Show Me The Way

Ep. 37 — Managing Rapid Growth and Succession Planning with Teresa Carey

Welcome to the "Show Me The Way" podcast with David Seitter
In this episode of “Show Me The Way,” Dave sits down with Teresa Carey, President of PerformancePointe, Inc. to discuss successful strategies for rapid business growth and succession planning. She provides insight into her unique coaching methodology, the key attributes that make succession planning work, and some common pitfalls in succession planning.
Ep. 37 — Managing Rapid Growth and Succession Planning with Teresa Carey
For businesses navigating growth and succession planning, finding the right direction can be a daunting task. It's like standing at a crossroads with different pathways leading to unfamiliar places. Making the right choice is not always easy, but with the right guidance, you can successfully steer your business through the thick of growth and succession planning.
Teresa sheds light on her background and the journey that led her to assist businesses traverse through the challenging landscape of growth and succession planning. She discussed her initial career in sales, and how her transition to training and development paved the way to coaching and eventually, to the executive leadership development arena.
Teresa explains an interesting concept: the transition from being functional leaders to enterprise-wide leaders. It is the transformation that business owners need to go through to step out of their narrow field of operation to adopt an overall direction for the company.
Essential Tips to Choose the Right Successor
The task of selecting a successor often presents a remarkable challenge. One crucial lesson Teresa shared is about proactivity. Leaders must proactively plan for succession. This proactive planning involves hiring people smarter than yourself, nurturing a culture of humility, and creating processes that can be trusted.
Teresa emphasizes the importance of clarity in proactively planning for succession. She recommends having a 30, 60, 90, 180-day plan in place when taking over a new leadership role to ease the transition and ensure that the business continues to move in the planned direction without any interruptions.
Shaping Your Business’ Ideal Future
Whether your company has just started or is in the process of pre-rapid growth, Teresa’s illuminating advice will resonate. She reiterates having a plan and ensuring its objective aligns with your purpose and values. Your North Star, as Teresa puts it, will guide you through the journey.
Simultaneously, she warned against over-hiring at the top too soon. She emphasized the importance of focusing on leadership development and investing in talent strategies that are crucial to healthy team and organizational growth. Teresa underscores the importance of having a solid exit strategy. She insists this will impact most of the decisions made along the way up until the culminating event.
Igniting Business Success
Teresa Carey has offered an engaging perspective into the intricate world of growth and succession planning. The takeaways from her interview are sure to ignite successes for startups and existing businesses alike in planning for and navigating growth as well as ensuring seamless transitions in leadership roles.
 
Teresa lives her calling and continues assisting businesses to make the leap from functional to enterprise leadership, partnering with them to overcome the challenges and opportunities ahead. In essence, she liberates greatness by connecting the strengths of each leader to the strategic blueprint of the organization. To learn more about Teresa Carey and her services, visit www.performancepointe.com or contact her via email at teresa@performancepointe.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. 36 — Reflecting on the M&A Landscape: A Review of 2023 and Insights for 2024

Welcome to the "Show Me The Way" podcast with David Seitter
In this episode, we take a step away from our usual format of hosting guests, as I, your host Dave Seitter, offer you a solo journey. As we near the end of 2023 and approach a new year, it's a perfect time to reflect on the M&A landscape of this year and glimpse into what 2024 has in store for us.
Ep. 36 — Reflecting on the M&A Landscape: A Review of 2023 and Insights for 2024
In the context of succession planning, exit planning, estate planning, and M&A, 2023 started off slow. Uncertainty loomed due to various factors such as the stock market, interest rates, geopolitical tensions, and overall economic uncertainties. However, as the year progressed and tax returns and financial statements were finalized, a shift occurred. Late April marked the turning point, with a significant letter of intent received, leading to the closure of nine different acquisitions. The market picked up momentum in the latter part of the year, reflecting an overall improvement in the economy.
M&A Dynamics in 2023
Unlike previous years, cash wasn't the primary mode of transaction. Equity rollovers and earnouts became prominent, shaping the purchase deals. Businesses and buyers increasingly utilized equity rollovers to bridge the valuation gap and align interests for future gains. Earnouts, which were previously used to involve sellers in the business's future performance, began serving as a means to compensate for a shortfall in the purchase price. These shifts in deal dynamics highlight the adaptability and flexibility required in M&A transactions.
Looking Ahead to 2024
While we experienced a strong finish in 2023, the question arises: What does 2024 hold for us? Experts and publications provide mixed opinions. Some are optimistic and project steady growth, considering factors like IPOs, private lending, and a favorable deflationary environment. On the other hand, there are those who anticipate a plateau in growth, suggesting a need for cautious and balanced approaches. Although there might be uncertainties, the consensus is that we have better days ahead.
Factors Impacting M&A in 2024
As we navigate 2024, certain factors are expected to influence the M&A landscape. One vital consideration is regulation. The Corporate Transparency Act mandates compliance for all businesses in the United States, creating challenges for legal and accounting professionals and necessitating a keen understanding of government requirements. Another key factor is inflation, which calmed down in recent months and is expected to remain positively deflationary in 2024. While there might be fluctuations, a significant recession is not anticipated unless impacted by cataclysmic events.
Preparing Your Business for Success
Regardless of the economic outlook, it's crucial to position your business for success. Planning for the eventual monetization event, whether through a sale, gift, or joint venture, is essential. Aligning with trusted business advisors and professionals will enable you to evaluate the readiness of your business and determine the best strategies. Evaluating the value of your company, analyzing cash flow, and exploring tax solutions are critical components for optimal decision-making.
Creating Your Success Roadmap
Designing a roadmap for success involves identifying your ultimate goal, formulating a methodology, and assembling a team of experts who can guide you through the process. Building this framework ensures you possess a well-rounded understanding of your business, its value, and monetization possibilities. Proactive planning allows you to optimize outcomes and address any potential deal-breakers that may arise. Remember, the process may be challenging, but deal fatigue is a natural part of the journey.
 
As we approach 2024, the M&A landscape presents abundant opportunities for businesses and owners considering succession planning, exit planning, or sales. By reflecting on the dynamics of 2023 and anticipating the key factors that will shape 2024, you can make informed decisions to navigate the evolving market successfully. Remember, staying proactive, seeking professional guidance, and planning for the future will empower you to achieve your goals and maximize the value of your business.
 
 
 
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. 35 — Ballers and Business: The Journey of Competitive Athletes Turned Entrepreneurs with Jordan and Courtney Delks

Welcome to the "Show Me The Way" podcast with David Seitter
In this episode of “Show Me The Way,” Dave sits down with Courtney and Jordan Delks, founders of Compete Training Academy, to discuss how they have leveraged their experiences to develop the best mindset that is shaping lives. Tune in as we discuss their journey, their unique approach to coaching both the body and mind, and future plans for their training business growing beyond basketball and impacting lives more broadly.
Ep. 35 — Ballers and Business: The Journey of Competitive Athletes Turned Entrepreneurs with Jordan and Courtney Delks
In a fast-paced world driven by hustle and bustle, it's crucial to carve out directions and platforms that foster creativity, growth, and self-expression. Courtney and Jordan Delks are two such individuals, leading the way with their innovative proposition, Compete Training Academy (CTA). By focusing on a streamlined approach that strikes an excellent balance between mind, body, and spirit, the duo are changing the conventional perception of athlete training.
Journey of The Founders
The husband-and-wife team set out on their entrepreneurial venture from rather humble beginnings, literally transforming an old barn into a state-of-the-art facility. Today, the barn is a reflection of their ingenuity and determination as it stands proud in Indiana. Today, their barn wears many hats, playing the role of a training center, a lodging facility, and most importantly, a source of inspiration for many.
The CTA Methodology
At the very core of CTA's operations is a dedication towards enhancing not just the physical prowess of athletes, but also their mindset and spirit. The focus is on identifying each individual's "unique ability" that sets them apart. This approach cultivates the right mindset, one that's full of passion and direction. Through this, athletes can reach their full potential and truly drive their careers toward success. By maintaining a sharp focus on strengthening the mind, body, and spirit, CTA creates an environment conducive to self-improvement and personal growth.
Practices at CTA
The training modules at CTA span over varied durations, tailored to meet the needs of different individuals. These modules cater to a range of price points, making the coaching accessible to people from different walks of life. It's a mantra of inclusivity that blends seamlessly with their aim of uplifting as many people as they can.
While the primary target at CTA is to hone-in on basketball skills, more specifically shooting, the larger vision is cultivating an athlete’s mindset. The academy helps individuals discover their purpose and gently leads them on to the path of realizing their dreams.
The Strategies Adopted By The Founders
Both Courtney and Jordan believe in leading by example, a belief reflected in the way they've painstakingly structured their lives. They instill a strict set of habits, focusing on physical fitness, mental agility, quality sleep, right nutrition, and constant learning. Through practices like regular reading and setting definitive goals, they set a precedent for others to follow.
Steering Towards The Future
The future for the power couple shines bright. They envision expanding their current format into a full-fledged retreat center while opening 30 more barns across the country by 2030. This progression underscores their determination to bring their message of holistic athlete development to the nation at large.
Compete Training Academy is breaking new grounds in the field of athlete training. By focusing on an athlete’s mind and spirit in conjunction to their physical prowess, CTA is setting the stage for next-level athlete development. Whether you're an athlete in the formative years, a professional in the prime of their career, or an individual wondering about their next step in life, CTA seems like an excellent place to begin your quest. Their background in professional sports, coupled with an acute understanding of personal development, makes Courtney and Jordan's Compete Training Academy a unique approach to empower and inspire athletes.
 
To find out more about Complete Training Academy, visit their website https://www.competetrainingacademy.org/
 
 
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. 34 — Attracting Business to Kansas City with Chris Gutierrez

Welcome to the "Show Me The Way" podcast with David Seitter
In this episode of “Show Me The Way,” Dave sits down with Chris Gutierrez, President of Kansas City SmartPort, to discuss strategies to attract distribution warehouses, manufacturing entities, and other businesses to the Kansas City region.
Ep. 34 — Attracting Business to Kansas City with Chris Gutierrez
Chris Gutierrez is no stranger to the world of economic development. With a career spanning over three decades, he has successfully worked towards bringing specific businesses to the Midwestern region. Born in Canton, Ohio, Chris found his passion for international business through a unique beer can collection hobby that led him to pursue a degree in international business and marketing at Ohio State University.
The Role of Kansas City SmartPort
Kansas City SmartPort, a not-for-profit organization aligned with the Kansas City Area Development Council (KCADC), actively promotes the Kansas City region for new investment. With a focus on industrial businesses, SmartPort works diligently to attract manufacturing and warehouse distribution entities to the area. Chris Gutierrez serves as the president of SmartPort, leading the organization in its mission to drive economic growth in the region.
A Strategic Approach to Business Attraction
Chris Gutierrez emphasizes the importance of being research-driven and understanding the Kansas City region's economic landscape. By identifying relevant industries and trends, SmartPort becomes an industry expert, attending conferences and building credibility within target sectors like electric vehicle automotive. They also engage with site selection consultants who play a crucial role in guiding clients' location decisions.
The Challenges and Successes
Like any industry, economic development isn't without its challenges. One primary obstacle is the tight labor market, which requires innovative approaches to attract and retain skilled workers. Additionally, Kansas City's growth necessitates a continual push for more industrial space, infrastructure, and utilities to accommodate expansion. However, despite these challenges, Chris and his team have achieved remarkable successes, such as attracting major retailers like Urban Outfitters and securing a significant investment from Panasonic in the electric vehicle battery manufacturing industry.
The Future of Economic Development in Kansas City
Looking ahead to the future, Kansas City's economic growth shows no signs of slowing down. Chris Gutierrez envisions a continued upward trajectory for the region, with a focus on global engagement and attracting established manufacturing companies with cutting-edge technologies. By staying proactive, hiring a competent team, and promoting Kansas City's value proposition, he aims to position the region as a top destination for businesses seeking success.
 
 
 
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. 33 — The Art of Buying, Selling, and Integrating Businesses with Matt Slawson

Welcome to the "Show Me The Way" podcast with David Seitter
In this episode of “Show Me The Way,” Dave sits down with Matt Slawson, VP of Special Projects at Atlantic Southern Paving and GM at Paradise Paving Maintenance, to discuss the challenges and rewards of both buying and selling businesses, the impact of integration, and the ever-evolving landscape of the construction industry.
Ep. 33 — The Art of Buying, Selling, and Integrating Businesses with Matt Slawson
To start the episode, Dave asks Matt to quickly recap his personal and professional journey. Matt starts from his early education in civil engineering to his transition into computer science and eventually finding his passion in the construction industry.
Matt shares his experiences of working in the concrete and asphalt maintenance sectors, emphasizing the challenges and rewards of owning and managing his own businesses. He highlights the importance of timing in business decisions and discusses his transition from being a seller to a buyer and then back to selling. Matt also touches upon the mindset shifts and the weight of responsibility that come with being an owner.
Reflections on Business Growth and Integration
Throughout the episode, Matt provides valuable insights into the world of mergers and acquisitions, particularly in the construction industry. He discusses the impact of market conditions, private equity investment, and technological advancements on the industry. He highlights the need for businesses to adapt to change, especially with the increasing presence of electric vehicles and autonomous driving technology, which can significantly impact pavement maintenance and construction.
The Importance of Business Succession Planning
As the conversation progresses, Dave and Matt explore the challenges and opportunities of business integration during the buying and selling processes. They stress the significance of effective communication, transparency, and trust between the parties involved. Matt also advises business owners to consider alternatives and thoroughly assess their options before making decisions.
The episode concludes with Dave and Matt discussing the future of the industry and Matt's plans for the coming years. Matt expresses his desire to continue learning and growing, both through consulting and acquiring more companies. He recognizes the value of staying informed about technological advancements and market trends and emphasizes the importance of having a solid business succession plan.
This episode serves as a valuable resource for individuals seeking inspiration, advice, and guidance in navigating the complexities of mergers and acquisitions and business succession planning.
 
 
 
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. 32 — Understanding the Power of Employee Stock Ownership Plans with Kelly Finnell

Welcome to the "Show Me The Way" podcast with David Seitter
In this episode of “Show Me The Way,” Dave sits down with Kelly Finnell, J.D., CLU, AIF, President of Executive Financial Services, Inc., to unlock the mysteries of Employee Stock Ownership Plans (ESOPs). With an in-depth look at their strategic benefits for business succession and liquidity planning, along with the potential windfalls for employees as a retirement plan, this episode is a must-listen for business owners and anyone interested in financial planning.
Ep. 32 — Understanding the Power of Employee Stock Ownership Plans with Kelly Finnell
Dave opens by asking guest Kelly Finnell about his background, after which they diev into a detailed discussion about Employee Stock Ownership Plans (ESOPs). He begins by defining what ESOPs are - they are employee benefit plans that provide company workers with an ownership interest in the company. In an ESOP, companies provide their employees with stock ownership.
Kelly then elaborates on the complexities of setting up ESOPs. He emphasizes that establishing an ESOP requires a considerable amount of planning and effort from both the business owner and the employees. This process includes determining the company's value, deciding how much stock will be distributed, and setting up a trust where the shares will be held. Furthermore, ESOPs have to be administered following strict regulatory standards set by the Internal Revenue Service and the Department of Labor.
Despite these complexities, Kelly stresses the benefits of ESOPs. For employees, ESOPs represent a form of profit-sharing where they benefit directly from the success of the company. Employees receive a tangible stake in the company, which can be a powerful incentive for increased productivity and loyalty. For business owners, ESOPs can serve as an effective succession planning tool, allowing them to gradually transfer ownership to the employees while retaining some control over the business.
Kelly also points out potential drawbacks. If not managed correctly, ESOPs can lead to employees bearing too much financial risk if the company does not perform well. In addition, the cost and effort involved in setting up and maintaining an ESOP can be substantial.
ESOPs and Tax Benefits Simplified
Kelly then explains some requirements for a business to qualify for an ESOP. He emphasizes that, as a general rule, a company needs to have at least $2 million of adjusted EBITDA and at least 50 employees to be a good candidate. This, however, is not a legal restriction, but more of a practical guideline to ensure a favorable cost-benefit ratio for the business.
He then dives into the tax benefits of ESOPs, mentioning a provision added to the Internal Revenue Code in 1984, section 1042, which is a form of like-kind exchange. Essentially, this means that a business owner can sell their stock to the ESOP, receive cash, and reinvest that cash in like-kind properties, such as stocks or bonds of a U.S. domestic operating company, without having to pay tax on the gain from the sale to the ESOP.
Moreover, Kelly highlights that ESOPs can enable a company to operate on a tax-free basis post-transaction. This is possible because the ESOP-owned company will typically be an S-Corporation, which is a pass-through entity and therefore does not pay tax. Instead, the earnings flow through to the owner, in this case, the ESOP trustee who is tax-exempt.
Kelly also explains how ESOPs give business owners a way to protect and reward their employees. This makes ESOPs a popular choice among business owners who wish to recognize their employees' efforts and contributions.
Understanding ESOPs for Business Owners
Kelly gives an in-depth explanation of the process of setting up an ESOP and the key players involved in the process. He begins by detailing how the process usually starts with an initial phone conversation between the client, their advisors, and the ESOP consultant. This conversation is designed to introduce the concept of ESOPs, explain how they work, discuss their tax benefits, and answer any questions the client may have.
He then discusses the team that is typically assembled to facilitate the creation of an ESOP. This team includes the ESOP consultant, the ESOP investment banker, the ESOP trustee, an independent valuation advisor, legal counsel, and a bank. Each of these players has a unique role in the process, with the ESOP consultant and investment banker usually making the first contact with the client and leading the negotiation of the sales price and other terms of the transaction.
Next, Kelly highlights the differences between an ESOP consultant and an ESOP investment banker. While both professionals guide the client through the ESOP process, he explains that ESOP consultants, like himself, charge a fee based on their time, which is significantly less than the fees charged by ESOP investment bankers who base their fees on the value of the asset being sold. Additionally, Kelly points out that ESOP consultants typically stay involved with the company after the transaction is completed, helping to communicate the benefits of the ESOP to employees and navigate the transition process.
Kelly provides an overview of the steps that occur after the ESOP transaction is completed, which includes conducting an employee communication meeting, providing quarterly newsletters, and repeating the PowerPoint presentation on the plan's anniversary each year. These steps, Kelly emphasizes, are critical for ensuring the employees understand and appreciate the ESOP.
The Evolving World of ESOPs
Kelly gives real-world examples of business owners who have successfully integrated ESOPs into their business model, and the significant changes it brought about.
He explains how one business owner leveraged ESOPs to change the trajectory of their business. Through the use of ESOPs, the business owner was able to create an environment that fostered employee engagement, leading to higher productivity and overall business growth. He highlights how this move helped the business owner to share the success of the company with its employees, creating a sense of ownership and commitment amongst them.
Kelly doesn't shy away from addressing the challenges that come with ESOPs. He discusses the increasing government oversight and complex regulations that business owners need to navigate. He stresses that although these changes might seem daunting, they are essential to ensure the protection of employees' interests and to maintain the integrity of the ESOP system.
He encourages business owners to research online, join industry associations, and seek advice from ESOP professionals to stay updated on the evolving industry. Kelly also recommends his book, The ESOP Coach, as a resource for further understanding of ESOPs.
 
 
 
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. 31 — Navigating the Intricacies of Family Offices with Thomas Dexter

Welcome to the "Show Me The Way" podcast with David Seitter
In this episode of “Show Me The Way,” Dave sits down with Thomas Dexter, or TD, about his experiences helping individuals create and operate family offices. We discuss the different types of practices, who should consider a family office, and get advice on best management practices.
Ep. 31 — Navigating the Intricacies of Family Offices with Thomas Dexter
The episode begins with an in-depth exploration of the family office industry with seasoned expert, Thomas Dexter, or TD. He explains his diverse background that includes growing up across the United States and leveraging his athletic abilities to gain an MBA from the College of William and Mary.
TD then provides a detailed overview of the family office industry. He shares his experiences of assisting individuals in creating and operating family offices, which involves arranging, handling, and counseling families, as well as dealing with Mergers and Acquisitions.
Thomas explains that a family office is an organization that manages the financial affairs of a family. However, not all family offices are the same. They differ based on investment discipline, structure, and other factors. He points out that a family with $250 million in assets and above would generally be a candidate for establishing a family office.
The reason for this, TD explains, is that the costs associated with running a family office (including staffing and investment fees) can be justified at this level. He notes that smaller family offices might be better off leveraging the resources and infrastructure of outside firms.
The discussion also delves into the criteria that may prompt the establishment of a family office. For instance, a family might establish a family office if they have a large number of children or grandchildren, requiring more intensive administration. Confidentiality concerns might also prompt the establishment of a family office, as bringing all operations in-house can provide an additional layer of identity protection.
Managing a Family Office
TD then delves into the essential aspects of managing a family office. His primary emphasis is on the absolute necessity of having a mission statement and bylaws to ensure the smooth functioning of a family office. He believes that these are crucial in outlining the organization's purpose, goals, and rules of operation, thus providing a clear direction and a set of guidelines to follow.
A key aspect that TD underscores is the pivotal role of the family office manager. This individual needs to be in constant dialogue with family members or trustees to understand their goals, objectives, and risk tolerance. This understanding allows for more accurate planning and decision-making, tailored to the unique needs and expectations of each family member. He points out that a successful manager must foster open dialogues, comprehend the family's objectives, and grasp their risk tolerance.
Furthermore, TD highlights the value of having an investment policy statement. This document outlines the family's investment strategy, providing a roadmap for the family's investment decisions and ensuring consistency in their approach. It provides clarity on risk tolerance, asset allocation, and investment objectives, helping to avoid any misunderstandings or disputes over investment decisions.
Lastly, he underscores the importance of educating the next generation about risk and spending. This not only prepares them for future financial responsibilities but also ensures the long-term sustainability of the family wealth. He also discusses the pros and cons of involving qualified family members in the family office, noting that while this can bring valuable insider perspective and commitment, it can also potentially introduce conflicts of interest or interpersonal tensions.
Objective Arbiters in Conflict Resolution
Given that family offices typically involve multiple generations of a family, there is often an evolution in the dynamics of the family office. TD explains it is thus critical to have these bylaws in place from the outset, providing clear guidelines on how to navigate various issues such as hiring family members, determining criteria for roles and outlining authority chains.
He notes that conflicts are almost inevitable in any family-run business, and it is the same for family offices. TD explains this is why it is crucial to have an objective arbiter who can handle such situations professionally and objectively. The role of an objective arbiter could be filled by a trusted family member, a legal expert, or a third-party mediator.
TD also discusses how to exit a professional who is not living up to expectations in the family office. This process can be quite challenging, especially if the professional in question is a loved one. It is recommended to have a clearly outlined process in the bylaws for such a situation.
Lastly, the podcast touches on the concept of bringing in external professionals to the family office. It is advised to ensure these professionals are well-qualified and have a deep understanding of family office dynamics. Dexter suggests that the family office manager, who has been in the industry for several years, would have a network of professionals to tap into. Alternatively, headhunters could be employed to find suitable professionals.
Types and Risks of Family Offices
TD then explains the different forms a family office can take, each coming with its own set of unique challenges and considerations.
Firstly, he explains that there are single-family offices, which cater exclusively to the needs of one affluent family. These are typically formed by families with $250 million or more in assets. These types of family offices can be highly customized to the needs and desires of the specific family, however, they can also be quite costly to operate.
Secondly, there are multi-family offices. These serve the needs of multiple families and are a more cost-effective solution for families with substantial, but perhaps not immense, wealth. While they lack the extreme customization of a single-family office, they provide professional management and confidentiality.
Virtual family offices are a relatively new type of family office and operate mostly online. They can offer a high level of service and customization while also keeping costs down due to reduced overheads. However, they might not offer the same depth of personal relationships and understanding that can be developed in more traditional office settings.
Lastly, Dexter mentions hybrid family offices. These combine elements of the other types to provide a flexible solution that can adapt to a family’s changing needs over time.
Family Office Investment Strategies and Advice
TD follows this up by providing valuable insights on the investment strategies for family offices. He stresses on the importance of identifying and calibrating the different risk appetites among family members. This is crucial as the family office represents multiple generations, each having different investment goals and risk tolerance levels. A thorough understanding of these factors can help the family office manager design a customized investment strategy that aligns with the family's objectives while minimizing risks.
One key point discussed is the need for a rigorous process when selecting a primary member of the investment team. The person in this role has a critical responsibility to manage and grow the family's wealth. Therefore, the selection process should be comprehensive, considering factors such as the candidate's experience, expertise, integrity, and alignment with the family's investment philosophy.
Furthermore, TD advises family offices to be cautious when venturing into new asset classes. He specifically mentions cryptocurrency, an asset class that has gained significant attention due to its high returns. However, it also carries considerable risk due to its volatility. Dexter suggests limiting exposure to such asset classes until the family office has gained a thorough understanding and can manage the associated risks effectively.
TD also highlights the advantages of leveraging buying power in a family office. With significant assets under management, family offices can negotiate better terms and conditions with service providers and investment opportunities. This can lead to cost savings and potentially higher returns on investments.
Finally, TD provides his perspective on the future of family offices. He predicts a potential decline in the headcount of family offices, implying a shift towards more streamlined operations and perhaps increased outsourcing. This trend could be driven by various factors, such as advancements in technology, changes in the regulatory environment, or shifts in the family's needs and preferences.
TD Provides Advice and Insight
TD continues his advice in offering invaluable advice on the legal aspects associated with the functioning of family offices. This involves the crucial elements that must be present in an agreement between a family office and its members. These elements likely include the rights and responsibilities of each member, their financial obligations, as well as guidelines on conflict resolution.
Additionally, he highlights the best practices for managing the ongoing relationship between the family office and its members. This might involve regular meetings, transparent communication, and consistent reviews of the office's performance and objectives. He underscores the benefits of having a clear process for resolving disputes, which can prevent disagreements from escalating and damaging the family’s relationships or the office's functionality.
 
 
 
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. 30 — The ‘Book’ Author with Jennifer Peek

Welcome to the "Show Me The Way" podcast with David Seitter
In this episode of “Show Me The Way,” Dave sits down with Jennifer Peek, CEO of Peek Advisory Group and Founder of The CFO School, to discuss the importance of a comprehensive 'book' to impress potential buyers, elements you should be including in your book, and why addressing any potential credibility-denting issues upfront is crucial.
Ep. 30 — The ‘Book’ Author with Jennifer Peek
Jennifer starts by providing an insightful glimpse into her journey from public accounting to establishing her own practice. Her discussion highlights her diverse experience in the industry, with a specific emphasis on the importance of creating a comprehensive 'book' for potential business buyers.
The goal of the 'book', as Jennifer explains, is twofold. It's meant to tell a compelling story about the business that entices potential buyers, and it also addresses any issues that might harm the credibility of the company. By addressing these issues upfront, sellers can maintain the trust and confidence of potential buyers throughout the selling process.
To illustrate the importance of transparency, Jennifer emphasizes that any discrepancies or inconsistencies will eventually come to light, potentially at the worst possible time, thereby damaging the credibility of the seller and the deal itself.
They also explore the various elements that go into creating a 'book'. From financial documents to employee information and customer lists, Jennifer emphasizes the need to gather these documents early in the process, when the seller's energy and motivation are at their peak.
Jennifer also underscores the value of visual elements in the 'book', such as logos, charts, product photos, and facility images. These elements, she says, engage the reader and make the 'book' more intriguing and appealing. She also alerts sellers that they have effectively taken on another part-time or full-time job and that there's a need for meticulous and detailed work in order to successfully market and sell their business.
Company's Sell and Buy Process Elements
Jennifer then provides a comprehensive look into the essential elements involved in the process of selling and buying a business. She explains the importance of creating a compelling 'book' that includes detailed information about the company's background, key products and services, primary customer groups, leadership and management structure, and unique operational features.
From a seller's perspective, she emphasizes that the book should be used as a marketing tool, highlighting the strengths and unique selling points of the company. This could include proprietary systems, updated software, or strategic location. If there are any potential issues or drawbacks, such as customer concentration or inconsistent financial results, these should be addressed upfront in the book to avoid surprises during the negotiation process.
When looking at the process from a buyer's perspective, Jennifer notes that potential buyers will often disregard information they don't find relevant or important. Buyers are primarily concerned with financial trends and consistency. They prefer a stable and predictable financial picture as this provides a level of assurance and reduces perceived risk.
Jennifer also discusses the impact of external factors, like the COVID-19 pandemic, on the business transition process. She explains that these external factors can greatly influence the dynamics of creating a book, as they can drastically change the company's operations and financial performance. Therefore, it's crucial for sellers to keep the book updated to reflect any significant changes.
Moreover, Jennifer highlights the importance of addressing any customer concentration issues upfront. This is because potential buyers often perceive customer concentration as a risk, fearing that the business might suffer significant losses if a major customer walks away.
Book, Valuation, and Due Diligence Process
Jennifer delves into the intricate details of the process involved in creating the 'book' for a business that's preparing for a sale, business valuation, and due diligence process.
She starts by discussing the importance of adjusted EBITDA used in the process of creating the book, valuation, and quality of earnings. She explains that many transactions are priced based on this metric, hence it's essential for this figure to be consistent across the board to give sellers more power in a deal.
Jennifer mentions that she holds one of the two nationally recognized certifications for business valuation - the CVA (Certified Valuation Analyst) certification through NAACVA (National Association of Certified Valuators and Analysts). She emphasizes the importance of having a certified valuation in addition to a marketing book.
She dives further into the Quality of Earnings report, explaining it as a mini audit designed to ensure that the offer being made for the business accurately reflects the company's operations. It involves a detailed review of the company's financial statements to verify the consistency of earnings and the likelihood of future earnings.
Jennifer notes that updates to the book might be necessary during the selling process, especially if there are consistent questions from potential buyers that the book didn't initially address. The financial information might also need to be updated if it becomes outdated during the selling process.
Deals
After questioning from Dave, Jennifer shares valuable insights into the intricacies of deal-making in business transitions. She begins by discussing the top three reasons why deals often fail.
Time: The process of business transitions can be lengthy and requires considerable energy. The longer it takes to close a deal, the more exhausted everyone involved becomes. Moreover, the extended timeframe opens up the possibility for unforeseen circumstances that could derail the deal.
Negligence: Sellers, after deciding to sell their businesses, sometimes take their foot off the gas and neglect their business operations. This can lead to declining business results, which can undermine buyer confidence and hamper the deal.
Lack of Transparency: Sellers who aren't as transparent as they should be can also jeopardize a deal. Not being upfront about potential issues or challenges can breed mistrust and potentially lead to a deal falling through.
Jennifer goes on to share attributes that make a deal successful. She stresses the importance of being transparent and responsive throughout the process. It's crucial for sellers to continue running their businesses as efficiently as before until the deal is finalized. She also mentions the importance of starting the process before you think you're ready.
She then shares valuable advice for both buyers and sellers. For buyers, Jennifer suggests that they should be serious about the process and not merely window shop. For sellers, she warns against falling in love with a potential buyer too early in the process.
In closing, Jennifer recommends allowing a minimum of one year for the business transition process to take place. This timeframe ensures ample time to navigate potential obstacles and successfully close a deal. She emphasizes that this is not a process to be rushed but rather one that requires patience, transparency, and diligence.
 
 
 
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. 29 — From Injury to Impact with Todd Durkin (part 2)

Welcome to the "Show Me The Way" podcast with David Seitter
In this episode of “Show Me The Way,” Dave sits down with Todd Durkin, a Master Motivator, Coach, Keynote Speaker, Podcast Host, Husband, Father, And IMPACT Maker. In this continued conversation with Todd, they discus his plans for the future, and how the pandemic spurred him to embark on a journey of rebranding and reinvention, and how we can utilize our unique gifts to make a positive impact in the world.
Ep. 29 — From Injury to Impact with Todd Durkin
Todd began his transformation when he was a college quarterback at William and Mary. Todd takes listeners on a deeply personal and inspiring journey, from his early days as a college athlete to becoming a mindset guru and successful fitness entrepreneur. This transformational journey was not without challenges, and it is in overcoming these that Todd found his true purpose and passion.
Identity, Impact, and Energy
Todd continues his story by delving deep into how identity, impact, and energy, are all crucial elements in his journey of personal growth and success. He shares insights about how our individual identities are tied to our passions and the unique gifts we bring to the world.
Starting with identity, Todd reflects on his journey from being a college quarterback to becoming a fitness business owner. He speaks about the significance of embracing your identity and aligning it with your mission in life. He believes that acknowledging who you are and what you stand for provides a solid foundation to create a meaningful impact in the world. His message is that our identities are not stagnant; they are ever-evolving, shaped by our experiences and the roles we play.
When it comes to impact, Todd highlights the importance of focusing not just on personal success but also on the positive influence we can have on others. He emphasizes that the true measure of success lies in the impact we make, whether that’s through our careers, our relationships, or our contributions to society. His journey as a fitness entrepreneur serves as a testament to this belief, illustrating that making a difference in people’s lives can be far more rewarding than financial gain.
Lastly, Todd talks about energy, which he believes is a vital resource that needs to be nurtured and protected. He shares his belief that our energy levels can significantly influence our performance and our ability to make a positive impact. By cultivating good habits and establishing rules to safeguard our energy, we can maintain a high level of performance and productivity.
Reflecting on Todd’s Journey and His Podcast
The last few minutes of the podcast, Todd Durkin reflected on his journey, and his mindset shift towards impact and legacy. He pondered on what he wants to be remembered for, both as an athlete and as a business owner. He emphasized on the importance of reflecting on one's identity and mission in life. Todd suggested that it's important to recognize our unique gifts and harness them to make a positive impact on the world. He further stressed the importance of having support systems that can help us stay on track with our goals.
In a profound conversation about energy, Todd highlighted the significance of maintaining and protecting our energy. He underscored the role of habits and rules in ensuring that our energy remains high and focused on our goals. This, he stated, is critical for sustaining performance and maintaining the drive to keep pushing towards our dreams.
In the concluding minutes, Todd Durkin looked back at his journey, from being a college quarterback to owning his fitness business, Fitness Quest 10. He contemplated on the adversity he faced and the lessons he learned to get to where he is today. He emphasized how the pandemic forced him to go to the next level of his business, and how he adapted and emerged stronger.
The podcast ended with Todd sharing his recommendations for other podcasts that have inspired him. His final message was a reflection of his life's mantra - harnessing adversity, persisting in the face of challenges, and continually striving for personal and professional triumph.
 
To learn more about Todd, or to find his podcast, go to: https://todddurkin.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. 28 — The Quarterback to NFL Trainer and Beyond with Todd Durkin (part 1)

Welcome to the "Show Me The Way" podcast with David Seitter
In this episode of “Show Me The Way,” Dave sits down with Todd Durkin, a Master Motivator, Coach, Keynote Speaker, Podcast Host, Husband, Father, And IMPACT Maker. Todd takes us on a journey through his life, sharing his experiences with adversity, his incredible recovery from a physical injury, and his eventual triumph as a successful fitness entrepreneur with his business, Fitness Quest 10.
Ep. 28 — The Quarterback to NFL Trainer and Beyond with Todd Durkin
Todd began his transformation when he was a college quarterback at William and Mary. Todd takes listeners on a deeply personal and inspiring journey, from his early days as a college athlete to becoming a mindset guru and successful fitness entrepreneur. This transformational journey was not without challenges, and it is in overcoming these that Todd found his true purpose and passion.
From College Athlete to Mindset Guru
As a college quarterback, Todd experienced a series of life-changing events that began to shape his mindset and perspective on life. The first was the sudden death of his father, his biggest cheerleader, mentor, and fan. This was a devastating blow for Todd, who was just 20 years old at the time. This loss forced him to question his faith, his purpose, and the meaning of life. However, it was during this difficult time that he learned a valuable lesson about resilience and perseverance.
Todd reveals that his father wrote him a handwritten letter every single day when he was in college, something he still remembers to this day. This showed him the power of words and communication, and he carries this lesson with him in his current role as a mindset guru, understanding the profound impact words can have on people's lives.
Following his father's death, Todd pursued his dream of becoming an NFL player, traveling to Europe to play football. However, a serious back injury brought an abrupt end to his football career. This setback led to a period of soul-searching and personal growth. Despite the pain and disappointment, Todd saw this as an opportunity to reinvent himself and pursue a new path.
After returning to the U.S, Todd immersed himself in learning about fitness and wellness, focusing on ways to recover from his injury without surgery. This journey led him to meet various gurus and healers, sparking his interest in mindset and personal growth.
Starting a Gym
Todd then discusses his journey from being a college quarterback to owning his fitness business, Fitness Quest 10. He delves into the challenges and setbacks he faced while setting up his business and the crucial lessons he learned throughout the journey.
He highlights the role of prayer and intuition in his journey. He credits these elements for guiding him through the difficult stages of starting a business and helping him remain resilient and motivated in the face of adversity. He recalls how his gym’s inception started humbly at a health fair, and with determination and hard work, he was able to evolve it into a holistic fitness approach that now offers services like one-on-one training, massage therapy, and Pilates.
Interestingly, Todd points out that success is not always measured by money. For him, the impact his business is making on people's lives is the real measure of success. This mindset, he suggests, is vital for those just starting out in their career, as it allows them to focus on their passion and the value they bring, rather than just financial gain.
He offers valuable insights into the process of starting a gym or any business, emphasizing the importance of passion, resilience, and a strong belief in one's capabilities. Todd’s journey serves as an inspiration for aspiring entrepreneurs, particularly those in the fitness industry, showing them that success can be achieved through perseverance, passion, and the desire to make a positive impact.
Choosing a Location and Evolving Business
Todd shares his journey from stumbling upon the location for his fitness business, Fitness Quest 10, to evolving his business to meet the needs of his growing clientele.
He explained that he was conducting a health fair when he stumbled upon a location for his gym. He had been driving around looking for a suitable location and this space in a shopping center felt right. Durkin expressed that he felt an emotional connection to the location, even envisioning people working out, smiling, and high-fiving each other in the space. He contacted the landlord, negotiated three months rent-free, and set up shop.
However, his business started slowly. Todd shared that in the initial months he was primarily working out alone. He realized he needed to network within the community to attract clients. It was only when his first client walked in that the momentum started building.
Todd’s business model was different from conventional big-box gyms. His studio offered one-on-one training, massage therapy, bodywork, and Pilates. Within six months, Durkin’s schedule was full, conducting 40 to 50 sessions one-on-one a week. His clientele expanded from ordinary individuals to world-class athletes who came for both physical training and mindset coaching.
He stresses the importance of having a unique selling point for any business. For him, it was his ability to address both physical pain and the mental aspects of training. He said that he often attracted clients who had back pain, as he himself had experienced severe back pain and had spent years finding ways to manage it.
Todd’s business continued to evolve. He expanded his facility twice to accommodate his growing client base. He invested in creating a high-performance facility for the world-class athletes he was training. However, Durkin emphasized that while his clientele included world-class athletes, his services were available to everyone. He shared that his mission has always been to use Fitness Quest 10 as a vehicle to share his gifts and passion for fitness and wellness.
He shared that over the last seven years, he has begun doing more speaking engagements and motivational talks, expanding his reach and impact beyond his fitness business. This expansion has allowed him to reach more people and help them on their personal and professional journeys.
 
 
To learn more about Todd, or to find his podcast, go to: https://todddurkin.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.