Case Studies
The selling of Speedway Disposal & Recycling
Challenge
As President of Speedway, I had positioned the company to have the
flexibility to grow, thrive, bring next generations into the business
or sell. After we decided to sell the company, the goal changed
to enhancing the value of the company and preparing for the sale
of a three- generation company to a major waste hauler.
Approach
My executive team consisted of my three brother-in-laws who had
varying experience, talents and expectations. Capitalizing on each
person's strengths, we created a new entity, Speedway Disposal &
Recycling, Inc., from the two separate companies, Rex and Speedway.
As we became an active player in the marketplace and got more publicity,
competitors observed us closely.
By 1998, it was a very aggressive market for mergers and acquisitions.
It was my 18th year with the company. We were growing and remaining
high profile, planning to put a transfer station in one of our towns.
Throughout my tenure, larger companies had constantly pursued us.
From 1980 to 2000 the company experienced dramatic growth. Profitability
grew from $300K annually in 1982 to more than $15 million in 1999.
We increased to 105 employees and 85 trucks.
When we decided to sell, we knew we only had one shot. But we had
never sold a business. We hired an investment banking firm, and
a highly specialized law firm and began positioning the company
in the best light. I was keeping my eye on the day-to-day and dealing
with the tension of selling, all at one time.
Results
After 2 years of interviewing and negotiating with prospective buyers
we sold the company for a considerable profit, substantially above
market multiples.
A family-owned commercial real estate business
An example of the value of business coaching
Challenge
To assist three brother-owners of a commercial real estate firm
to increase profitability and create a unified and cohesive company.
Approach
I had a one-hour coaching call with one of three brother/owners
of a large commercial real estate company. They had three diverse
personalities and difficulty working as a team. They did not know
where the money was going and hesitated to make purchases. There
were also spouse input issues, a typical situation in an American,
family-owned business.
I had a coaching call with another brother. We discussed their
father, who was approaching retirement and still intricately involved
in the business. While allowing them to make many decisions, he
also was still firmly in control. In the one-hour call, we uncovered
several key issues.
- They needed to decide on how to deal with their Dad.
- They needed one chosen leader.
- They were all good guys who really cared for each other.
I am currently working with all three brothers to expand their
business. We created a plan all three approve which included buying
out their dad while allowing him to be involved only when he wants
to. Their father needed to let the brothers to work things and fill
the leadership gap.
Results
My goals as a consultant and coach were to find the natural leader
among the three, identify the visionary, and empower that person.
I am working with them as a group so we can decide on the real leader
together. We are creating a cohesive vision and leadership structure.
Each person will be clear on accountability and each person's responsibilities.
They are starting to create a partnership agreement.
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