Why not wait until Episode 50 to start at the beginning? The beginning of M&A (mergers and acquisitions) that is. In the miniseries foretold, legal structure sits as the first building block of M&A. 

You'll hear about asset purchases and stock purchases. Don't get drowned out in the verbiage. Hear how the role you play in an M&A deal determines your preferences. For previous reference, Tony Sfreddo (Episode 5) built up quite the government contract portfolio. Does that lead itself to designing a deal one way or the other? Are there variations to asset purchase agreements and stock purchase agreements? Maybe there are more than two ways to skin a cat.

The arrangement bakes-in tax implications. Is there a work around? Allocating purchase price can favor long-term capital gains over ordinary income rates.

Fast forward from the announcement, what will benefits look like with the new owner? Deciding a deal's architecture determines how employees move forward while the ink dries. 

Thirsty for more? Go grab a vitaminwater®

Co-Produced, Edited, and Mixed by Dylan Seals of hdaudiopost.com

Before you can judge Patrick for his inability to explain Profit First, it's a better idea to ask the author. Mike Michalowicz gets his formal introduction to the pest control industry in this extended interview. Hear how Mike leverages human nature to establish predictable profit. Sales - Expenses = Profit. True, but Mike creates a cash management tool by flipping the traditional GAAP formula.

Pre-Profit First, Mike struck it rich in his early 30's. As a new angel investor with a nice ride, Mike hit rock bottom in more ways than one. With raw emotions, he recalls the events that inspired his best seller. Writing became therapeutic as he began his 'journey to eradicate entrepreneurial poverty'.  Revisiting his experience with depression, Mike recommends mental therapy. He even gives a poor man's version to help recover. 

Don't sit-back while Mike preaches on plowback pain and pleasure. Is there a better segue than hearing Mike advocating on profitability before selling? Paul counters by asking about ROI. What if your own business is the best vehicle to put capital to highest and best use? Hear how Profit First-adopted companies compare to the control. 

Windup the clock. Paul pulls another Michalowicz book, Clockwork, off the shelf for the session's 1st OT.  Swooping in and saving the day as a superhero manager leaves a wake of damage. What can an owner taking a four-week vacation do for the business? Do you find yourself carrying the burden to provide jobs as an entrepreneur? By working in the business, are you taking jobs from your employees?

The prolific author is releasing another book this year, Get Different. He gives an example of unique marketing as opposed to getting lost in the sea of industry best practices. Does Dad approve?

Paul inquires about Mike's habits to produce these books. Mike goes onto share income generated from writing and distribution breakdown. Mike gives input on mainstream publishers vs self-publishing vs hybrid options. Is that Dad whispering in your ear, or Mike narrating another book for Audible?

Dylan joins Paul and Patrick to recap the dynamic interview. The lines get blurred between private life and business life. Paul retells stories of those that have cashed out but hold onto regrets. Dylan opens up about his similar struggle with depression. He shares his success habits and the personal growth he's found through journaling. Dylan explores the subconscious mind, and how he utilized consistent habits as opposed to willpower. 

Co-Produced, Edited, and Mixed by Dylan Seals of hdaudiopost.com

It’s time to catch-up with some listener submitted questions. Serial entrepreneur Patrick can’t find a way to dodge the first question about franchising. Six years ago, Patrick and Bobby franchised their business. With properly placed intentions, what advice can Patrick give looking back at the experience? Patrick goes into detail about what he would do differently if he had to make the decision again. While Paul recalls Patrick learning the hard way, Paul gives an alternate entry for staking start-ups.

On the flip side, Paul gives advice to those considering the franchise-life. A business in a box sounds efficient, but ask yourself, ‘self, am I buying myself a job or building an asset?’ before becoming captive to the franchisor. 

Proposed tax increases have been a catalyst for sellers such as last week's guest, Jeff Phillips. What effect do these tax changes have on acquirers' appetites and the price they're willing to pay? The first quarter of 2021 has been Paul's busiest Q1 in his eighteen years as a pest control sell-side advisor. 

While tax speculation anxiety plays out in the US, tax increases are going into effect in Canada and other countries. Drilling down to specific markets, population exporter-California and importer-Texas get extra attention. What does Paul know about the buyers' outlook for this year in these markets? 

Scarcity of assets brings up another line of questioning. How can scarcity be quantified and managed? It's not just about size, but also the number of assets in a given market. Patrick caught wind of previous perverse incentives in M&A. That road led to a quick chat on leverage, contingencies, and skid marks. 

When it comes time to discuss growth strategies, would it really be an episode without discussing acquisitions? Referencing Pam Blauvelt's experience, Paul has seen where deals have led to distractions and mistakes. As exciting as arbitrage sounds, can it hurt more than help?

Stay tuned for upcoming events: 1) a Mike Stanczyk collaboration on shareholder agreements, and 2) measuring and managing customer retention in The Attrition Condition. 

Co-Produced, Edited, and Mixed by Dylan Seals of hdaudiopost.com

Succession plans may sound easy compared to the alternatives. Hear how ripping off the Band-Aid compares to family buy-outs with strings attached. From managing the business to managing their health, Jeff Phillips's parents never enjoyed their golden years in retirement. It may be an extreme reaction, but at 47-years old, Jeff decided it was time to exit after his dad’s passing. 

Although his father is no longer with us, his wisdom lives on in this Boardroom conversation. From 'build it to sell' to 'do something and do something very well', Jeff's dad personified the Blue Chip mentality.

After taking over as Blue Chip leaders, Jeff and his sister, Kim, ran an efficient business. Measure and manage. Routing, recurring, and responding to leads were a handful of monitored metrics. Knowing their numbers helped them when it came to save on overtime.

Scott Stevenson, Doug Stevenson, Court Parker, and Sean McCauley. Now add Jeff to the list of U Groupers appearing on The Buzz. By picking up on the lessons while not making all the mistakes, hear how his peer group experience enhanced his bottom line. When it was time to make changes, Jeff realized that customers much like dropped children are resilient.

There were times that Jeff found he already had the secret sauce. When scheduling headaches became a problem to solve, his business adopted exterior only service before it was popular. In terms of marketing, pest control is not sexy. It's about front of mind awareness. Jeff shares the balance between office location and paid remarketing ads.

Co-Produced, Edited, and Mixed by Dylan Seals of hdaudiopost.com

Step into The Boardroom to hear how Sean McCauley built his empire. As the owner of Aantex Pest Control, Sean is now on pest control company number three. While pest control runs through his veins, it's not the only ‘egg in his basket’. Sean has monetized his previous pest control investments to venture into other assets.

Sean shares his opportunistic outlook: there are different advantages in every regime. Hear how to detach from the business, when to run into the fire, and where to find opportunities. This week's guest brings his crystal ball into The Boardroom. He sees a V-shape recovery. Will you heed Sean's advice to chill out and ride the wave? 

Put your economics hat on before stepping into this session. You will think about the bank after this episode. Whichever cards you think you are holding, remember the bank is the 'apex predator'. Paul questions Sean on who has the most to gain in an inflationary environment.

With no topic off limits, it may surprise you to hear our guest's take on Millennials. Speaking of funny money, Fannie and Freddie aren't imaginary friends. Is the government-backed duo holding down interest rates?

Sean even reveals terms for his commercial real estate notes. Sean finds he has a lot to gain underwriting entrepreneurs, in addition to his hard asset portfolio. It is one way he has found to diversify his net worth. Listen for how Sean and Paul get their returns on time invested.

This is the unintended follow-up to Episode 14's buy-side conversation. From someone that will "never have to work another day in my life", Sean will encourage you to get un-lazy. Go out and find the deals.

If you've made it this far, you may survive Professor Paul's Econometric After Party. Diversification 201 is in session. Sit back and hear how zombies do exist.

Sean says we live our life in unrealized gains. Does that saying go deeper than a real estate metaphor?

Co-Produced, Edited, and Mixed by Dylan Seals of hdaudiopost.com

There was little warning before WorkWave CEO David Giannetto walked into The Boardroom. Patrick's past PestPac experience sets the tone for this real conversation. Since all the skeletons are coming out, why not spin an extra 'nickel and dime' into the chat? David stepped into the CEO role two years ago. Support tickets counts ran high, and the tech became more indebted by the day. The customers were not the only ones frustrated by slow resolve. 

There must be reasons to sneak a vendor into The Boardroom. David announces PestPac's partnership with Target Specialty Products. This alliance can put even more money into operators' pockets. Another announcement he shares is WorkWave's promotion from IFS to parent-fund, EQT. 

David admits PestPac's intermittent communication. When rolling out $1.5 billion WorkWave Payments, he managed the bloody murder calls. After accepting the change, the native payment platform padded dollars into most of the end users' bottom lines. Is there enough in savings and increased productivity for PestPac to pay for itself?

Migrating from customization to toolsets, PestPac commits to modernizing. It's interesting to hear PestPac's move from customization to configuration. Listen for the Executive Steering Committee's role on roll-outs. This Boardroom conversation doesn't end there. From high switching cost handcuffs to competition in software to and scrutiny over shared interests, this chat packs in a lot.

Co-Produced, Edited, and Mixed by Dylan Seals of hdaudiopost.com

The ink is still wet and the emotions are raw. Jason Byer opens up about his team and the guilty conscience he hid last year as he sold the family business. Jason led Suburban Exterminating up to and through their sale to Rentokil in late 2020. 

The service and billing decoupling discussion returns to The Buzz, but Suburban was unique. Listen for how Door Knockers rang-in a new billing method. If you can't beat them join them. Jason even considered putting summer sales to work in his business before the sale. 

Moving forward, Jason and his team are learning the Rentokil way. How is this longtime family business transitioning into corporate culture? Hear how as a sophisticated business, Suburban has integrated into the new environment. Jason recognizes his team and their ability to adapt. Good or bad, what is the Rentokil-effect on the front line employee? He shares his excitement about the upgraded resources and ability to grow.

Jason represents succession assumed in a family business. As a minority partner AND a son, what is his take on risk and reward?  Paul preaches from previous experience on this parental pest control paradigm. In contrast, Paul recalls another family situation with hyper communication.

Co-Produced, Edited, and Mixed by Dylan Seals of hdaudiopost.com

Mike Stanczyk makes time between closings for an encore appearance in The Boardroom. On this occasion, Mike fields shareholder agreement questions. From formal arrangements to napkins to none, hear how preparation and sophistication varies. Don’t feel alone if you find yourself without a proper agreement in place. Learn from others. Have these discussions. Proper agreements are borne from previous poor personal planning. 

You know by now that family business in pest control is a reoccurring theme. Paul gives notice; verbal only arrangements are bad and corporate welfare is worse. Parenting advice uncovers family business trends and inherited titles via surname similarity.

Options are prolific in the tech industry, but Paul asks Mike about their place in pest control. The conversation is peppered with tax implications. Do options have their own tax advantages? Paul recalls when a sale was discovered with derivatives in the balance. You’ll hear how a ‘free and clear title’ isn’t a phrase unique to the auto industry. 

If Patrick wasn’t having a hard enough time keeping up, Mike and Paul play a rhetorical game of tag-along and drag-along. Patrick can be difficult to deal with, but it’s the guest dragging Patrick along this week. 

Following Paul’s judge and jury soapbox last week, what will this week’s legal disclaimer entail? Is Patrick the only one asking who an attorney represents? Should you find yourself calling Mike, remember that he is NOT LegalZoom.

There is more than one takeaway in this public service announcement of an episode. Whether you’re in a family business or not, always remember Mex’s Rule #1: don’t suck at life. 

Co-Produced, Edited, and Mixed by Dylan Seals of hdaudiopost.com‍

Patrick survives the un-Texas weather to only later hear Paul tell him what he’s (not) worth. Between upcoming tax rate hikes and inflated valuations, wouldn’t you know that Paul is keeping busy (or at least The Angry Mex is)?

In other current events, Patrick *felt* special for a hot minute. You'll hear how about "a top pest control provider in the southeast that is actively seeking to expand its current service area. Our client is in the top 10 nationally in terms of annual sales and is privately held.  Knowing that yours is one of the best and fastest growing in the area...". Paul talks Patrick down from his Rising Star pedestal.

Patrick recalls a one-time project in which he had to research recurring vs reoccurring. Leave it to Patrick to chase that into a food frequency free-for-all. If Paul can make it past the Compound, he can show how his one (and maybe never) trip to Waco explains the reoccurring difference. Paul goes on to distinguish reoccurring and one-times. Patrick questions Paul about saying no to Aunt Suzy. Paul questions Patrick’s question. It may be a Buzz word, but there are 'opportunity costs'.

Service Agreements. Yes or No? Paper or Digital? Early cancellation fees? Termite work? Paul recalls days of yesteryear when due diligence teams sampled service agreements. What happens when a service agreement doesn’t line up with what is being delivered? You may not find yourself in a class action lawsuit but it may happen to the acquirer.

The disclaimer Paul gives is one for the ages. He repeats what he has heard from attorneys. Do NOT take what Paul says as investment advice or legal advice, or prepare to stand before the judge and jury. 

Episode 42 guest, Jeff Bain, must be an instant classic, or maybe it's an easy reference. Be like Jeff; define what makes your business different.

Make sure to RSVP for Paul's upcoming customer retention presentation (email [email protected]). Donation to The Human Fund not required.

Co-Produced, Edited, and Mixed by Dylan Seals of hdaudiopost.com

Jeff Bain knows how to learn from others. Taking notes from his insurance colleagues, Jeff knew he had to build an annuity-based pest control business. His top priority was to protect the residential-heavy business from wild seasonality as he took over the reins at Bain Pest Control. During Jeff’s collegiate days, he found himself getting paid to learn from American Pest’s former leader, Jay Nixon. Similar to previous Buzz guest Jim McHale, Jeff even shares a nod to the Sameth family and their Residex reps’ willingness to help shape the recurring business model. 

Relationships, referrals, and pricing chatter abound during this time in The Boardroom. When it comes to building a client base, Jeff takes over as teacher during this sit-down session. Listen for how Bain Pest Control’s retention rate and marketing budget stray from the norm. Jeff even makes time to answer a listener’s question about selling in the Northern climate.

Over 100 years after the Ukrainian immigrant entered the USA via Ellis Island, Jeff Bain found himself realizing it was time to sell the family business. When it was time to select an advisor to sell his business, Jeff decided on the advisor that had his best interest in mind. His high trust relationships led him to having several employee discussions before selling the near-centenarian business. You’ll hear how Jeff had his employees’ opportunities in mind while deciding on Rentokil as the best acquirer for the business. There are too many emotions to list in this Boardroom sit-down. Speaking of emotions, Jeff goes on to share a story that shows the soft-side of Potomac’s chief negotiator. 

Co-Produced, Edited, and Mixed by Dylan Seals of hdaudiopost.com