The Boardroom Buzz Pest Control Podcast

Paul and Patrick break down earnouts, those tricky tools that promise to bridge valuation gaps but often lead to unexpected headaches. Ever wondered why earnouts can be such a gamble? Picture this: a seller with a rock-solid EBITDA track record sees their earnout shrink because the buyer reinvests in the business, slashing the payout. So, are earnouts worth the risk, or are they just a ticking time bomb? Revenue-based earnouts are generally safer than cash-flow ones. Why? Because the deeper you delve into the profit and loss statement, the less control sellers have. But here's the kicker: How can sellers navigate these murky waters and ensure they're not left high and dry when the deal is done? It's a tough nut to crack but understanding the ins and outs of earnouts might just be the key to staying afloat. Honorable conduct pays dividends in reputation, while shady dealings can burn bridges. How can businesses strike the right balance between seizing opportunities and maintaining their moral compass in a cutthroat industry? It's a tightrope walk but finding that sweet spot could spell the difference between long-term success and a tarnished reputation. Audio Mixing and Editing by www.verbell.ltd.

This keynote speech by leading M&A advisor, Paul Giannamore, was filmed at the AZPPO Great Western Conference in Mesa, Arizona, on March 27, 2024. The presentation revolves around the key decision-making processes in mergers and acquisitions (M&A), focusing particularly on the choice between negotiation and auction when selling assets. Paul Giannamore, with over 20 years of experience in M&A advisory, emphasizes that understanding and choosing the right selling process—negotiation or auction—is crucial, not only in M&A but in any asset sale. Illustrating this, he shares a personal story about selling a valuable family-owned violin through different methods—initially trying to sell it online and then through personal connections, which eventually led to auctioning. This story serves as a segue into discussing the auction process more broadly. Paul elaborates on the complexities and strategic decisions involved in auctioning, using a detailed example of selling a business through a controlled auction process. The narrative includes tactical shifts like switching to a Dutch auction to push the final sale price closer to the desired amount. He explains the dynamics of a controlled auction, highlighting the absence of traditional negotiation and the focus on leveraging competition among buyers to maximize the selling price. In essence, the presentation provides a comprehensive overview of strategic decision-making in asset sales, focusing on the choice of process, and underscores the importance of understanding and manipulating these processes to achieve the best outcomes in business transactions. Contact POTOMAC today and find out how. Watch the recorded version of his speech here: https://youtu.be/AIbOsEZRifM?si=ikZklx9gCIpMhzdz

Skye LaJaunie, COO of LaJaunie's Pest Control, joins Paul and Patrick in The Boardroom to dive into the crucial role of company culture in driving business success. There is a huge need for a strong culture built on genuine relationships between leaders and team members. But what does it take to truly understand your team's motivations and aspirations? And how can leaders foster an environment where everyone feels valued and connected? Skye sheds light on the importance of adapting business strategies to align with employee values, especially considering the unique characteristics of the younger generation in the workforce. When it comes to flexibility and customization, urging leaders to meet younger individuals where they are can be key in driving their success. But what does this level of customization look like in practice? And how can businesses navigate the changing dynamics of the modern workplace while staying true to their core values? Skye underscores the value of learning from others, whether through mentorship or studying successful businesses. The power of collaboration and openness to new ideas can do wonders in driving growth and development. But how can leaders cultivate a culture of continuous learning within their organizations? What steps can you take to ensure you're always evolving and adapting to stay ahead in such a fast-paced industry? Audio Mixing and Editing by www.verbell.ltd

We always think high growth is the golden ticket. Sure, rapid expansion can be sweet, but have you ever wondered if there's such a thing as too much growth? When should you hit the brakes and focus on other priorities, especially if selling your company is in the cards? Let's talk about keeping those customers happy. Implementing a killer retention program can seriously beef up your bottom line. But here's the million-dollar question: Are you doing enough to keep your customers coming back for more? Have you ever really sat down and thought about how to keep them hooked? In the wild world of door-to-door sales, your numbers may soar, but have you considered the risks? When you're scaling up, things can get pretty dicey. So, is the risk worth the reward, or should you look for a safer bet? Audio Mixing and Editing by www.verbell.ltd

Paul and Patrick dive into the intricate world of cognitive biases, drawing insights from Daniel Kahneman's book, Thinking, Fast and Slow. The duo dissected the concept of representativeness bias, which can lead us to make flawed assumptions based on surface-level similarities. Think about it: How often do we catch ourselves falling into this trap in our day-to-day decision-making? Can we truly overcome this bias, or is it wired into our brains? Next, exploring the subtle power of priming – how seemingly insignificant cues can sway our judgments without us even realizing it. It makes you wonder: How much of our decision-making is truly our own, and how much is influenced by these hidden triggers? What steps can we take to become more aware of these influences in our professional and personal lives? Let's talk about hiring processes and the importance of systematic thinking over relying solely on intuition. According to the peak-end rule, we tend to remember the most intense moment and the end of an experience more than the rest of it. It begs the question: Are we doing enough to ensure that our hiring processes are fair and based on merit rather than unconscious biases? Could implementing systematic approaches lead to more diverse and effective teams? Audio Mixing and Editing by www.verbell.ltd

Paul is getting on the road to double-keynote this year's AZPPO Great Western Conference. But first, Paul takes on a FRAXN client's question, beginning with the vital need to keep partnership agreements and valuations current. Surely, you’ve considered the potential chaos if your business partner suddenly left the picture. Updating your operating agreement can smooth out what would make for a rough ride. When was the last time you revisited your partnership paperwork? When it comes to valuing your business, growth rates and margins play a pivotal role. But are you factoring them into your valuation strategy? Paul and Patrick cover the importance of a nuanced approach instead of relying solely on a one-size-fits-all method. Even though you may not be thinking about selling in the near future, what variables come to mind as you think about the value of your business? And what's the scoop on offshore trusts? Despite their reputation, they can be a valid strategy for protecting your assets from legal and financial risks. What are some common misunderstandings of offshore trusts? Audio Mixing and Editing by www.verbell.ltd

Fat Pat and Uncle Paul dive into business expansion strategies and the power of partnerships. Instead of sticking to the traditional 'buy or build' mindset, here's an alternative: forming alliances with established players in new markets. But here's the kicker: Have you considered how such partnerships could reshape your business expansion plans? We all know negotiation is a crucial skill for sealing deals. Ask the right questions and keep crucial information close to the chest. Have you honed your negotiation tactics to secure the best outcomes for your business transactions? When acquiring a business, it's not just about crunching numbers—understanding the seller's needs is paramount. Remember, stay agile, keep an eye on emerging trends, and be willing to pivot your strategy when necessary. By refining your approach and embracing innovation, you can position your business for growth and success in any market environment. Are you ready to implement these insights into your business strategy? Audio Mixing and Editing by www.verbell.ltd

Are you ready for another guest episode? Mike Hurley, the genius behind a thriving wildlife business, Xceptional Wildlife, joins the Boardroom to uncover the secrets to his success. Mike hits home the importance of ironclad processes in business growth. Drawing from his experience with Six Sigma, he emphasizes the power of identifying and perfecting process failures. How do you think implementing a structured approach to processes could benefit your own business? Mike stresses the significance of choosing the right partner in business. A supportive partner can make all the difference, while the wrong one can spell disaster. To Mike, a great business partner can influence good in both your business and personal life. Have you ever had a business partner, and if so, how did they impact your professional journey? Mike goes on to encourage us to embrace failure as a catalyst for growth. He believes discussing failures and learning from them is crucial for continuous improvement. How do you handle failure in your own business, and what strategies do you use to turn setbacks into opportunities for growth? Audio Mixing and Editing by www.verbell.ltd.

Chase Hazelwood, owner of Go-Forth Pest Control, takes us through their remarkable journey from $2 million to an astonishing $25 million empire in just ten years. Curious about his winning formula? It's all about cultivating a high-performance culture. Chase tells us about his relentless focus on customer service and sales that skyrocketed productivity. How can you apply his strategies to supercharge your business? Chase didn't stop at the surface level. He stresses the crucial role of training, transparency, and accountability in shaping a workforce poised for success. Creating an environment where slacking off is a major faux pas and where every team member is driven to excel is key. Do you have what it takes to put your people on a batting order and share those stats for everyone to see? At Go-Forth, the team is on a mission to automate almost everything. Chase shares how they utilize AI and remove decision-making to improve efficiency. What can you not drill down to a checklist? Audio Mixing and Editing by www.verbell.ltd

Looking to crack the code of success in the wildlife and pest control sectors? Fat Pat and Seth drop some wisdom on why simplicity is the name of the game for top-performing companies. By starting with a single service and gradually adding on more, these businesses maximize profitability and route density. Do you think your company could benefit from simplifying its offerings, or are you tempted to throw everything at the wall and see what sticks? Let's talk recurring revenue. Seth spills the beans on how some savvy companies are ditching annual warranties in favor of monthly subscriptions. Even wildlife companies can implement subscription-based models. Staying laser-focused on building a business, rather than getting distracted by naysayers, is crucial to long-term success—it's all about keeping that cash flow steady and predictable. But here's the million-dollar question: Is your business ready to make the switch to a subscription-based model? What's keeping you from changing your billing structure? When it comes to expanding your operations, Fat Pat and Seth shed light on their "rule of ten": Don't split your company into different departments until you've got a solid team of ten technicians. Efficiency is key when the business is guided by a clear understanding of where the company is heading but it begs the question: How close is your company to hitting that magic number, and what can you do if you're just under Seth and Patrick's rule of ten? Audio Mixing and Editing by www.verbell.ltd

Uncle Paul is preparing his upcoming presentation at Energy by Pest Daily, happening this weekend in Tampa, Florida. But first, he's answering listener questions by uncovering the secret sauce of setting that initial price point. How does anchoring impact negotiations? How can you take control by making the first offer? Private equity firms are ditching pest control for the untamed world of wildlife businesses—it's all about the lower acquisition prices. Paul goes in-depth into this potential new frontier for private equity investments. Are you ready to jump into the wildlife platform trend, or are you sticking to the safer waters of traditional investments? A recent Potomac client revamps their company's governance with the game-changing impact of an unbiased board. Now, the question is: would you be willing to surrender to a self-appointed board of directors? Audio Mixing and Editing by www.verbell.ltd

Have you ever felt dwarfed by a competitor's size, wondering, "What am I doing wrong?" Uncle Paul goes solo with a few listener questions in hand, and reminds us that size isn't everything; it's about playing the hand you're dealt. What unique strengths can you leverage in your business? Take it from the expert—ditch the grand goals and focus on small, daily changes. How can your business benefit from implementing small changes? Can skipping the business equivalent of a fast-food binge lead to significant improvements Don't accept the first offer when selling your business. In fact, hear how it ends up with a losing hand. How can the discomfort of asking for more during negotiations potentially lead to a better outcome? Audio Mixing and Editing by www.verbell.ltd

Fat Pat and Uncle Paul kick off the new year at WorkWave's 2024 Beyond Service User Conference and unpack the highlights of Paul's appearance at their panel discussion. "Strategy in 2024" takes center stage. Spoiler alert: it's all about goals and objectives—it just keeps all the wheels turning. But so does showing your commitment to your people. How does sending team members of all levels to user conferences show you're invested? PestPac vs FieldRoutes. Paul and Patrick lay down the lowdown on the types of companies that invest in these platforms. Why do some companies lean towards one or the other? This won't be the last time Paul and Patrick hit the road together this year. Let's see if The Mex earns his invite. Audio Mixing and Editing by www.verbell.ltd

How much time is needed to train a technician to work independently? What strategies encourage technicians to expand their (non-upselling) sales skills, and is it advisable? Fat Pat and Seth delve into these listener questions and more this week. From scaling up clients to promoting from within, they dive into a few different topics. If you were to create one standard operating procedure (SOP) now, what would it be and why? More importantly, is your focus better directed elsewhere? Just like most other answers on The Buzz, it's not necessarily a one-size-fits-all answer. Audio Mixing and Editing by www.verbell.ltd

As CEO, which tasks can and should be outsourced? Better yet, what about replacing yourself? One listener asks if his involvement affects how much the business’s value. Some buyers might like the owner being less hands-on and having a strong team already in charge. What factors influence how the buyers see the level of owner involvement? Are you really the best person for the job? From risk to flexibility to finances, what’s the return on replacing yourself as CEO? Audio Mixing and Editing by www.verbell.ltd

While Uncle Paul is away, Fat Pat and BroSeth tackle subscription billing and collection exceptions. How long should companies should stick to service once a customer gets behind? Customer communication is a tricky wicket. Who gets price hikes and how do you communicate them? While Seth is fielding all the questions this week, let’s get his take on artificial intelligence. But this isn’t an A.I. convo you’ve heard before. Audio Mixing and Editing by www.verbell.ltd

You asked, we answered. More listener questions are on tap for this week’s Buzz. Starting with rate cuts. A rate cut is rumored. How would it impact M&A? Uncle Paul breaks down the signal along with the relationship between rate cuts, debt, and the overall economic environment. Reliability’s best friend, recurring revenue, plays a critical role in a business’s market value. But some things are not worth their risk, especially when considering the timing. What should an owner NOT do when an exit is on the horizon? When is it wise to engage in door-to-door sales, and how should owners balance short-term risks with potential long-term benefits? Before the two head out for travel for the week, Fat Pat sneaks in his own valuation question. Stay tuned to see if Fat Pat survives a day with The Mex in America’s armpit. Audio Mixing and Editing by www.verbell.ltd

Marcus Sheridan, keynote speaker on sales, marketing, and building trust, and author of They Ask You Answer, joins Paul and Patrick in the boardroom in an episode on becoming an industry expert through a customer-centric approach. He emphasizes the need to stand out, be more human, and engage better with customers and addresses concerns about costs. Can businesses truly become the voice of trust by discussing what others in their space might shy away from? Sheridan advocates for the strategic use of digital platforms, suggesting the creation of a 'Learning Center' on websites. This not only positions a company as an industry expert but also aids customers in making informed decisions. Can businesses attract more trust and traffic by openly discussing topics that their competitors avoid? What is the significance of personalization and human interaction in a digital-first business environment? Marcus Sheridan shares his approach of asking unique questions in sales meetings to build connections and highlights the potential of content marketing and inbound sales for entrepreneurial organizations. Can addressing customer questions, leveraging digital platforms, and being more human can generate increased traffic, leads, and sales? Can businesses truly thrive by adopting a strategic approach to content marketing, inbound sales, and customer engagement? Audio Mixing and Editing by www.verbell.ltd

Companies can leverage subordinated debt to access capital without relinquishing ownership. Who has done this in the industry and for what purposes? Fat Pat and Uncle Paul chat through the impact of subordinated debt on financial stability along with its role within the broader capital structure. Are you staring down an opportunity where sub debt makes sense? How do you value a business? Consider the complexity in rising valuations and the unique liquidation potential within the pest control industry. Think about other industries that could benefit from this approach and what the decision-making considerations are for these business owners. Valuing a business for an internal partner buyout differs significantly from valuing it for sale to an external party. What is considered valuable particularly in internal partner buyouts versus sales to external parties? This discrepancy presents a challenge, especially with valuation dynamics. Stay tuned for more details on an upcoming event, and go ahead and pre-register by emailing thebuzz@potomaccompany.com. Audio Mixing and Editing by www.verbell.ltd

Rob Greer, COO of Rove Pest Control, steps into The Boardroom to chat about co-writing “Empathy and Understanding in Business” with Never Split the Difference author, Chris Voss. Before diving into the importance of empathy and if it’s something to be developed, let’s get on the same page by defining it. Whether you use the term “empathy” or not, how does it shape your hiring decisions and culture? Speaking of culture, Rob turns the tables and puts empathy on the back burner to chase down a culture conversation. Empathy, continuous learning, and culture intersect in the back half of this sit-down. Culture influences your decision-making, interactions, and overall growth, but how? The stakes are different and so are the tactics as you think through negotiating hostages and M&A negotiations. And just when you thought your life was chaotic, at least you’re getting brought into negotiations for destabilization purposes. Audio Mixing and Editing by www.verbell.ltd