seen countless growth strategies fall short because a workforce cannot pivot to adapt to change as effectively as leadership anticipated. In hindsight, it’s easy to see why people strategies broke down, but by then it’s too late to intervene. Jennifer Fondrevay is the organizational transformation guru companies need to keep their growth strategies on track. While data is increasingly used to guide business decisions, Jennifer helps ensure the human component of a company’s plan, such as culture, productivity, and retention remains a cornerstone of success during times of change rather than an inhibitor. Serving as an advisor to senior leadership and a liaison to middle managers, she is a much-needed resource who guides companies safely through unfamiliar waters.

Brandon Wood is one of my partners in GEXP Collaborative. He has decades of financial experience and is a partner with Solidity Financial. Today’s topic is how to use your numbers to get the best possible exit option for your situation. Many business owners tend to forget that their business fuels their lifestyle. Brandon shares how doing the research and due diligence for your business will show you if your post-sale income will maintain your current lifestyle. He discusses how to calculate the value gap for your business and how to shrink it. We also discuss outsized returns and how they affect value gaps. Rushing to a sale is always a bad decision and Brandon helps us slow down and take the time to really be prepared for the negotiation phase. What you will learn: Brandon’s early career in finances. How risk drives the need for understanding your numbers. Observations Brandon has made about risk. What is value gap? How to cope with a large value gap. The factors you need to consider when calculating your business’s value. The process Brandon and his team take clients through for value calculation. The variables that will affect a business’s value. What are outsized returns? What outsized returns mean for a value gap. The problems that come up with a surprise offer. How to optimize your exit options. Takeaway: Understanding your numbers is one of the most important things you can do. To get what you want out of the exit, knowing your numbers will make your options clearer. Links and Resources: GEXP Collaborative About Brandon: Brandon leads the operations and project management teams for GEXP Collaborative™. His management experience spans two decades, where he has directed multidisciplinary teams in treasury operations, risk management, compliance oversight and financial modeling. He helps bridge the elite strategies of our GEXP design team with the personal financial dynamics of each client. Brandon is also a partner at the family office firm Solidity Financial.

Chris Steffl is the owner of MVP Service Solutions, an insurance wholesaler that offers 1000s of products from over 100 carriers. Chris’s background in insurance and finances gives him a unique perspective on the relationship between insurance and business. We discuss the common mistakes and problems business owners have when setting up their insurance needs. Insurance is a complex part of exit planning. Chris explains how insurance can make or break a deal structure. We explore the ways insurance can be used to build cash flow, reduce financial risk, and help your employees prepare for the next stage of the business. Insurance is a highly customizable aspect of a business. Chris shares how he helps business owners prepare for the worst and make the best decisions for their company. What you will learn: Chris’s background in insurance. The benefits of working with Chris and MVP. The most common problem Chris sees with clients. How to decide the value of your business. Why you should review your policy every two years. What is a key man policy? How disability insurance works. How to plan for being removed from a business. The benefits of term policies. How permanent policies work. What is a variable policy? What is guaranteed universal life insurance? Chris’s observations from the business. How insurance can be a retention tool for your employees. When can you deduct insurance from your taxes? Common insurance issues that come up during estate planning. Chris’s advice to the audience. Takeaway: Do you have a plan B? And if you don’t you should. Do you know what you want from your business? Does your insurance allow stability and lock in your key employees? These are all questions you need to ask yourself. Insurance is a customizable thing, but how can you customize it, when you don’t know what you want to achieve? Plan ahead and make sure to include everybody in the process. Links and Resources GEXP CollaborativeMVP Service Solutions About Chris: Chris is Executive the Owner at MVP Service Solutions, an insurance wholesaler with deep experience and resources. He provides highly specialized insurance solutions to business owners such as employee benefits, property and casualty, personal, life insurance and much more. For over 17 years Chris has been heavily involved in industry circles and is highly involved in the Insurance Industry Associations.

Chris Steffl is the owner of MVP Service Solutions, an insurance wholesaler that offers 1000s of products from over 100 carriers. Chris’s background in insurance and finances gives him a unique perspective on the relationship between insurance and business. We discuss the common mistakes and problems business owners have when setting up their insurance needs. Insurance is a complex part of exit planning. Chris explains how insurance can make or break a deal structure. We explore the ways insurance can be used to build cash flow, reduce financial risk, and help your employees prepare for the next stage of the business. Insurance is a highly customizable aspect of a business. Chris shares how he helps business owners prepare for the worst and make the best decisions for their company. What you will learn: Chris’s background in insurance. The benefits of working with Chris and MVP. The most common problem Chris sees with clients. How to decide the value of your business. Why you should review your policy every two years. What is a key man policy? How disability insurance works. How to plan for being removed from a business. The benefits of term policies. How permanent policies work. What is a variable policy? What is guaranteed universal life insurance? Chris’s observations from the business. How insurance can be a retention tool for your employees. When can you deduct insurance from your taxes? Common insurance issues that come up during estate planning. Chris’s advice to the audience. Takeaway: Do you have a plan B? And if you don’t you should. Do you know what you want from your business? Does your insurance allow stability and lock in your key employees? These are all questions you need to ask yourself. Insurance is a customizable thing, but how can you customize it, when you don’t know what you want to achieve? Plan ahead and make sure to include everybody in the process. Links and Resources GEXP Collaborative MVP Service Solutions About Chris: Chris is Executive the Owner at MVP Service Solutions, an insurance wholesaler with deep experience and resources. He provides highly specialized insurance solutions to business owners such as employee benefits, property and casualty, personal, life insurance and much more. For over 17 years Chris has been heavily involved in industry circles and is highly involved in the Insurance Industry Associations.

Jodi Nielsen and David Deshotels are Cost Segregation Services Incorporated team members. CSSI is a cost segregation firm. The company performs cost segregation studies for business owners to get the optimal value out of their business. Jodi and David join me today to tell me what cost segregation is and why business owners should consider it.  They have tons of examples and reasons for choosing the cost segregation model. They also have reasons for why not to do it. If you actually own your business’s building, cost segregation is a great option to pull value out of it. Jodi and David will tell how they can help. Today’s episode is a must-listen for any business owner with a building. What you will learn: Welcome, Jodi and David! What is Cost Segregation Services Incorporated (CSSI)? Why “friends don’t let friends overpay their taxes.” How will the new tax codes affect business owners? Why cost segregation is the best method of depreciation. Straight depreciation vs. cost segregation Why the government allows cost segregation. The strategies to reduce recapture. Why not to do cost segregation. Why a cost segregation study is a great negotiation tool. How cost segregation helps with the IRS. Jodi and David’s final thoughts. Takeaway: Teams like CSSI are useful to help you see the big picture. You need to know what you plan to accomplish from a cost segregation study. Everything CSSI looks at is connected, and the information they find for you is to your benefit. Links and Resources: GEXP Collaborative CSSI Jodi Nielsen – 651-210-1921 Jodi’s Email About Jodi: Jodi Nielsen is a National Sr. Account Manager with Cost Segregation Services, Inc.  (CSSI) Jodi offices out of MN. She oversees the Engineered based Cost Seg. studies for her clients. The studies provide an additional tax benefit for building owners by the acceleration of a building’s depreciation. Jodi provides 1 CPE credit courses for Tax professionals across the country educating them on Cost Segregation, Tangible Property Regulations, PAD, QIP, 45L and 179D. Working with all different types of building owners across the United States is her passion. Jodi provides clients with the incredible tax benefit to take advantage of, thru the defendable CSSI calculated study which is the IRS preferred method. Jodi has a bachelor’s degree in Nuclear Medicine. Her past positions have been as an Administrator of a Medical Clinic, co-owner of a shipping and packing company and a consultant for multiple businesses for strategic financial growth opportunities by creating cash flow. Jodi provides the complex information in an easy to understand format. Assisting owners to take advantage of the additional Cost. Seg. tax benefit opportunity, which enables them to be able to use their money to grow their business and make more money is a blessing she enjoys every day. About David: David is part of the CSSI team of presenters that host webinars and onsite presentations for CPA firms, as well as a coast-to-coast resume of invitations to address state and local tax societies on the Tangible Property Regulations. David’s unique perspective covers the opportunities to apply the Repair Regulations for a strategic advantage for existing and future clients. David’s association with Cost Segregation Services, Inc. started in 2006 and currently serves as Executive Vice President. David holds a degree in Mechanical Engineering from LSU and 20+ years in technical sales. His primary responsibilities involve sales and marketing initiatives for the implementation of cost segregation services and asset valuation studies to assist Tax Professionals in applying the Tangible Property Regulations. In his past experience, David was in front and behind the cameras as Public Affairs Specialist for the Corps of Engineers in New Orleans, La. after Hurricane Katrina. David worked with the national and international media and helped tell the story of the effects of the storm and the Corp’s process to rebuild the city’s hurricane protection system. David’s unique ability to take the complex and tell a meaningful story was evident in the broadcast and documentaries that he participated in. Those same talents serve him well in explaining to tax professionals the process of understanding and applying the Tangible Property Regulations. Whether a general overview to raise awareness or in-depth discussions on complex implementation strategies, David’s presentations have been well received.

My guest today is Scott Schwefel. Scott is a business coach, leadership, and team trainer. He has had a bumpy road during his time as a struggling entrepreneur. We talk about 3 of his businesses and how each one has taught him something about himself and the importance of good team dynamic and communication. Currently, Scott is a speaker who promotes the Discovery method of business management. He is a facilitator and an enthusiastic trainer of the Discovery system. Discovery is a communication method that he has found to be essential in team communication. We discuss why he so passionate about improving business culture and communication and how you as the listener can find the passion you need to keep a business going. What you will learn: Scott’s early days in college, and a change in career. The Pro Net Marketing experience and what it taught Scott. The importance of having a good spouse who will support your entrepreneurial dreams. Scott’s time in the food industry and what he learned. What it is like working with a venture capital investor. The mistakes Scott and his partner made in the food business. How to measure the value of a business when there was no profit. The beginning of Benchmark. Why Scott chose to go into a tech business. Knowing your team and the role you play within it. The 2000 tech crash and how Scott bounced back. How the Discovery method changed how Scott does business. How Scott rebuilt Benchmark. What Discovery can do for your business. What Discovery can’t do for your business. How to build a company that doesn’t need you. Why Scott loves what he does. The benefits of CEO peer groups. Scott’s advice for the audience. Takeaways: Today’s takeaway is all about passion and knowing why you are in your business. Do the work ahead of time and figure out why you want to own a business. When you know why you are running the business you can hire the right people and keep doing the things you enjoy about it. Know what you are passionate about and stick with it. Links and Resources: GEXP Collaborative Scott’s Ted Talk Discover Yourself Scott’s website About Scott: A serial entrepreneur, Scott founded and grew Minnesota’s largest technology training company to over $12 million in sales, and then sold the company in 2003.  His company was named one of the 50 fastest-growing private companies in Minnesota in 1997 and 1998, and he was named to Minnesota’s 40 under 40 list of successful top executives. Scott then founded and grew Insights Twin Cities to over $3 million in sales and sold it to Insights in Scotland in 2014. For over a decade Scott Schwefel has been speaking and teaching new communication strategies to companies and associations globally. He has presented in Paris, London, Amsterdam, Geneva and Shanghai and Kuwait, and he has also trained and coached over 1500 CEOs personally. He is a published author, has lived remotely with the Hadza and Maasai tribes in Tanzania, Africa and is a top-rated speaker for Vistage (More on Vistage), the largest membership organization of CEOs in the world.

[et_pb_section bb_built=”1″ admin_label=”section” _builder_version=”3.15″ custom_margin=”|0px||0px” custom_padding=”|0px||0px”][et_pb_row admin_label=”row” _builder_version=”3.15″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” custom_margin=”|0px||0px” custom_padding=”|0px||0px”][et_pb_column type=”4_4″][et_pb_text _builder_version=”3.15″ background_size=”initial” background_position=”top_left” background_repeat=”repeat”] My guest today is Scott Schwefel. Scott is a business coach, leadership, and team trainer. We talk about 3 of his businesses and how he sold 2 of them for over $1,000,000 (but not without a challenge or two) and how each one has taught him something about himself and the importance of good team dynamic and communication. Currently, Scott is living the life of his dreams as a speaker who promotes the Discovery method of business management. He is a facilitator and an enthusiastic trainer of the Discovery system. Discovery is a communication method that he has found to be essential in team communication. We discuss why he so passionate about improving business culture and communication and how you as the listener can find the passion you need to keep a business going. What you will learn: Scott’s early days in college, and a change in career. The Pro Net Marketing experience and what it taught Scott. The importance of having a good spouse who will support your entrepreneurial dreams. Scott’s time in the food industry and what he learned. What it is like working with a venture capital investor. The mistakes Scott and his partner made in the food business. How to measure the value of a business when there was no profit. The beginning of Benchmark. Why Scott chose to go into a tech business. Knowing your team and the role you play within it. The 2000 tech crash and how Scott bounced back. How the Discovery method changed how Scott does business. How Scott rebuilt Benchmark. What Discovery can do for your business. What Discovery can’t do for your business. How to build a company that doesn’t need you. Why Scott loves what he does. The benefits of CEO peer groups. Scott’s advice for the audience. Takeaways: Today’s takeaway is all about passion and knowing why you are in your business. Do the work ahead of time and figure out why you want to own a business. When you know why you are running the business you can hire the right people and keep doing the things you enjoy about it. Know what you are passionate about and stick with it. Links and Resources: GEXP Collaborative Scott’s Ted Talk Discover Yourself Scott’s website About Scott: A serial entrepreneur, Scott founded and grew Minnesota’s largest technology training company to over $12 million in sales, and then sold the company in 2003.  His company was named one of the 50 fastest-growing private companies in Minnesota in 1997 and 1998, and he was named to Minnesota’s 40 under 40 list of successful top executives. Scott then founded and grew Insights Twin Cities to over $3 million in sales and sold it to Insights in Scotland in 2014. For over a decade Scott Schwefel has been speaking and teaching new communication strategies to companies and associations globally. He has presented in Paris, London, Amsterdam, Geneva and Shanghai and Kuwait, and he has also trained and coached over 1500 CEOs personally. He is a published author, has lived remotely with the Hadza and Maasai tribes in Tanzania, Africa and is a top-rated speaker for Vistage (More on Vistage), the largest membership organization of CEOs in the world. [/et_pb_text][/et_pb_column][/et_pb_row][/et_pb_section]