WHAT WILL THE AUDIENCE LEARN?
The audience will learn to identify and address the potential employee / employment issues that arise when preparing to sell their business to a prospective buyer.
When selling a business, many owners look at the state of their inventory, their profits and losses, and make sure that any tax liens and outstanding credit issues are squared away. However, in order to sell your business for a maximum profit, the seller must also make sure their employee affairs are in order. Are there outstanding challenges to the existing non-compete agreements? Might these agreements need revision? Is the company in compliance with federal, state, and municipal labor and employment laws? Are any Department of Labor inquiries resolved? What about pre-empting potential lawsuits from disgruntled, soon-to-be former employees?
Tune in on Tuesday, September 20, when my guest, the very knowledgeable and business savvy Damon Pistulka of Exit Your Way, discusses the myriad of employment and business related aspects of preparing a business for sale or acquisition. A must see show for all business owners who may sell their company – now or at any future date!
Damon’s Profile: linkedin.com/in/damonpistulka
crossnw.com (Cross Northwest Business Sales)
0:32 – 14;56 – Eric welcomes his guest Damon Pistulka, co-founder and managing director of Exit Your Way. Exit Your Way helps people sell their businesses at the value they need. They are experienced in accelerating growth, growing a business, and maximizing business value. Damon says that what inspired him to choose this career path was that after studying mechanical engineering, he realized that he likes to lead people which drove him into leadership roles in manufacturing companies and eventually with working with investment owners to help build value to companies and help sell those businesses. Damon enjoys helping businesses and business owners accomplish what they might not realize they can at first. Damon and Eric also discuss how things like the great resignation, inflation and other workplace changes affect business owners wanting to sell their business.
16:40 – 28:38 – Eric talks briefly more about inflation and how this affects buyers and investors with issues like interest rates. He also brings up employee turnover in the workplace. Damon mentions that the value of a business boils one to the people that work there. Employees drive the value of the business they work with. Eric asks Damon about employment related considerations and other factors company owners should look at when selling their business. He mentions the age in the workforce is a big topic spoken about today. He also mentions that when selling a business, one must realize who your key employees are. He poses questions regarding the reasons they are still in the business and whether they would continue to stay after the sale. They talk about factors like compensation and salaries as well. Eric also mentions noncompete agreements and whether owners need to look at this when selling. Damon says that this is important depending on the business. But some businesses may not use them at all and some use them too much which he says is a problem. He mentions being selective on using this. But they raise other factors that can be used as protection for a company.
30:39 – 43:08 – Eric brings up a question from a listener, Dr. Lance Knaub about whether there is an objective way to evaluate the culture of a business either on the buyer side or seller side. Damon and Eric mention different ways this kind of data can be evaluated such as employee turnover, looking at how many employees filed internal or external complaints, and the length of time employees stay with a company. Eric questions about how factors like tax liens and credit affect selling a business. Damon says that all these things have to be in order beforehand as well as things like lawsuits have to be resolved. When it comes to employment related affairs, he mentions human capital, saying that overall the value of your employees has a big difference on the value of your business. He also mentions reviews from employees online on sites like glassdoor which is a big factor in this day in age. Investors will definitely look up your business and will run into this information.
45:07 – 56:56 – Damon explains how Exit Your Way works with business owners who are looking to build and sell their business and how their firm distinguishes itself from others. He says that they start by educating and informing business owners and executives on what they should be doing. Focusing on those fundamentals will help owners build value and make more money even when the time comes to sell. He also brings up an interesting situation where he also explains to some owners that they may have a very profitable business that they are not going to be able to sell. Another thing that distinguishes them from other firms is that there are not many people that combine the consulting part with the selling part like they do. They focus on getting their clients to their goal. They are passionate about helping owners make informed decisions. Damon mentions his website, exityourway.com, where you can listen to his podcast live every week. You can also connect with him on Linkedin at Damon Pistulka and his email at email@example.com.
About Employment Law Today
Helping Business With Employment Law Issues.
For many business owners, it can be overwhelming to keep up and comply with the federal and state labor and employment laws that govern how they run their business. With the COVID-19 pandemic, there are new laws and regulations regarding hiring, firing, and workplace practices and protocols — all of which can increase business owners’ anxieties about regaining traction or thriving again. On my weekly show, we will be discussing the most common employment law related questions and challenges that business owners have been facing in these uncertain times.
The show will have three main goals: (1) to inform businesses about employment law updates, (2) to inspire businesses by giving them the tools to move forward, and (3) to demonstrate how some business owners have overcome their employment law problems, walked through the challenges imposed by this pandemic, and have taken steps to regain traction during the reopening phases of this pandemic.
Our guests will include professionals who advise businesses from an H.R., legal, and financial perspective, along with thriving business owners who will share their experiences and insights into running a successful company while complying with labor and employment law mandates during COVID-19.