In part two of this two part series, David Lekach dives deep into the details on why and how he sold Dream Water in 2018. The strategic buyer was a public cannabis company based in Canada, as well as one of Dream Water’s distributors. The unique relationship David had with the buyer was only one colorful part of the story… The buyer paid to do due diligence on David’s company! The deal process took months to complete and David even almost lost the entire deal the night before the wire transfer was supposed to be made. If you want a deep dive of the entire exit process, you do not want to miss this episode.
// USE YOUR FINANCIALS TO CLARIFY A PATH TOWARDS A MORE VALUABLE BUSINESS: Intentional Growth Financial Assessment
David Lekach is an entrepreneur from Miami, Florida. In the early 2000s, David started Dream Water and managed to get his products into big box stores like Walmart, CVS, Publix and Safeway. After eight years of being the owner and operator of Dream Water, David sold his company to One Harvest, a Canadian cannabis company, for 34.5 million USD in 2018. Before launching Dream Products, David worked briefly as an investment banker. Prior to that, David served as the managing partner in a small Miami-based law firm, handling a variety of legal and business development consulting projects, including the structuring and general oversight of international real estate ventures worth more than $50 million and numerous consumer goods projects, ranging from licensing to product development engagements.
Since the sale of Dream Water in May 2018, he has helped several organizations across the consumer packaged goods, cannabis, direct-to-consumer and Amazon platforms, and travel retail spaces with innovation, executive team building, as well as with legal and deal structuring, usually while taking on a variety of strategic development initiatives.
04:25 - “You’re never going to forget when you’re in the sh*t, like, that grind, you know?” - David Lekach
11:23 - “I’ve negotiated this thing perfectly. Like, philharmonic level conducting. It couldn’t have been better. Then, a stupid joke at the end equals… Then I think there’s no transaction to be had. I just scared my company for no reason.” - David Lekach
25:06 - “I always wanted to be one with my role and one of the things I was very present to is the CEO. What does CEO mean? ” - David Lekach
25:11 - “One of the things that I thought was an important part of my job was to always be networking into (in my case) the CPG, the private equity, or the institutional financing world and strategics.” - David Lekach
32:09 - “It starts with some sort of level of honesty with yourself. What do you feel like you know? What do you feel like you don’t know? And how to find the gaps in there.” - David Lekach
43:03 - “You never know when you’re going to get an unsolicited terms sheet.” - David Lekach
43:12 - “The more buttoned-up and uptight you are, the easier it is to get through tax season, the easier it is to get through a transaction, the easier it is to get through regulatory situations, whatever the case may be.” - David Lekach
47:30 - “I took ‘upfront dollars’ and that was non-negotiable.” - David Lekach
48:26 - “I don’t want to go get [money] after the fact. I want it in my bank account because I’m spending those dollars today and I’m taking my time today.” - David Lekach, on getting money up front for due diligence
67:36 - “Don’t count money. Don’t assume anything. Don't look for another job. We don’t know until this thing closes” - David Lekach
72:50 - “Because it wasn’t just me.” - David Lekach, on why giving back to his team was so important to him.
David’s email: [email protected]
Reach out to me if you have questions about the boot camp!
Ep.#3 [THEME FIVE] Brent Beshore and his firm Permanent Equity are a perfect example that not all private equity firms are the same. Brent is the CEO and founder, and in today’s interview he talks about the unique approach his firm has in a “messy marketplace” to help business owners monetize their largest asset and step back from their day-to-day work in the company, all while maintaining their legacy. In this episode, Brent and Ryan talk about why Permanent Equity has a 30-year time horizon (typically it’s ten years or less), how he landed on this model, and why he has been able to raise over $300 million based on their philosophy. From there, Brent explains his approach to acquiring companies–both financially and philosophically–and why he focuses so much on alignment with the business owner and management team of the seller. Brent has a very unique approach to private equity, and today you will learn one of the fundamental principles his entire business is built on: transparency–and why it has yielded so much success. // WATCH THE INTERVIEW ON YOUTUBE: Intentional Growth™ Podcast What You Will Learn How Permanent Equity returns the capital to their investors with the desired rate of return even though there is a 30-year hold period. How Brent and Permanent Equity are able to raise hundreds of millions of dollars from investors on inbound requests only. How Permanent Equity makes money without charging management fees. Why Brent’s firm has a 30-year time horizon and what doors that has opened up for his ...
Exiting your business with zero regrets is a goal that many of us have. Today’s guest, Troy Schuette, owned a waste disposal business for 23 years. He made his decisions carefully so he knew he’d be able to exit happily without wishing he’d done things differently. He’s going to talk to us today about the process he went through, from creating his valuations to choosing his buyers to finally signing his closing documents. You won’t want to miss Troy’s story! In This Episode You’ll Learn: How and why Troy decided to become an entrepreneur. Where Troy got his passion: Garbage, recycling, and scrap were not actually his passion, but they were the vehicle for his passion. Some of the pitfalls of growing too quickly, as well as what finally clued Troy in that he had lost his passion. How Troy, with the help of his father, decided to sell and how he determined the value. The mental process that Troy went through to choose a buyer. Some of the lifestyle changes that went along with exiting the business. The emotions that Troy went through on the closing date. How Troy told his employees about the sale of the company. What Troy did to let his brain rest after he exited his company. Takeaways: Self-reflection: Troy recognized that he wasn’t happy anymore and he knew himself well enough to make a plan that he would be happy with. Knowing numbers: Troy really had to ...
The psychology of exits… we have a real intellectual take on exit planning and your state of mind this week. In a colorful episode, Allie Harding gives us an academic take on the importance of identity in business, and how this can affect life after it. Understanding the psychology behind the exit is a crucial part of a successful transition. Allie has built up two consultancy companies off the back of extensive academic study, including a PHD in Business Psychology. You know how we always say that a successful exit from a business is as much about life after business as it is about the transaction? (the clue is in the title of the podcast!) Well Allie has the science to back this up. Listen and learn! How does business change the identity of different people? Allie has advised hundreds of business owners down the years. She can define them in 3 separate categories: 1.) Ready Rogers: These are the easiest to deal with when it comes to exit because their self-awareness is at such a level they can walk away and know exactly how they will cope with life after business. They probably have many interests outside of their business, and are already in the habit of disconnecting from work in order to stimulate their mind elsewhere. 2.) Moderate Michaels: They might need some help with their guiding principles but can still be persuaded to change their mindset to help them manage their time after they sell. Their business is basically their life, but the original creative energy they had that helped them build up their business in the first place can still be harnessed with the ...