Founder's Guide Post

In Episode #33 of the Founder's Guide Post Podcast, I sat down with Richard Dickens, founder of Dickens Quality Demolition, to explore his experience with selling his business. Richard highlighted how personal life changes and the increasing demands of the business, along with his family's influence, especially his wife's, guided his decision to sell. He emphasized the importance of maintaining a 'clean' operation, separating personal and business finances, making the company attractive to buyers. Richard's strategic selection of a broker, focusing on industry knowledge and alignment with his business goals, was a key part of the process.

He underscored the necessity of professional guidance in navigating the complex sale process and the emotional impacts on himself and his employees. Our discussion also covered the critical role of legal and financial planning, including philanthropy and tax considerations. Richard shared insights on the importance of planning for post-sale life and keeping the family involved in philanthropic efforts. This episode provided a wide view of the multifaceted nature of selling a business, blending practical, emotional, and financial perspectives.

What You'll Learn:

1. It's Okay for you to Sell Your Business because of the Demands from your Personal Life and other Businesses: Richard Dickens' decision to sell his company, Dickens Quality Demolition, was significantly influenced by changes in his personal life, including his family's evolving needs, particularly the role of his wife and the desire to slow down as his daughters started their own lives.

1. Professional Guidance and Strategic Planning is Critical: The process of selling the business involves strategic planning, including maintaining a 'clean' separation between personal and business finances and choosing the right broker with industry knowledge and alignment with business goals. The role of professional guidance in navigating the complex sale process was emphasized.

1. Post-Sale Planning and Family Involvement: Richard highlighted the importance of legal and financial planning in the context of the sale, including considerations for philanthropy and tax planning. The involvement of family in these decisions and planning for life after the sale, including philanthropic activities, was also discussed as crucial elements.

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Links & Resources:

https://www.dickensquality.com/

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About Richard Dickens:

With over a 30 years in the industry, Mr. Dickens has taken Dickens Quality Demolition to be the premier demolition contractor in the state. Mr. Dickens started in demolition as lead man trainee; working his way up from foreman to Vice President at a large, Phoenix based, demolition contractor. Mr. Dickens is a native Arizonan with strong business and personal ties to the community. In 1997, Mr. Dickens felt it time to establish himself in the industry. With 80 hour work weeks, and some sound investment planning, Dickens Quality Demolition was created. Now in our 24th year of operations, Dickens Quality Demolition averages over 150 employees.

Management – Extensive background in estimating, budgeting, operational supervision, and business operations throughout the demolition industry.

Revenue generation – Proven ability to recognize potential clientele and develop existing clientele. Gross revenues have grown from six figures to $15+ million a year on average for the company

Employee Development – Dedicated leader experienced in recruiting, hiring, and training highly qualified and diverse candidates.

Asbestos Recognition Course 1993/E.P.A. Hazardous Material Course 1997, MSHA Certifications, 30 Hour OSHA

In episode #32 of the Founder's Guide Post Podcast, I had a conversation with Gaurav Sud, who works at Lockton Companies with a lot of experience in mergers and acquisitions.

He's an expert in a special type of insurance called representation and warranty (rep and warranty) insurance, which is really important for business sales. Gaurav explains how rep and warranty insurance helps handle risks when selling a business. It's a better way than the usual methods because it makes things easier and more financially beneficial for everyone involved. We talked about how this insurance takes into account the risks known and unknown in a business deal, moving these risks from the people in the deal to the insurance company.

Gaurav also shares how both buyers and sellers gain from this insurance. For sellers, it means they can get all their money from the sale without having to wait, and buyers still get to keep their safety net.

He mentions that these insurance plans are based on the due diligence done by the buyer, which makes things less complicated for the seller.

The discussion covers how the cost of these insurance policies can change based on different factors like the state of the market and how complex the business is.

What You'll Learn:

1. Role of Rep and Warranty Insurance: This insurance addresses the risk allocation in business transactions, transferring these risks from the involved parties to the insurance market.

1. Benefits for Buyers and Sellers: Sellers can immediately receive full sale proceeds, avoiding escrow, while buyers maintain their protective coverage.

1. Understanding Insurance Policies: The pricing of these policies generally ranges between 2.5% to 5% of the insured amount.

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Links & Resources:

https://global.lockton.com/

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About Gaurav Sud:

Gaurav joined Lockton's Transaction Liability Practice in 2021 and serves as a Partner and Co-Practice Leader within the market-leading team. He specializes in brokering deals in the technology industry. Gaurav has more than 15 years of experience in the M&A world. He began his professional career as a Paralegal at Wachtell Lipton in their M&A group, a firm ranked consistently at the top of the M&A category by Vault. Next, Gaurav practiced at Shearman & Sterling, where he worked in their M&A group, dealing with distressed M&A deals from 2007-2011. After moving to California in 2011, Sud started at Fenwick & West, where he worked on deals involving private equity, M&A, venture capital financing and corporate governing. Gaurav joined Aon three years later as a Senior Vice President before his promotion to the role of Senior Managing Director.

In episode #31 of the Founder's Guide Post Podcast with Paul Smiley, CEO and founder of Sonoran Technology, we talk about how Entrepreneurs can be more successful if they find a genuine market need when starting a business rather than just focusing on profits. Drawing from his military background, he linked leadership skills to effective business management, emphasizing the critical role of leadership in complex situations. Our conversation covered various topics, including discipline, trust-building, and mentorship, offering valuable insights for aspiring entrepreneurs and business leaders.

Paul also shared key tips on building relationships with banks and offered advice on reducing perceived risks. He emphasized the importance of patience, perseverance, and fostering a culture of respect within a company. The episode ends with Paul talking about why Entrepreneurs need to do succession planning and train young leaders to leave a legacy of effective leadership and make a positive impact in business and beyond.

What You'll Learn:

1. Addressing Genuine Market Needs: Paul emphasizes the importance of entering the business world with a genuine market need in mind, focusing on long-term sustainability rather than just profits.

1. Building Bank Relationships: Paul shares insights on nurturing strong relationships with banks to secure working capital, emphasizing becoming "bankable" and establishing trust over time.

1. Leadership and Succession: Paul highlights the significance of leadership and succession planning, stressing the need to develop young leaders and ensure business continuity.

LOVED this episode? Leave us a review and rating here: https://podcasts.apple.com/us/podcast/founders-guide-post/id1648393214

Links & Resources:

https://www.sonorantechnology.com/

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About Paul Smiley:

Paul A. Smiley is the Founder and President of Sonoran Technology and Professional Services located in Goodyear Arizona. Sonoran Technology was recognized as one of the most successful and fast-growing small businesses in the U.S. providing professional service support to the U.S. Air Force, Navy, Army, and other federal agencies. By the end of 2022, Sonoran Technology will have over 250 employees working in 20 states and at overseas military bases. Mr. Smiley volunteers his time as an active and highly engaged board member for U.S. Small Business Administration's "Boots-to-Business" Program, Estrella Mountain Community College President's Advisory Board, West Valley Defense Alliance Board, at-large contributor to the Arizona Chapter of the Tuskegee Airman. Mr. Smiley is a retired Air Force Lieutenant Colonel with over 1,900 flying hours in the E-3 AWACS aircraft. He is a combat veteran of OPERATION DESERT STORM, served twice as a Squadron Commander, Deputy Group Commander, and Pentagon action officer. Lt. Col Smiley is a graduate and former instructor at the Air Force's prestigious Fighter Weapons School.

In this episode with May Lu from Tiffany and Bosco P.A., In this interview, May and I dive into various aspects and considerations when it comes to selling a business.

She highlights the significance of confidentiality through non-disclosure agreements (NDAs), distinguishes between different types of buyers, emphasizes careful information sharing, and stresses the need for assembling a professional team to assist with the sale process.

May Lu's insights also touch on the role of business intermediaries, provide contact information for further assistance, and offer valuable guidance into the complexities involved in selling a business. Overall, May Lu provides a comprehensive guide for business owners looking to effectively navigate the process of selling their businesses in this podcast.

What You'll Learn:

1. Confidentiality and considerations matter.

2. How to maximize business value.

3. Due diligence correlating to the sale timeline.

LOVED this episode? Leave us a review and rating here: https://podcasts.apple.com/us/podcast/founders-guide-post/id1648393214

Links & Resources:

Email May Lu - [email protected]

Tblaw.com

Connect with May on LinkedIn

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About the Guest:

May Lu serves the transactional needs of businesses and their owners by assisting them with business formations, joint ventures, mergers and acquisitions, recapitalizations, succession strategies, general business planning, and other business agreements. She also provides guidance to businesses concerning disputes among owners and related fiduciary duties. In addition, May assists clients with regulatory and governance issues related to the U.S. Small Business Administration and other federal, state, and local programs.

May has been recognized as one of the Super Lawyers Southwest Rising Stars for 2012-2017 in the area of mergers and acquisitions. May's commitment to giving back to the community includes her involvement on the Board of Directors and as pro bono General Counsel of ACLU-Arizona and in volunteering with the ASU Sandra Day O'Connor College of Law's Business Legal Assistance Program, for which she was awarded the 2011 Outstanding Volunteer Lawyer. She is also an alumna of the 2011-2012 Class of the Bar Leadership Institute sponsored by the State Bar of Arizona. Additionally, she is in her second term on the State Bar of Arizona's Arizona Attorney Magazine Editorial Board.

Upon graduation from the U of A James E. Rogers College of Law, May served as a Law Clerk for the Honorable Lawrence F. Winthrop, of the Arizona Court of Appeals, Division One. While in law school, May was a Managing Editor of the Arizona Journal of International and Comparative Law.

Prior to law school, May's interest in assisting businesses motivated her to attend Arizona State University and its Barrett Honors College on a National Merit Scholarship to study economics, international business, and Spanish.

In this episode with Mike Olson from WealthPoint, we talk about how crucial it is for business owners, including founders and those thinking about selling their businesses, to have customized financial and insurance plans.

Mike highlights the importance of creating solutions that fit each individual's unique needs. He also emphasizes the significance of having open and thorough discussions with financial experts rather than rushing into decisions.

Mike points out that it's essential to consider the broader context and thoroughly understand the specific goals of each client. As well as discussing a range of financial and insurance strategies tailored to different stages of a business owner's journey, all aimed at providing guidance and helping them make well-informed choices.

What You'll Learn:

1. The importance of crafting personalized financial and insurance plans tailored to the unique circumstances and goals of business owners, including founders and those planning to exit their businesses.

2. The significance of involving financial professionals, business partners, and experts.

3. How to avoid hasty decisions and embrace flexibility.

LOVED this episode? Leave us a review and rating here: https://podcasts.apple.com/us/podcast/founders-guide-post/id1648393214

Links & Resources:

[email protected]

https://wealthpoint.net/

Connect with Mike on LinkedIn

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About Mike Olson:

Mike Olson is a Partner and one of the original founding members at WealthPoint. With over 25 years of experience in the industry, Mike has cultivated a profound expertise in collaborating with ultra-affluent families, business owners, and their teams of advisors. His primary focus lies in helping them assess, structure, and optimize insurance portfolios within the context of their comprehensive financial plans.

Originally hailing from Akron, Ohio, Mike pursued a Bachelor of Science in Finance from Miami University of Ohio before relocating to Arizona, drawn by the enticing weather. Since 1998, he has been happily married and is a proud father of three daughters. Beyond his professional pursuits, Mike dedicates his free time to participating in and training for triathlons and biathlons. He also finds enjoyment in the thrill of mountain biking adventures.

In this episode with Jerry Foster from Resolute Commercial, we learned about their vital role in assisting businesses with significant problems. Jerry emphasized the core values of "Grace" and "Transparency" in addressing challenges.

He spoke about the significance of early intervention, establishing clear guidelines, and understanding business pitfalls. Our conversation also touched on the dynamics between businesses and lenders, and the importance of navigating legal challenges effectively.

What You'll Learn:

1. The vital principles of "Grace" and "Transparency" in aiding distressed businesses.

2. The importance of early detection and intervention in business challenges is underscored.

3. Emphasis is placed on transparent relationships with lenders and expertly navigating financial and legal challenges.

LOVED this episode? Leave us a review and rating here: https://podcasts.apple.com/us/podcast/founders-guide-post/id1648393214

Links & Resources:

[email protected]

https://resolutecommercial.com/

https://www.linkedin.com/in/resolutecommercial/ Connect with Jerry! (Linkedin)

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About Jerry Foster:

Jerry is best described as a serial entrepreneur who achieves success by infusing vision and leadership into gaps observed within target markets. Whether contributing significantly to the growth of a startup from a handful of employees to a $100M NASDAQ IPO (IGOI) or establishing his own technology company that was later acquired, Jerry is fueled by the exhilaration of fostering prosperous ventures. His career spans technology, manufacturing, commercial real estate, and commercial turnarounds and workouts. He is skilled in devising relationship-based sales and marketing strategies with a sharp business acumen.

In this episode with Michael Montelongo, we explore the intricacies of governance in banking and finance. Michael emphasizes the importance of boards in ensuring ethical business practices and highlights the recent challenges faced by Silicon Valley Bank and First Republic Bank.

He stressed the need for selecting board members aligned with a company's vision and underscores the professional responsibilities of a director. Our conversation emphasized the pivotal role boards play in bolstering a nation's economic health.

What You'll Learn:

1. Corporate governance is vital for the smooth and ethical operation of organizations.

2. How to create a board of directors that are aligned with your vision.

3. The importance of continuous learning for the board of directors.

LOVED this episode? Leave us a review and rating here: https://podcasts.apple.com/us/podcast/founders-guide-post/id1648393214

Links & Resources:

Connect with Michael! (LinkedIn) https://www.linkedin.com/in/michael-montelongo/

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About Michael:

President/CEO of GRC Advisory Services, LLC. Board governance advisor and audit committee financial expert serving on several boards. Frequent board governance speaker/panelist and faculty for the NACD, the LCDEF BRI, and the TLDG. Former presidential appointee and Senate-confirmed official. Cross-domain fluency in business, national security, and civic affairs.

In this episode I talk to Steve Boatwright, an attorney specialized in mergers and acquisitions, to discuss the complexities business owners face when selling their ventures.

We emphasized the importance of having a proficient team of professionals to navigate the legal, financial, and operational intricacies of the sale process. We talk about the benefits of thorough preparation and the right professional guidance in ensuring a favorable sale outcome.

This discussion aims to provide a well-rounded perspective on achieving a smooth and successful business transition while selling a business.

What You'll Learn:

1. Why having an M&A attorney on your side can save you money in the long run.

2. The paperwork involved in a merger or acquisition.

3. The role of an M&A attorney when it comes to assembling a team of advisors.

LOVED this episode? Leave us a review and rating here: https://podcasts.apple.com/us/podcast/founders-guide-post/id1648393214

Links & Resources:

[email protected]

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About Steve:

For more than three decades, Steve has handled public and private business mergers and acquisitions for buyers and sellers of businesses of all kinds, and advised companies raising private equity and public financing. Whether seeking initial funding, expanding the business through follow on funding or acquisition, or pursuing an exit strategy through an asset/stock sale or public offering, Steve offers each client the veteran experience, practical judgment, and seasoned know-how to realize even the most lofty goals in all phases of financing and growth.

On today's show I have business valuation expert, Lynton Kotzin of JS Held. We talk about the intricacies of determining a company's worth, emphasizing a multi-faceted approach that considers economic trends, company specifics, and three primary valuation methods: asset, market, and income approaches.

Lynton highlights the distinction between financial and strategic buyers, noting that the latter may offer a premium due to envisioned post-acquisition synergies. He advises business owners to enhance value by maintaining clean financial statements, establishing management depth, and diversifying their customer base.

Sellers are urged to understand their company's real value and not rush sales, considering engaging brokers or investment bankers to optimize sale outcomes.

In this episode you'll understand that proactive asset management and expert valuation are vital for estate planning, especially in light of changing estate tax thresholds. In transactions, due diligence is paramount, and sellers should seek specialized professionals to ensure deals are legally sound, tax-efficient, and reflective of the company's true value.

What You'll Learn:

1. Why the valuation process is so important.

2. The team of Advisors you must have on your side.

3. The approaches to a business valuation.

LOVED this episode? Leave us a review and rating here: https://podcasts.apple.com/us/podcast/founders-guide-post/id1648393214

Links & Resources:

Call Lynton! 602 544 3552

[email protected]

jsheld.com

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About Lynton:

Lynton has also performed extensive industry and financial analysis and developed valuation models across a broad spectrum of industries. In addition, he has valued intangible assets for purchase price allocation and licensing transactions.

His diverse industry experience includes manufacturing, retail, wholesale, service companies, healthcare, professional practices, and real estate.

Prior to joining J.S. Held with the acquisition of Kotzin Valuation Partners, he was a Director in the Corporate Value Consulting Group of a Big 4 consulting firm.

Lynton has been a guest speaker for the State Bar of Arizona and made numerous presentations and written several articles on business valuation and related topics. He has provided expert testimony in deposition and trial and been admitted as an expert in the field of business valuation, forensic accounting, and economic damages calculation.

If you're a business owner thinking about an exit strategy, consider an Employee Stock Ownership Plan (ESOP) as a serious option before going the conventional route of outright selling your company. In this episode with Abran Villegas, we talk about how ESOPs offer a multitude of benefits, including potential tax-free sales, as opposed to conventional methods that can tax you up to 25% on the sale of your business. Additionally, ESOPs provide financial flexibility; you can choose your own exit timeline, receiving payments over a span of three to five years, which ensures a smooth transition.

Beyond the financial perks, ESOPs also offer benefits that can be invaluable for someone who has spent years or decades building a company. These plans allow you to preserve the company's culture and legacy, keeping the business local and preventing out-of-state takeovers.

A staggering 75% of business owners regret selling their companies; ESOPs allow you to maintain a connection with the company and its employees, which mitigates that sense of loss. Plus, employees benefit too, becoming more productive co-owners, which makes your company more attractive for talent recruitment and retention.

So, if you're looking to exit your business, an ESOP might just be the ideal way to do it, both for you and your employees.

What You'll Learn:

1. The advantages of ESOPs for the business owner and employees.

2. How ESOPs actually work.

3. Why planning ahead is so important.

LOVED this episode? Leave us a review and rating here: https://podcasts.apple.com/us/podcast/founders-guide-post/id1648393214

Links & Resources:

Lazear Capital

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About Abran:

Abran Villegas is a native of Albuquerque and has spent the last 23 years in banking. His focus is on finding creative, capital solutions for his clients. Areas of expertise include Solar, Tax Credits, Owner Occupied Real Estate, Contractors and Middle Market Businesses.

He holds a Bachelor's from Georgetown and an MBA from Thunderbird School of Global Management. He plays in a mariachi and also serves on various nonprofit boards. Charitable work includes the Maricopa Community College Foundation, Ronald McDonald House, Tiempo, Inc. and SW Center for HIV and Aids.