2/13 Strategic Partners

The Importance of Business Valuation

In this episode, Greg Sarian, CEO and founder at Sarian Strategic Partners, speaks with Scott Gabehart, Chief Valuation Officer at BizEquity, about the importance of having a sound and solid business valuation as a business approaches the pre-transaction financial planning process. Scott draws from his more than 30 years of experience in business valuation work to discuss reasons for needing and/or pursuing a business valuation. Scott and Greg also talk about how the COVID-19 pandemic has changed the process and/or the need.

 

What You Will Learn:

• [01:10] Meet Scott
• [01:51] What is Scott’s work like as Chief Valuation Officer
• [03:00] Reasons for needing/wanting a business valuation
• [06:28] What affects the estimate of the value
• [09:08] How the pandemic has changed the process or need for business valuations
• [12:18] Why is a business valuation is important to prepare for a major event
• [16:45] Changes Greg has seen and anticipates with the new administration

 

Resources:

Visit our website: sarian.hightoweradvisors.com

Visit BizEquity: bizequity.com

Mistakes early stage companies make and how to avoid them

In this episode, Greg Sarian, CEO and founder at Sarian Strategic Partners, speaks with Michael Poisel, Executive Director of PCI Ventures at University of Pennsylvania’s Penn Center for Innovation. Michael talks about a few mistakes and oversights that founders and executives of early stage companies make while Greg talks about the oversights that individual executives have made at a personal planning level. They both share what to do and ways to avoid them at the entity level.

 

“If you want to continue to grow your business, then you’re going to need to invest in your business.” -Michael Poisel [04:14]

 

What You Will Learn:

• [01:17] Meet Michael Poisel
• [01:44] Michael’s best advice when raising early stage capital
• [03:19] A classic mistake on the operating level
• [04:38] Key factors in succeeding and attributes of strong CEOs
• [08:45] A founder’s need to have a constituency plan and personal risk coverage
• [13:44] What’s important about starting a company with the end in mind

 

Resources:

Visit our website: sarian.hightoweradvisors.com

Visit PCI Ventures: pci.upenn.edu/venturesteam

Creating the Right Mindset Towards the Close with Emily Lucking

In this episode, Greg Sarian, CEO and founder at Sarian Strategic Partners, speaks with Emily Lucking, owner and founder of Power Center Coaching. They discuss how to create the right mindset as a founder or executive to lead and grow their company towards a transaction. Emily shares some of the challenges she has seen founders face during times of growth and her advice for when they hit a roadblock.

 

“Helping people to remember why they’re here, what the whole company’s mission is, how you’re changing lives can do wonders for your morale.” -Emily Lucking [06:27]

 

What You Will Learn:

• [01:05] Meet Emily Lucking and what is Power Center Coaching
• [01:55] Some of the biggest challenges founders face during times of growth
• [03:38] Advice for founders when they hit a roadblock through a transaction
• [05:10] How to balance their culture with the growth in revenue
• [06:39] What can lead to a successful outcome
• [08:39] Key issues to have in mind from a personal planning perspective
• [10:33] Why it’s important for executive or founder to know their number

 

Resources:

Visit our website: sarian.hightoweradvisors.com

Visit Power Center Coaching: powercentercoaching.com

Pre-Transaction Checklist with Jennifer Hartt

In this episode, Greg Sarian, CEO and founder at Sarian Strategic Partners, speaks with Jennifer Hartt, Director of Investments, Health & Digital Health at Ben Franklin Technology Partners. Jennifer oversees their life sciences portfolio and has closed over 150 investments. Jennifer talks about key issues to addressing your checklist at both an entity and personal level as you guide your company towards an event.

 

“Everyone founding a company and going through this should realize they will make mistakes. It’s not a game of perfection, but making sure that you get enough guidance along the way to help avoid some of them is really valuable.” -Jennifer Hartt [05:59]

 

What You Will Learn:

• [01:31] Best practices in the early stage towards a successful outcome
• [03:47] Some mistakes Jennifer has seen
• [06:13] Catalysts to get a better outcome
• [09:25] Why it’s important to have a strong sense of equity evaluation
• [14:34] The importance for the executive to consider multiple outcomes
• [19:41] Resources for legal questions or to address issues
• [25:28] When to convert to full-time employees

 

Resources:

Visit our website: sarian.hightoweradvisors.com

Visit Ben Franklin Technology Partners: sep.benfranklin.org

Planning Strategies to Reduce Risk When Approaching a Transaction

In this episode, Greg Sarian, CEO and Founder at Sarian Strategic Partners, speaks with Stephanie Hyde with PE Risk and Wayne Crowther from Odell Studner about risk management while a company moves through an event such as selling the company or going public. They discuss what to think about at the entity level to mitigate, control and manage risks as well as key planning strategies to reduce risks on the individual side.

 

“It’s really important that you think about having those insurances in place, what they’re going to cost you on an annual basis and then thinking about what it’s going to cost you when you put those policies into run-off at the time of a transaction close.” -Stephanie Hyde [04:18]

 

What You Will Learn:

• [02:26] Issues to think about before a company goes public
• [04:32] The one-time and ongoing costs when gearing up for a sale
• [06:47] Things to look for in a purchase and sale agreement
• [08:51] What to decide before a company files an IPO
• [11:21] Why have an contingency plan with personal risk management
• [13:31] Where to secure disability insurance coverage
• [15:16] How they advice during the selection of liability limits

 

Resources:

Visit our website: https://sarian.hightoweradvisors.com

Visit PE Risk: https://www.pe-risk.com

Visit Wayne Crowther: https://www.odellstudner.com

The Future of Social Security with Ray Baraldi

In this episode, Greg Sarian, CEO and Founder at Sarian Strategic Partners, speaks with Ray Baraldi, Senior Financial Advisor, about the future of social security and what it means for financial planning.

 

“This isn’t going to be something that’s really top of mind here coming out of COVID and some other things that we’re going to see a change in the next three to five years. But certainly, in the 10 years or so, I think this is going to become much more talked about and we are likely to see some change there.” -Ray Baraldi [10:28]

 

What You Will Learn:

• [01:18] Why discuss this topic
• [02:13] How social security has changed
• [04:21] Some of the biggest concerns
• [07:54] How social security could address this shortfall
• [10:44] How to change the thinking about social security
• [13:48] A tool that strategies your financial plan

 

Resources:

Visit our website: https://sarian.hightoweradvisors.com

Guiding Your Team Through a Transaction: Key issues founders & executives should consider on behalf of their team as they move the company to a sale or IPO

In this episode, Greg Sarian, CEO and Founder at Sarian Strategic Partners, speaks with Marcia Zaruba-O’Connor, CEO and founder of The O'Connor Group, about guiding your team as your company moves towards an event like a sale or initial public offering (IPO). They share some key issues that founders and executives need to think about well in advance of that transition. Listen as they discuss what important things the company should do at an entity level and how to educate the team at a personal level.

 

“You need to have a good communication plan about what you’re doing, how you’re putting it together and making sure people feel calm and all too.” -Marcia Zaruba-O’Connor [04:50]

 

What You Will Learn:

 

• [02:02] Why it’s important to have an HR team in place
• [03:07] Why it helps to have a Human Resource Information System (HRIS) set up prior to the change
• [04:31] How to guide and prepare people
• [05:43] How recruiting change
• [07:58] Key changes to the equity that an executive needs to pay attention to
• [11:42] Changes to benefits and retirement plans
• [17:48] Difference between a traditional IRA vs a Roth IRA

 

Resources:

 

Visit our website: https://sarian.hightoweradvisors.com

 

Visit The O’Connor Group: https://tocgrp.com

The Importance of Pre-Transaction Planning with Sarah Djamshidi

In this episode of the Sarian Strategic Partners Podcast, Greg Sarian, CEO and Founder at Sarian Strategic Partners, speaks with Sarah Djamshidi, President and Managing Partner at Speedshift Advisors, about pre-transaction planning or exit planning. They discuss why a thoughtful plan is key for a successful outcome and some things to consider that will make a difference at the closing table. Sarah also shares some outcomes she has seen helping over 200 companies as an exit planning advisor for almost 20 years.

 

“Know your end game. And what I mean by that is, at a company level, is ultimately figure out what you want to do with the company.” -Sarah Djamshidi [15:02]

 

What You Will Learn:

 

• [02:21] Why it’s important to have direction for your company’s growth
• [05:04]  Reasons to have an exit plan
• [07:08] Some bad outcomes for not having plan in place
• [10:31] Positive outcomes for those who embrace a pre-transaction planning process
• [14:39] Why you should know your end game
• [17:26] Tax issues that founders can plan for ahead of time
• [22:02] Gifting and trust strategies to consider before an exit
• [24:42] How they help a business founder determine their valuation
• [27:30] Other ancillary planning issues to consider

 

Resources:

 

Visit our website: https://sarian.hightoweradvisors.com

Visit Speedshift Advisors: https://speedshiftadvisors.com/

Going public through IPO process with Ray Baraldi

In this episode of the Sarian Strategic Partners Podcast, Greg Sarian, CEO and Founder at Sarian Strategic Partners, speaks with Ray Baraldi, Senior Financial Advisor, about the initial public offering (IPO) process. One trend that has occurred despite the COVID-19 pandemic is that a number of companies have gone public with IPOs. Greg and Ray both discuss important things for executives to consider before, during and after their company goes through the process.

 

“I think the biggest thing on executives’ minds is taxes.” -Ray Baraldi [09:53]

 

“What we always advise our clients is the best tax planning is done well before the taxable event to control and mitigate those taxes.” -Greg Sarian [10:29]

 

What You Will Learn:

 

• [1:50] How a company’s equity ownership could change from going private to public
• [6:09] Issues executives should consider as they plan how thier capital becomes liquidity
• [9:44] Big tax implications
• [13:17] Some estate planning strategies
• [16:17] What executives should think about when diversifying their company stock after an IPO
• [18:42] The importance of forming an advisory team

 

Resources:

 

Visit our website: https://sarian.hightoweradvisors.com

Key Pre-Transaction Planning Strategies During Challenging Times

As the economy continues to recover from the effects of the slowdown of the COVID-19, we are observing our national debt exceed record levels. In a slower growth environment, founders and executives of early stage, growing companies may need to be more thoughtful and resourceful as they position themselves and their companies for a transaction. In this episode of the Sarian Strategic Partners Podcast, Greg Sarian CFP, CEO & Founder at Sarian Strategic Partners speaks with Ken Taormina about pre-transaction strategies to consider during challenging times.

Ken is the President and Founder of Cortland Advisors LLC and was the CEO and Co-Founder of Nablis LLC.

Ken has been the lead architect in the creation, development, and growth of companies in the professional services areas of global software services, corporate strategy, enterprise information systems, and digital Industrial Internet organizations and teams. He has proven expertise in digital engineering, enterprise, m2m, connected vehicle, mobility, cloud, and data analytics leading global organizations through successful transformation, growth and change.

Starting with their own experiences, they end up giving powerful tips and tricks to sell your company.

 

Tune in Now!

 

Conversation Highlights:

[01:55] Planning to sell? (Some important things to consider)

 

[04:14] The need to hire a law firm.

 

[06:48] CAUTION : Do not make these mistakes.

 

[10:21] Make yourself stand out among the crowd. But how?

 

[12:09] Have you ever thought about the net outcome of your company?

 

[14:18] Marrying tax planning with philanthropy!

 

[15:06] Issues with partner/family-owned company.

 

[19:22] A lack of time?

 

Remarkable Quotes:

"Selling your company, sell it at the right time!"

 

"Now is not the time unless you absolutely have to."

 

Special Reminder

Make sure to check out Cortland Advisors.

 

Reach out to Ken:

• On LinkedIn
• At Cortland Advisors

 

If you enjoyed this episode of the Sarian Strategic Partners Podcast, then make sure to Subscribe to our podcast.

 

Connect with Greg on LinkedIn and check us out at Sarian Strategic Partners.