Intentional Growth

Intentional Growth™ is a podcast for entrepreneurs and business owners wanting to clarify a path toward a more valuable business and turn their vision into reality. Weekly, content-rich episodes provide you with information on how ...more

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December 01, 2022 00:44:15
#329: Rethink Annual Planning: Identify the Right Goals to Grow the Equity Value of Your Business with Ryan Tansom

#329: Rethink Annual Planning: Identify the Right Goals to Grow the Equity Value of Your Business with Ryan Tansom

Ep.#1 [THEME SIX]   Today we are kicking off theme six, How to Grow The Equity Value of Your Business.   In this episode, Ryan Tansom is going solo to explain what's to come in the next couple of weeks within this theme. He explains the importance of setting a proper (and achievable) financial goal based on what you, as the business owner, want to take home in distributions each quarter.    Ryan explains how setting a proper financial goal will help you become strategic with your budgeting and reinvest into the company with a desired ROI each quarter.    This episode is a high-level overview of this theme. Throughout this series, we dive deep into financial planning, tying marketing into your financials, and discovering an easier way to map out your processes and procedures.   //WATCH THE INTERVIEW ON YOUTUBE: Intentional Growth™ Podcast   What You Will Learn How to set a proper goal (financial roadmap). Why just a revenue goal is not good enough. The correlation between setting a good financial goal and having the day-to-day constraints be worth it. How EOS and financial planning go hand in hand during annual planning. How the three financial statements will give you a clear lens on how to reinvest into the company every year. How proper budgeting can predict what you will make within the next year. The 50/50 budgeting rule and why it’s important.   // USE YOUR FINANCIALS TO CLARIFY A PATH TOWARDS A MORE VALUABLE BUSINESS: Intentional ...

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November 24, 2022 00:58:20
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#328: Insights from Surveying 1,000 Middle-Market Companies in 2022 with Doug Farren from the National Center for The Middle Market

We all know how well the stock market is doing on any given day. All we have to do is pull out our phone or turn on the TV. What happens if you want to know how well the middle market of private businesses are doing? Where would you find the data? It’s not as easy as pulling out your phone, which is exactly why we did today’s interview.    The middle market (businesses from $5 million to $1 billion) make up one-third of the US GDP. If this segment of companies was its own country, it would be the fifth largest GDP in the world. Even with the sheer size of the market, these companies don’t get a lot of attention; therefore, there is limited data, insights, and leading indicators on the overall health of over one-third of the US GDP.    Today, Doug Farren, Director of The Center for the Middle Markets, is on the show to share the results of their semi-annual Middle Market Indicator (MMI) where they surveyed 1,000 middle-market companies.    Doug reviewed the results of the MMI, discussed the five focus areas of the report (listed below), and how well the middle market is doing compared to over ten-plus years of the survey. Along with diving into the MMI, Doug also shares the findings of a new report they just wrapped up called “Owner Transitions in the Middle Market.”   Because of how big the middle market is, if something big were to happen in that part of the economy, it affects all of us. That’s why these reports and what the National Center of the Middle Market is doing ...

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November 17, 2022 01:21:10
#327: [Owner Success Story] Starting, “Betting The Farm” on a Pivot, and Selling Mindware with Jeanne Voigt

#327: [Owner Success Story] Starting, “Betting The Farm” on a Pivot, and Selling Mindware with Jeanne Voigt

Today we have Jeanne Voigt on the show to talk about her experience starting, growing, and selling MindWare, a catalog and online retailer of educational toys.   Jeanne started MindWare after leaving the corporate world when she was 39. Today she dives into detail about her initial go-to market strategy, why she realized her business model needed to be restructured, and how she “bet the farm” to grow a company that she would eventually sell after getting an out-of-the-blue offer she couldn’t refuse.    Even though the offer was one she couldn't refuse at the time, Jeanne reflects during the interview about what worked and what did not and the things she may have done differently.   WATCH THE INTERVIEW ON YOUTUBE: Intentional Growth™ Podcast   What You Will Learn Why Jeanne decided to become an entrepreneur after talking with a mentor. How Jeanne built and scaled her business by simply observing what people wanted. How Jeanne realized she needed to rethink her business model and what she did about it. Jeanne’s story on “betting the farm” with her business while having no cash. How an out-of-the-blue offer shifted her mindset on the long-term vision of the company. Why Jeanne decided what she wanted and why out of her exit. How Jeanne compared the different offers and different buyers and why she made the choice she did.  Why Jeanne brought her staff in on the meeting with potential buyers (even though that can be risky). ...

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November 10, 2022 01:34:54
#326: How ESOPs Work: The Life Cycle, ESOP Acquisitions, and Owner Success Stories with Jim Steiker and Ken Baker

#326: How ESOPs Work: The Life Cycle, ESOP Acquisitions, and Owner Success Stories with Jim Steiker and Ken Baker

Ep.#12 [THEME FIVE]   As we wrap up our four-part mini-series on ESOPs, we’re getting out of the weeds and coming back up for air.    Today we’re going to be talking about ESOPs acquiring other companies and ESOPs selling to a third party (yes, both are possible!). In the second part of this episode, we finish with an owner's success story about why he turned his company into an ESOP and the amazing things that have happened since.   In part one of this interview, Jim Steiker from SES ESOP shares his story about how hitchhiking led to a multi-decade career promoting ESOPs. He then dives into the full life cycle of an ESOP. He starts the segment with an awesome twist (a strategy that a seller can follow who DOESN’T want to take the time to convert to an ESOP but would like most of the legacy benefits): how a company can sell TO an already-formed ESOP. Jim explains the three reasons why most business owners don’t want to convert to an ESOP and how these reasons can be overcome by selling to one that is already formed. Jim then goes into detail on a few different strategies about how ESOPs can acquire companies and why. Jim finishes the segment by explaining how ESOPs can be sold to third-party buyers, how it works, and what it means to the employees.    In part two of this interview, Ken Baker, CEO of New Age Industries, shares his owner's success story on how and why he turned his company into an ESOP. He explains–via his own experiences–how to maximize the benefits of the ESOP by ingraining it into ...

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November 03, 2022 01:24:37
#325: How ESOPs Work: Myth Busting, 1042 Tax Deferrals, Warrants, Executive Comp Plans and More with Keith Apton and Miguel Paredes

#325: How ESOPs Work: Myth Busting, 1042 Tax Deferrals, Warrants, Executive Comp Plans and More with Keith Apton and Miguel Paredes

Ep.#11 [THEME FIVE]   As we continue down this ESOP mini-series, we want to do some serious myth-busting by diving even deeper into the technical details on how ESOPs work.    This two-part episode is all about deal structures, 1042 tax deferrals (similar to 1031 exchanges), seller’s potential to capture future equity growth via the form of warrants (similar to rolled equity), how to handle key executive compensation plans, and the shareholder benefits of transforming a company into an ESOP.   In this episode, you will learn how an ESOP offers great tax benefits and how you can prepare to maximize your tax deductions before switching to an ESOP. Also in this episode, you will learn about the interview process from a trustee’s standpoint and about warrant options to ensure that the best interest of the employees are at the forefront of the deal without screwing over the primary seller.   In part one of this episode, Keith Apton, the managing director of UBS’s ESOP Capital Group, talks about some false narratives with ESOPs, such as, “If I sell to an ESOP, I won’t get as much cash for my business.” He then talks about the 1042 tax code and discusses how converting the business from an S Corp to a C Corp could defer the gains at the time of the transaction and potentially indefinitely through estate planning. Keith tees up the topic of warrants and how they act as a form of rolled equity that can be as lucrative as the rolled equity in a private equity sale–except in an ESOP sale, the owner still has control over the direction of the company. Keith finishes this ...

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October 27, 2022 01:38:30
#324: How ESOPs Work: Trustees, Governance, Legal Structure, Employee Vesting, and More with Neil Brozen and David Solomon

#324: How ESOPs Work: Trustees, Governance, Legal Structure, Employee Vesting, and More with Neil Brozen and David Solomon

Ep.10 [THEME FIVE]   In part two of our four-part ESOP series, we dive deep into the mechanical and legal relationship between you (the owner), the ESOP trust, the trustee, and the employees.   We cover the role of a trustee in depth as well as more technical nuances about the legal structure of the trust, how the trust is managed, and when and how employees get their shares.   In part one of this episode, Neil Brozen, a trustee who has been responsible for more than 300 ESOP transactions since 2005, talks about the role a trustee plays in an ESOP during the transaction as well as the ongoing management after the deal is done. Neil explains how the business owner gets to interview and select the trustee (the buyer) and what it’s like to negotiate the purchase of the business from the perspective of the trustee. Neil then shares the trustee’s involvement–and control–on an ongoing basis (which is much less involved than most people think), what rights the employees have, and why the company doesn’t turn into a “consensus-based” business after becoming an ESOP.   In part two, we have David Solomon, a corporate M&A and ESOP attorney, who has been working in the ESOP space for many years. David walks us through the technical and legal journey a business owner goes through in order to set up an ESOP, such as what goes into the legal document of the trust, how company stock is allocated to employees, the ongoing involvement of advisors to manage the ESOP trust, and the one very important differentiator between an ESOP sale and an M&A sale.  ...

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