Poised for Exit

No Plan B: The All-in Approach of a Boat Burner

It's not often that we feature our clients as guests on the show, but every now and then we have to ask! boatBurner has such a compelling story, we hoped they'd say yes, and they did. They're a creative services agency, who focuses on CPG (Consumer Packaged Goods) from an all-in perspective. No plan B for them, or their client work. They found the story of Alexander the Great, who ordered his crew to burn the boats when they arrived at a destination to be one that illustrated their beliefs. Thus, they  named their firm boatBurner.  

boatBurner was established 9 years ago by Teddy and his partners, Doug Mickschl and Brandon Van Liere. The three men were coworkers at a large advertising agency, when one day they decided it was time to take their talent and build something for themselves. Their clients are very glad they did!

One of their many capabilities is with Retail Media. Teddy explains that when a company needs their product to become more recognized, using this strategy drives measurable results that can be tracked for ROI, creating a major win-win approach for the retailer and the seller of the new product. For instance, if you develop a new coffee maker with a name that needs to expand its reach, you'd advertise it on a retailer's website. When a consumer clicks and buys the product, the retailer makes a sale and so does the product seller. You've likely seen this played out many times when online!

Teddy says their approach is all about connecting with the client's primary buyer in a multiple of ways, along with aligning their strategy with the client's growth goals for the product and for their business overall. This holistic approach to creative services is not common, but it's paid off for boatBurner's clients in a big way. 

One such client was Boom Chick-a-Pop!  Listen to that story and their exit here...... 

The EPI Twin Cities Chapter 2024 Owners Forum is TODAY, October 3rd! There is still time to register and attend! Click here for the details.

What does it take to be a female CEO of a Regional Bank? Tenacity!

Our guest in today's episode is Angie O'Neill, President and CEO of MN Bank & Trust. Angie shares some very interesting stories and perspectives that were inspiring and motivating as well. How many female CEOs of a bank do you know? We didn't personally know any until today's show! 

Angie's primary focus is on the people; customers first. When it's about giving great service, she's always focused on the customer, which is how she became so respected throughout her journey to the top position!  She's a people person, loves to collaborate, and the team approach is the way to solve for just about anything. Her open door policy has her employees feeling at ease and her clients still call her (even though she's not handling their banking needs herself anymore). A shining example of a client centric leader. 

She always worked very hard, advocating for her clients beyond expectations and putting in the extra effort to keep them engaged and happy. She treats her staff the same way. 

There are lots of big things happening at MN Bank & Trust, like a merger with UMB! . Angie says bringing the two banks together will make for a commercial banking powerhouse, and grow the services that business owners need and want beyond the impressive menu they already have, not to mention the two cultures are a great fit!

When I asked her how she was able to become so successful in banking, she said the primary trait was tenacity. We could all use a little more of that in our world, couldn't we?  

You will love listening to her interview! Find it here!

The EPI Twin Cities Chapter 2024 Owners Forum is TODAY, October 3rd! There is still time to register and attend! Click here for the details.

Avoid M&A Pitfalls with Trust as a Guiding Principle

We had Matt Hartranft in the studio today!  Matt is a partner and M&A attorney with Brutlag, Trucke and Dougherty. We spent a great deal of time discussing how established trust is essential in shortening the duration of the deal to closing, and in deal negotiations in general. 

Matt says that in the dealmaking world, trust is his guiding principle and is more than just a values based philosophy. We talked about how his stories tied in so well with our previous guests, Brian Slipka and David Horsager, who both focused on trust as their content topic, because it's impacting so many facets of the business world, especially the transaction space. 

Matt shared a story about a buyer of a client selling his business,who was a much larger organization and initially required revenue and profit guarantees from the sellers for the first year or two, until they got to know the employees and leadership, and then realized that they didn't need to question the integrity of what they initially thought was a risky unknown. This turn came about due to the honesty and behavior of the team they were acquiring; knowing they could trust in what they said made all the difference. 

Matt also said that the community of common players in the M&A space, especially in the Midwest are many times known, which can help reduce the amount of time a deal takes to complete, thereby reducing the billing invoices, etc. As we've said before on Poised for Exit, "trust is measurable". 

Listen to Matt's advice and stories here!

The EPI Twin Cities Chapter 2024 Owners Forum is TODAY, October 3rd! There is still time to register and attend! Click here for the details.

Private Investigators and Dealmakers are Teaming up More Often than Ever!

We covered an unusual topic in this episode, that we learned wasn't so unusual afterall. Private investigations within the M&A space. As buyers and sellers become more leary of the trustworthiness between them during dealmaking, the advisory team is completing the circle of trust by having what they disclose verified. Our guest today is Tom Jaeb, Founder and Managing Director of JR Risk Advisors. Tom's background in private investigations goes back to working with his brother's PI firm in 1993. When that firm sold, he and his brother took a year off to honor the Non Compete and then launched J2 Risk Advisors. This time around, their sole focus is on M&A transactions, being hired by PE firms, Investment Bankers, and others in the Dealmaking space. They verify all kinds of information that has been disclosed, and watch for red flags in areas that could be missed by the untrained eye.

You'd think that a credit report, courthouse search, and online search would bring up enough to make a case for or against a deal going through, but J2 digs deeper. They conduct research that examines the Press, Social Media, College Degrees, and other background sources as well.

Tom says that most deals are free of 'red flag' items that would derail a transaction. However, he said that each search uncovers things that weren't necessarily discussed or disclosed, simply because the buyer or seller didn't think it was relevant. Say for instance a lawsuit settlement that the company was a party to 10 years ago. The key to deciding whether research and analysis are necessary is to determine if there are patterns of behavior or isolated incidents. When it's a pattern, it's a red flag, but if it's something that happened once many years ago, they're not going to be as concerned.

Tom shared some intriguing client stories that you will find surprising! He said that Private Investigations during the dealmaking stages are more common than you think. The point about trustworthiness can be carried over from little things to big things; it's then up to the buyer or seller to decide whether to move forward.

Listen to the episode here!

The EPI Twin Cities Chapter 2024 Owners Forum is TODAY, October 3rd! There is still time to register and attend! Click here for the details.

Trust Matters Now more than Ever: Learn from the Experts

We had the privilege of interviewing Brian Slipka and David Horsager together in the studio today to talk about the books they’ve both recently written! The conversation eventually lead to the concept of trust and how it can be so quickly depleted in today’s society. 

David is an author, speaker and researcher on the topic of trust and has not only written several books on the subject, but has also established an Institution of consultants who teach leaders how to establish and measure it. His numerous research projects about trust have generated numerous annual reports summarizing aspects of trust, its presence or absence with research that spans industries, generations and countries. 

Brian’s book, “Win Some: 5 Proven Life Strategies to Win in Relationships” was published by David’s company “Broadstreet Publishing” and released earlier this year, is a book written in the form of a fable with a baseball theme.  The story teaches lessons on trust, humility and self-awareness that eventually help the main character, Sam earn the trust and build relationships with those on his team and in his life. When I asked Brian what he learned about himself in writing the book, he said he learned that he can be a protagonist as much as Sam, his main character, which helped him to check himself more often in that category!  We all admitted that our greatest strengths are usually our weaknesses too. 

David’s 4th book called “Trust Matters More than Ever: 40 Proven Tools to Lead Better, Grow Faster & Build Trust Now!”  is slated to be released in November and has already sold over 10,000 copies! David speaks 100 times per year to private organizations, public companies and trade associations across the globe about how the presence of trust impacts successful companies, teams and relationships, and how to establish it as a metric for ongoing growth and fulfillment. Trust definitely leads to improved relationships and growth, but when trust is absent, many times other factors are deemed at fault, like ‘communication’. David maintains that it all boils down to a lack of trust, regardless of what else may be blamed. 

Brian and David’s relationship started through connections with several mutual friends and the collaboration grew from there. We agreed that bringing them back in a year to get an update on all they have going together (and separately) would be in order! 

 Listen to the amazing interview here!

The EPI Twin Cities Chapter 2024 Owners Forum is TODAY, October 3rd! There is still time to register and attend! Click here for the details.

Sold over 330 Businesses and He's just getting Started!

On the #Poised for Exit podcast this week we had the honor of hosting Manoj Moorjani today, who's a Dealmaker at Calhoun Companies. Manoj has sold over 330 companies since starting his career as a business broker. He's about as well known as they come in the Midwest, and for good reason. He's got a network of former clients and professional advisors that's larger than most corporate directories.

Manoj has a memorable style and philosophy uncommon among his peers. He likes to take more of a hands off approach than hands on with his clients. He feels he doesn't need to babysit them; they can make their own choices. He definitely coaches them up, educates them on the process and works hard to get them the best possible deal structure, not just the best price.

His extensive network includes numerous community and regional lenders who compete for opportunities to write loans for his clients, because they know his deals are as good as closed. Manoj does not believe in having a business for sale that's not ready or that's priced too high. He'd rather have the owner prepare themselves and the business with an Exit Planner like Julie Keyes before coming to him to sell. The odds of a lucrative, successful sale are multi-fold at that point.

Manoj started as an assistant with Calhoun Companies 23 years ago and hasn't looked back. He's been the number one broker at Calhoun for 8 of the last 10 years, and he's not done yet!  He loves his work, loves making a positive impact in his client's lives and loves making people's dreams come true. He shared some very compelling stories in the interview, and that was just a sample of what he's done and knows!

Listen to the episode

Connect here with Manoj Moorjani

The EPI Twin Cities Chapter 2024 Owners Forum is TODAY, October 3rd! There is still time to register and attend! Click here for the details.

Overview of the 7th Annual Owner's Forum: "Go or Grow!"

We had the pleasure of hosting Todd Krough in the studio today. Todd is a wealth manager for MN Bank and Trust, and is also the incoming President for the Twin Cities Metro Area Chapter of the Exit Planning Institute. We discussed highlights of previous Owner's Forum events and what to expect from our upcoming event on October 3, 2024 at Midland Hills Country Club, 2-6 pm.

We recalled our first Owner's Forum in 2016, which was held at the University of Minnesota's McNamara Center. We had 150 attendees and collaborated with several firms who led various breakout sessions. For our first annual event, it was very well attended and received, so we decided to host another (and several more since)!

It's been a popular event for business owners and advisors alike, and Todd believes it's because we deliver relevant, timely content in a non-threatening, "No-Sell Zone" for business owners. We're all there to learn first and network second. (The food and drinks are pretty good too, though!)

We recalled a couple of memorable stories shared by panelists from previous Owners Forums. Their not-so-good exit outcomes and what life was like after the sale are etched in my mind. As they say, you could've heard a pin drop. This is the kind of learning we offer at every Owner's Forum event, with a chance to ask questions and get answers from the experts.

We're bringing back Sean Hutchinson from Ready For Next to lead us in another interactive Case Study. The feedback from Sean's presentation last year was so positive that we had to ask him to join us again. Sean will share critical information about the company, and it's up to the people at the tables to figure out the best path for a successful exit.

We also have Chris Jones, President of True North M&A and Sunbelt Business Advisors, as our fearless Keynote Speaker. Chris will discuss what owners should be doing right now to get ready for a future exit. Chris is always entertaining, informative, and engaging. He's back on stage for a good reason; he knows the market and what business owners need to do to prepare for what Buyers want in today's economy.

With these two powerhouses of knowledge, we've given owners compelling reasons to attend! It's going to be our best event ever; don't miss it!

Listen to more about the event here!

Get registered for the Owner's Forum here!

The EPI Twin Cities Chapter 2024 Owners Forum is TODAY, October 3rd! There is still time to register and attend! Click here for the details.

Business Succession Research Completed by the University of MN

Our guest for today's show is Michael Darger, U of M Extension Specialist, who focuses on community economics and Business Succession. His background in years with Economic Development agencies led him to focus on Business Retention and Expansion work, which eventually landed him at the U of M conducting and publishing important research on entrepreneurs and their exit plans.

Michael and his team recently conducted some research on Minnesota companies with 5-500 employees, specifically on business transition preparedness. They received 300 responses, reaching a milestone of "statistical significance". It asked owners questions about their awareness, attitudes, aspirations and steps they've taken toward an eventual transition from their business. Some of the findings were surprising, Michael said.

The most surprising was that a majority of respondents were unaware of what their selling options to employees might be. This directly correlates with whether they've had the proper advice on what their exit options could be. A large number claimed that the business would transfer internally to family members, but then many admitted that their would-be successors weren't ready or interested.

When owners were asked in general how they'd rank themselves on their personal preparedness, they scored an average of 3.6 out of a possible high score of 6. Some said they were ready personally (Owner Readiness, as we call it) and some said their Business Readiness was dialed in. The responses can be explored in greater detail, to learn industry trends, company size, etc. Find the research and download the data here 

Listen to the episode here

The EPI Twin Cities Chapter 2024 Owners Forum is TODAY, October 3rd! There is still time to register and attend! Click here for the details.

Women Contractors Who Grow Their Companies by Growing Their Networks

We had the honor of interviewing two women from the Association of Women Contractors in today's episode! Barb Lau, its Executive Director, and Missy Scherber, an AWC member and Co-founder of Scherber Excavating. It was a fabulous conversation!

AWC was founded by a small group of women contractors in 1995, since then it has grown to 230 members, made of women owned commercial and residential contracting companies who provide an array of services in commercial construction projects. The organization has three primary goals for its members:

1. Member Advocacy (within their industry, community and in politics)
2. Industry and Business Education
3. Business Development Connections

Missy joined the group as a much smaller business than she is now, and credits the advice, connections and education she received from AWC for much of that growth. Now Missy spends a great deal of time telling the stories of other contractor members on her Social Media channels, helping to promote the Association and member businesses too.

Barb's vision for the future of AWC is to grow its educational offerings by building out their own online academy. She's also been directed by their Board of Directors to begin her own succession planning at least two years before she exits. She's learned that exit planning takes time and she's very committed to making sure the Association leadership transitions successfully!

Listen to the episode here!

Learn more about the Association of Women Contractors here

The EPI Twin Cities Chapter 2024 Owners Forum is TODAY, October 3rd! There is still time to register and attend! Click here for the details.

The Corporate Transparency Act: What you Need to Know

Our guest for today's show is Scott Seiler, Founder and Partner at Seiler Law. Scott and his team practice in the areas of business M&A, employer representation, and several other related practice areas that pertain to the needs of entrepreneurs.

The requirements for filing under the Corporate Transparency Act are important to know and understand exactly who's required to file, who's required to be named in the filing, and the deadlines for filing depending on when the company was registered with the Secretary of State.

General requirements are as follows:
Companies with 20 employees or less
Revenues of $5MM per year or less
There are interests other than the owners who may need to be included in the filing.

The reason for 'picking on' the smaller companies is due to the large number of LLC Holding Companies in existence in the US. The government is trying to find out who the owners of so many shell companies are. The tactic for filing layers of ownership from Holding Company to Holding Company is tied to terroism, tax evasion and money laundering.  

And, any person with "Beneficial Ownership Information" (BOI) must be named in the filing. A person considered to have a beneficial ownership interest includes persons with significant decision making power (think CFO, CEO, President) regardless of whether they have any ownership in your company. The BOI form is must be completed and submitted. Scott's firm has been completing these on behalf of many clients, so if you are unsure of who needs to be named in your BOI, contact Scott's firm at seilerlaw.com within the deadline requirements.

Penalties for not filing are quite severe. It's not clear whether professional advisors would be penalized for neglecting to convey CTA requirements to their clients. Most accounting firms are notifying or have notified their clients, but do the owners understand, and are they taking it seriously?

By covering this topic for our listeners, we hope to help prevent as many owners from paying these penalties as possible. Please share with your colleagues and advisory team, so they can do the same. Awareness of this requirement is low, as evidenced by the percentage of companies who have filed so far. Those who wait until December to do so could experience a system overload.

Scott also touched on some new employer related laws that owners need to be aware of.

Listen to the episode here

The EPI Twin Cities Chapter 2024 Owners Forum is TODAY, October 3rd! There is still time to register and attend! Click here for the details.