You Bought The Biz, Now What! Business Systems and ESOPs roll in M&A
This Week On How2Exit podcast and ESOPs
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Mark O'Donnell is the CEO of EOS Worldwide and recently completed a summit of Mount Whitney, the highest peak in the lower 48 states. With the leadership team and portfolio members of the private equity firm Firefly, O'Donnell and his team trained for six months before embarking on the climb in September 2021. Despite warnings of altitude sickness, the team was determined to make the summit and completed the one-day climb. Along the way, O'Donnell's integrator, Kelly Knight, began to feel a migraine which they initially attributed to altitude or conditioning. Despite this, they were successful in making the summit.
The speaker and their companions were on a mountain-climbing expedition when they realized one of them was suffering from altitude sickness. With darkness and cold temperatures approaching, they had to figure out how to get her down. The speaker put her on his backpack and they started to drag her down the mountain. Due to the altitude, it was difficult to land a helicopter in the area, so they used a GPS text messaging device to call for help. Emergency services were a bit hesitant because of a recent helicopter crash, but eventually, the speaker and his companions were able to get the woman down safely.
Mark O'Donnell and his brother, along with some business partners, had built a vertically integrated pharma and biotech services business with nine different companies, including a laboratory and an engineering company. Despite their success, they were struggling with confusion from running each company separately. One of his business partners suggested looking for a way to run the companies as if they were one company. This led O'Donnell to learn about EOS, the Entrepreneurial Operating System. After learning about it, he started to implement it and eventually became a CEO and visionary. He was able to use the system to help his business succeed and thrive.
Mark O'Donnell is the Visionary at EOS Worldwide, a system designed to help businesses have a sense of control and build value over time. O'Donnell implemented a system but found it too difficult to get everyone on board. He then signed up for an EOS boot camp and met an implementer, Jonathan Smith. Smith inspired O'Donnell to become an implementer himself and eventually the Visionary at EOS Worldwide. Through EOS Worldwide, O'Donnell helps businesses get more of what they want from their business. To hear this incredible story and how EOS is perfect for integrating imperfect companies, listen here:
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E96: Gamifying Your Business for The Win W/ Steve Baker: The Great Game of Business -VP
Steve Baker is the Vice President of the Great Game of Business. He was not originally meant to be a part of the company but ended up there after studying art in college and taking jobs to survive.
Steve Baker is a creative and intelligent problem solver with an entrepreneurial background, but he's constantly taking jobs in order to make money. He tried to help his bosses achieve their goals but never had access to any real information. He sold a variety of consumer goods, such as wooden wear and giftware, and was even the king of fragrant bath salts. In order to make more money, he drove to Bentonville, Arkansas, to try to sell his products to Sam Walton of Walmart. He ended up shipping a large number of fragrant bath salts to Sam's Club, thinking he had a big win. Years later, he went back to have dinner with the owner and found out they didn't make any money from it.
Steve Baker joined the Great Game of Business 17 years after leaving his house to get materials for a bonus. He was interested in blending business acumen and creativity and pitched the idea to Rich Armstrong, who was running it at the time. The Great Game of Business is a concept of open books and financials and is focused on teaching people that it is hard to make money and generate cash, and connecting them with a direct line of sight to how they can help. It demystifies business and makes it more accessible to people. Jack Stack is the founder and author of the original book the Great Game Of Business.
Listen in to learn how the team has bought and/or spun off over 69 companies since 1983, many of them turn arounds using The Great Game of Business. Listen Here:
Attention Business Brokers, Advisors, Acquisition Entrepreneurs, and SMB Owners!
Do you want to stay ahead of the game in the SMB M&A market? The Hub is the solution you need! This curated newsletter brings you the best highlights from blogs, podcasts, YouTube, and news sources, all in one place. The HUB
Flippa, the largest online marketplace for buying and selling businesses, has launched the first-ever AI-powered recommendation engine for the M&A industry. The new feature will leverage data to deliver custom recommendations for buyers and sellers based on their search behavior and interests. The engine will also improve the user experience by offering an easy-to-use interface and seamless search capabilities. The AI engine is a game-changer for M&A professionals and is expected to increase the efficiency and accuracy of the search process. Read more (200 words)
Founding Member Shout-Out
Thanks to Sweetview Partners, an Acquisitions company looking to buy Texas-based B2B companies in the $1MM - $30MM revenue range. Click on the logo to check them out.
This week’s “DEEPER” Dive:
The power of ESOPs (Employee Stock Ownership Programs) - A fan favorite of EOS and The Great Game Of Business:
Have you been contemplating a liquidity event, a complete exit, or a business acquisition? Are you spending a fortune on taxes and looking for financing that won't break the bank? Look no further than an Employee Stock Ownership Plan (ESOP).
An ESOP is a non-discriminatory, tax-qualified employee benefit/retirement plan that allows business owners to sell their companies to their employees, rather than selling out to a strategic buyer or financial buyer. This plan provides tax incentives to business owners and gets equity ownership in the hands of the workers.
ESOPs provide a plethora of advantages for both owners and employees, including tax-deferred growth, increased employee morale, and a new level of wealth creation.
In Episode 88- Listen Here, We learned from Larry Kaplan of CSG Partners all about the power of ESOPs
If I was to give out an award for saying, “That’s Interesting,” Larry would get it. This weeks DEEPER goes in-depth into the power of ESOPs with Guest Author Della Kirkman, CPA
Subscribe to the paid version to read the DEEPER dive into ESOPs a 3500-word (nearly 9 pages) dive into the world of ESOPs and how they can help you grow.