#258: Creating, Training and Investing in the Next Generation of Acquisition Entrepreneurs
Intentional Growth
English - July 22, 2021 02:10 - 59 minutes - 55.7 MB - ★★★★★ - 87 ratingsEntrepreneurship Business Investing business entrepreneur entrepreneurship startup inspiration innovation founders Homepage Download Apple Podcasts Google Podcasts Overcast Castro Pocket Casts RSS feed
If you’re acquiring a business, immediately overhauling the way the company operates is not likely going to be the most effective strategy. Unless the company was a fire sale, you’ll lose customers and staff by changing too much too soon. Getting people who are already in the company to buy-in to what you’re planning is crucial. When you buy a business, you’re acquiring all of its people too—and you can’t just expedite trust.
On today’s show, we have Kylon Gienger, president of Acquira (an investment fund for people looking to buy small businesses and an accelerator for those looking to do the same), who is going to prove the value of securing key relationships in new acquisitions, particularly with the people who will be executing the strategic plan to increase the value of the business. On the way, we explore the crucial role of emotional intelligence for any business buyer, the different types of search fund investment structures and what an ideal acquisition entrepreneur profile looks like. This is an episode you don’t want to miss if you’re looking at taking over a new operation.
What You Will Learn In Today's Podcast Interview
Why the acquisition entrepreneur is on the rise and how they can help fill a void in the impending wave of Baby Boomer transitions
The differences between on-market and off-market deals
How private equity is expanding the multiples in the home services industry
Why some sellers would be willing to take less of a purchase price to sell their “baby”
What the “gauntlet” is and how it’s used to filter the investors and business buyers Acquira brings into their ecosystem
Why you should never underestimate the human component of a deal—livelihoods depend on it
The reason you should keep on the previous owners in any lower market companies you acquire, if possible
How to hire good people—those who match your values as well as have the skills and training you need in the role
What factors Acquira considers when evaluating new businesses to invest in and their strategies to mitigate risks discovered
How Acquira is using EOS to onboard the companies they buy
When you should compromise with established staff rather than steamroll their ideas post-acquisition
The value of ongoing learning as a business owner (even if it’s just-in-time!)
Why understanding the human element of transactions can help you rise to the top as the buyer of choice
What the "Silver Tsunami" investment landscape looks like as $10 trillion in Baby Boomer business assets makes its way to market
How to make the transfer of ownership enjoyable rather than traumatic
Building trust in the culture of your company is vital to making the value creation changes you need
Are You Growing The Value of Your Business
Take The 2-Minute Assessment To Get Your Intentional Growth Score™ And 1-Page Vision Board.
Are your company's current initiatives intentionally designed to increase the value of the business?
Do you know what you want from your business long term and why?
Do you know what your company is worth?
Do you know the differences between Management, Family Transitions, PE Firms, ESOPs and Strategic Buyers?
Does the business have a written strategic plan on how to achieve the desired normalized EBITDA and valuation?
About the Guest:
Kylon Gienger is president of Acquira, and investment fund for people looking to buy small business and an accelerator for people looking to do the same. He is a serial entrepreneur hims
If you’re acquiring a business, immediately overhauling the way the company operates is not likely going to be the most effective strategy. Unless the company was a fire sale, you’ll lose customers and staff by changing too much too soon. Getting people who are already in the company to buy-in to what you’re planning is crucial. When you buy a business, you’re acquiring all of its people too—and you can’t just expedite trust.
On today’s show, we have Kylon Gienger, president of Acquira (an investment fund for people looking to buy small businesses and an accelerator for those looking to do the same), who is going to prove the value of securing key relationships in new acquisitions, particularly with the people who will be executing the strategic plan to increase the value of the business. On the way, we explore the crucial role of emotional intelligence for any business buyer, the different types of search fund investment structures and what an ideal acquisition entrepreneur profile looks like. This is an episode you don’t want to miss if you’re looking at taking over a new operation.
What You Will Learn In Today's Podcast Interview
Why the acquisition entrepreneur is on the rise and how they can help fill a void in the impending wave of Baby Boomer transitions
The differences between on-market and off-market deals
How private equity is expanding the multiples in the home services industry
Why some sellers would be willing to take less of a purchase price to sell their “baby”
What the “gauntlet” is and how it’s used to filter the investors and business buyers Acquira brings into their ecosystem
Why you should never underestimate the human component of a deal—livelihoods depend on it
The reason you should keep on the previous owners in any lower market companies you acquire, if possible
How to hire good people—those who match your values as well as have the skills and training you need in the role
What factors Acquira considers when evaluating new businesses to invest in and their strategies to mitigate risks discovered
How Acquira is using EOS to onboard the companies they buy
When you should compromise with established staff rather than steamroll their ideas post-acquisition
The value of ongoing learning as a business owner (even if it’s just-in-time!)
Why understanding the human element of transactions can help you rise to the top as the buyer of choice
What the "Silver Tsunami" investment landscape looks like as $10 trillion in Baby Boomer business assets makes its way to market
How to make the transfer of ownership enjoyable rather than traumatic
Building trust in the culture of your company is vital to making the value creation changes you need
Are You Growing The Value of Your Business
Take The 2-Minute Assessment To Get Your Intentional Growth Score™ And 1-Page Vision Board.
Are your company's current initiatives intentionally designed to increase the value of the business?
Do you know what you want from your business long term and why?
Do you know what your company is worth?
Do you know the differences between Management, Family Transitions, PE Firms, ESOPs and Strategic Buyers?
Does the business have a written strategic plan on how to achieve the desired normalized EBITDA and valuation?
About the Guest:
Kylon Gienger is president of Acquira, and investment fund for people looking to buy small business and an accelerator for people looking to do the same. He is a serial entrepreneur himself, and wants to make others feel empowered as well. When he’s not helping build stronger companies, Kylon enjoys snowboarding and hanging out with his family.
Quotes:
06:57 - “Action begets more action” – Kylon Gienger
09:00 - “I’d like to skip the whole startup process.” – Kylon Gienger
12:09 - “They’ve already figured all that out.” – Kylon Gienger
12:43 - “How can we optimize that business and how can we grow it?” – Kylon Gienger
14:04 - “Coming from outside the business, I have a very objective view of things.” – Kylon Gienger
16:20 - “What we encourage folks to so—and what I’m currently doing—is spend the first three to six months in the business, understanding how it’s been operating for the past decade.” – Kylon Gienger
20:14 - “There’s a lot of wannabe buyers out there, not a lot of qualified buyers.” – Kylon Gienger
25:15 - “Ideally, if you can, retain that owner somehow.” – Kylon Gienger
32:13 - “Instead, our buyers pay that. They pay a small percentage brokerage to us for bringing in that deal and kind of connecting, connecting them.” – Kylon Gienger
37:47 - “This is why we look for buyers that are high EQ.” – Kylon Gienger
43:12 - “It’s like being married.” – Kylon Gienger
52:05 - “When you have more of that long-term mentality, you can be more patient for sure.” – Kylon Gienger
55:45 - “There's roughly $10 trillion in small business assets that we switching hands over the next decade or so.” – Kylon Gienger
Links and Resources:
Kylon’s email: [email protected]
Mastering Your Cash Flow Digital Course
Reach out to me if you have questions about the boot camp!
You can also reach out to me via email at [email protected], or on my LinkedIn.