AZ Tech Roundtable 2.0

McDonalds, Apple, Disruption, 80/20 - Best of Host Matt on Business Topics

- BRT S03 EP10 (109) 3-6-2022

Things We Learned This Week

• What Business Are You In? - McDonalds is a Real Estate Company

• Disruption in Business & Tech World - How to Handle The Innovator's Dilemma

• 80/20 Principle summed up is, 80% of outputs come from 20% of inputs – Focus on the 20%
• Steve Jobs 1997 Return to Apple – The Power of Focus & Simplify, Say No often, choose wisely

Seg. 1 of 2/9/20 show – MB on What Business Are You In? - McDonalds is a Real Estate Company

What Business Are You In? - McDonalds is a Real Estate Company

Replay Clip from 2/9/20, where Matt talks about the biggest franchise of all, and what their real business model is. McDonalds has built an business empire thru Real Estate, not burgers. 

The Dollar Menu is designed to get customers in the door. McDonalds loses $ when people purchase from the dollar menu, it is a Customer Acquisition Cost (CAC). This is also called a ‘Loss Leader’, selling a product at a low cost to get customers. McDonalds then makes money when people buy more, and off return business.

McDonalds is one of the biggest Real Estate companies in the world. The stock is valued on the $37 Billion in Real Estate they own. They make money as a landlord, because the franchisee is their tenant.

The Founder – business movie biography of Ray Kroc. Kroc started as a milk shake salesmen to the McDonalds brothers in California, then went on to create the franchise system we know today. The first President of McDonalds Franchise (Harry Sonneborn) helped Kroc create the real estate model that the franchise was base on, and used to scale to a billion $ company. Internally McDonalds used the Brother’s Speedee Service System created pre-Kroc.

The Question ‘What Business Are You In?’ comes from business consultant Peter Drucker. Business owners need to understand what problem or service they really offer their customers.

Ie – Starbucks is in the Customer Experience business, not coffee, but the atmosphere of drinking the coffee

Full Show: HERE

Seg. 1 of 2/16/20 show – MB on Disruption in the Business World – The Innovator’s Dilemma

MB on Disruption in Business & The Innovator's Dilemma book by Clayton Christensen

Clayton Christensen’s book, “The Innovator’s Dilemma”

Tech Disruption – technology changes and a small company startup can up-end big tech companies. Hence,  disruption - the power of disruption, why market leaders are often set up to fail as technologies and industries change and what incumbents can do to secure their market leadership for a long time.

Innovator’s Dilemma – how can big companies stay up with tech changes and pivot without hurting core business? All businesses (including tech companies) have trouble with disruption.

Example: Blockbuster – rented movies, DVDs, lost market share to Red Box (vending movie rental), then both disrupted by streaming movies.

Music industry went from records to cassettes to CDs to streaming (Napster).

MySpace taken out by Facebook in social networks.

Yahoo search taken out by Google (controls 75% of the search market)

Kodak afraid to get out of film business and passed on digital film, lost market share.

To solve the Innovator’s Dilemma, big companies acquire smaller tech companies; have in house R&D to be ready for next tech wave.

Steve Jobs of Apple was very influenced by  Innovator’s Dilemma  and took this idea seriously.

If you do not try to put your company out of business (w/ disruption / new tech), someone else will.

Jobs was not afraid to innovate, and cannibalize his own company and products to stay relevant.

Apple created iPhone, and now computer is in your pocket

Peter Thiel – “Zero to One” book - Great innovation is not A to B to C, it is vertical, jumps curves.

Current smart phones have more computing power than a computer 20 years ago.

Guy Kawasaaki (former Apple) Talk - “12 Lessons From Steve Jobs”

Full Show: HERE

Seg. 2 of 7/5/2020 show - MB on the 80/20 Principle

MB on the 80/20 Principle

80/20 Principle summed up is, 80% of outputs come from 20% of inputs

Other examples - 80% of sales comes from 20% of sales people

Microsoft – 20% of bugs caused 80% of problems

80% of client issues come from 20% of clients

You make business decisions based on the stats, and data on how to manage process and clients. 

Hence, you may fire bottom 10% of clients to cut out issues

Very few things create a lot of your results – could actually be ratio of 90/10 or 70/30.

Analyze who are top 20% of clients and get more of the top 20% types to grow business.

Also named Law of the Few or Pareto’s Principle 

Vilfredo Pareto studied land,  & farming in Italy, he realized 80% of land in Italy held by 20% of population.

Joseph Juran  - expert in efficiency and quality coined “Pareto’s Principle”

Richard Koch – wrote 80/20 Principle book in 1998.

Koch was a Bain & Co. consultant – worked with Bill Bain. Koch said Bain was smart and lazy.

Bain hired young brilliant and “cheap” talent, less accounts, but great customer service.

Focus Time on Key 20% effective work for best results to grow business.

‘To Do’ List can only have a few high priorities per day, focus on important tasks

Full Show: HERE

Seg. 2 of 7/19/2020 show - MB on the Steve Jobs Return to Save Apple in 1997

MB on Steve Jobs Return to Apple – Power of Focus & Simplify

Apple is an iconic brand with Apple symbol with a bite – symbolizes we use computers to unlock knowledge.

Iconic products – Mac, IPad, IPod, IPhone to become 1st Trillion $ company – few companies have hit that valuation

‘Dare to be Different’

Steve Jobs was forced out of Apple and created 2 companies – Pixar Animation (purchased later by Disney) and NEXT Computers, purchased by Apple in 1996 – Steve Jobs back in Apple. Apple was failing at the time.

Steve Jobs was made CEO again, had to save the company. He got a loan of $150 million from Bill Gated at Microsoft , Microsoft and Apple were bitter rivals for the past 10 years.

First move – Simplify. Cut products and focus, make a list off of 10 items & cross off 7. Focus on 3

‘Think Different’ ad campaign and Mantra.

Products were beautifully designed, sleek and easy to use.

Do less and do it better. Focus, then simplify. Then say NO often

Very careful in deciding what NOT to do.

Meanwhile, Microsoft was bloated and unfocused – would spend the next 10 years lost with Steve Balmer as CEO. In 2011 – new CEO at Microsoft and rebound with Cloud Business – last 8 years.

Jobs understood importance of not only what you do, but also what you don’t do.

Opportunity Cost – if you put time and energy in one direction or business, you may miss out on a better business opportunity. 

Pick your opportunities carefully in business and life. Pick your partners carefully.

Know your business, product, the problems you solve. Team gets this also, so do your customers. Creates fans of the company, who are also customers.

Full Show: HERE

Investing Topic: https://brt-show.libsyn.com/category/Investing-Stocks-Bonds-Retirement

More - BRT Best of: https://brt-show.libsyn.com/category/Best+of+BRT

More 'Best of Investing': Here

Thanks for Listening.

Please Subscribe to the BRT Podcast. 

Business Roundtable with Matt Battaglia

The show where Entrepreneurs, High Level Executives, Business Owners, and Investors come to share insight and ideas about the future of business. BRT 2.0 looks at the new trends in business, and how classic industries are evolving. 

Common Topics Discussed: Business, Entrepreneurship, Investing, Stocks, Cannabis, Tech, Blockchain / Crypto, Real Estate, Legal, Sales, Charity, and more… 

BRT Podcast Home Page: https://brt-show.libsyn.com/

‘Best Of’ BRT Podcast: Click Here

BRT Podcast on Google: Click Here

BRT Podcast on Spotify: Click Here                   

More Info: https://www.economicknight.com/podcast-brt-home/

KFNX Info: https://1100kfnx.com/weekend-featured-shows/

Disclaimer: The views and opinions expressed in this program are those of the Hosts, Guests and Speakers, and do not necessarily reflect the views or positions of any entities they represent (or affiliates, members, managers, employees or partners), or any Station, Podcast Platform, Website or Social Media that this show may air on. All information provided is for educational and entertainment purposes. Nothing said on this program should be considered advice or recommendations in: business, legal, real estate, crypto, tax accounting, investment, etc. Always seek the advice of a professional in all business ventures, including but not limited to: investments, tax, loans, legal, accounting, real estate, crypto, contracts, sales, marketing, other business arrangements, etc.

M&A from the Deal Room to a Science w/ Kison Patel

- BRT S03 EP09 (108) 2-27-2022

Things We Learned This Week

• Process of Valuation – old process of value may not apply, have to adapt

• Agile M&A – use software to keep real time updates in an M&A deal
• Deal Room – founder story, realized problems in industry, fix problems to Maximize sale value, then Prep business for sale

• M&A – diligence stage at the start, risk assessment by the team, then value creation for post deal
• IP – Intellectual Property – deals can be done for the IP, tech, trade secrets, customers, team / workforce & key people

Guest: Kison Patel, Founder and CEO of DealRoom

Websites: https://www.mascience.com/     

https://dealroom.net/

Amazon Book - Here

LKIN - https://www.linkedin.com/in/kisonpatel

Kison Patel is the Founder and CEO of DealRoom, a project management software for complex financial transactions. In addition to that, he is also the Founder and CEO of Agile M&A, Founder of M&A Science - a community of forward-thinking M&A practitioners on a mission to perfect the M&A practice.

Kison is also the host of the M&A Science podcast, an educational podcast exploring the intricate world of M&A with industry leaders and practitioners. He helps men and women, the general public, or people looking for career paths and may consider a career in M&A.

Books – M&A Tactics, Agile M&A, & LinkedIn articles

Notes:

Kison Patel Bio – pre Agile M&A, was in Real Estate, 10 years in M&A as advisor in finance & hospitality.

How valued – old ways of M&A pre 2000, security of info and paranoid attitudes, confidentiality and legal setup of deals.

Agile update to M&A deal structure using software for real time updates

Disruption – of your own company to evolve and improve, grow

How tech plays a role

Deal room started in 2012 – founder story, realized problems in industry, fix problems

Maximize sale value, then Prep business for sale

Buy Side and Sell Side Consulting, has experience in both areas

Deal Room is project management in M&A deals. Keep up with info. Manage deals better with project management workflow and integration, post sale and pipeline functions - Lifecycle of a M&A deal.

Industry was siloed – fix and recommend best practices.

M&A – diligence stage at start, risk assessment by the team then value creation for post deal.

Old school M&A process works in silos and not sharing enough info.

Plan post sale work and create value.

Big company buys smaller company – Why purchase? Customers, tech

Figure out who stays, goes in an acquisition deal

IP – Intellectual IP, tech, trade secrets, customers, team and workforce and key people.

Contract and buy a business for tech talent or engineering talent for software, AI. Deals are not always about finances-

Example: crowd stake corners a market with M&A department

Example: Zoom went from database to full service platform – acquired for practibilities.

Example: Toyota evolving into a software company. Buying business to get engineering talent.

Old ways to integrate may not apply.

Disruption- do not be next blockbuster. Pace of disruption increasing – example: pandemic.

Agile Model – adapt business, change culture, change oriented shift from finance approach to people focused approach.

Organizations cannot change organically fast enough, so buy other companies and merge into organization. Example: print media company switches to online publications.

Review your business from outside view, failure points, identify problems.

People need compelling reasons to change.

Advisor Team – lawyers, CPA, CFO, Investment Bankers, HR, Tech

Integrate what you buy and merge culture of main business with acquisition without ruining culture. ETA  of a deal – varies, could be years – dedicated team to manage.

Buy Side – Defined strategy on why you are buying, avoids internal conflict – team is clear on buying.

Model in synergies, distribution models for revenue growth.

Sell Side – why selling? Get best price or legacy and take care of employees and continue business.

PE firm selling off entity to cash out or

Business sell off line that does not make $ anymore, or Business is failing and liquidates

Investment Bank for auction process (deal broker for company deals).

Letter of Intent – LOI – offer to buy.

Exclusivity period – do due diligence pre-sale. Can be risky if skip this step.

Key Value Drivers of a Deal – what is of value, and what can scale after

Private Equity / Adam Coffey Topic: Here

‘Best Of’ Topic: https://brt-show.libsyn.com/category/Best+of+BRT

Investing Topic: https://brt-show.libsyn.com/category/Investing-Stocks-Bonds-Retirement

More 'Best of Investing': Here

Melissa Diaz / M&A Topic: https://brt-show.libsyn.com/size/5/?search=melissa+diaz

Franchising / Jon Ostenson Topic: https://brt-show.libsyn.com/size/5/?search=franchising

Valuation Topic: https://brt-show.libsyn.com/size/5/?search=valuation

Thanks for Listening.

Please Subscribe to the BRT Podcast. 

Business Roundtable with Matt Battaglia

The show where Entrepreneurs, High Level Executives, Business Owners, and Investors come to share insight and ideas about the future of business. BRT 2.0 looks at the new trends in business, and how classic industries are evolving. 

Common Topics Discussed: Business, Entrepreneurship, Investing, Stocks, Cannabis, Tech, Blockchain / Crypto, Real Estate, Legal, Sales, Charity, and more… 

BRT Podcast Home Page: https://brt-show.libsyn.com/

‘Best Of’ BRT Podcast: Click Here

BRT Podcast on Google: Click Here

BRT Podcast on Spotify: Click Here                   

More Info: https://www.economicknight.com/podcast-brt-home/

KFNX Info: https://1100kfnx.com/weekend-featured-shows/

Disclaimer: The views and opinions expressed in this program are those of the Hosts, Guests and Speakers, and do not necessarily reflect the views or positions of any entities they represent (or affiliates, members, managers, employees or partners), or any Station, Podcast Platform, Website or Social Media that this show may air on. All information provided is for educational and entertainment purposes. Nothing said on this program should be considered advice or recommendations in: business, legal, real estate, crypto, tax accounting, investment, etc. Always seek the advice of a professional in all business ventures, including but not limited to: investments, tax, loans, legal, accounting, real estate, crypto, contracts, sales, marketing, other business arrangements, etc.

Valuation of Cannabis Co’s w/ CPA Josephine Giordano

- BRT S03 EP08 (107) 2-20-2022

Things We Learned This Week

• Risk Assessment in Cannabis industry and valuation as still federally illegal, and heavy cash business needing tight cash controls

• Business Valuation approach of Discounted Cash Flow is used, with more adjustments because of less historical data
• Cannabis License is the IP – difficult to obtain, as Biz technically does not ‘own’ the license, but buys seats on a board, hence banks will not lend on the License

• Cannabis Adjacent Business are doing very well (ie – Real Estate, Suppliers, Prof firms, banking), profiting off the growing industry, while not being hampered by as many regulations
• Cannabis Industry may be Recession Proof as it thrived during the Pandemic

Guest: Josephine Giordano, CPA, ABV, CFF, CFE, CBA, ASA, CDBV, CIRA, CICA, CTP, CCCE Director in the Financial Forensics and Business Valuation Services Group

National Cannabis Practice Leader       

BeachFleischman

https://beachfleischman.com/about/leadership-team/josephine-giordano/

Josephine Giordano is a Director in the Financial Forensics and Valuation Services Group and National Cannabis Practice Leader at BeachFleischman PC. Ms. Giordano’s extensive experience includes the areas of internal audit, banking, regulatory compliance, fraud investigation, forensic accounting, public accounting/tax, business valuations, bankruptcy & restructuring, turnaround management, expert witness, court-appointed receiverships, and special master and compliance monitoring appointments. She also holds an MBA in corporate finance. She has been consulting and doing accounting for over 25 years, with the last five, working in Cannabis.

Notes:

Adult use was legalized in 11/2020, and started ops 2/2021

Dept of Economic Research (AZ Dept of Rev)

$1.2 billion in sales thru 11/2021, Adult total sales $520 million

Medical (2021) - total sales $700 million; sales tax 459 million

Sales tax $44 million, Excise tax $93 million

2022 expectations to be bigger

Valuation of cannabis business  - new sector, does not have comparison data of 5+ years business sales.

Compare current industry numbers and do estimates, guesstimate – especially if business not profitable. Challenge to determine FMV (Fair Market Value)

Cannabis in AZ – buy board seats to control license, do not buy license

Large MSO – multi state operators  - example: CureLeaf.

Risk factors – Risk vs. ROI (Return On Investment)

Company specific risk- regulations, banking and tax laws in cannabis.

Tax risk – 280 E, cannabis is Fed. Illegal, so limited deductions, equals high federal tax, affects cash flow.

Regulatory risk – Federal government can shut down.

Apply risk component to income stream, higher risk will lower value

Income approach and DCF model, discount cash flow vs future sales projections.

If federal changes regulations and laws – then expense write off of tax, and other banking and legal expenses will be lower.

Risk – with staff and Keyman

Regardless of risk – MSO paying premium for access to license MSO knows risk and costs.

Valuation numbers do not entirely make sense-

CureLeaf deal late 2021, $12 million cash plus $1 million stock.

Earnings and EBITDA are standard metrics that cannabis does not use vs standard co. like industrial (plumbing, A/C)

Lending in cannabis deals – hard to get money, Cannabis could not PPP loans

Banking regulations – cash business and has risk with theft and fraud. Can only use state banks vs national like Chase or B of A.

Access to capital is tricky, how to get money to buy out partner.

Canadian market doesn’t have good comps or data, different accounting rules vs. US.

Banks want collateral, like real estate. Do not want to lend on license. Hard to determine the future earnings & cash. Private money will do lending with high interest rates of 10%.

Barriers to entry – need cash money to get into industry, lots of cash, but lots of sales potential

Legalization on Federal level – affects tax, banking, lending, expenses, cash flow.

Operators – have to be good at business, operations, finances.

Business Sale – due diligence, must be organized internally, especially financial info

Investors want to see good books and efficient operation

State regulators can strip or shut down a license for non-compliance.

Cannabis Topic: https://brt-show.libsyn.com/category/Cannabis-Hemp-Marijuana

‘Best Of’ Topic: https://brt-show.libsyn.com/category/Best+of+BRT

Investing Topic: https://brt-show.libsyn.com/category/Investing-Stocks-Bonds-Retirement

More 'Best of Investing': Here

Thanks for Listening.

Please Subscribe to the BRT Podcast. 

Business Roundtable with Matt Battaglia

The show where Entrepreneurs, High Level Executives, Business Owners, and Investors come to share insight and ideas about the future of business. BRT 2.0 looks at the new trends in business, and how classic industries are evolving. 

Common Topics Discussed: Business, Entrepreneurship, Investing, Stocks, Cannabis, Tech, Blockchain / Crypto, Real Estate, Legal, Sales, Charity, and more… 

BRT Podcast Home Page: https://brt-show.libsyn.com/

‘Best Of’ BRT Podcast: Click Here

BRT Podcast on Google: Click Here

BRT Podcast on Spotify: Click Here                   

More Info: https://www.economicknight.com/podcast-brt-home/

KFNX Info: https://1100kfnx.com/weekend-featured-shows/

Disclaimer: The views and opinions expressed in this program are those of the Hosts, Guests and Speakers, and do not necessarily reflect the views or positions of any entities they represent (or affiliates, members, managers, employees or partners), or any Station, Podcast Platform, Website or Social Media that this show may air on. All information provided is for educational and entertainment purposes. Nothing said on this program should be considered advice or recommendations in: business, legal, real estate, crypto, tax accounting, investment, etc. Always seek the advice of a professional in all business ventures, including but not limited to: investments, tax, loans, legal, accounting, real estate, crypto, contracts, sales, marketing, other business arrangements, etc.

The Science of Hitting (TSOH) & Investing w/ Alex Morris -

BRT S03 EP07 (106) 2-13-2022

Things We Learned This Week

• The Science of Hitting (TSOH) comes from the Ted Williams baseball book on batting and strike zone observations: ie – he tracked his average in each zone of the batter box, and had a higher average when he swung at pitches in a certain zone

• TSOH Investment Philosophy is Value Investing, classic Graham / Buffet style – buy high quality co’s w/ good mgmt, L/T trends, and a Moat - Buffet quote: Investing is a game with no called strikes…can just wait for your pitch
• Long Term Investment Horizon – looking 5 to even 10 years out, for earnings and sales growth

• Key Value Drivers for a stock - Earnings Growth & quality of earnings, Price & Sale increases, ‘volume growth’
• P/E Type Metrics & GAAP Accounting is helpful but may not be useful with R&D, future sales, and volume growth. Example: Netflix – analyze cash expenditures vs. financials which have improved , what are the L/T – trends

Guest: Alex Morris, TSOH Investment Research

Blog - https://thescienceofhitting.com/p/my-investment-philosophy

LKIN - https://www.linkedin.com/in/alex-morris-cfa-47b87027/

Twitter - https://twitter.com/TSOH_Investing

Alex Morris, CFA publishes equities research through the TSOH Investment Research Service on Substack. He has written investment related articles on Gurufocus and worked in the finance industry (RIA's) for the past 10+ years. He is a CFA® charterholder and graduated with my MBA from the University of Florida in April 2015. Prior to starting his TSOH service, he spent ten years as an Equity Analysts at financial firms.

Alex started his investment career in college, and his first writing was published in Seeking Alpha. If you like to discuss investments (equities) or if you're interested in talking about the TSOH Research Service, please let him know. The TSOH blog and service is full of deep dives on stocks Alex is researching plus quarterly updates of his personal portfolio.

TSOH Investment Philosophy – summarized

Asset Allocation –  Structural vs Tactical & Cash portion

1. L/T Holdings – Seth Klarman style, hold for years, compound the investment. Be a Long Term owner of a business vs short term speculation / trading

S/T trading – competitive, market timing, tax treatment.     

1. High Quality Businesses – Charlie Munger

Intrinsic  Value – how to calculate?

P/E and other market changes are minimal over L/T

Mr. Market analogy – Ben Graham

4 Criteria:

1. Industry with tail winds, top line growth
2. High ROIC, Economic Moat
3. Good Balance Sheet
4. Run by manager with L/T Horizon and skill. *capital allocation

Not all TSOH picks have all 4 criteria.

Chuck Akre quote – allocate dollars to business, occasionally get bargain prices.

Many businesses are eliminated by these criteria – less than 100

5-15 positions

KPI’s  or Key Value Drivers  - Earnings Growth,  quality of earnings, Price & sales increases, ‘volume growth’ - Be warned - Shareholder re-purpose can be value trap

1. Concentrated Portfolio – Druckenmiller quote – 2 opps/yr, eggs in 1 basket, watch basket.

Balance of patience and conviction

Money managers and investment advisers can’t be patient.

Munger story on horse track – winners bet seldom, but bet big on good opps

Use a model to keep yourself honest and rational, but do not over-rely on the model

Financial Model – careful with inputs and outputs. Guardrails

Opportunity Cost is too high when you find a good long term company to invest in

Analyze Long term earnings growth and discount it for a valuation – identify key drivers of value creation for sales growth

Berkshire Hathaway letters are big inspiration

Own high quality business, with competitive advantages, in attractive markets w/ sustainable growth, strong balance sheet and good mgmt team

Focus on the opportunity, and long term horizon - L/T over S/T

Notes –

Book Recs: One Up On Wall Street by Peter Lynch (How to analyze on business)

Berkshire Hathaway Shareholder Letters (in full), or Essays of Warren Buffet (summary w/ lessons)

Common Stocks & uncommon Profits by Phil Fisher

Prefers Business Books – can learn more from reading bios like Spotify Story, or Air BnB

Read a lot, stock data, financial news stories, etc. – Be Well read, determine if info is noise or real info

Analyze a company in a detailed fashion, but be unbiased, do not fall in love w/ the stock

Costco example – volume is critical in low price biz, check sales per warehouse

FB  / Meta example – has issues, security, regs, privacy

Long Term Plan - Metaverse & VR, many years away, Bought Oculus (VR glasses co)

Made $10 billion investment loss in Metaverse vs. $57 billion opp income in 2021, (EBIT) is normal

Spinoffs – views them as financial transactions

Manager Analysis – manager drives business, really defines direction and thme of biz

Lynch quote of ‘idiots’ running a business, does not apply anymore

Good business sell during all Macro factors   ie: Costco – Alex doesn’t own, but great business

Mistakes – Buffet missed on Google and Amazon, Lynch missed on Amazon

TSOH Blog: Returns and Lessons Learned – reviews past mistakes

https://thescienceofhitting.com/p/returns-and-lessons-learned

Failed with JC Penny stock buy. Missed on Costco and Google.

Microsoft – change in CEO, Balmer out. Satya Nadella in – revived company with Cloud business and compete with AWS., MicroSoft  - P/E was expensive 2014, but analyze business and it was cheap.

P/E – Metrics and GAAP accounting is helpful but may not be useful with R&D and future sales and volume growth.  Example: Netflix – analyze cash expenditures vs. financials which have improved         

L/T – trends  ie - Disney, Netflix – streaming wars (SPOD business)

Netflix – 200 million subscribers worldwide on way to global business scale

Sports only current ‘Watch Now’ show, streaming moving to sports

PGA Tour went to Netflix, Direct TV losing – NFL Ticket will be up for bid

Disney – IP with content to use in streaming content.

Other competitors  - Comcast  / NBC Peacock has had little success in US and more issues with licensing worldwide, Sony licenses content

Warner Media/ HBO MAX spin off and merge with Discovery Per Book on AT&T, mismanaged Warner

Disney does not have enough adult content

Branding – Coke, Pepsi , and ?? Only 2 big players in each industry.

‘Best Of’ Topic: https://brt-show.libsyn.com/category/Best+of+BRT

Investing Topic: https://brt-show.libsyn.com/category/Investing-Stocks-Bonds-Retirement

More 'Best of Investing': Here

Thanks for Listening.

Please Subscribe to the BRT Podcast. 

Business Roundtable with Matt Battaglia

The show where Entrepreneurs, High Level Executives, Business Owners, and Investors come to share insight and ideas about the future of business. BRT 2.0 looks at the new trends in business, and how classic industries are evolving. 

Common Topics Discussed: Business, Entrepreneurship, Investing, Stocks, Cannabis, Tech, Blockchain / Crypto, Real Estate, Legal, Sales, Charity, and more… 

BRT Podcast Home Page: https://brt-show.libsyn.com/

‘Best Of’ BRT Podcast: Click Here

BRT Podcast on Google: Click Here

BRT Podcast on Spotify: Click Here                   

More Info: https://www.economicknight.com/podcast-brt-home/

KFNX Info: https://1100kfnx.com/weekend-featured-shows/

Disclaimer: The views and opinions expressed in this program are those of the Hosts, Guests and Speakers, and do not necessarily reflect the views or positions of any entities they represent (or affiliates, members, managers, employees or partners), or any Station, Podcast Platform, Website or Social Media that this show may air on. All information provided is for educational and entertainment purposes. Nothing said on this program should be considered advice or recommendations in: business, legal, real estate, crypto, tax accounting, investment, etc. Always seek the advice of a professional in all business ventures, including but not limited to: investments, tax, loans, legal, accounting, real estate, crypto, contracts, sales, marketing, other business arrangements, etc.

From Private Equity to The Exit Strategy Playbook w/ Adam Coffey

- BRT S03 EP06 (105) 2-6-2022

Things We Learned This Week

• Adam Coffey past experience in Private Equity (PE) puts him in a unique position to consult on buying, selling and running business from Purchase to Exit
• Buyer Types – Strategic and Financial -  Light On / Lights Off, what to do with the old business that was bought
• Prepping the Business for Sale – takes 3 years, organization setup, due diligence prep, financial info
• Advisory Team – importance of building a good and experienced team of advisors (CPA, legal, investment banker, consultants), the wrong team could you lots of $
• Sales Process – Mgmt Meetings, due diligence, LOI, NDAs, and more due diligence

Guest: Adam Coffey, author of The Private Equity & Exit Strategy Playbook

LKIN: https://www.linkedin.com/in/adamecoffey

Website: https://adamecoffey.com/

Adam Coffey - CEO, board member, best-selling author, Forbes Business Council member, and an acclaimed guest speaker, Adam Coffey, is an inspiring and authentic leader who creates high-performance cultures and drives transformative growth.  Over the past 21 years, he has had the honor of serving as President and CEO of three national private equity-backed service companies, each in different industries. Two of the three companies he built achieved enterprise values of $1B. Throughout his career, Coffey has a proven track record of achieving notable outcomes for stakeholders. His career average at exit is 5x MOIC (Multiple of Invested Capital). Coffey is an active mentor to MBA candidates and is a regular, favorite guest speaker at UCLA. Coffey, who considers himself a blue-collar CEO, has a diverse background. He has led several commercial and industrial service businesses, is a licensed general contractor, a pilot, a former GE executive, an alumnus of the UCLA Anderson Executive Program, and a veteran of the US Army. Coffey’s first book, The Private Equity Playbook, was released in February 2019 and became an instant #1 Amazon Best Seller and private equity cult classic. His second book, The Exit Strategy Playbook was released in September of 2021 and also was a #1 Amazon Best Seller. He was named one of the “Most Influential Leaders” by the Orange County Business Journal in 2018, 2019 and in 2020 and 2021 was named to their prestigious "OC Top 50". Coffey makes his home in Westlake, TX with his wife and young daughter.

Exit Strategy Playbook Notes:

Part One: The Universe of Buyers and Exit StrategiesAnalogy is “Lights On or Lights Off?” describing types of buyers like strategic buyers, financial buyers and alternative selling approaches. Some strategic buyers want the business for the tech, talent or intellectual IP. Some buyers want the customers, or geography of the business. Some Strategic buyers may take the talent and IP, and then close the business down over time (lights off), meaning they do not need redundancy like managers or HR, etc. A financial buyer does not work in this industry or have a tem. They would buy the whole business and look to keep the owner, management and tem together to keep running the business (lights on).

Part Two: Prepping Your Business For Sale You have to prep your business for a sale, think 3 years ahead. You must present your company to various possible buyer groups and be organized. The importance of financial reporting, also includes; outsourcing; legal; serving up EBITDA; cash vs accrual GAAP; how to handle real estate holdings; operations; successor planning; and growth projections.

Part Three: Build Your Advisory Team Coffey talks about the fact you need strong and experienced advisors in the sale process to prep for  the qualified buyer. He means tax advisors and accountants; lawyers; and a broker like an investment bankers/transaction advisor. He reviews costs, timelines and where each assists a seller. If you do not have a good team, the buyer could take advantage of you (especially if they are experienced), and the costs could be hundreds of thousands to millions $.

Part Four: The Sales ProcessHow the process actually works from management meetings to the transfer of the business post sale. Selling a business is like a second job, you still run your company and need to maintain profits while meeting with buyers and advisors. There are different type of buyers and you need to determine the real buyer interest. You ramp up the process with the hot buyers and cool the process with lesser buyers. A good investment banker can manage the process. There are NDAs, LOI (letter of intent), disclosure of financial info, more due diligence, surprises, initial meetings, then detailed meetings. Thru the whole process the seller must be on his A Game.

Clip from Adam Coffey 8/2020 Guest Appearance on Private Equity:

https://brt-show.libsyn.com/brt-ep-30-8-30-20-the-private-equity-playbook

Peak behind the curtain of Private Equity, and learn how companies are bought, managed, financed, plus what metrics (EBITDA) are used for valuation. Unique perspective from someone who has run companies for PE Firms for the last 20 years. Learn the secrets, and why Execs at companies should consider working or selling to a PE Firm.

Private Equity Topic: https://brt-show.libsyn.com/category/Private+Equity-Valuation-MandA-Franchise-Business+Broker 

Investing Topic: https://brt-show.libsyn.com/category/Investing-Stocks-Bonds-Retirement

More 'Best of Investing': Here

Thanks for Listening.

Please Subscribe to the BRT Podcast. 

Business Roundtable with Matt Battaglia

The show where Entrepreneurs, High Level Executives, Business Owners, and Investors come to share insight and ideas about the future of business. BRT 2.0 looks at the new trends in business, and how classic industries are evolving. 

Common Topics Discussed: Business, Entrepreneurship, Investing, Stocks, Cannabis, Tech, Blockchain / Crypto, Real Estate, Legal, Sales, Charity, and more… 

BRT Podcast Home Page: https://brt-show.libsyn.com/

‘Best Of’ BRT Podcast: Click Here

BRT Podcast on Google: Click Here

BRT Podcast on Spotify: Click Here                   

More Info: https://www.economicknight.com/podcast-brt-home/

KFNX Info: https://1100kfnx.com/weekend-featured-shows/

Disclaimer: The views and opinions expressed in this program are those of the Hosts, Guests and Speakers, and do not necessarily reflect the views or positions of any entities they represent (or affiliates, members, managers, employees or partners), or any Station, Podcast Platform, Website or Social Media that this show may air on. All information provided is for educational and entertainment purposes. Nothing said on this program should be considered advice or recommendations in: business, legal, real estate, crypto, tax accounting, investment, etc. Always seek the advice of a professional in all business ventures, including but not limited to: investments, tax, loans, legal, accounting, real estate, crypto, contracts, sales, marketing, other business arrangements, etc.

Cannabis M&A from the U.S. to the Canadian Securities Exchange with Richard Carleton

- BRT S03 EP05 (104) 1-30-2022

Things We Learned This Week

• Cannabis is federally legal in Canada, stocks are listed on CSE (Canadian Securities Exchange)
• Cannabis Companies in U.S. are listed on the CSE to raise money $

• MJ Biz Con in Las Vegas – epicenter of industry, annual event in November  each year, all facets of industry go

• Cannabis still illegal federally in U.S., state by state setup, and no movement on Fed regulations
• M&A action in the U.S. was at an all time high, and there will be more because of supply and demand of Cannabis state licenses

Guest: Richard Carleton, CEO of CSE (Canadian Securities Exchange)

https://thecse.com/en/about/our-people/management-team

https://ca.linkedin.com/in/richard-carleton-3b460416

Richard Carleton was appointed CEO of the Canadian Securities Exchange in July 2011.  During his tenure, Richard and the CSE team have positioned the exchange to take a leading role in the provision of public capital to entrepreneurial companies; since 2014, the CSE has set a series of records for new listings, capital raised by issuers and trading turnover.  An early advocate for the cannabis industry, the CSE is the global exchange leader in the sector.  Recognized by the Financial Post Magazine as one of Canada’s “25 Cannabis Industry Power Players”, and a recipient of the American Trade Association for Cannabis and Hemp’s “Captain of Industry” Award in November 2018, Richard is a frequent speaker on early-stage company finance issues around the world, and involved in Canadian Securities for 30 years.

Notes:

2021 Year synopsis: US Cannabis biz and shareholders retail with limited institutional money involved, Challenges for US investors to invest limited access OTC markets -  example: Robinhood

Canada Legal for medical use circa 2014, 2017 recreational use. Federally legal in Canada.

Most large US operators on CSE, US companies operate in specific states, but listed on CSE for raising money, as Rules similar between CSE and US Stock Exchange

OTC markets to trade cannabis - Retail oriented with US companies and not much institutional US money vs. private equity from Canada investing.

2022 Year Outlook – expect more retail investors to get involved through ETF and more OTC, also big operators expand and buy more thru M&A, especially in NY and other east coast states new to Cannabis

MSOS – ETF, can invest in.

MJ Biz Vegas – epicenter of industry, annual event in Nov each year, all facets of industry go.

Asset valuations – recovery of share price for multiple cannabis stocks, sales increasing, raised money, 4.8 billion in 2021, good balance sheets, economies of scale

Companies used invested capital for M&A to grow size of business and scale, sales plus.

IRS ACT and US Federal Government made little progress on cannabis and still Federally illegal, so late 2021 assets and stocks were sold and gave back some value.

Probably little movement on cannabis in 2022, though Stocks not getting love, fundamentals of sales and growth are good.

More states in the US legalizing soon, especially in the East coast.

Big Themes – cannabis companies able to raise debts (bonds) at reasonable rates, vs. past 15%.

In past few years, Canadian companies over invested in cannabis.

US companies benefited from that experience and learned from Canada.

$5.4 billion raised in exchanges. $4.8 million by US operators vs. 2020 $2 billion, 2018 #3.5 billion

Secondary offerings vs. IPO (1st)

Private placement  - hold stock and buy at discount, but can dilute current shares.

Offering with Prospectus – public offering – everyone can invest at the same rate, no hold period.

* Early stage companies, pre-revenue, R&D companies, mining exploration companies

* Tech, block chain / crypto, Life Science – psychedelic space and medical space, mental health.

Cannabis industry paved the way for life sciences and mental health. Drugs and pharmacy applications and work for FDA approval – long process and lots of financial investment vs. cannabis / retail and quick turnaround – recreational.

Guest: Melissa Diaz w/ Rebel Rock

- customized accounting solutions, HR, and M&A for the Cannabis industry in AZ

https://rebelrock.co/melissa-diaz/

Melissa’s accounting experience as a CPA spans numerous industries, both domestically & internationally, including healthcare, hospitality and, of course, Cannabis. In addition to co-founding and serving as CFO to Rebel Rock, Melissa is CFO and Shareholder for High Rock Accounting, which places an emphasis on utilizing technology to strategically make day-to-day and long-term financial decisions, while pursuing company goals and compliancy. At High Rock and Rebel Rock, Melissa helps companies remain competitive and efficient in increasingly high-pressure and high-stakes environments. Starting in 2016 she started branching out into the Cannabis industry.

Notes:

Regulations and Reform on the Fed level, Safe Banking Act – no movement or reform in cannabis, no Federal banking in cannabis. Can only bank with state charter bank, may not lend money.

M&A activity in 2021 – 3x increase because it was tough to get loans, so private equity and other big players had money to buy in.

Growth through acquisition – buy other business to build your organization.

In cannabis, tough to franchise since it is a state by state business. Sometimes the only way to get into a state is to buy in. No uniform regulations on Fed level.

Do not Buy the Cannabis Operator License, technically buy seats on the board, then control license. Have to gain multiple seats to control the License.

It is difficult to get a bank loan in cannabis, operator cannot use the license as collateral.

MSO – Multi State Operators

REITS – investing in property, get 1st position.

First mover has huge advantage. Example: Cureleaf – large MSO. Purchased Blume Dispensary for $211 million vs. $66 million. All cash deal want license IP and zoning/physical location.

M&A – Mergers & Acquisitions

Merger - 2 companies come together

Acquisitions – 1 company buys the other company in a Stock or cash setup, ie - 50% cash / 50% stock.

An acquirer may pay all cash if competitive because of supply and demand.

136 Cannabis Licenses in AZ plus some rural license. Example: Yuma or Gila Bend. The 136 core licenses in bigger cities are more valuable.

Large MSO Cannabis operators like Harvest, Verano, Cureleaf own many licenses – consolidated.

Cannabis in AZ is a maturing market. Florida is similar. Alabama and Missouri are newer markets.

Different states have different rules.

Edibles and children packaging – child safety (gummies)

Nationwide – more private equity, but slow because of risk.

Cannabis Topic: https://brt-show.libsyn.com/category/Cannabis-Hemp-Marijuana

‘Best Of’ Topic: https://brt-show.libsyn.com/category/Best+of+BRT

Investing Topic: https://brt-show.libsyn.com/category/Investing-Stocks-Bonds-Retirement

More 'Best of Investing': Here

Thanks for Listening.

Please Subscribe to the BRT Podcast. 

Business Roundtable with Matt Battaglia

The show where Entrepreneurs, High Level Executives, Business Owners, and Investors come to share insight and ideas about the future of business. BRT 2.0 looks at the new trends in business, and how classic industries are evolving. 

Common Topics Discussed: Business, Entrepreneurship, Investing, Stocks, Cannabis, Tech, Blockchain / Crypto, Real Estate, Legal, Sales, Charity, and more… 

BRT Podcast Home Page: https://brt-show.libsyn.com/

‘Best Of’ BRT Podcast: Click Here

BRT Podcast on Google: Click Here

BRT Podcast on Spotify: Click Here                   

More Info: https://www.economicknight.com/podcast-brt-home/

KFNX Info: https://1100kfnx.com/weekend-featured-shows/

Disclaimer: The views and opinions expressed in this program are those of the Hosts, Guests and Speakers, and do not necessarily reflect the views or positions of any entities they represent (or affiliates, members, managers, employees or partners), or any Station, Podcast Platform, Website or Social Media that this show may air on. All information provided is for educational and entertainment purposes. Nothing said on this program should be considered advice or recommendations in: business, legal, real estate, crypto, tax accounting, investment, etc. Always seek the advice of a professional in all business ventures, including but not limited to: investments, tax, loans, legal, accounting, real estate, crypto, contracts, sales, marketing, other business arrangements, etc.

Alternative Investments, Crypto + Trusts & Asset Protection

- BRT S03 EP04 (103) 1-23-2022

What We Learned This Week

• Alternative Investments like Crypto, and techniques of Staking & Mining
• Real Estate Deals - AirBnB & BRBO, vacation rentals, use AirDNA site for info
• Asset Protection - defend vs lawsuits, creditor protection
• Deferred Sales Trust - Sec. 453 receive payments in installments to defer taxes
• Tax & Estate Planning (w/ exemption)

Guest: Denver Nowicz, President - Wealth For Life https://wealthforlife.net/brt/

Denver is an advisor with nearly 20 years experience working with clients in investments and insurance, designing retirement plans with a combo of both. He takes us through different strategies for clients to get the best allocations for their money over the long term. It is the Combo Strategy of both Offense and Defense, the synergy of the mix, not ‘All or Nothing’.

Notes:

Wealthy – Need to be careful, as to not lose wealth with potential opportunities that can be risky. With risk, always come potential for huge losses. How do you evaluate?

Build financial structure first – offense/defense, then you have money to invest that could be lost.

Crypto – learn about all types of asset classes, Crypto has bi opportunities with big risks, so do your homework first like any investment

Areas of Crypto that can be lucrative besides owning coins, like yield farming (loan $), staking (verify transactions) and mining for Crypto coins

Blockchain is a digital ledger (based on primary nodes), you can see the transactions, so it can be stable

Stocks are liquid, easy to get in & out, use exchanges and low fees.

Crypto is not as liquid, hard to get out. Fees can be high in crypto liquidity pools, farming, staking.

Coinbase – marketplace for Crypto that makes it easier to take possession, has more liquidity and can be exchanged to cash money USD.

Crypto uses a digital wallet to take possession (digital file) and complicated long passwords

Bitcoin – seen as digital energy, a store of value

Ethereum – has value in Ether coin plus technical use as a programming source use in blockchain utility.

Crypto is worth learning (especially staking and liquidity pools), but it is tough, so get a mentor

Framework – offense/defense

Exit strategy – sell business or get stock option

Cash flow producing real estate rental properties can be competitive with low yields in long term rentals

AirBnB and BRBO – short term rental setup, use website like Air DNA for research

Can own an Air BnB property and be active investor.

Passive Investor – invest in real estate deals, own multiple properties, also *get tax benefits of depreciation, more efficient

Vs. REIT – no tax advantages, and have yearly income that is taxed.

Syndicated Real Estate deals – passive deals to invest in big real estate deals as a group

Leverage – get the most of your money, use little of your $, but control a lot of assets, control dollars with pennies invested, understand Arbitrage opportunities (buy at low level, sell at higher level) and leverage

Business Ownership – many advantages with corporate structure for tax write offs

Understand tax brackets and tax buckets as a business owner and investor

Business owners can save money long term with proper retirement and income planning, plus tax planning.

Chasing Rate of Return - never going to get enough ROR to cover bad tax strategies at 35%.

Stop unnecessary losses with taxes, have a long term plan to lessen the tax blow, and even eliminate .

Guests: Ike Devji & Michael Ferrin of Davis Miles Law Firm

https://www.davismiles.com/

Ike’s expertise in the areas of asset protection, trusts, LLC,, off shore asset protection, and lawsuit protection strategies. Ike also covers areas business owners should consider when selling their business. He is an AZ resident for 40 years and graduated from University of Arizona who has spoken , taught classes and written numerous articles on asset protection. 

Mike’s practice focuses on business and real estate transactions, business entity formation, business succession planning, contracts, estate planning and asset protection planning.

Notes:

Asset Protection – protect assets like real estate or business vs lawsuits and creditors

Estate Planning – protect personal assets and real estate, to leave to your heirs in orderly fashion, avoid probate or other legal issues with trusts, wills, and proper legal setup

Business Owners – if you plan to sell a business (exit strategy) or retire, plan early and have legal setup in order                                                                                                                                                       

Sale Transaction – receive lump sum of money, or payments, want a setup to protect proceeds from creditors or taxes (capital gains tax of 20%) to pass to heirs, amount taxed is based on basis, and purchase price vs gain on sale, like real estate – be aware of depreciation / amortization recapture

Good Team of Advisors – CPA, Legal, etc. to confirm the corporate structure is in order, especially if selling to partners

Distribution of Proceeds – think asset protection, can use a revocable trust for the proceeds

Deferred Sales Trust – has tax and estate protection, thru Sec  453 of the tax code / installment sale, take advantage of Sec 453 and receive installment payments over time vs. one lump sum.

Setup: Trust and 3rd party buyer to receive sale funds, then pay note to seller – defer payment of capital gains over time. , could be 10-20 year timeline for deferred sales trust.

Asset Protection / Misc. – other things to consider like insurance, umbrella policies, key-man insurance for top employees and mgrs, D&O insurance – director and officers insurance, IT security of internal docs, passwords

Business Documents like buy/sell agreement & operating agreement, financial and returns in order

*Buyers of Business would ask about all of these docs too 

HNW Clients – Estate Tax Planning, and Crypto storage

Estate Tax Exemption – the amount of money in a person's estate that is exempt from being taxed by the federal government. It is adjusted annually for inflation. In 2022 the amount is $12.06 million for an individual and $24.12 million for a married couple; but may go from $12 million / year to $5 million / year, which means Assets over $5 million could cost 40% tax.

More Info on WFL and Tax Free Matching: HERE

Link to Taxes Show on 10/31/2021 w/ Denver: Here

Link to Offense / Defense Show on 6/6/2021 w/ Denver: Here

Link to Shows, Denver was a Guest: Here

‘Best Of’ Topic: https://brt-show.libsyn.com/category/Best+of+BRT

Investing Topic: https://brt-show.libsyn.com/category/Investing-Stocks-Bonds-Retirement

More 'Best of Investing': Here

Legal Topic: https://brt-show.libsyn.com/category/Legal-Asset+Protection-Estate+Planning

Thanks for Listening.

Please Subscribe to the BRT Podcast.

Business Roundtable with Matt Battaglia

The show where Entrepreneurs, High Level Executives, Business Owners, and Investors come to share insight and ideas about the future of business. BRT 2.0 looks at the new trends in business, and how classic industries are evolving. 

Common Topics Discussed: Business, Entrepreneurship, Investing, Stocks, Cannabis, Tech, Blockchain / Crypto, Real Estate, Legal, Sales, Charity, and more… 

BRT Podcast Home Page: https://brt-show.libsyn.com/

‘Best Of’ BRT Podcast: Click Here

BRT Podcast on Google: Click Here

BRT Podcast on Spotify: Click Here                   

More Info: https://www.economicknight.com/podcast-brt-home/

KFNX Info: https://1100kfnx.com/weekend-featured-shows/

Disclaimer: The views and opinions expressed in this program are those of the Hosts, Guests and Speakers, and do not necessarily reflect the views or positions of any entities they represent (or affiliates, members, managers, employees or partners), or any Station, Podcast Platform, Website or Social Media that this show may air on. All information provided is for educational and entertainment purposes. Nothing said on this program should be considered advice or recommendations in: business, legal, real estate, crypto, tax accounting, investment, etc. Always seek the advice of a professional in all business ventures, including but not limited to: investments, tax, loans, legal, accounting, real estate, crypto, contracts, sales, marketing, other business arrangements, etc.

Retirement & Income Planning from SEP IRA, 401K, to Roth IRA + Tax Brackets to Buckets

- BRT S03 EP03 (102) 1-16-2022

What We Learned This Week

• Retirement & Income Planning
• Qualified Plans: ie - 401K & Roth IRA
• SEP IRA for business owners, can defer 25% of income if setup correctly
• Tax Brackets - tiered system of 10%, then 12%, 22% up to 35% - with more income, pushed into higher bracket and you pay more
• Tax Buckets (3) - Taxed (W2 income), Tax Deferred (401K, IRA), Tax Free (Roth IRA, Life Insurance)

Guest: Denver Nowicz, President - Wealth For Life https://wealthforlife.net/brt/

Denver is an advisor with nearly 20 years experience working with clients in investments and insurance, designing retirement plans with a combo of both. He takes us through different strategies for clients to get the best allocations for their money over the long term. It is the Combo Strategy of both Offense and Defense, the synergy of the mix, not ‘All or Nothing’.

Notes:

Tax deferral with 401 K, not tax savings

Advisor suggests 401 K, get immediate benefit

Vs. ROTH IRA (put 6.5 K) after tax at 59 ½ get money tax free

Tax Brackets – 10%, 12%, 22, 24,35

$430 K and above, taxed at 35%

If you move money to a 401K, save percentage on taxes, then pay taxes later in retirement.

Cap Gains 15-20% on investment income

Save 15-20K / year on taxes over 25 years = 400 – 500K or more

Retirement – expenses will be 80% of pre-retirement income, unless you make more $, maybe 90%.

If you earn $100K a year or more, taxes are biggest expense in retirement.

Build Tax Free Income – start now, have an Exit Strategy

Tax Buckets –

1. Taxed – income, W2
2. Tax Deferred – 401K, IRA pay taxes later
3. Tax Free – ROTH IRA, insurance, Muni Free Bonds

Balance funds in each bucket – 20% Taxed, 30% Tax Deferred, 50% Tax Free

Combine tax buckets with income mapping  - where money comes from in retirement

Business Owners – SEP IRA has high limits, put up to $61K / year.

Qualified Plan – owner has to balance with salary – 25%

Earn 240K – put 61K tax deferred in SEP IRA

Qualified Plans – has rules

High income, big SEP IRA, then pay 35% tax on all money, withdrawals and gains.

Tax brackets are broad and dropping a bracket not as easy.

RMD  - Required Minimum Distribution

Sell Business – use installment sales trust to lessen tax blow

Layer money to lessen taxes

ROTH Conversions and 401 K Roth could pay huge amount in taxes.

Pay taxes, down 25%

When people do 401K plan, rarely do Long Term math.

Under insurance umbrella, have tax advantages, grows tax free

Take money out of policy as loans at 5% interest vs. 20-30% taxes

3 to 1 Tax Free Matching has similar setup to a mortgage with a house – you put in $250K and bank puts in $750K = 1 million dollar home. Earn more on $1 million vs. just your $250K.

Earn more interest on larger asset over time.

Conservative, banks like insurance. No loan docs, no personal guaranty.

Most advisers talk stocks, stocks are good asset, but have risk and may be slow.

Create income streams, diversification.

https://www.nerdwallet.com/article/taxes/federal-income-tax-brackets

2022 Fed Income Tax Brackets (for taxes due in April 2023) 

Single filers

Tax Rate          Taxable Income Bracket           Tax Owed

10%                  $0 to $10,275                            10% of taxable income

12%                  $10,276 to $41,775                    $1,027.50 plus 12% of the amount over $10,275

22%                  $41,776 to $89,075                    $4,807.50 plus 22% of the amount over $41,775

24%                  $89,076 to $170,050                  $15,213.50 plus 24% of the amount over $89,075

32%                  $170,051 to $215,950                 $34,647.50 plus 32% of the amount over $170,050

35%                  $215,951 to $539,900                 $49,335.50 plus 35% of the amount over $215,950

37%                  $539,901 or more                      $162,718 plus 37% of the amount over $539,900

https://www.cnbc.com/2021/08/18/61percent-of-americans-paid-no-federal-income-taxes-in-2020-tax-policy-center-says.html

WEALTH

The top 20% of taxpayers paid 78% of federal income taxes in 2020, according to the Tax Policy Center, up from 68% in 2019. The top 1% of taxpayers paid 28% of taxes in 2020, up from 25% in 2019.

https://www.taxpolicycenter.org/ - tax stats and articles

More Info on WFL and Tax Free Matching: HERE

Link to Taxes Show on 10/31/2021 w/ Denver: Here

Link to Offense / Defense Show on 6/6/2021 w/ Denver: Here

Link to Shows, Denver was a Guest: Here

‘Best Of’ Topic: https://brt-show.libsyn.com/category/Best+of+BRT

Investing Topic: https://brt-show.libsyn.com/category/Investing-Stocks-Bonds-Retirement

More 'Best of Investing': Here

Thanks for Listening.

Please Subscribe to the BRT Podcast.

Business Roundtable with Matt Battaglia

The show where Entrepreneurs, High Level Executives, Business Owners, and Investors come to share insight and ideas about the future of business. BRT 2.0 looks at the new trends in business, and how classic industries are evolving. 

Common Topics Discussed: Business, Entrepreneurship, Investing, Stocks, Cannabis, Tech, Blockchain / Crypto, Real Estate, Legal, Sales, Charity, and more… 

BRT Podcast Home Page: https://brt-show.libsyn.com/

‘Best Of’ BRT Podcast: Click Here

BRT Podcast on Google: Click Here

BRT Podcast on Spotify: Click Here                   

More Info: https://www.economicknight.com/podcast-brt-home/

KFNX Info: https://1100kfnx.com/weekend-featured-shows/

Disclaimer: The views and opinions expressed in this program are those of the Hosts, Guests and Speakers, and do not necessarily reflect the views or positions of any entities they represent (or affiliates, members, managers, employees or partners), or any Station, Podcast Platform, Website or Social Media that this show may air on. All information provided is for educational and entertainment purposes. Nothing said on this program should be considered advice or recommendations in: business, legal, real estate, crypto, tax accounting, investment, etc. Always seek the advice of a professional in all business ventures, including but not limited to: investments, tax, loans, legal, accounting, real estate, crypto, contracts, sales, marketing, other business arrangements, etc.

Storytelling, Sales, Branding & Hollywood - BRT Best of Business Part 1

- BRT S03 EP02 (101) 1-9-2022

BRT is in Quarantine, so we Revisit some of the Best of Business, with clips spanning the show’s history. If you run a business and need tips, this is your show. Enjoy.  

Topics: Sales, Marketing, Power of Storytelling, Leadership, Branding, Private Equity & Business Lessons from Hollywood movies

Seg. 1

Clip from Seg. 1 of 12/19/21 Show - Matt on Storybrand Book

Building a StoryBrand, book by Donald Miller

Storybrand discusses that familiar story of the ‘Hero’s Journey, and how a business can intertwine this into their marketing material, including the website. You identify with your customers thru their problems – even using common archetype symbols like a villain, guide and an internal feeling to overcome. Customers can relate to the story, and connect with your business as someone who can help them. 

Full Show: Here

Clip from Seg.3 of 5/17/2020 show - Brad Fergusen of Sandler Sales

https://www.brad.sandler.com/

Brad on traditional sales vs sales in the virtual world and tips to handle it

Full Show: Here

Seg. 2

Seg. 3 of 11/22/20 Show – Joseph Michelli on Leadership and Marketing

Guests: Joseph Michelli, Ph.D., CCXP, CSP New York Times #1 Bestselling Author, Certified Customer Experience Professional, Strategic Consultant, Certified Professional Speaker, TEDx Presenter - www.josephmichelli.com

Joseph discuss his new book is Stronger Through Adversity – Leadership in Crisis. He interviewed executives from 141 top corporations (Microsoft, Salesforce, Starbucks, Target)

Full Show: Here

Seg. 3

Clip from Seg. 3 of 3/22/20 Show – The Godfather: Business Lessons from the Hollywood movie

Lesson 2: Remain Calm - 'It's nothing personal, it's only business', keep your wits about you, plan and organize your biz moves, there are solutions (often simple ones) if you are thinking clearly

Clips from Seg. 4 of 3/22/20 Show – The Dark Knight: Business Lessons from the Hollywood movie

Lesson 1: What's the Problem - In business you need to be able to identify the real problems so you focus in the right areas - identify potential disruptive forces, & do not be in denial

Lesson 3: Understand Your Value & Skills - get paid properly for your time, and skills, work with clients that can afford you and also respect your skills  

Full Show: Here

Seg. 4

Seg. 3 of 8/30/20 Show – Adam Coffey on Private Equity

Private Equity author of The Private Equity Playbook Peak behind the curtain of Private Equity, and learn how companies are bought, managed, financed, plus what metrics (EBITDA) are used for valuation. Unique perspective from someone who has run companies for PE Firms for the last 20 years.

Full Show: Here

If you enjoyed this show, you may like:

https://brt-show.libsyn.com/category/Sales-Marketing-Networking-HR

BRT Hollywood: HERE

More - BRT Best of:

https://brt-show.libsyn.com/category/Best+of+BRT

Thanks for Listening.

Please Subscribe to the BRT Podcast.

Business Roundtable with Matt Battaglia

The show where Entrepreneurs, High Level Executives, Business Owners, and Investors come to share insight and ideas about the future of business. BRT 2.0 looks at the new trends in business, and how classic industries are evolving. 

Common Topics Discussed: Business, Entrepreneurship, Investing, Stocks, Cannabis, Tech, Blockchain / Crypto, Real Estate, Legal, Sales, Charity, and more… 

BRT Podcast Home Page: https://brt-show.libsyn.com/

‘Best Of’ BRT Podcast: Click Here

BRT Podcast on Google: Click Here

BRT Podcast on Spotify: Click Here                   

More Info: https://www.economicknight.com/podcast-brt-home/

KFNX Info: https://1100kfnx.com/weekend-featured-shows/

Disclaimer: The views and opinions expressed in this program are those of the Hosts, Guests and Speakers, and do not necessarily reflect the views or positions of any entities they represent (or affiliates, members, managers, employees or partners), or any Station, Podcast Platform, Website or Social Media that this show may air on. All information provided is for educational and entertainment purposes. Nothing said on this program should be considered advice or recommendations in: business, legal, real estate, crypto, tax accounting, investment, etc. Always seek the advice of a professional in all business ventures, including but not limited to: investments, tax, loans, legal, accounting, real estate, crypto, contracts, sales, marketing, other business arrangements, etc.

BRT Show 100 – Best of Investing 2021

- BRT S03 EP01 (100) 1-2-2022

BRT Podcast 100th show, we are rejoined by the first guest, Denver Nowicz to talk about the Show’s Philosophy. The Business Roundtable is a show about the intersection of business and investing, with interviews of top business leaders giving actionable advice on their industry. The common topics are investing, tech, cannabis, real estate, crypto & more.

1st Half – Philosophy, Investing and Taxes 

Guest: Denver Nowicz, President - Wealth For Life https://wealthforlife.net/brt/

Denver is an advisor with nearly 20 years experience working with clients in investments and insurance, designing retirement plans with a combo of both. He takes us through different strategies for clients to get the best allocations for their money over the long term. It is the Combo Strategy of both Offense and Defense, the synergy of the mix, not ‘All or Nothing’.

Notes:

• Most financial advice is for 90% of people, not the Top 10% earning $125K +
• Goal is to own Assets, especially cash flowing assets like Business or Real Estate
• Cash is hurt by Inflation vs. Assets that appreciate and can be a hedge against Inflation
• Generate Multiple Streams of Income to Diversify, and have $ coming in regardless of economy
• Own business if possible for cash flow, appreciation and Tax Write Offs
• Beware Disruption – have an Exit Strategy, think long term, and have a backup plan 
• Tax Protection – understand the 3 Tax Buckets of Taxed (W2 Income), Tax Deferred (401K), and Tax Free (ROTH or IUL)
• A tax Deferred plan like a 401K is good early to provide some quick tax deferral, but should not be the whole plan
• Do you want to pay taxes now on the Seed, or pay taxes later on the Harvest?
• The Gov’t (IRS) is everyone’s Silent Partner, and will get their cut – separate from that partner
• If you earn $100k + in your household, then taxes will be your biggest expense in retirement 
• Move $ into a Tax Free Position, 30% + if possible, then pull from different buckets in Retirement
• A large portion of Social Security will be taxed (85% of the total) if you are a high income earner
• Invest for Offense in Stocks, Business’ or Real Estate
• Use Insurance products with an Index Strategy for Defense, protects principal
• Use Leverage and Capital Control to grow Wealth – control dollars with pennies
• Create Arbitrage spread like a bank, Borrow Money at 3% and Earn 6%
• The Wealthy use borrowed money to earn a lower more conservative return on a larger amount of money vs. trying to chase high returns with their own money

https://www.nerdwallet.com/article/taxes/federal-income-tax-brackets

2022 Fed Income Tax Brackets (for taxes due in April 2023) 

Single filers

Tax Rate          Taxable Income Bracket           Tax Owed

10%                  $0 to $10,275                            10% of taxable income

12%                  $10,276 to $41,775                    $1,027.50 plus 12% of the amount over $10,275

22%                  $41,776 to $89,075                    $4,807.50 plus 22% of the amount over $41,775

24%                  $89,076 to $170,050                  $15,213.50 plus 24% of the amount over $89,075

32%                  $170,051 to $215,950                 $34,647.50 plus 32% of the amount over $170,050

35%                  $215,951 to $539,900                 $49,335.50 plus 35% of the amount over $215,950

37%                  $539,901 or more                      $162,718 plus 37% of the amount over $539,900

https://www.cnbc.com/2021/08/18/61percent-of-americans-paid-no-federal-income-taxes-in-2020-tax-policy-center-says.html

WEALTH

The top 20% of taxpayers paid 78% of federal income taxes in 2020, according to the Tax Policy Center, up from 68% in 2019. The top 1% of taxpayers paid 28% of taxes in 2020, up from 25% in 2019. 61% of Americans paid no federal income taxes in 2020. 

https://www.taxpolicycenter.org/ - tax stats and articles

Link to Taxes Show on 10/31/2021 w/ Denver: Here

Link to Offense / Defense Show on 6/6/2021 w/ Denver: Here

Link to Shows, Denver was a Guest: Here

More Info on WFL and Tax Free Matching: HERE

2nd Half - Best of Investing - 2021

2nd Half - Best of Investing – 2021 BRT re-visits some Investing segments from 2021 on investing and the 401K creation.

Topics: Stock Market,401K, investing, Franchising, buying business vs. startup, real estate accounting

BRT Clip from Seg. 2 of 7/25/2021

Topic: Investing Mid-2021, Inflation, Tech Stocks are Flat, Now What?

Guest: Robert Raeburn VP Wealth Mgmt,  Life Pro Asset Mgmt Robert’s Weekly Insights - https://www.lifeproassetmanagement.com/insights

Inflation, The Fed, macro outlook, state of the market

Full Show: Here

BRT Clip from Seg. 2 of 12/5/2021

Guest: Jon Ostenson, w/ Franbridge Consulting

https://franbridgeconsulting.com/

https://www.linkedin.com/in/jonostenson

Full Show: Here

BRT Clip from Seg. 1 of 8/29/2021

Topic: Ted Benna, the Father of the 401k Covers It All, History, pensions, Fees & More

Guests: Ted Benna, Benna 401K

http://benna401k.com

Full Show: Here

BRT Clip from Seg. 3 of  4/18/2021

Topic: Real Estate Accounting w/ Keystone CPA

Guest:  Amanda Han & Matt MacFarland w/ Keystone CPA

https://www.keystonecpa.com/

Full Show: Here

‘Best Of’ Topic: https://brt-show.libsyn.com/category/Best+of+BRT

Investing Topic: https://brt-show.libsyn.com/category/Investing-Stocks-Bonds-Retirement

More 'Best of Investing': Here

Thanks for Listening.

Please Subscribe to the BRT Podcast. 

Business Roundtable with Matt Battaglia

The show where Entrepreneurs, High Level Executives, Business Owners, and Investors come to share insight and ideas about the future of business. BRT 2.0 looks at the new trends in business, and how classic industries are evolving. 

Common Topics Discussed: Business, Entrepreneurship, Investing, Stocks, Cannabis, Tech, Blockchain / Crypto, Real Estate, Legal, Sales, Charity, and more… 

BRT Podcast Home Page: https://brt-show.libsyn.com/

‘Best Of’ BRT Podcast: Click Here

BRT Podcast on Google: Click Here

BRT Podcast on Spotify: Click Here                   

More Info: https://www.economicknight.com/podcast-brt-home/

KFNX Info: https://1100kfnx.com/weekend-featured-shows/

Disclaimer: The views and opinions expressed in this program are those of the Hosts, Guests and Speakers, and do not necessarily reflect the views or positions of any entities they represent (or affiliates, members, managers, employees or partners), or any Station, Podcast Platform, Website or Social Media that this show may air on. All information provided is for educational and entertainment purposes. Nothing said on this program should be considered advice or recommendations in: business, legal, real estate, crypto, tax accounting, investment, etc. Always seek the advice of a professional in all business ventures, including but not limited to: investments, tax, loans, legal, accounting, real estate, crypto, contracts, sales, marketing, other business arrangements, etc.