On today’s show, Karen Laine from HGTV’s ‘Good Bones’ will be talking about business transitions and planning. She will also be talking about what it was like to take a backseat while her daughter took over the business and took it to the next level. She goes over all of the successes and challenges that came with that transition, and she’ll also offer some tips on how to overcome some of those challenges.
She’s also a mom, a lawyer, a renovator, and boss. She practiced law as a prosecutor and a criminal defense attorney in the 1990s. Then, in 2007, Karen and her daughter Mina began to transform and rehabilitate neighborhoods in Indianapolis. In 2014, they were approached by High Noon Entertainment (the same production company who made Fixer Upper). They met via Skype and after some negotiations, Good Bones was born and aired on HGTV. In 2021, season six of Good Bones will premiere as the production of season seven is ongoing.
If you’ve worked in a family business with multiple generations, you know all about the different challenges and the various relationships involved in this sort of partnership. How do you align your visions alongside the transitions, family buyouts, and all of the other ingredients that go into that blender? Karen and Mina are so open about these challenges on the show and Karen is just as open as she answers my questions in this episode.
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Karen Laine is a businesswoman, attorney, TV personality from her show Good Bones, and mother. After growing tired of her regular routine as an attorney, she discovered her love of renovating. She paired up with her daughter Mina and started “Two Chicks and a Hammer,” a home renovation business.
05:07 - “Lawyer was after mom. So I was a mom and then I went to law school and became a lawyer. [So diapers, then paperwork.] Yes, right. It, kind of, prepares you. ‘Cause what you find in diapers is often what you find in legal cases. It’s the same.” – Karen Laine
13:33 - “I’ll be out in public and someone will say, ‘Hi Karen.’ And I’ll say, ‘I don’t remember where I know you from.’ And they will say, ‘You don’t know me. I know you from TV.’ Oh, that’s right. I have a TV show.” – Karen Laine
16:15 - “She is more motivated by the financial aspect, which is really important when you’re in a partnership with someone like me, who is more motivated by the emotional aspect.” – Karen Laine
34:25 - “I think part of it was the different personalities. I saw my value as intellectual property. And Mina saw her value as time property.” – Karen Laine
35:41 - “That’s the problem with doing business with family, is that it’s not just business. It’s not. All the family stuff gets brought into the business and so things that don’t belong in the business become emotional triggers for business decisions.” – Karen Laine
43:51 - “The main thing is, family is way more important than any business. It just is. If business is creating a conflict in any family, the business is what has to go, because the family is what has to stay.” – Karen Laine
YouTube: Karen E. Laine
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[et_pb_section bb_built=”1″ _builder_version=”3.15″ custom_margin=”0px|0px||0px” custom_padding=”0px|0px||0px” custom_margin_tablet=”|0px||0px” custom_margin_last_edited=”on|tablet” custom_padding_tablet=”|0px||0px” custom_padding_last_edited=”on|phone”][et_pb_row _builder_version=”3.15″ module_alignment=”center” make_fullwidth=”on” custom_margin=”|0px||0px” custom_margin_last_edited=”on|tablet” custom_padding=”|0px||0px” custom_padding_last_edited=”on|tablet”][et_pb_column type=”4_4″][et_pb_text _builder_version=”3.15″ text_font=”|300|||||||” text_font_size=”20px” header_3_font_size=”26px”] My guest today is Bobby Kingsbury, a principal at a private equity firm called MCM Capital. MCM has been in business for 26 years and invests in small to medium-sized niche businesses. On today’s episode, Bobby tells me how MCM screens its potential investments. We discuss how the private equity business works and how MCM Capital stands out among their competitors. He offers the questions the equity firm asks a potential client and also the questions the business seller should ask the equity firm. Bobby also stresses the importance of having clean financial records to present to the equity firm. He suggests ways to better present your business to get a clearer and firmer price point for your business. There are a lot of nightmare stories out there regarding private equity firms. However, MCM Capital is one of the more honest firms that want to give their sellers the best deal possible. Bobby explains MCM’s motives in their screening process and assures listeners that MCM Capital wants to be a partner with companies, not a dictator. If you are considering working with a private equity firm, this episode is a good resource for you. My next episode will be the second part of this topic. Mark Calcaterra, one of Bobby’s sellers will join us to describe what his experience with Bobby and MCM Capital. So, you will be seeing both sides of the process. You will learn about: Welcome to part one of this two-part topic. MCM Capital’s business history. What Bobby and MCM look for when evaluating a client. How MCM does business with their ...
Ep. #4 [THEME THREE] In this last episode of the series, “Demystifying Business Valuations,” we have Chris Yates, the owner of Rhodium Weekend, a community of online entrepreneurs, on the show to share the story of how he sold his business, Centurica. Chris received two offers from different buyers that were wildly different. In this episode, we hammer home the concept of intrinsic financial value vs. strategic transaction value by unpacking the differences in Chris’s offers. In the first half of this episode, Chris goes in-depth with the first offer he got from a strategic buyer–an Amazon aggregator–that wanted to do an “acquihire” (essentially wanting to purchase the company for the people and processes). Chris describes how the purpose of the deal drove the deal structure and terms and how it eventually blew the deal up. In the second half, Chris walks us through how he doubled down and focused on the intrinsic financial value of the company by getting a bank to pre-approve an SBA loan (ultimately determining the intrinsic financial value of the company based on the risk of the cash flow). Getting clear on the intrinsic financial valuation helped Chris during the second negotiation for a few reasons. First, he knew what his valuation was regardless of the specific buyer. Second, Chris was able to clearly negotiate the terms and deal structure efficiently because he knew what the company’s intrinsic value was worth. In addition, there are limitations to “creative” deal structures when an SBA is used. Being approached by a buyer can cause a rush of emotions for you as the business owner. However, in this series, we have consistently discussed ...
After a breakup, it might seem like a good idea to jump right into another relationship. There’s a hole to be filled and you have so much to give. But is it a good idea? Maybe. Does it feel good? Usually. Do you usually end up regretting it? Most likely, yes. Many of us have gone through some form of rebound relationship—it’s an easy trap! You know the one…you wake up one day and realize you are officially over the first relationship and don’t really want to be in the one you are in now—it was just a placeholder. Whoops. Usually, there is some emotional fallout, maybe even financial, hopefully none of which is irreversible. The biggest challenge is swallowing your pride, ripping off the Band-Aid, and moving on. Unfortunately, a business rebound can have much bigger consequences… Starting a business just because you used to have one is not a good reason to embark on a new venture. There are plenty of people that become serial entrepreneurs. To become a successful serial entrepreneur, future businesses must accomplish a specific financial or industry need, the expected returns are very clear, and the relationship with the business has very clear boundaries. How do you know if you are in a business rebound? You feel the need to have a quick response to, “What do you do?” You essentially bought another “job.” You need to work 60 hours a week to keep the company going. At the base level, your company is just “something to do” to distract yourself from boredom. There’s a complete lack of passion. There’s no bounce-out-of-bed that you used to have when you started your first business. You have no exit plan and aren’t thinking ...