It’s time to catch-up with some listener submitted questions. Serial entrepreneur Patrick can’t find a way to dodge the first question about franchising. Six years ago, Patrick and Bobby franchised their business. With properly placed intentions, what advice can Patrick give looking back at the experience? Patrick goes into detail about what he would do differently if he had to make the decision again. While Paul recalls Patrick learning the hard way, Paul gives an alternate entry for staking start-ups.
On the flip side, Paul gives advice to those considering the franchise-life. A business in a box sounds efficient, but ask yourself, ‘self, am I buying myself a job or building an asset?’ before becoming captive to the franchisor.
Proposed tax increases have been a catalyst for sellers such as last week's guest, Jeff Phillips. What effect do these tax changes have on acquirers' appetites and the price they're willing to pay? The first quarter of 2021 has been Paul's busiest Q1 in his eighteen years as a pest control sell-side advisor.
While tax speculation anxiety plays out in the US, tax increases are going into effect in Canada and other countries. Drilling down to specific markets, population exporter-California and importer-Texas get extra attention. What does Paul know about the buyers' outlook for this year in these markets?
Scarcity of assets brings up another line of questioning. How can scarcity be quantified and managed? It's not just about size, but also the number of assets in a given market. Patrick caught wind of previous perverse incentives in M&A. That road led to a quick chat on leverage, contingencies, and skid marks.
When it comes time to discuss growth strategies, would it really be an episode without discussing acquisitions? Referencing Pam Blauvelt's experience, Paul has seen where deals have led to distractions and mistakes. As exciting as arbitrage sounds, can it hurt more than help?
Stay tuned for upcoming events: 1) a Mike Stanczyk collaboration on shareholder agreements, and 2) measuring and managing customer retention in The Attrition Condition.
Co-Produced, Edited, and Mixed by Dylan Seals of hdaudiopost.com