Show Me The Way

Ep. 58 — Revealing Powerful EOS Secrets to a Successful Exit with Daryl Braham

Welcome to the "Show Me The Way" podcast with David Seitter
In this episode of "Show Me the Way," Dave and guest Daryl Braham, an expert in both implementing the Entrepreneurial Operating System (EOS) and solving complex business challenges, delve into how EOS can revolutionize business operations, continuity, succession planning, mergers and acquisitions, and successful exit strategies. They discuss how leveraging the EOS system can help businesses achieve clarity, vision, and growth.
Ep. 58 — Revealing Powerful EOS Secrets to a Successful Exit with Daryl Braham
Kicking off the episode, Dave introduces listeners to the world of EOS solutions with Daryl Braham. Daryl's journey stretches over 25 years of experience in business, extending valuable insights into the benefits of using EOS. Drawing from his rich career background, Daryl sets the stage for a comprehensive understanding of EOS—a system designed to help business leaders realize their goals and establish sustainable business practices.
Understanding EOS: Vision, Traction, and Healthy Organizations
Daryl explains that EOS focuses on three primary outcomes: vision, traction, and healthy organizations. By leveraging proven tools, EOS helps entrepreneurs gain clarity on their aspirations and sets a unified direction for the entire company. It promotes accountability, transparency, and cohesion within leadership teams—vital components for achieving long-term success.
The Power of Business Continuity Planning
Business continuity planning is essential for ensuring growth and preparing for future success. Daryl elaborates on how EOS aids in bridging the gap between current status and future aspirations. Key to this is the realization that many business owners don't fully understand their current business dynamics until they engage in deeper planning processes. Clarity, achievable through EOS, allows businesses to identify core issues and pivot towards successful exit planning.
Navigating Succession Planning
Navigating the waters of succession planning can be daunting, especially in family-run businesses. Daryl introduces the concept of the accountability chart, which differs from traditional organizational charts by focusing on the responsibilities rather than the individuals. This approach enables businesses to assign roles based on passions and expertise rather than familial ties. Clarifying these roles helps align the team towards common goals and ensures operational efficiency.
Exit Planning with EOS
Exit planning can be an emotionally charged process for entrepreneurs deeply invested in their businesses. Through EOS's Vision Traction Organizer (VTO), business owners can clearly map their path, addressing personal goals alongside business priorities. By focusing on data rather than emotions, EOS creates a structured plan that guides owners through successful exits and transitions.
Life Beyond a Successful Business Exit
A unique advantage of EOS is its applicability beyond business. After an entrepreneur exits, many find themselves lost without their former routine. Daryl suggests that utilizing EOS tools for personal planning—known as the personal VTO—can help owners redefine their purpose and establish new personal goals. This approach ensures that both business and personal lives align with one's true passions and aspirations.
Top Takeaways for Business Owners
Choose an Operating System: Like selecting between Windows or Mac, commit to an OS for your business processes—be it EOS or another system.
Seek Help First: Reach out for help. Daryl encourages reaching out to professionals for guidance and insight.
Gain an Outside Perspective: Inviting an external viewpoint provides the clarity needed for resolving internal complexities and realizing unseen opportunities.
 
Daryl Braham's insights highlight the transformative power of EOS in simplifying business processes and paving the way for long-term success. Whether you're an entrepreneur aiming to scale your operations, plan a seamless handover, or transition into a fulfilling post-business life, EOS offers a structured, clear path to achieving those objectives.
 
 
To reach out to Dave for advice or consultation, please visit www.davidseitter.com or email him at dseitter@spencerfane.com
 
Disclosure
This podcast is provided for educational purposes. It does not constitute legal advice and is not intended to establish an attorney-client relationship. The recommendations contained in this podcast are not necessarily appropriate for every individual or business. In determining the best course of action, business owners should consult with an attorney on their distinct circumstances.

Ep. 57 — From Startups to Multi-Billion Dollar Sales: Joe Kessinger’s Top Tips

Welcome to the "Show Me The Way" podcast with David Seitter
In this episode of "Show Me the Way," Dave and guest Joe Kessinger, Exec VP at DeBruce Companies, to discuss his varied experiences from founding investment funds and running CEO roundtables. He also delves into the intricacies of starting, buying, and selling businesses, emphasizing the emotional and operational challenges of selling.
Ep. 57 — From Startups to Multi-Billion Dollar Sales: Joe Kessinger’s Top Tips
Joe Kessinger's career is nothing short of impressive. Known for wearing many hats, Joe has been involved in various capacities, from running a family office to leading CEO roundtables, starting up investor funds, and operating current funds. His journey encompasses significant roles, including being a CEO and an M&A advisor - Joe has seen it all.
A Journey Through Joe’s Early Life and Career
Joe eloquently recounts his humble beginnings in Kansas City, Missouri, and his initial steps into the entrepreneurial world by selling candy bought from a dime store to school kids during recess. His educational path led him to the University of Missouri, a family tradition passed down through generations.
From Accounting to Entrepreneurism
Joe’s father advised him that accounting was the best degree for understanding the language of business. Although Joe considered law and philosophy, he ultimately pursued accounting, leading to his first job at KPMG. However, his stint there wasn't long as he realized his passion lay more in finance than in accounting.
Working with a startup firm that later became Cerner Corporation, Joe transitioned into the world of capital finance and equity raises, setting the stage for a long career in entrepreneurial investments.
Learning and Growing Through Business Ventures
Joe's narrative takes listeners through his various roles and lessons learned. He discusses his time at UMB managing venture capital investments, his involvement with the Bi State Investment Group, the challenges of buying and turning around a struggling electronics manufacturing company, and eventually selling it, thus experiencing the full cycle of acquiring, rebuilding, and exiting a business.
Steps to Acquisitions and Lessons Learned
Joe shares practical advice for those looking to buy a business. He emphasizes understanding why you want to buy a business, the importance of soul-searching to narrow down what kind of business suits you best, and the reality of the hard work involved.
The Entrepreneurial DNA
Dave brings up the crucial topic of what it takes to be an entrepreneur. Joe believes that the essence of being an entrepreneur comes from within. It’s a balance of strategic thinking, a willingness to take risks, and having a forward-thinking mindset. Being coachable and surrounding oneself with smart people is also vital.
Selling a Business: The Emotional and Practical Aspects
Transitioning to the sell side, Joe talks about the challenges many business owners face. Beyond the financial preparation, the emotional readiness to let go of a business is paramount. Joe advises business owners to start preparing at least three to five years in advance, both financially and emotionally, for a smoother transition.
The Role of Tiger 21
Joe introduces Tiger 21, an international group focused on helping affluent individuals manage and grow their wealth post-liquidity events. It's a platform for peer-to-peer learning on topics such as investment strategies, wealth preservation, family dynamics, and philanthropy.
 
Dave wraps up the episode by acknowledging Joe Kessinger’s vast experience and contributions to the business community. Joe's journey offers invaluable lessons for both aspiring and seasoned entrepreneurs. For those looking to connect with Joe, you can find him on LinkedIn.
 
 
 
To reach out to Dave for advice or consultation, please visit www.davidseitter.com or email him at dseitter@spencerfane.com
 
Disclosure
This podcast is provided for educational purposes. It does not constitute legal advice and is not intended to establish an attorney-client relationship. The recommendations contained in this podcast are not necessarily appropriate for every individual or business. In determining the best course of action, business owners should consult with an attorney on their distinct circumstances.

Ep. 56 — Keys to Successful Mergers and Acquisitions: Insights from Jeff Carr

Welcome to the "Show Me The Way" podcast with David Seitter
In this episode of "Show Me the Way," Dave and guest Jeff Carr, a renowned attorney and former general counsel with over 25 years' experience. Jeff delves into his extensive experience in mergers and acquisitions, sharing unique stories from complicated transactions in Brazil, Turkey, and more. Discover his insights on the importance of understanding cultural differences in negotiations, the complexities of legacy liabilities, and the significance of proper succession planning.
Ep. 56 — Keys to Successful Mergers and Acquisitions: Insights from Jeff Carr
Continuing the conversation from last episode, Dave prompted Jeff to share some of his most unusual experiences in the M&A sector. Jeff's storytelling was nothing short of fascinating—ranging from complex deals involving ESOP companies to negotiations in Turkey that were nothing like standard American or European practices.
One particularly intriguing anecdote involved a deal in Brazil where Jeff had to orchestrate the privatization of a public company under Brazilian law, a situation that had no legal precedent. These stories highlighted the unpredictable and often challenging nature of M&A, emphasizing the importance of adaptability and cultural understanding in global transactions.
Simplifying M&A Processes
When asked how he would improve the M&A experience, Jeff stressed the need for simplification. He emphasized that M&A documents are often unnecessarily complex, advocating for a move towards plain English and massive simplification to make the process more intuitive. Jeff also outlined an approach to M&A deals that involves rigorous planning, execution, and after-action reviews for continuous improvement.
The Importance of Succession Planning
Dave shifted the conversation to succession planning, a topic that Jeff admitted he has had his share of struggles with. Jeff discussed the loneliness that can come with executive roles and the critical nature of hiring people who either have the potential to succeed you or whom you can help grow into better roles. He emphasized the importance of clearly defining and maintaining cultural and behavioral standards within an organization, even if it means making tough decisions about team composition.
Legacy Liabilities in M&A
When it comes to legacy liabilities, Jeff takes a firm stance. He prefers asset deals over share deals to avoid inheriting unwanted liabilities. Jeff's approach is guided by a hardline rule—anything that arises post-definitive agreement or closing date should be the responsibility of the buyer. This method ensures that legacy liabilities do not become a cumbersome issue in future operations.
Top M&A Points to Remember
Towards the end of their discussion, Jeff shared his top points for both buy-side and sell-side M&A considerations:
Sell-Side:
Recognize that selling means you're exiting the business.
Do not retain liabilities post-sale.
Communicate transparently with employees about the sale.
Buy-Side:
Understand the true objective behind the purchase.
Focus on effective integration post-acquisition.
Be prepared to walk away if due diligence reveals red flags.
The Transition to Retirement
The conversation took a personal turn as Dave asked Jeff about his transition into retirement. Jeff shared his daily routine, which includes physical, mental, creative, social, and spiritual activities. He also talked about his passion for racing cars, a hobby that has helped him stay active and engaged post-retirement.
Jeff's reflections on the emotional and psychological challenges of retirement offered a poignant reminder that high-performance individuals often struggle with the loss of their former status and identity. Balancing new activities and maintaining a sense of purpose can be key to a fulfilling retirement.
Pragmatic Approach to M&As
Jeff Carr's pragmatic approach to M&A, honed over years of experience, underscores the importance of planning, cultural alignment, and effective leadership in navigating complex business deals.
For those interested in learning more from Jeff, he remains active on Twitter/X and is open to emailing [jcarr916@gmail.com] to share his knowledge with the next generation of M&A professionals.
 
 
 
To reach out to Dave for advice or consultation, please visit www.davidseitter.com or email him at dseitter@spencerfane.com
 
Disclosure
This podcast is provided for educational purposes. It does not constitute legal advice and is not intended to establish an attorney-client relationship. The recommendations contained in this podcast are not necessarily appropriate for every individual or business. In determining the best course of action, business owners should consult with an attorney on their distinct circumstances.

Ep. 55 — Transform Your Legal Strategy with Jeff Carr's Masterful Business Insights

Welcome to the "Show Me The Way" podcast with David Seitter
In this episode of "Show Me the Way," Dave and guest Jeff Carr, a renowned attorney and former general counsel with over 25 years' experience. Jeff delves into his innovative approaches to law, focusing on business, M&A, and the transformation of legal services. Jeff reveals his guiding principles, his disdain for the billable hour, and his philosophy of treating clients as customers.
Ep. 55 — Transform Your Legal Strategy with Jeff Carr's Masterful Business Insights
Dave introduces Jeff Carr as a mentor and an influential figure in the legal profession. Jeff's journey starts in Delaware, where he was born and raised, eventually leading to an illustrious career as a general counsel, consultant, and angel investor.
Jeff's early years were marked by academic excellence and athletic pursuits. He attended the University of Virginia as an undergraduate, initially majoring in music before transitioning to nuclear war theory, ultimately graduating with a degree in government and foreign affairs. His passion for learning continued at Georgetown, where he pursued a joint degree program in foreign affairs and law.
Breaking into the Legal Field
After law school, Jeff embarked on a diverse career path, including clerking for a federal judge and working in various law firms. His experiences in international consulting were particularly formative, teaching him the importance of running a business, hiring and firing employees, and managing resources effectively. These skills would later prove invaluable in his role as general counsel.
Building a Legal Model
One of Jeff's core philosophies centers on the idea that legal services should be enablers of business success. He developed a model emphasizing customer focus, efficiency, and effectiveness. His vision? Every legal problem can be prevented, and legal services should be optimized to deliver value. This philosophy guided Jeff's work at FMC Technologies, where he built a high-performance legal team and transformative processes.
Mergers and Acquisitions: A Holistic Approach
Jeff's expertise extends to mergers and acquisitions, where he offers valuable insights into what works and what doesn't. He emphasizes the importance of a clear objective when pursuing M&A deals. According to Jeff, many mergers fail due to a lack of integration planning and cultural mismatches. Successful acquisitions often involve acquiring unique technology or expertise rather than merely increasing market share.
The Importance of Culture and Integration
Jeff highlights the critical role of cultural alignment in M&A success. He points out that trust and mutual respect between merging entities are essential for a smooth integration. Earnouts, while common, can create challenges if not handled properly. Jeff stresses the need for honest and transparent communication during the negotiation process.
Simplifying Legal Processes
Simplicity and clarity are recurring themes in Jeff's philosophy. He advocates for streamlined legal processes and documents, arguing that many standard practices in the legal field are unnecessarily complex. By focusing on the essentials and eliminating redundancies, legal professionals can provide more efficient and effective services to their clients.
Guiding Principles for Legal Teams
For Jeff, principles, people, and platforms form the foundation of successful legal teams. Clear principles guide decision-making, while the right people bring these principles to life. Platforms, including technology and systems, support the team's mission. Jeff's leadership philosophy emphasizes the importance of building a cohesive team that adheres to shared values and goals.
 
Jeff Carr's insights offer a masterclass in combining legal expertise with business acumen. His innovative approach to legal services, focus on customer experience, and emphasis on cultural alignment in M&A provide a blueprint for success in the legal profession. By adopting Jeff's principles and strategies, legal professionals can enhance their effectiveness and better serve their clients.
 
Be sure to subscribe to the show to catch part 2 of Dave’s conversation with Jeff!
 
 
 
To reach out to Dave for advice or consultation, please visit www.davidseitter.com or email him at dseitter@spencerfane.com
 
Disclosure
This podcast is provided for educational purposes. It does not constitute legal advice and is not intended to establish an attorney-client relationship. The recommendations contained in this podcast are not necessarily appropriate for every individual or business. In determining the best course of action, business owners should consult with an attorney on their distinct circumstances.

Ep. 54 — How Brett Gordon Built a Billion-Dollar Empire

Welcome to the "Show Me The Way" podcast with David Seitter
In this episode of "Show Me the Way," Dave and guest Brett Gordon, Founder and President of McCownGordon Construction, explore his incredible journey from entry-level construction worker to C-suite executive, owner of a construction company, and philanthropic leader. He also discusses the why he chose an ESOP as his exit strategy for selling the business.
Ep. 54 —How Brett Gordon Built a Billion-Dollar Empire
Brett’s journey began in California, but his family soon moved to Iowa, where he spent his early years before the family relocated to Denver. Brett later graduated from Thomas Jefferson High School in Denver and pursued higher education in construction science at Colorado State University.
Learning the Ropes in Construction
After college, Brett joined J.E. Dunn Construction Company in Kansas City, where he started at the entry-level and quickly demonstrated his knack for handling large construction projects. Despite economic challenges, Gordon proved his mettle by taking on significant responsibilities and establishing a solid foundation in the industry.
Building Walton Construction
An ambitious spirit led Brett to join Walton Construction Company, a small firm where he quickly rose through the ranks. There, he wore multiple hats, managing operations, sales, and hiring. Through his hard work and dedication, Walton transformed from a $6 million-a-year company to a $750 million-a-year enterprise.
The Entrepreneurial Leap: Founding McCownGordon
In 2001, Brett decided it was time to start his own business with his long-time colleague, Pat McCown. With just a small project to start, they built McCownGordon Construction from the ground up. Despite beginning with minimal resources and performing many tasks themselves, including demolition and cleanup, Brett and Pat's tenacity paid off. The company quickly scaled, achieving remarkable growth and completing numerous large-scale projects.
McCownGordon's Growth and Values
Under Brett's leadership, McCownGordon expanded significantly, ultimately becoming a billion-dollar enterprise with 1,500 employees. The success can be attributed to three core values: honesty, integrity, and performance. These principles, deeply embedded in the company's culture, ensured that every associate and client was treated with respect and fairness.
Transition to Employee Ownership: The ESOP Journey
As Brett began planning his exit strategy, he wanted to ensure the company's continuity and reward the associates who contributed to its success. This led to the establishment of an Employee Stock Ownership Plan (ESOP), making all associates co-owners of McCownGordon. By transitioning to a 100% ESOP, Brett and Pat ensured the company remained in capable hands, fostering a sense of ownership and responsibility among the employees.
Brett Gordon's Philanthropic Endeavors
Philanthropy has always been close to Brett's heart. Even during challenging economic times, McCownGordon committed to giving back a portion of its profits to the community. Post-retirement, Brett continues to focus on philanthropic initiatives, supporting organizations that make a meaningful impact on people's lives.
Lessons from Brett Gordon's Journey
As Brett reflects on his journey, he emphasizes the importance of client care, maintaining core values, and treating associates and clients with respect. His story serves as an inspiration to entrepreneurs and business owners, highlighting the significance of humility, integrity, and relentless pursuit of excellence.
Brett Gordon's story is a remarkable example of what one can achieve with dedication, perseverance, and a clear ethical compass. From sweeping floors to building a billion-dollar enterprise and giving back to the community, Brett's journey offers valuable lessons for anyone aspiring to make a mark in the business world.
 
If you want to get in touch with Brett Gordon, he can be reached via his McCownGordon email at bgordon@mccowngordon.com.
 
 
To reach out to Dave for advice or consultation, please visit www.davidseitter.com or email him at dseitter@spencerfane.com
 
Disclosure
This podcast is provided for educational purposes. It does not constitute legal advice and is not intended to establish an attorney-client relationship. The recommendations contained in this podcast are not necessarily appropriate for every individual or business. In determining the best course of action, business owners should consult with an attorney on their distinct circumstances.

Ep. 53 — From the Ballpark to the Boardroom: Rita Cortes Shares Her Winning Strategies

Welcome to the "Show Me The Way" podcast with David Seitter
In this episode of "Show Me the Way," Dave and guest Rita Cortes, Executive Director of the Menorah Heritage Foundation, to delve into her incredible journey. Rita, the first girl to play boys baseball in Kansas City, shares her experiences from practicing attorney, CEO of a construction company, to leading philanthropic efforts in Kansas City. She also gives insights on succession planning and retirement.
Ep. 53 — From the Ballpark to the Boardroom: Rita Cortes Shares Her Winning Strategies
Rita has crossed various domains, from law to business to philanthropy. She began playing baseball in Kansas City before becoming an attorney, CEO of a construction company, and now a significant player in philanthropic organizations. Her story is not just about career progression; it's about breaking barriers, continuously evolving, and giving back to the community.
Early Life and Education
Born and raised in Kansas City, Rita attended Barstow School and Pembroke Hill School. She grew up with a strong support system from her family, which ingrained in her the value of hard work and persistence. Rita was actively involved in sports and was fortunate to play numerous sports including tennis, basketball, and field hockey. She played basketball in college at Rice University and later transitioned to soccer, where she played as a goalie despite never having played soccer before.
Law and Public Service
Rita spent her summers working on Capitol Hill for various Midwestern politicians, including Senator Bob Dole and Representative Jan Meyers. This experience piqued her interest in law and public policy, leading her to attend George Washington University Law School. She practiced law in the DC metro area, primarily focusing on bankruptcy litigation. Dealing with real estate recession cases armed her with invaluable lessons on resilience and strategic problem-solving.
Returning to Kansas City
After practicing law, Rita returned to Kansas City to join her family's commercial construction business, Hoffman Cortes Contracting. Her journey was not straightforward; it involved rigorous negotiation and learning. Eventually, she took over as CEO and significantly grew the company's revenue and employee base. Rita emphasized the importance of external experience for any family member joining a family business, as it brings valuable insights and objectivity.
Succession Planning
One of the more profound lessons Rita shares is the complexity of succession planning in family-owned businesses. She underscores the necessity of clear communication and roles within the family. She recounts, for instance, how calling her father by his first name in professional settings helped her distinguish personal relationships from business decisions.
Philanthropy and Community Engagement
After leaving the construction business, Rita had a successful stint as a partner at a competing law firm before being offered the role to run Menorah Heritage Foundation. Here, Rita found her calling in helping give away money to philanthropic causes, a role that leverages her extensive experience in law, business, and community engagement. The foundation is focused on enriching the Kansas City area, particularly the Jewish community and broader Midwest.
Reflections on Retirement
Rita believes in the idea of "rewiring" rather than retiring. She sees herself continually engaged in meaningful work, whether in an official capacity or through volunteer roles. She currently serves as the chair of the board for Kansas City Public Schools, using her expertise to contribute to educational improvement.
If you found Rita's story inspiring, feel free to reach out to her via her professional email at rcortes@jcfkc.org or explore her work with the Kansas City Public Schools.
 
 
To reach out to Dave for advice or consultation, please visit www.davidseitter.com or email him at dseitter@spencerfane.com
 
Disclosure
This podcast is provided for educational purposes. It does not constitute legal advice and is not intended to establish an attorney-client relationship. The recommendations contained in this podcast are not necessarily appropriate for every individual or business. In determining the best course of action, business owners should consult with an attorney on their distinct circumstances.

Ep. 52 — Business Dispute Resolutions from Top Trial Attorney Kirk May

Welcome to the "Show Me The Way" podcast with David Seitter
In this episode of "Show Me the Way," Dave and guest Kirk May, a distinguished first chair trial attorney, delve deep into the world of business disputes. Kirk shares stories from his extensive legal career, offers invaluable lessons on both large and small business litigation, and provides insightful advice for business owners.
Ep. 52 — Business Dispute Resolutions from Top Trial Attorney Kirk May
Kirk shares his journey, starting from his early life in Springfield, Missouri, to his education at Duke University and the University of Tulsa College of Law. He highlights his 43-year career in litigation, primarily in commercial law, across various states. Kirk humorously acknowledges his lack of experience in traditional divorces but asserts his expertise in business divorces.
Lessons from a Business Dispute Attorney
Kirk delves into his first significant business dispute case, offering lessons learned from the experience. He emphasizes the importance of understanding the business you're acquiring and the perils of entering unfamiliar territory. He cautions against expecting too much from a deal, advising instead to aim for reasonable, sustainable returns.
The Importance of Skepticism in Business Transactions
Kirk suggests bringing a healthy dose of skepticism to any transaction. He illustrates this with a personal anecdote about learning accounting on the job and applying a critical eye to every deal. This skepticism, he argues, helps in fairly evaluating transactions and avoiding pitfalls.
The Role of Litigators
Kirk advises business owners to have a litigator review agreements, as litigators often foresee potential issues that transactional lawyers might miss. This foresight can prevent future disputes and ensure smoother transactions.
Arbitration vs. Trial
A common question Kirk addresses is whether to include arbitration clauses in agreements. He explains the pros and cons, noting that arbitration is not always cheaper or faster and can sometimes be just as complex and costly as traditional litigation. The decision, he says, depends on the specific circumstances of each case.
When to Hire a Lawyer
Kirk advises business owners to consult with a lawyer to determine whether they need legal representation. He stresses the importance of seeking legal advice to avoid costly mistakes and ensure that agreements are structured to protect their interests.
Advice for Business Owners
In closing, Kirk offers three pieces of advice for business owners considering selling their business:
Fair Pricing: Ensure you get a good, fair price and avoid holding out for an unrealistic "home run" deal.
Practical Skepticism: Be cautious and evaluate transactions with a critical eye, considering all potential risks.
Consult Specialists: Bring in litigators or other specialists to review agreements and foresee potential issues.
 
Dave wraps up the episode thanking Kirk for sharing his wisdom and insights. He encourages listeners to reach out to Kirk for their legal needs and emphasizes the value of the lessons learned from this engaging conversation.
 
For those interested in contacting Kirk May, his office number is: 816-460-3303. He can also be reached via email at kirkm@gmlawpc.com
 
 
 
To reach out to Dave for advice or consultation, please visit www.davidseitter.com or email him at dseitter@spencerfane.com
 
Disclosure
This podcast is provided for educational purposes. It does not constitute legal advice and is not intended to establish an attorney-client relationship. The recommendations contained in this podcast are not necessarily appropriate for every individual or business. In determining the best course of action, business owners should consult with an attorney on their distinct circumstances.

Ep. 51 — Crucial HR Moves that Make or Break Mergers with Lora Cheatum

Welcome to the "Show Me The Way" podcast with David Seitter
In this episode of "Show Me the Way," Dave and guest Lora Cheatum, the recently retired SVP and Chief HR Officer at KC Southern Railway, dive into the complexities of HR integration during mergers and acquisitions. They give insights into how to effectively manage cultural integrations and operational synergies, the critical phases of decision-making, closing day preparations, and post-merger strategies.
Ep. 51 — Crucial HR Moves that Make or Break Mergers with Lora Cheatum
Lora begins by sharing her extensive career journey. Over her 25-year HR career, she has navigated numerous corporate changes, including mergers, acquisitions, divestitures, and even bankruptcies.
The Dual Role of HR in M&A
Dave prompts Lora to discuss the specific roles HR plays during the acquisition of a business. Lora explains that HR’s responsibility is to ensure a smooth transition and integration. She emphasizes that the integration of people is as crucial as operational synergies, and that effective communication with employees is key to achieving success.
Due Diligence in M&A from an HR Perspective
Lora shares insights on the due diligence process from an HR standpoint. In heavily regulated, publicly traded companies, the information that can be shared is limited. However, ensuring cultural and operational alignment through methods like cultural gap analysis is essential. This process involves surveying employees from both merging companies to identify similarities and differences, helping to foresee and manage challenges.
Managing Cultural Integration
Culture is often cited as a critical factor in M&A success. Lora notes that cultural clashes can lead to failed transactions and decreased business performance. Recognizing and transparently addressing cultural differences can mitigate these risks. Lora shares an example of a successful cultural integration process involving a thorough cultural gap analysis that helped her understanding and managing integration challenges effectively.
Communication and Transparency: Cornerstones of Successful M&A
Lora cannot overemphasize the importance of communication and transparency. She stresses that employees are the greatest assets in any company, and their concerns need to be addressed clearly and promptly. Sharing relevant data and having open conversations about the future can prevent uncertainty, which often leads to insecurity among employees.
Decision-Making and Day One Post-Merger
Dave and Lora discuss the critical decisions HR professionals need to make leading up to and immediately after closing a deal. Lora recounts examples from her experiences, including a successful transition spinning off Yum! brands from PepsiCo. The new company made a significant effort to celebrate the change and ensure employees felt valued and integral to the new organization, setting a positive tone from day one.
The Sell Side vs. The Buy Side
Lora explains the nuanced differences between managing M&A from the sell side versus the buy side. While the sell side focuses on advocating for the outgoing employees, the buy side must assess the skills and culture of the incoming employees to ensure a smooth integration. Both sides, however, must rely on data-driven decisions to manage the transition effectively.
The Long-Term Integration Process
Integration is a lengthy process. Lora emphasizes that mergers and acquisitions can take years to fully integrate and that maintaining a positive mindset throughout is crucial. Viewing change as an opportunity rather than a hurdle can lead to personal and professional growth.
Key Takeaways for HR Professionals and Business Owners
Lora wraps up the episode by summarizing the key points:
Transparency: Be transparent about what you know and what you do not know.
Communication: Over-communicate and maintain open lines of dialogue with employees.
Positive Mindset: Approach the M&A process with a positive and proactive attitude.
 
Lora adds that HR professionals must put themselves in the shoes of the employees to understand their concerns and focus on building a new, cohesive culture.
 
 
 
 
To reach out to Dave for advice or consultation, please visit www.davidseitter.com or email him at dseitter@spencerfane.com
 
Disclosure
This podcast is provided for educational purposes. It does not constitute legal advice and is not intended to establish an attorney-client relationship. The recommendations contained in this podcast are not necessarily appropriate for every individual or business. In determining the best course of action, business owners should consult with an attorney on their distinct circumstances.

Ep. 50 — International Business Insider with Nicolas Rivera

Welcome to the "Show Me The Way" podcast with David Seitter
In the landmark 50th episode of "Show Me the Way," Dave takes his listeners on an enlightening journey into the intricate world of business succession planning. This special international edition features Nicholas Rivera, Cofounder of Bristol Consultores in Colombia, illuminating the unique challenges and strategies involved in transferring family-owned businesses across generations and borders.
Ep. 50 — International Business Insider with Nicolas Rivera
Nicholas Rivera, born and raised in Bogota, Colombia, began his career in finance at Sergio Arboleda University. His early experiences as an investment banker and management consultant laid the foundation for his expertise in business strategy, growth, and financing. By 2020, Rivera co-founded Bristol Consultores, focusing on helping struggling businesses navigate the challenges posed by the COVID-19 pandemic. A key aspect of Bristol Consultores' work involves assisting older business owners, particularly Hispanic families, in creating viable succession plans.
The Importance of Emotional Intelligence in Business Transfers
One of the standout points in Rivera’s approach is the emphasis on emotional intelligence. He highlights that the most significant pitfalls in business transitions often stem from emotional rather than financial or technical issues. Rivera's experiences reveal that the emotional handling of business owners and their families is crucial for a successful transition.
Key Emotional Challenges
Expectations vs. Reality: Often, the expectations of older business owners about the value of their company diverge significantly from market reality. Setting realistic expectations with both the founders and their children is paramount.
Emotional Attachment: Many business owners see their companies as extensions of themselves and struggle to let go. Rivera discusses strategies to keep the founders involved, such as maintaining a role on the board, which can help mitigate the emotional impact of transitioning leadership to their children.
Real-Life Cases and Practical Advice
Rivera shares compelling anecdotes that illustrate the emotional and financial dynamics of these transitions. One notable example involves a company that had been losing money for 11 years. A heartfelt but harsh outburst from the founder's son during a tense meeting underscored the deep emotional stakes involved. Through strategic restructuring and setting realistic expectations, Rivera’s team managed to turn the company around, securing a win-win situation for both the founder and the new CEO.
Guidelines for Founders
Rivera provides three crucial pieces of advice for parents looking to transition their business to their children:
Be Realistic: Treat your children as investors, not just as family members inheriting a business. Set and communicate clear and realistic expectations.
Let Go: Once you have transitioned the business, avoid interfering in daily operations. Trust your successors to lead.
Enjoy Life: Use this transition as an opportunity to explore personal interests that you may have set aside during your active business years.
Addressing the Next Generation’s Reservations
A recurring theme is the reluctance of the next generation to take over family businesses, often seeing it as a source of struggle rather than opportunity. Rivera addresses this by emphasizing that business can and should be enjoyable. By redefining the role of the next generation and providing them with more substantial decision-making power, many potential conflicts can be alleviated.
Rivera's insights reveal that the successful succession of family businesses requires a blend of financial acumen and emotional intelligence. His methodology, which combines restructuring, realistic expectations, and preserving family harmony, has proven effective both in Colombia and within the Hispanic business community in the United States.
 
Bristol Consultores for Hispanic Business Owners
For those interested in ensuring a smooth and prosperous transition of their family business, Rivera and his team at Bristol Consultores offer invaluable expertise. Their work highlights the importance of addressing emotional dynamics and involving professional strategies to create successful business succession plans.
For more information and resources, visit Nicholas Rivera’s Bristol Consultores on their website or connect with them on LinkedIn and YouTube.
 
 
To reach out to Dave for advice or consultation, please visit www.davidseitter.com or email him at dseitter@spencerfane.com
 
Disclosure
This podcast is provided for educational purposes. It does not constitute legal advice and is not intended to establish an attorney-client relationship. The recommendations contained in this podcast are not necessarily appropriate for every individual or business. In determining the best course of action, business owners should consult with an attorney on their distinct circumstances.

Ep. 49 — Navigating the First Acquisition: Insights from Dr. Henry Silvestriz, DC

Welcome to the "Show Me The Way" podcast with David Seitter
In this episode of “Show Me The Way,” Dave talks with Dr. Henry Silvestriz, Doctor of Chiropractic Services, and President & CEO / Co-Founder of Vinci Holdings, LLC, exploring Henry's journey from his humble beginnings in Puerto Rico to his recent ventures into the world of mergers and acquisitions (M&A). Learn about the challenges he's faced, the lessons learned, and the exciting future ahead.
Ep. 49 — Navigating the First Acquisition: Insights from Dr. Henry Silvestriz, DC
Henry was born in Puerto Rico in 1982. He completed his high school education on the island before enlisting in the Army in 2001. His military stint as an artillery specialist offered him unique experiences, but it wasn’t until after his service that he found his true calling.
The Path to Chiropractic Medicine
After leaving the Army, Henry joined the Dallas Police Department, serving for seven years. His career took a turn when he decided to pursue chiropractic studies at Life University in Georgia, graduating in 2018. His interest in the field extended beyond personal practice; he actively participates in chiropractic mission trips to Guatemala with Tanaka Chiropractic Missions, providing care to underserved communities.
The M&A Journey Begins
Inspired by the teachings of Dan Pena, Henry set his sights on the business world. With the encouragement from Pena's seminars, he realized that one didn’t need to be wealthy or have a specific degree to buy a business. Thus began Henry's journey into the M&A space, eventually founding Vinci Holdings with his father.
Vinci Holdings: Merging Healthcare with Business Acumen
Vinci Holdings has carved out a niche in the healthcare sector, focusing primarily on technology within healthcare, such as Electronic Health Records (EHR) systems and clinics. Henry and his team began actively searching for acquisition targets in September 2020, starting with modest goals and gradually moving to larger deals.
Overcoming Challenges in the M&A Process
Henry’s first acquisition is close to completion, and he shares invaluable lessons from the process. Establishing relationships with sellers is crucial since they are entrusting their company's legacy and their employees' future. Furthermore, it is essential to perform thorough due diligence, not only on the target businesses but also on the service providers assisting in the due diligence process. Henry recounts a costly lesson when he had to switch accounting firms midway through due diligence to get the quality of earnings report right.
Advice for Sellers
Henry offers practical advice for sellers to enhance their likelihood of a successful sale:
Realistic Expectations: Understand that an outright, immediate exit with full payment is rare.
Open to Structures: Be open to various deal structures, including promissory notes and equity stakes for future payouts.
Company Preparedness: Improve the company’s internal structures, such as having a CFO or Controller, to make the company more appealing to buyers.
Looking Back and Moving Forward
Reflecting on his journey, Henry notes the importance of not limiting oneself to small deals. Pursuing larger targets can often be more fruitful and less cumbersome in the long run. He looks forward to growing Vinci Holdings by continually acquiring more businesses in the healthcare sector and leveraging his initial success to propel future endeavors.
Reaching Out
For those interested in learning more about Vinci Holdings or seeking partnership opportunities, Henry is active on LinkedIn and encourages direct contact. His openness to conversations underscores his commitment to building relationships and expanding his network.
 
 
 
To reach out to Dave for advice or consultation, please visit www.davidseitter.com or email him at dseitter@spencerfane.com
 
Disclosure
This podcast is provided for educational purposes. It does not constitute legal advice and is not intended to establish an attorney-client relationship. The recommendations contained in this podcast are not necessarily appropriate for every individual or business. In determining the best course of action, business owners should consult with an attorney on their distinct circumstances.