#250: From a Burnt Down Building to a Multi-Million Dollar Sale to Private Equity [Part 2: The Exit Story]
What You Will Learn In Today's Podcast Interview
- Why going through the Arkona Intentional Growth™ Boot Camp and knowing what he wanted from the business allowed Dave to quickly vet the out-of-the-blue offer and decide to sell
- How a banana led Dave to realize he needed a better handle on his chaos
- Making money isn’t a linear trip
- How, despite losing money, Dave had a positive normalized EBITDA
- The true value of long-term, dedicated and loyal employees, even as they approach or
pass retirement age
- How a different management structure spurred fresh growth in his business
- When not to follow your metrics to the T
- How solving problems for the long-term and holding people accountable creates wealth
- The dramatic value EOS© (Traction) brought to Dave’s business and how it transformed
- How to shift your perspective so you can imagine, and therefore build, a better life
- What not identifying and monitoring your top KPIs costs you
- When you should start the hiring process—whether or not you have the capital ready
- Why business owners take out loans for personal items like boats instead of using cash
they have saved up
- The best reasons to join a peer group and what you can expect to achieve after
- How to measure talent to help you decide on succession plans for employees
- Why it’s crucial that you and those you get advice from understand working capital
- When and why you need to be open to self-improvement and change in order to achieve
Are You Growing The Value of Your Business
Take The 2-Minute Assessment To Get Your Intentional Growth Score™ And 1-Page Vision Board.
- Are your company's current initiatives intentionally designed to increase the value of the business?
- Do you know what you want from your business long term and why?
- Do you know what your company is worth?
- Do you know the differences between Management, Family Transitions, PE Firms, ESOPs and Strategic Buyers?
- Does the business have a written strategic plan on how to achieve the desired normalized EBITDA and valuation?
About the Guest:
Dave Hoeffel is part of the Polytek Development Corporation and the founder and former owner of Endurance Technologies.
04:48 - “I knew I needed to replace her, but I didn’t want her knowledge to go to somebody else who could leave me. That’s your biggest fear as a business owner.” – Dave Hoeffel
06:32 - “Sometimes traction is run so pure that she doesn’t belong because she isn’t a decision-maker.” – Dave Hoeffel
08:30 - “Life could actually be better than this. How would that be possible?” – Dave Hoeffel
13:23 - “When we solve a problem, we want to solve it forever.” – Dave Hoeffel
15:08 - “Hey, I had a panic attack about this. Is it okay?” – Dave Hoeffel
19:08 - “EOS doesn’t find sales.” – Dave Hoeffel
20:07 - “I started to recognize we were going to be making money. That’s when my mindset changed.” – Dave Hoeffel
23:44 - “Without the capacity to produce the product, we couldn’t keep up.” – Dave Hoeffel
25: 55 - “My perspective early in business—maybe a bad one-was if I reach out to someone else, it shows weakness in my ability to run the company.” – Dave Hoeffel
26:46 - “Insecure business owners are the most successful, if they fix it.” – Dave Hoeffel
31:05 - “Family businesses, I believe really strongly in them. I believe less strongly in them now than I did 10 years ago.” – Dave Hoeffel
34:21 - “In those early years, my EBITDA was all depreciation, amortization, all those things I can’t spend and are just getting sucked out.” – Dave Hoeffel
43:39 - “Success comes from hard work and suffering and that’s what I believe. I mean, that’s how I got everything.” – Dave Hoeffel
47:54 - “We as entrepreneurs always believe that making a million dollars today is better than getting a million dollars in our checking account because I can do this for 10 years and still sell it.” – Dave Hoeffel
56:00 - “With the numbers they were talking about, my family was good. It put all of it onto who I was as a human being and how I was going to treat others. And that’s what reflection did to me.” – Dave Hoeffel
57:52 - “It came with pain.” – Dave Hoeffel
62:02 - “If you don’t buy me now, I’m not for sale for six months and my number will be bigger and I’m going to take it to auction.” – Dave Hoeffel
65:00 - “What I’ve learned is that you can do it smooth. You can [sell your company] with care for the company and care for the employees.” – Dave Hoeffel
68:15 - “With the end in mind, the next business I buy, I’m going to know if we’re going to sell it or keep it or how [to] transition it to whoever my partners are.” – Dave Hoeffel
Links and Resources:
Reach out to me if you have questions about the boot camp!
You can also reach out to me via email at firstname.lastname@example.org, or on my LinkedIn.
Brought to you by Ryan Tansom of Intentional Growth