Welcome to the “Show Me The Way” podcast with David Seitter
In this episode of “Show Me The Way,” Dave sits down with Quentin McArthur, President of McQueeny Group, to discuss his process of moving from an employee to owner of a business, to later merging that business. They reflect on the good and bad, and give advice for others looking to grow a business through mergers.
Ep. 6 — Business Merger Advice with Quentin McArthur
Introducing Quentin McArthur, President of McQueeny Group
Dave asks Quentin to discuss his background, and how he ended up where he is now.
- Quentin begins talking about how he ended up graduating from K-State, and how he fell into his career path.
- After taking a job thinking it would only do it a couple years, he realized how great he was at it and how much he enjoyed it.
- He says that in 2014, he bought the company and renamed it to what it is known as today.
- Quentin discusses the business, what they do, and why their sales people have a great technical knowledge base.
Dave sorts through Quentin’s history of moving from an employee, to owner of that one business, to then owner of a larger business entity, and asks about that newest company.
- Quentin says they merged with Innovative Technical Solutions (ITS), and their sister company One Power, which operate in the same market space
- He continues saying they are in the equipment and service industry for that are very niche, such as telecom and data centers.
Growing a Business Through Merging
Dave says that to grow a business you either do so by buying assets of a business, stocks, or through mergers, and asks Quentin why he chose merger rather than another path.
- Quentin says that while he sees the end of his career in the not-so-distant future, he wanted to leave the company in a better place.
- He discusses the conversations he had with the owners of the other businesses, who all agreed that merging the businesses was the best way to move forward.
- He mentions why they thought this was the best path forward, and why they ultimately chose this path.
Dave asks how long the process took from beginning to end.
- Quentin notes that while they were informally talking about it for 3-4 months, once they agreed to go ahead, it was about 6 more months.
Purchasing a Business Versus Merging
Dave asks how purchasing the McQueeny Group from its prior owners compares and contrasts with this merger process.
- Quentin reflects back on his process of purchasing the business and said the most difficult part was that they had never done anything like that before.
- He continues by noting that the merger was more difficult because it was much more like a marriage with compromises that needed to be made.
- Dave relates to some others he has helped through the merger process, and then asks Quentin whether making compromises was the hardest part, or if it was something else.
- Quentin says that once they all lived under the same roof, he realized the integration pieces and compromises that had to be made were definitely the hardest part.
Dave flips around the thinking and asks what some of the positives have been from the merger.
- Quentin notes that they have recognized a lot of synergies working together, and the benefits of working with similar industries has helped.
- He continues by saying the ability to share contacts and leads has helped the company experience some great headwinds.
- He adds that personally he feels like he helped move his company into a better position for the employees that stayed, as well as diversifying the business risks.
Dave asks Quentin how he felt and dealt with the “deal fatigue” that is common during these types of processes, and what advice he has for others who might be experiencing the same.
- Quentin explains his process getting through the thoughts of wishing each day was the last day of the merger process.
- He relates it to building an addition onto your house, understanding that it is difficult, but that you will greatly appreciate the fruits of your labor once it is all done.
- He reflects and shares some wisdom about laying out a blueprint for the actual merger process, as well as who has what roles and responsibilities.
- Dave gives advice about doing proper due diligence prior to making any kind of business deals.
Reflections and Advice for Mergers
Dave focuses on the future and asks Quentin his views on the future of the business.
- He discusses the future growth of the business through geographical additions.
- He notes that they have had a couple of options for growth through acquisition, but everyone agreed that it was best to get fully comfortable first before going through that process again.
Dave asks what advice he has for others who might be looking to grow a business through merger or acquisition.
- Quentin’s advice is to ask yourself why you are running the business, whether that is to grow your personal wealth, or if the organization comes first.
- He then explains his reasoning behind that question, and how that can dictate your process and experience.
To reach out to Quentin McArthur, go out to their website: https://www.mcqueenygroup.com/
To reach out to Dave for advice or consultation, please visit www.davidseitter.com or email him at dseitter@spencerfane.com
Disclosure
This podcast is provided for educational purposes. It does not constitute legal advice and is not intended to establish an attorney-client relationship. The recommendations contained in this podcast are not necessarily appropriate for every individual or business. In determining the best course of action, business owners should consult with an attorney on their distinct circumstances.