[Laughter] merge your culture acquire your success
merge your culture acquire your success
merge your culture acquire your success merge your culture acquire your success
merge your culture acquire your success
merge your culture acquire your success this is a story about my journey of
this is a story about my journey of
this is a story about my journey of entrepreneurism and how I’ve gotten
entrepreneurism and how I’ve gotten
entrepreneurism and how I’ve gotten there in 2004 at the age of 25
there in 2004 at the age of 25
there in 2004 at the age of 25 especially for you
especially for you
especially for you Bryant students watching I did what most
Bryant students watching I did what most
Bryant students watching I did what most of your parents would not want you to do
of your parents would not want you to do
of your parents would not want you to do I decided at that time I had a great job
I decided at that time I had a great job
I decided at that time I had a great job with a steady income at a great company
with a steady income at a great company
with a steady income at a great company but it wasn’t enough for me
but it wasn’t enough for me
but it wasn’t enough for me I wanted something different I wanted to
I wanted something different I wanted to
I wanted something different I wanted to be challenged I wanted to innovate I
be challenged I wanted to innovate I
be challenged I wanted to innovate I wanted to be my own boss
wanted to be my own boss
wanted to be my own boss and yet with no private equity group no
and yet with no private equity group no
and yet with no private equity group no backing no financial support to speak of
backing no financial support to speak of
backing no financial support to speak of I had to get creative
I had to get creative
I had to get creative I had to innovate and it all started one
I had to innovate and it all started one
I had to innovate and it all started one day while looking in the back of the
day while looking in the back of the
day while looking in the back of the most unlikely place the back of a CPA
most unlikely place the back of a CPA
most unlikely place the back of a CPA magazine first of all nobody should be
magazine first of all nobody should be
magazine first of all nobody should be reading those things but not only did I
reading those things but not only did I
reading those things but not only did I read it I read it cover-to-cover
read it I read it cover-to-cover
read it I read it cover-to-cover back in the classifieds those don’t even
back in the classifieds those don’t even
back in the classifieds those don’t even exist today so if you’re a Brian Ryan
exist today so if you’re a Brian Ryan
exist today so if you’re a Brian Ryan student currently you don’t even know
student currently you don’t even know
student currently you don’t even know what a classified ad is but that’s where
what a classified ad is but that’s where
what a classified ad is but that’s where it started I found an ad that said CPA
it started I found an ad that said CPA
it started I found an ad that said CPA firm for sale and I thought wow didn’t
firm for sale and I thought wow didn’t
firm for sale and I thought wow didn’t even know they were for sale and that’s
even know they were for sale and that’s
even know they were for sale and that’s how it all began thirteen years ago in
how it all began thirteen years ago in
how it all began thirteen years ago in the last 13 years I’ve continued to
the last 13 years I’ve continued to
the last 13 years I’ve continued to innovate I’ve acquired 13 accounting
innovate I’ve acquired 13 accounting
innovate I’ve acquired 13 accounting firms and four Fitness businesses with
firms and four Fitness businesses with
firms and four Fitness businesses with my lovely wife who’s in the audience
my lovely wife who’s in the audience
my lovely wife who’s in the audience over there what I would tell you is that
over there what I would tell you is that
over there what I would tell you is that why why are private equity groups and
why why are private equity groups and
why why are private equity groups and public companies the only ones
public companies the only ones
public companies the only ones historically who are innovating in this
historically who are innovating in this
historically who are innovating in this way why are they the only ones growing
way why are they the only ones growing
way why are they the only ones growing through mergers and acquisitions why are
through mergers and acquisitions why are
through mergers and acquisitions why are small to midsize companies who are the
small to midsize companies who are the
small to midsize companies who are the drivers of our economy not using it so
drivers of our economy not using it so
drivers of our economy not using it so let’s start with why growth is so
let’s start with why growth is so
let’s start with why growth is so important when you think about growth
important when you think about growth
important when you think about growth it’s not just important for the
it’s not just important for the
it’s not just important for the entrepreneur founder it’s also important
entrepreneur founder it’s also important
entrepreneur founder it’s also important for the culture of the company it’s
for the culture of the company it’s
for the culture of the company it’s important for the team
important for the team
important for the team challenges people it gets them thinking
challenges people it gets them thinking
challenges people it gets them thinking outside their comfort zone and it all
outside their comfort zone and it all
outside their comfort zone and it all starts with a concept of unique ability
starts with a concept of unique ability
starts with a concept of unique ability and when I think about unique ability I
and when I think about unique ability I
and when I think about unique ability I think about there’s only a few things
think about there’s only a few things
think about there’s only a few things that most people are good at although
that most people are good at although
that most people are good at although many people will say oh I’m a
many people will say oh I’m a
many people will say oh I’m a jack-of-all-trades the reality is you’re
jack-of-all-trades the reality is you’re
jack-of-all-trades the reality is you’re only passionate and excited about a
only passionate and excited about a
only passionate and excited about a handful of those things I found very
handful of those things I found very
handful of those things I found very early on in my career that I was really
early on in my career that I was really
early on in my career that I was really only good at three or three to five of
only good at three or three to five of
only good at three or three to five of these things my wife may say I’m not
these things my wife may say I’m not
these things my wife may say I’m not good at any of them but I found that
good at any of them but I found that
good at any of them but I found that there was three to five that I could
there was three to five that I could
there was three to five that I could wake up every morning excited about and
wake up every morning excited about and
wake up every morning excited about and to do and unique ability doesn’t just
to do and unique ability doesn’t just
to do and unique ability doesn’t just mean that for that person it means it
mean that for that person it means it
mean that for that person it means it for the whole team small businesses
for the whole team small businesses
for the whole team small businesses unfortunately get stuck and not
unfortunately get stuck and not
unfortunately get stuck and not everybody can follow their passion they
everybody can follow their passion they
everybody can follow their passion they haven’t grown it to a size that allows
haven’t grown it to a size that allows
haven’t grown it to a size that allows everybody to just utilize their
everybody to just utilize their
everybody to just utilize their expertise so growth can be that thing
expertise so growth can be that thing
expertise so growth can be that thing that helps the unique ability that helps
that helps the unique ability that helps
that helps the unique ability that helps the founder and the team get on the same
the founder and the team get on the same
the founder and the team get on the same page and build that culture build a
page and build that culture build a
page and build that culture build a culture through growth that allows them
culture through growth that allows them
culture through growth that allows them to think bigger to build something in a
to think bigger to build something in a
to think bigger to build something in a legacy that lasts beyond the founder
legacy that lasts beyond the founder
legacy that lasts beyond the founder build something that grows be part of
build something that grows be part of
build something that grows be part of that foundational team that culture is
that foundational team that culture is
that foundational team that culture is really helpful when building an
really helpful when building an
really helpful when building an organization it challenges people to
organization it challenges people to
organization it challenges people to learn and grow it challenges them to get
learn and grow it challenges them to get
learn and grow it challenges them to get outside their comfort zone it challenges
outside their comfort zone it challenges
outside their comfort zone it challenges them to innovate it also removes the
them to innovate it also removes the
them to innovate it also removes the glass ceiling in most companies there is
glass ceiling in most companies there is
glass ceiling in most companies there is an existing glass ceiling that doesn’t
an existing glass ceiling that doesn’t
an existing glass ceiling that doesn’t allow somebody to raise to another level
allow somebody to raise to another level
allow somebody to raise to another level without the company growing or the
without the company growing or the
without the company growing or the person above you leaving that does not
person above you leaving that does not
person above you leaving that does not sound like collaboration to me to me
sound like collaboration to me to me
sound like collaboration to me to me waiting for your boss to leave is not
waiting for your boss to leave is not
waiting for your boss to leave is not the best solution to learn and grow
the best solution to learn and grow
the best solution to learn and grow however if a company is growing you know
however if a company is growing you know
however if a company is growing you know that there’ll always be opportunity for
that there’ll always be opportunity for
that there’ll always be opportunity for you to fill in over here on a project or
you to fill in over here on a project or
you to fill in over here on a project or filling over here or help with this new
filling over here or help with this new
filling over here or help with this new customer for us that has helped us in my
customer for us that has helped us in my
customer for us that has helped us in my firm decrease turnover by 50 percent
firm decrease turnover by 50 percent
firm decrease turnover by 50 percent compared to the industry average because
compared to the industry average because
compared to the industry average because we’re moving that glass ceiling has
we’re moving that glass ceiling has
we’re moving that glass ceiling has allowed people to continue to be able to
allowed people to continue to be able to
allowed people to continue to be able to do what they want specialize in
do what they want specialize in
do what they want specialize in different areas
different areas
different areas innovate so why do we talk about when we
innovate so why do we talk about when we
innovate so why do we talk about when we think about those things and growth is
think about those things and growth is
think about those things and growth is so important why do we not talk about
so important why do we not talk about
so important why do we not talk about mergers and acquisitions as one of the
mergers and acquisitions as one of the
mergers and acquisitions as one of the strategies mergers and acquisitions is
strategies mergers and acquisitions is
strategies mergers and acquisitions is the often ignored third leg of the
the often ignored third leg of the
the often ignored third leg of the growth stool to join marketing and sales
growth stool to join marketing and sales
growth stool to join marketing and sales and people just don’t think about it
and people just don’t think about it
and people just don’t think about it when you think about small companies and
when you think about small companies and
when you think about small companies and they should be and I ask you how many
they should be and I ask you how many
they should be and I ask you how many companies are looking to grow their top
companies are looking to grow their top
companies are looking to grow their top and bottom line how many companies are
and bottom line how many companies are
and bottom line how many companies are growing so fast that they’re telling
growing so fast that they’re telling
growing so fast that they’re telling their sales and marketing people to slow
their sales and marketing people to slow
their sales and marketing people to slow down hit the brakes
down hit the brakes
down hit the brakes we got to figure it out the answer to
we got to figure it out the answer to
we got to figure it out the answer to those questions make it so obvious that
those questions make it so obvious that
those questions make it so obvious that small and mid-sized companies are
small and mid-sized companies are
small and mid-sized companies are ignoring a big part of the growth
ignoring a big part of the growth
ignoring a big part of the growth opportunity in mergers and acquisitions
opportunity in mergers and acquisitions
opportunity in mergers and acquisitions and they need to be thinking about it to
and they need to be thinking about it to
and they need to be thinking about it to provide opportunity for themselves and
provide opportunity for themselves and
provide opportunity for themselves and for their people and if that doesn’t get
for their people and if that doesn’t get
for their people and if that doesn’t get you excited about an opportunity let me
you excited about an opportunity let me
you excited about an opportunity let me share a few statistics first only 4% of
share a few statistics first only 4% of
share a few statistics first only 4% of all companies started in the United
all companies started in the United
all companies started in the United States get to 1 million dollars in
States get to 1 million dollars in
States get to 1 million dollars in revenue 4 percent that means that the
revenue 4 percent that means that the
revenue 4 percent that means that the vast majority have already failed many
vast majority have already failed many
vast majority have already failed many statistics show that more than 80
statistics show that more than 80
statistics show that more than 80 percent of all companies started in the
percent of all companies started in the
percent of all companies started in the United States fail within the first five
United States fail within the first five
United States fail within the first five years the remainder of that are stuck at
years the remainder of that are stuck at
years the remainder of that are stuck at the smallest of all levels really self
the smallest of all levels really self
the smallest of all levels really self employed without leverage and sharing
employed without leverage and sharing
employed without leverage and sharing your tools with others combine that with
your tools with others combine that with
your tools with others combine that with the second statistic which is that 90%
the second statistic which is that 90%
the second statistic which is that 90% of all businesses acquired in the US are
of all businesses acquired in the US are
of all businesses acquired in the US are still in business five years later 90%
still in business five years later 90%
still in business five years later 90% still in business five years later and
still in business five years later and
still in business five years later and nearly two-thirds of all job growth in
nearly two-thirds of all job growth in
nearly two-thirds of all job growth in the United States since the year 2000
the United States since the year 2000
the United States since the year 2000 have been created by small to mid-sized
have been created by small to mid-sized
have been created by small to mid-sized companies well large companies have had
companies well large companies have had
companies well large companies have had cuts the net job growth really exists at
cuts the net job growth really exists at
cuts the net job growth really exists at the smallest levels so those reasons
the smallest levels so those reasons
the smallest levels so those reasons tell me that we should be thinking about
tell me that we should be thinking about
tell me that we should be thinking about mergers and acquisitions as a growth
mergers and acquisitions as a growth
mergers and acquisitions as a growth strategy but if those statistics don’t
strategy but if those statistics don’t
strategy but if those statistics don’t do it for you I’ll share a few other
do it for you I’ll share a few other
do it for you I’ll share a few other intangibles that
intangibles that
intangibles that I have found along my journey of
I have found along my journey of
I have found along my journey of entrepreneurism have been very impactful
entrepreneurism have been very impactful
entrepreneurism have been very impactful the first is that when acquiring a
the first is that when acquiring a
the first is that when acquiring a company not Google but small companies
company not Google but small companies
company not Google but small companies when they acquire our cashflow positive
when they acquire our cashflow positive
when they acquire our cashflow positive from day one right so for you Bryant
from day one right so for you Bryant
from day one right so for you Bryant students watching this is finance 101
students watching this is finance 101
students watching this is finance 101 why would we buy something to lose money
why would we buy something to lose money
why would we buy something to lose money that doesn’t make a lot of sense to me
that doesn’t make a lot of sense to me
that doesn’t make a lot of sense to me as an entrepreneur but it does make
as an entrepreneur but it does make
as an entrepreneur but it does make sense in the small business base because
sense in the small business base because
sense in the small business base because they do actually make more money the
they do actually make more money the
they do actually make more money the next day which gives the business more
next day which gives the business more
next day which gives the business more capital more availability to reinvest in
capital more availability to reinvest in
capital more availability to reinvest in people and resources technology whatever
people and resources technology whatever
people and resources technology whatever it might be second is that the return on
it might be second is that the return on
it might be second is that the return on investment can be huge there’s a reason
investment can be huge there’s a reason
investment can be huge there’s a reason private equity groups have been doing
private equity groups have been doing
private equity groups have been doing this for years and returning 20 plus
this for years and returning 20 plus
this for years and returning 20 plus percent a year to their investors now
percent a year to their investors now
percent a year to their investors now doing this on your own with your own
doing this on your own with your own
doing this on your own with your own capital
capital
capital maybe leveraging a bank the return on
maybe leveraging a bank the return on
maybe leveraging a bank the return on investment in most cases in the small to
investment in most cases in the small to
investment in most cases in the small to mid-size company is a hundred percent
mid-size company is a hundred percent
mid-size company is a hundred percent plus per year return on investment it’s
plus per year return on investment it’s
plus per year return on investment it’s a pretty good ROI even with the stock
a pretty good ROI even with the stock
a pretty good ROI even with the stock market taking a run and a recent dip I
market taking a run and a recent dip I
market taking a run and a recent dip I would tell you that I would bet on the
would tell you that I would bet on the
would tell you that I would bet on the entrepreneur all day long they changed
entrepreneur all day long they changed
entrepreneur all day long they changed the world the third thing is that bigger
the world the third thing is that bigger
the world the third thing is that bigger companies are worth more than smaller
companies are worth more than smaller
companies are worth more than smaller companies so if you’re running a company
companies so if you’re running a company
companies so if you’re running a company of a certain size today and you’re
of a certain size today and you’re
of a certain size today and you’re trying to grow why not look at mergers
trying to grow why not look at mergers
trying to grow why not look at mergers or acquisitions as a way to grow it
or acquisitions as a way to grow it
or acquisitions as a way to grow it faster we already talked about the
faster we already talked about the
faster we already talked about the statistics and show that the 90 percent
statistics and show that the 90 percent
statistics and show that the 90 percent are still in business why not use that
are still in business why not use that
are still in business why not use that and leverage it so let’s say you buy a
and leverage it so let’s say you buy a
and leverage it so let’s say you buy a company for three times earnings by
company for three times earnings by
company for three times earnings by plugging in your current resources
plugging in your current resources
plugging in your current resources growing the company you can quickly get
growing the company you can quickly get
growing the company you can quickly get it and resell it for four times maybe
it and resell it for four times maybe
it and resell it for four times maybe combining the two companies together
another thing that’s really helpful in
another thing that’s really helpful in mergers and acquisitions is that there
mergers and acquisitions is that there
mergers and acquisitions is that there are strategic savings there are
are strategic savings there are
are strategic savings there are opportunities to find synergies when you
opportunities to find synergies when you
opportunities to find synergies when you own a company in you’re a small business
own a company in you’re a small business
own a company in you’re a small business entrepreneur there are ways to find
entrepreneur there are ways to find
entrepreneur there are ways to find synergies to cut 10 to 30% things like
synergies to cut 10 to 30% things like
synergies to cut 10 to 30% things like rent an IT infrastructure and software
rent an IT infrastructure and software
rent an IT infrastructure and software costs you don’t have to pay twice you
costs you don’t have to pay twice you
costs you don’t have to pay twice you already have the infrastructure needs
already have the infrastructure needs
already have the infrastructure needs when you acquire a company you don’t
when you acquire a company you don’t
when you acquire a company you don’t double that
double that
I would challenge that that the risks
I would challenge that that the risks are much less than what people really
are much less than what people really
are much less than what people really think they are and then we get to supply
think they are and then we get to supply
think they are and then we get to supply and demand today is like no other in
and demand today is like no other in
and demand today is like no other in recent history baby boomers are retiring
recent history baby boomers are retiring
recent history baby boomers are retiring at historic rates and they control
at historic rates and they control
at historic rates and they control nearly two-thirds of all privately held
nearly two-thirds of all privately held
nearly two-thirds of all privately held companies in the United States over the
companies in the United States over the
companies in the United States over the next ten years it’s predicted that all
next ten years it’s predicted that all
next ten years it’s predicted that all of those businesses will transition
of those businesses will transition
of those businesses will transition whether that’s they close the door they
whether that’s they close the door they
whether that’s they close the door they sell they give it to a management team
sell they give it to a management team
sell they give it to a management team or they pass it on to the next
or they pass it on to the next
or they pass it on to the next generation something is going to happen
generation something is going to happen
generation something is going to happen with those businesses so there’s a lot
with those businesses so there’s a lot
with those businesses so there’s a lot of supply in the market as for demand as
of supply in the market as for demand as
of supply in the market as for demand as of July of 2016 the federal government’s
of July of 2016 the federal government’s
of July of 2016 the federal government’s own surveys and studies showed that if
own surveys and studies showed that if
own surveys and studies showed that if we were at the lowest point in the last
we were at the lowest point in the last
we were at the lowest point in the last 50 years of businesses being started by
50 years of businesses being started by
50 years of businesses being started by people under the age of 30 so where the
people under the age of 30 so where the
people under the age of 30 so where the media believes that there are lots of
media believes that there are lots of
media believes that there are lots of businesses being started by a young
businesses being started by a young
businesses being started by a young younger generation the reality is the
younger generation the reality is the
younger generation the reality is the studies show quite the opposite and so
studies show quite the opposite and so
studies show quite the opposite and so there’s going to be lack of demand but
there’s going to be lack of demand but
there’s going to be lack of demand but there’s going to be a lot of supply
there’s going to be a lot of supply
there’s going to be a lot of supply which provides an opportunity for people
which provides an opportunity for people
which provides an opportunity for people who are innovative and thinking about
who are innovative and thinking about
who are innovative and thinking about this as a growth strategy to really take
this as a growth strategy to really take
this as a growth strategy to really take that time and really build a business
that time and really build a business
that time and really build a business there’s a there’s a great concept out
there’s a there’s a great concept out
there’s a there’s a great concept out there called no-man’s land it talks
there called no-man’s land it talks
there called no-man’s land it talks about businesses that are between this
about businesses that are between this
about businesses that are between this two and eight million dollar range that
two and eight million dollar range that
two and eight million dollar range that gets stuck they get stuck because they
gets stuck they get stuck because they
gets stuck they get stuck because they don’t use these concepts they don’t use
don’t use these concepts they don’t use
don’t use these concepts they don’t use unique ability they’re there to to stuck
unique ability they’re there to to stuck
unique ability they’re there to to stuck in the weeds they’re doing too many
in the weeds they’re doing too many
in the weeds they’re doing too many things they’re doing HR accounting
things they’re doing HR accounting
things they’re doing HR accounting administration so many things mergers
administration so many things mergers
administration so many things mergers and acquisitions can be one of those
and acquisitions can be one of those
and acquisitions can be one of those strategies to help those small to
strategies to help those small to
strategies to help those small to midsize companies grow out of that space
midsize companies grow out of that space
midsize companies grow out of that space and today with banks and lending we’re
and today with banks and lending we’re
and today with banks and lending we’re the way it is it provides a unique
the way it is it provides a unique
the way it is it provides a unique opportunity interest rates have been
opportunity interest rates have been
opportunity interest rates have been ahead historic lows for nearly ten years
ahead historic lows for nearly ten years
ahead historic lows for nearly ten years although they have climbed here in the
although they have climbed here in the
although they have climbed here in the last year and a half they are still
last year and a half they are still
last year and a half they are still really low if you look at what a small
really low if you look at what a small
really low if you look at what a small to mid-size company could borrow at in
to mid-size company could borrow at in
to mid-size company could borrow at in 2006 that was somewhere between 10 and
2006 that was somewhere between 10 and
2006 that was somewhere between 10 and 12 percent today on mergers and
12 percent today on mergers and
12 percent today on mergers and acquisitions they can lend somewhere
acquisitions they can lend somewhere
acquisitions they can lend somewhere between five and six
between five and six
between five and six half-percent that money goes a lot
half-percent that money goes a lot
half-percent that money goes a lot farther and it saves the business owner
farther and it saves the business owner
farther and it saves the business owner a lot an interest expense it saves them
a lot an interest expense it saves them
a lot an interest expense it saves them a lot of cost and allows them to
a lot of cost and allows them to
a lot of cost and allows them to reinvest even more in their business I
reinvest even more in their business I
reinvest even more in their business I would challenge you to think about that
would challenge you to think about that
would challenge you to think about that as the growth strategy entrepreneurs are
as the growth strategy entrepreneurs are
as the growth strategy entrepreneurs are the drivers of our economy
the drivers of our economy
the drivers of our economy they help us develop and innovate each
they help us develop and innovate each
they help us develop and innovate each of you should be thinking about the ways
of you should be thinking about the ways
of you should be thinking about the ways that expand your horizon beyond sales
that expand your horizon beyond sales
that expand your horizon beyond sales and marketing beyond that to the third
and marketing beyond that to the third
and marketing beyond that to the third leg of the growth stool I want you to
leg of the growth stool I want you to
leg of the growth stool I want you to get out there build your dreams build
get out there build your dreams build
get out there build your dreams build your entrepreneurial journey and make
your entrepreneurial journey and make
your entrepreneurial journey and make the world a better place thank you
”
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