Avoiding the Lifestyle Company Trap
“Greg Romanzo owned and operated a transportation business with his partners. Once they hit 200 employees they realized they needed to sell to a larger firm to help their business scale,” shares Sam Thompson a Minneapolis business broker and the president of M&A firm Transitions In Business. “Greg talks about how they created an excellent culture which helped them sell their “middleman” business.”
Greg Romanzo and his partners spent 17 years growing a freight forwarding business. As the company expanded to 200 employees, the partners faced a realization: their decisions now impacted 200 families. This responsibility became overwhelming, and they decided to sell. In this episode, you’ll discover how to:
- Avoid the lifestyle company trap.
- Protect your business model in the face of changes in your industry.
- Create a great culture with multiple owners.
- Incentivize your employees to play the long game.
- Compete in a commoditized industry.
- Know when a sales person is likely to stay.
- Sell a “middleman” business.
- Distinguish between an LOI and a SPA.