Ep. 9 — The Texas Managed Equity Acquisition with Mike Waters

Welcome to the "Show Me The Way" podcast with David Seitter

In this episode of “Show Me The Way,” Dave sits down with Mike Waters, CEO of Continental Disc Corporation, to discuss the process of selling a business, and lessons learned by going through that process. Mike dives into how getting your employees involved in the deal might be one of the best decisions you make in the process.

Ep. 9 — The Texas Managed Equity Acquisition with Mike Waters

Introducing Mike Waters, CEO Continental Disc Corp.

Dave asks Mike to regale the listeners with the story of his life back in east Texas.

• Mike discusses his upbringing in Texas, noting that he graduated from Texas A&M’s College of Engineering program.
• He says he was also a part of the Corp of Cadets, and mentions some of the lessons being a part of that program taught him.
• He adds that after graduating he was recruited to be a part of Emerson Electric, and began working in different roles that dealt with process automation.
• After prompting from Dave, Mike goes into more detail about his time at Texas A&M and the lessons he learned being a part of the Corps of Cadets.

Dave then asks Mike to speak about his current business, Continental Disc Corp.

• He lists the four companies that comprise the larger business, all of which involve pressurization protection.
• Mike then discusses his role at Continental Disc Corp, and when he was brought in after a purchase of the company in early 2021.

The Process of Selling a Business

Dave seeks to dig into Mike’s previous roles at businesses before his current one.

• Mike recalls his history at Flow Management Devices, LLC, and CIRCOR Energy.
• He notes how his connections from one company helped bring him into the next to help them prepare for and engage in the selling of Flow Management Devices, LLC
• He talks about the process of sending out CIM, the IOIs they received, and how they narrowed it down through 16 Management Presentations to two strategic companies and one private equity company.
• He talks about his accelerated due diligence process, selling the business in about a months time.
• Mike then discusses his three pillars that they built the story around in order to get the best deal for their business
  • Continuing to capture market share
  • Opportunities around technology transfer
  • Unexploited global market

Dave asks Mike to share what he learned from that experience of being a partial owner and selling a company.

• Mike recalls his time as CEO of SOR Controls Group, and the selling of that business.
• He emphasizes the importance of telling the story of your company, implanting the upside of acquiring your business to any potential purchasers.
• After prompting from Dave, Mike talks about the outside help he received in creating the pitchbook and packaging the message for consumption.
• He notes that the pillars that underlined the strategic growth, that was done internally, adding that the people working those roles know best.

Lessons on How to Sell a Business

Dave asks what lessons he has taken from prior experiences that help him and his current company continue to march forward with their goals.

• Mike says that he has a playbook that is driven by understanding the company mission, vision, and value.
• He then runs through his mindset behind each of those, and relates them to different processes that support efficient operation.
• After that, he notes, you can focus on how to deploy additional capital.

Dave asks Mike to run through any lessons he has either learned personally or vicariously through watching other deals.

• Mike says oftentimes with large strategic industrial conglomerates, they often assume they can make a company more efficient, when that might not always be the case.
• He notes to fully evaluate infrastructure and cost structure in the due diligence period so that you’re not having to change things after the deal goes through.
• Lastly, he says to put in the time to build and tell the story rather than relying on potential purchasers of your business to put those pieces together themselves.
• Mike then discusses how he and his team created their pitch when looking to sell Flow MD, and the myriad of advantages and benefits that came from using this tactic.

In order to learn more about Continental Disc Corporation go to www.contdisc.com or reach out to Mike at mwaters@contdisc.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.