Episode 39: Palmer Trice of Insurance Office of America – Full Transcript
Rob Legenhausen 0:00
big believer in you know, really focusing and trying to figure out like what you’re good at what gets you excited? And you know, what can you be a champion at?
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Jordan Ostroff 1:06
Hello and welcome to Let’s get up to business. My name is Jordan Ostroff with Jordan law. And joining me today is Rob Lee and has an appear on partners. Thanks for being here.
Rob Legenhausen 1:13
Thanks for having me.
Jordan Ostroff 1:14
We we told her that this is videotape, so that’s why
Rob Legenhausen 1:18
it’s real. That’s right.
Jordan Ostroff 1:20
Maybe the first time that I’m more dressed than our guests,
Rob Legenhausen 1:22
usually it’s totally the opposite. That’s right. Well, I mean, you’re gonna keep it casual. It’s Friday.
Jordan Ostroff 1:29
Yeah, it is Friday. This will drop on Thursday, though.
Rob Legenhausen 1:31
Okay. But yeah,
Jordan Ostroff 1:33
no, it’s great. So tell us a little about yourself.
Unknown Speaker 1:37
Yeah, so I’m a partner at a firm called Karen partners in College Park, and we’re a financial advisor practice. You know, at the end of the day, really, we’re an intellectual capital company, meaning we sell advice,
Jordan Ostroff 1:51
intellectual capital company and yeah, I like that. Yeah.
Unknown Speaker 1:55
You know, the investment component is such a commodity today. Like many businesses, so to differentiate, we try to focus more on the advice and less on the commodity.
Jordan Ostroff 2:08
All right, so we got any listeners who know they need some intellectual capital, the best way for them to get in touch with you.
Unknown Speaker 2:16
So www dot kiron. Partners calm is our main website. We, like I said, We’re located right in College Park. They’re pretty decent presence. Now, we worked a lot over the years to build up the brand and the community through various events, through different causes that are near and dear to our hearts. As well as obviously the traditional marketing.
Jordan Ostroff 2:40
So tell us, excuse me. So Karen, partners, ke e ir o n. That’s right. Yes. Thank you. And did you do a phone number?
Unknown Speaker 2:48
Jordan Ostroff 2:52
All right, great. So tell us a little about the history of Iran. And then we’ll get into a little bit more about why you’re here today.
Unknown Speaker 2:57
Yeah. Great. So Karen Japanese for process. And we’re Fellow at Raymond James. So at the end of the day, we are Raymond James branch. When you get big enough in the Raymond James system, they allow you to sort of brand and, you know, hold yourself out, as, you know, however you like. And so we chose Kieran. Everything we do revolves around a testing process, both from the client onboarding experience, the investment component, it’s all a battle hardened, kind of tried and true process that we follow. It’s very repeatable. And so that’s where we came up with the name cure on.
Jordan Ostroff 3:33
Okay, and how long has Kieran been partnering?
Unknown Speaker 3:37
Karen’s been a thing for six years now. Six, seven years. So it’s been exciting. I came over seven years ago and we kicked off we launched the brand, right when I joined the team. Have a couple partners scott brown, Michael Clark, they were kind of legacy guys over at Raymond James what they call the wire house, which is like a, you’re an employee essential. We have Raymond James. So they spun off. That’s what I affiliated with them. I was with john Hancock. That’s where I got started in the business. Okay. And then together, we launched Karen partners.
Jordan Ostroff 4:11
And now so I know you’ve got one of the partners who will be transitioning out.
Unknown Speaker 4:15
Yes, yeah, super exciting. So Scott’s going to be retiring in the next couple of years. And so we’re very focused right now on transitioning Scott, from client facing slowly to more kind of backstage and then ultimately into retirement. And we’re doing that over the course of about three years. You know, at the end of the day, with any type of transition in business, it has, the client has to come first. If the client doesn’t come first, if they’re uncomfortable with the process, if they’re surprised by anything, then everybody loses. So we’re very, very thoughtful with how we do the transitions.
Jordan Ostroff 4:52
And so we did one a couple weeks ago. I’m sorry about merging businesses to bring people in and we’ll walk kind of people through the process. So this one, you know, it’s somebody reached out with a question about kind of the reverse of it. So that’s why I wanted to have you on here. Yeah. So I know, you know, you’ve talked about doing this over the three year timeframe, obviously, it’s going to make it a slow process, but walk me through like the very beginning of it, you know, that you all are sitting down, and it’s like, Alright, it’s time for us to come up with a transition plan to kind of, you know, explain to our listeners, what that process looked like for you all, so that they have a better idea when, you know, comes to it for them or another partner,
Unknown Speaker 5:26
great. It’s all about collaboration. At the end of the day, you have to you know, it’s funny, because when, through our school system, you know, from a very young age, we’re kind of taught that knowledge comes from within, we’re sort of trained to be this sort of rugged individualist and in your mindset with your thinking, and it’s in the entrepreneurial world, as you know, it’s it’s completely different. It’s all about collaborating, and then teaming up with other folks who may have a different unique ability than you do. And then ultimately, leveraging that and Through teamwork, to them get to a higher outcome. So with us with our group, you know, we had, we have a couple senior partners with a couple Junior partners, I’m kind of in the middle, a couple of the guys are younger. And then Scott’s course being a little bit older. And about a year ago, is kind of when it sort of came about little over a year ago, Scott was wanting to kind of make a transition at some point. We already had the team members in place the infrastructure in place, we had the junior partners, and then we had the senior partner. So for our group, we had already formed that collaboration years ago. Now, I think looking back on it, Scott, probably with his wisdom, he probably kind of knew what he was doing, like, hey, let me get a couple of younger guys that I know like and trust that my clients are going to know like and trust, and then kind of ultimately, you know, over the course of year, a few years, we’ll sort of see how that all plays out. Maybe these young guys can kind of mature in the business. You know, understand the processes understand the philosophy of what we’re trying to do. Do and when he was comfortable is when he approached us as the juniors as the buyer, so you think he was consciously or subconsciously kind of seating it for much longer? I think so yeah. Scott Brown is a he’s a I can’t speak highly enough about the guy. I mean, he’s full of intellectual capital. He’s got tons of it. Yeah. Very self deprecating guy though. He’s he’s got a really good sense of humor about him. He’s just a good human being. So I think I think looking back, he probably knew, you know, what he was doing?
Jordan Ostroff 7:30
All right. So, so you’ve got that partner, you know, taking some time, intentionally or unintentionally to get the business in the position where they can sort of transition out, right. That’s right. Yes. So then you guys get together in I mean, it’s a meeting.
Unknown Speaker 7:44
I’d say it was a, probably a series of them, you know, and it could be emotional as well. I mean, you know, you’re talking about somebody’s identity, you’re talking about something that the seller you know, in our case, Scott really has built over many, many years. over decades and is nurtured and it’s it’s your baby. So I think with any business with any transition, it can, it can be an emotional thing. And so that’s it that can be challenging in itself. But, you know, putting the emotional piece aside, when when everything else kind of aligns in this and sort of falls into place, that’s when those conversations starts to happen.
Jordan Ostroff 8:22
So I’m imagining there’s like a dark room, there’s that one spotlight in the middle, you guys are all around the table whenever, you know, let’s, let’s check this out. Let’s get this going.
Unknown Speaker 8:30
Sorta. There was a couple of I mean, I don’t know if it wasn’t a dark room. But, you know, Scott and I had a conversation one night. I think it’s about two years ago now kind of before we inked the deal. And we were in my back porch. We were both having a burden. We were kind of just chatting. And he, he was kind of you know, I think at that point, he was ready to make a move. There’s a lot going on in within our team. At that point, you know, and when you get to the size we are and we have with 20 people now total Which for, you know, for our businesses have is a, you know, fairly substantial size team. And, you know, there’s a lot that goes with that obviously with, you know, the staff and managing payroll and HR. And it’s not just the advisory business, it’s running a practice with the marketing and with everything that goes with that. And I think Scott got a little bit, you know, kind of burned out with some of that other stuff. That was kind of weighing on him and that conversation in the back on my porch that night. He kind of voiced a few things that, you know, he he’s passionate about the business, but some of the other stuff was starting to kind of weigh on him the administrative stuff, the administrative stuff. Yeah.
Jordan Ostroff 9:38
Okay. So, I mean, but that you’re talking about two years ago, right. So did y’all take some steps to get some of that off his plate leading into this? Sure. normal conversation?
Unknown Speaker 9:48
Yeah, absolutely. Um, you know, we’ve done everything from hire a CFO, to, you know, having we had one of our own, someone that’s been with our group for a long time that kind of stepped into this role. A couple years. backup like office manager, you know, to handle the branch expenses, the bill pain, you know, the clock and clock out who gets to take a vacation on Thanksgiving and who has to be in the office, all that type of stuff. So over the past couple years, we’ve put systems in place, we’ve put people in places to help facilitate this transaction and you know, really just make it as smooth as possible, because there’s always going to be stuff, you know, that comes up along the way.
Jordan Ostroff 10:27
So that’s, so basically you guys are doing it sort of informally for almost a year.
Unknown Speaker 10:32
Yeah, for sure. Probably longer than that, frankly, okay,
Jordan Ostroff 10:36
to try and get in a place where it would be easiest for me to transition out easiest, or at least to formally plan out the rest of the steps. I mean, what was how did you know it was the right time? Or did it just
Unknown Speaker 10:47
I think it’s sort of happening. You know, it’s some it’s funny because when I first came over from john Hancock like seven year old, almost going on eight years now. I was really chomping at the bit. I wanted to Do this deal and right out of the gate, you know, they were we already had conversations at some point that, you know, Scott is going to want to eventually retire. We didn’t know when. But we knew that that was the end goal. So the first couple of years, you know, as a lot of, you know, times people, you know, that are younger in the business, they get very excited. And that was me, you know, I mean, I was kind of I was about 30 years old, you know, and I was, you know, I was the young go getter, like, let’s go, let’s save the world. Let’s just see people, let’s do our thing and bring in business. And I was like, let’s go Scott. Let’s go, man. Come on, what are you going to retire? Let’s go I want this now. And you know, he knows play, slow down, like just take it easy, you know, let the game come to you. Was it somebody who said and so I did that and and also my other partner, Michael Clarke, the other buyer, the other junior partner. And I and also Austin is the third one involved with the deal and we all kind of, you know, sort of the focus less on the final outcome of this, you know, transition and sort of the focus More than now, which was really building our own businesses within the carrot brand. We did that for a few years and kind of forgot about the deal. And we were all sort of, you know, kind of doing well and doing our own thing and, and then the deal kind of, you know, went away for a while in our minds. And that was the point in time with Scott then came back on my porch. I think now’s the time.
Jordan Ostroff 12:20
Interesting. So with the care partners, I was waiting for him to give you some sort of like, you know, it’s like a bonsai tree, you know, 80 years, isn’t everything, get this all set up. It’s interesting. So it was almost like once you all once you all sort of lost focus on that main goal is when you are ready for that to be the main goal.
Unknown Speaker 12:37
I think so. And I think it wasn’t really a maturity thing to be quite honest with you. You know, I don’t think that any of us were ready, you know, particularly the younger guys in the office, the the buyers, if you will, we probably weren’t there yet. From a maturity standpoint, a revenue standpoint, you know, just all the above. And then Scott Meanwhile, being Scott was kind of just You know, watching coaching, you know, kind of letting us do our thing. Yeah, it’s almost like with kids, right? Like, you know, like with Benji, like you want them to make some mistakes, you know, you want to help them and like, yeah, it’d be successful just like me with my son monk. His name is chance, but we call him monk. You know, I want to put monk in the best possible spot to be successful, but at the same time, kind of struggle a little bit to
Jordan Ostroff 13:23
it. I mean, that’s the they did all this giant studies on kids and they found the most important definition, the most important trait that leads to success was not intelligence was not education was not It was great, because it was the ability for them to overcome a difficult situation. Yeah. As opposed to just like, screw it. I’m taking my ball home.
Rob Legenhausen 13:41
Right? Yeah, totally. I’m a big believer in that. Absolutely. Yeah.
Jordan Ostroff 13:44
So I like it. I mean, it seems like Scott’s is very, you know, wise and maybe even more so than he gives himself credit for person that sort of just kept this going in the right way by not getting in the way and just formula Letting you guys into the right path.
Unknown Speaker 14:01
100% Yeah, he’s he’s a, he’s a strategic thinker. He’s been a great mentor to me over the years, and also the other guys in our team. And I think for any business, you need to be thinking about how to package it, to sell it eventually, like, that’s the ultimate goal for any company. It should be. I mean, we’re very fortunate in our industry, in the intellectual capital business, that it’s all recurring revenue for us, right? So you, you know, for up for us, it’s, you already kind of have that hurdle to overcome, or a lot of other businesses maybe don’t like law firms or other things.
Jordan Ostroff 14:38
You know, lawyers get dumb enough to name their business after themselves. I don’t know what any would do that. But But,
Unknown Speaker 14:48
you know, honestly, at the end of the day, like that should be what you’re thinking about longer terms. Like, yeah, you’re going to be working in the business on the business in the short term, but what’s the end goal? And I think the way Scott did it the way we did it a Karen partners was a smart way to do it and you know, over the course of many, many years building systems, the other recurring revenue in place, there’s a multiple on that revenue when you sell it and then at the end of the day also, most importantly, having the clients coming first
Jordan Ostroff 15:17
right so before we get to and I’m not going to go into the specifics of the deal but before we get to the actual like, I’m assuming you guys have written our contract every contract percent of so before we get to that part, what else took place leading into the real pen to paper a whole lawyers involved? And you know, let’s get this on down. Yeah.
Unknown Speaker 15:38
What else happened? Great. Scott. is kind of a start out there. He’s a paper napkin deal kind of guy okay, he’s a he’s a handshake. We have many, many major old school cases that go with Yeah, and you know, it’s funny as a having never been through something like this before. You know, you don’t know You don’t know. And that that was me, it still is me to, you know, a great deal of extend You know, when it comes to the transition like this, I’ve never done one. So you you do the best you can with what you have, of course, you know, leading up to doing the deal, the formal deal reading the contract, you know, I’m reaching out to buddies, I reached out to you and I reached out to a couple other guys and I’m like, Hey, man, like what do I need to look out for? And you get a lot of different input. And when you when it comes to a transaction like this, you know, all the smart lawyers are going to tell you, you know, you got to have an ironclad deal, you know, we got to make sure you’re protected. You need a retention clause you need this clause you need that this guy’s going to screw you and that’s that’s your job right like to be a good attorney and to give legal advice like Hey, you got to make sure you save
Jordan Ostroff 16:51
at least I’m going to tell you know, make sure the other person isn’t screwing you right there going into it to do that. But
Unknown Speaker 16:58
but at least the kind of yes That fair, fair enough. So, one of my buddies, Derek valkenburg. Actually, I’m gonna give him a shout out. Derek told me he helped me kind of reviewed the contract like right before we did. So I take him to lunch one day at rustic. And over in College Park what some people say, Rusty, I said rustic. So go to rustic for lunch. And, unlike argued, here, here’s the contract and getting rid of the sign. You know, what do you think? And so Derek looks at me, and he’s like, and he’s a good buddy of mine. And he says, Now before I read it, I want you to know today, I’m not your friend. My job is to be an asshole.
Jordan Ostroff 17:37
Sometimes those things are the same that right?
Unknown Speaker 17:40
So he looks through it. And, you know, he starts asking me twice, peppering me with questions and some of it I knew, and then he kind of stumped me a couple times. And I’m like, you know, I don’t know. And he’s like, what about this, you know, scenario happens what you know, and I’m like, you know, I don’t know. So, at the end of it, you know, I was a little bit uncomfortable because I realized Like, you know, maybe this is not as tight as I as it should be, you know. But Derek looked at me and he said to me, one of my mentors early on in law told me that it’s better to have a paper napkin deal with a good guy than an ironclad deal with a shyster.
Jordan Ostroff 18:20
Oh, yeah, definitely. Because there’s always going to be something. I mean, there is no perfect contract if somebody wants to be that devious. Sure.
Unknown Speaker 18:28
Yeah. And I’ll never forget that statement. It just, and you know, at the end of the day, I mean, it’s all about I mentioned collaboration, and really, with any business transition, or no transition, it’s all about who you surround yourself with. It’s all about, you know, you know, getting the right the right team members in place, the right partners in place. And, you know, for me, that’s one thing I’ve always been really, really blessed with and fortunate with is that I’ve just got a great group of guys
Jordan Ostroff 18:52
that I work with, you know, we had a we had Mike on one of the earlier ones Yeah, man. The I just I love his story about doing the Patrick Cujo bringing the knives into juggling during security at the thing be like you can’t bring these in he’s like I’m juggling knives no yeah okay cool no problem Ryan
Rob Legenhausen 19:11
Jordan Ostroff 19:12
like you know I wish there were very few people I would trust with you know knives behind security but yeah obviously Mike’s the mics on that list
Rob Legenhausen 19:19
he’s a good he’s a good human being yeah for sure. I would trust him to juggle knives next to me all day long.
Jordan Ostroff 19:24
family never dropped him. Yeah. Presentation juggling a bunch of different things during it and yeah, perfectly so. Alright, so you have the you have the first draft you guys get together you run out the first draft idea you’re running that through mentors, friends, whomever else to make sure you guys go back make some edits to the government, like walk me through that process. And again, you don’t know not going into specifics? Sure. Just the the the modalities that our listeners need to think about when it comes to these things having to
Unknown Speaker 19:54
lot of times there’s going to be some sort of a retention if I ever deal is going to be different. Our deal was a was like like an internal deal so there was no external financing there was no you know, moving the practice from Raymond James to LPL or anything like that. So it’s a very kind of seamless process purely for the client standpoint, there’s a couple of things that we had to kind of go back and forth on nothing major you know, our deal is self financing. So we take the recurring revenue, we take a multiple to it, and then it’s paid out to the from the buyers to the seller over the course of 10 years and once the once the deal goes into effect, it was a three year window. So we signed the deal a year ago. So in two years from now, it’s October 1 2022 is when the revenue flips and the clients then change from Scott to toss. Okay, so that’s when the the payment starts going to the seller. And then that goes on for a decade. So you know, there was really no back and forth with with the multiple with the price. With the payout, anything like that, now had it been an external deal where there was a bank involved where there was financing involved where we have to take out a loan that, you know, may have been a little bit different. And I, although I’ve never been involved with the deal personally in this industry, but I’ve had a lot of friends have and everyone is different, of course.
Jordan Ostroff 21:21
So you guys have this plan in place. Everything gets signed. And it’s been a year since then. Right? Yeah. So are we talking about, you know, how definitive is that contract on the exit strategy? I mean, is it like in six months, this is going to happen in nine months, this happens in 12 months, this happens.
Unknown Speaker 21:41
It’s not that detailed. So we built it out. We designed it for the three year window to give us plenty of time to transition the clients. The clients have to be really comfortable with the new advisors, right, like, so like the worst thing that you could do is the client gets a phone call one day Hey, I’m You know, I’m your new guy. That’s not that’s not a good way to do it. So what we’ve done is over the course of that three year window, we’re doing a lot of joint meetings. So like Scott will meet with, you know, Mr. Jones and Mrs. Jones, then I might join that meeting, right. Yeah. And the initial joint meeting, it’s really it’s really just Scott still kind of driving. And I’m introduced as a secondary advisor.
Jordan Ostroff 22:27
Unknown Speaker 22:29
let’s say Scott is traveling or you know, he’s on vacation, he’s, you know, whatever he’s doing, maybe he’s not feeling well, you have a backup. So you have another person on the team that you can go to, and that’s Rob or Michael or awesome. So, that’s the first one and then maybe six months later, we have a second joint meeting with Mr. And Mrs. Jones, and then with Scott nine, and on that meeting, maybe I’m doing a little bit more of the talking. So maybe I’m kind of driving that one a little bit more money. We’re both kind of doing our thing, we pull up the client’s financial plan, and we’re integrating their estate plan and their taxes. And so maybe I’m kind of heading up, you know, a couple of those areas and that on that second meeting, and does the client
Jordan Ostroff 23:11
know from day one, like, hey, Scott’s on his way out? Or does he know that on day six or day 12? You know,
Unknown Speaker 23:19
it’s, it’s all kind of across the board? Honestly, I think a lot of the clients know, at this point, you know, really, the goal should be to have it as seamless as possible for the client, of course, and they have to come first. Otherwise, again, if, if the clients are not comfortable, or if they’re rattled or anything about this entire process, they can leave. Like they can literally pick up their money and they can fire us and they can go to you know, Merrill or whoever. And so then everybody loses, right? So they have to be placed first at all times.
Jordan Ostroff 23:50
So you’re kind of doing that on a on a client by client basis.
Unknown Speaker 23:53
Yeah, totally. I you know, like the clients that are you know, that are we have great relationships with and I mean, it’s You’ve become very good friends with the clients over the years, and our businesses very, very intimate. And you really get to know folks you get to know their families and their kids and their grandkids and their hopes and their dreams and their fears. So, depending upon about Yeah, I think the depending on the relationship, you know, a lot of them at this point, no, there wasn’t a formal like, everybody’s going to get an email, hey, this is going to happen in three years. It’s really a case by case.
Jordan Ostroff 24:28
What’s interesting is, you know, as you’re talking this, I keep thinking of Gary Vee thing about brands, like in essence, you want the client to be subscribed to the brand appear on partners, regardless of the individual people. And then the trust in that brand is easier transition as you go through, you know, Scott to somebody else.
Unknown Speaker 24:45
Hundred percent. Yeah. And that’s kind of that goodwill, you know, and that’s what you’re building. That’s what you’re, again, going back to the end goal. Everybody needs to be thinking about how to package their business, whether it’s an intangible like what you and I do Whether they’re manufacturing widget somewhere, they need to be thinking about the end goal. What you know, how do we how am I going to eventually exit from this thing? I’m going to have my right, you know, my kids come in and take over, do I want to sell it to, you know, an outside of competitor, perhaps, or some or a bigger group. But that goodwill is super important, because really, you know, at the end of the day, that’s what the clients are coming to know. And trust. And, and that brand loyalty is huge.
Jordan Ostroff 25:27
And obviously, it probably helps the markets doing pretty well as you’re going through this. Oh, yeah, of course. Well, you know,
Rob Legenhausen 25:31
now of course, you know, next couple years, it’ll probably tank like right before Yeah.
Jordan Ostroff 25:37
weight in Scotland, and now my hands down 12% in this son of a, you know, it’s up 120% over the three years before that, so it’s okay, hold on
Unknown Speaker 25:47
a minute. And muster behavior is it’s super fascinating to me. And it’s the way that we all think, yeah, money and as human beings were created wired to be really crappy investors. Like, for example, if you get a statement, and
Jordan Ostroff 26:09
it goes down
Unknown Speaker 26:11
the same parts of your brain fire up, then if you walked out of Jordan law today and your parking lot and you were confronted by a 10 foot grizzly bear, right, it’s the same parts of the mind. And so, when that fight or flight response system kicks in, when you get that bad statement, it’s it’s nearly impossible to make a good rational decision. In that point in time. It’s a physiological response system. All kinds of things are going on here by this happens in a split second, by the way, parts of the mind are firing up, you know, your your blood pressure changes, your maybe your palms get a little sweaty, maybe you feel some adrenaline, you know, you get that feeling in your gut. This is all going on. When that individual looks that statement and it’s going the wrong way. So all of the long term investments out you know, all The rational kind of logical reasoning, all the stuff that we’ve put in place that they know they’re up 120% over the past, you know, few years. So, you know, but they just gave back 5% of it. So they’re up 105 but they’re still freaking out because of that 5% dip, right? They can’t help it. So that’s kind of where we come in. And that’s, you know, the end of the day, we’re more, you know, we provide clarity, calmness. ossifies Yeah, peace of mind. That’s a lot of hand holding. Yeah.
Jordan Ostroff 27:29
And letting people Well, I mean, like you said, You don’t know you don’t know. And so you get somebody who invests and they’re not as necessarily, they’re not most people are not as aware of the ebbs and flows of the market over over time frame, especially if they’re, you know, 3040 get somebody 5060s you know, they’ve seen they had a little bit more of an understanding with the last the tech bubble and everything along and the housing market. Yeah, back and all that.
Unknown Speaker 27:54
Yeah, we’ve been in a really good run for the past 11 years. You had a little bit of a pullback and eight Team and folks kind of were reminded that it was always go up. You know, for younger we have we have guys in our, in our group now that are like, you know, Junior June Gen three, we call them like, so you have genuine that were Gen to the buyers and you have Gen three. So we’re at a very deep bench. And a lot of our younger advisors, Gen three advisors are connecting and collaborating with our clients, beneficiaries. And it’s funny because the younger guys, and maybe they’re willing to do it for five or 10 years or less, in some cases, they’re like, the marketing go down. Like what’s going on? I haven’t seen this before. So I’ve been in the game 15 years. And, you know, I was fortunate or unfortunate enough to have been in the business in the Great Recession. Yeah, right. And I’d have a lot of clients. So you know, I didn’t know everybody was freaking out. Looking back on that time, and it was it was a it was a crazy time and it’s gonna happen again, we’re going to get it again, probably not to that extent.
Jordan Ostroff 28:57
I can’t imagine I mean, we could do a whole episode on why it’ll go back down and but why it shouldn’t be as bad. But now it’s just it’s interesting. The so many businesses really are selling peace of mind at the end of the day, like insurance companies, law firms, financial stuff, like really you’re just selling peace of mind. Alright, so but let me so let’s get back to you got the contract down it’s been about a year. So walk me through kind of the steps that you’ve taken over that last year to help transitions got out like what were the I know you’re doing the meetings and kind of pushing the meetings around like what else had to happen? Um, a lot of it has been with with me and the other Gen two advisors that are involved with deal so Michael and Austin and I are the three buyers that are taking, taking over Scott’s part of the business. And a lot of it was planning amongst us. So not really involving Scott. It was more like me, Austin Mike getting in a room and saying, okay, who’s going to spearhead This when Scott leaves when you say this, like payroll?
Rob Legenhausen 30:03
Yeah, absolutely. Yeah, all that
Unknown Speaker 30:06
everything that he does, yeah, so not just his book of business that we know where he’s client facing but you know, the other side of running the practice which is the bill pain and the HR and the parent all that junk that you know, I say junk that is not my unique ability. So I’m a big believer in you know, really focusing and trying to figure out like, what you’re good at what gets you excited? And you know, what can you be a champion at? For me it’s, it’s not you know, the details the you know, the you know, the paperwork, the dealing with the staff, you know, dealing with the HR stuff like that, that’s not what I’m good at. I think Scott’s kind of forced himself to be good at it over time. It’s not his unique ability either, and that’s why it burned him out. But we’re fortunate because you know, Michael Clarke on our team is my one of my best friends in the world love him to death. His partner mine. He’s the complete opposite of me. Almost like jet like me in general, like complete opposites, but that’s what makes it work, right? Like a marriage. So, you know, like Austin Mike and I get in the room and it’s, you know, we’re doing planning like, Hey, who’s gonna handle payroll? Who’s gonna, you know, handle the, you know, the marketing for the firm who’s going to handle this? handle that. So we’re, we have a good core group that kind of specialized in different areas. Gotcha. Cool. Yeah.
Jordan Ostroff 31:24
So what has been the biggest difficulty that you have faced since signing that contract over the last year? Because it sounds like it’s been going well,
Unknown Speaker 31:35
it’s going really well. Um, that’s a great question. Thank you. I think, you know, I think really just kind of fear the unknown. Look, I’d be the biggest difficulty. I mean, it’s, it’s scary. You know, you’ve never, at least for me, I’ve not been through a transition like this before. There’s always stuff that kind of pops in your head. You know, like, did I do this right? Or is this you know, the correct way that we should be approaching? You know, x. So it’s a lot of that and, but, you know, again, I go back to like what I said before, the number one thing is that you’re you’re collaborating with with people that you know, like and trust and the number one thing is just to have the right people on the bus and I think we have that.
Jordan Ostroff 32:19
So really there, there hasn’t been any major issues because of people. Yes. Okay. So it’s so fortunately, or Unfortunately, there hasn’t been any necessarily planning that you all did that has made this go seamless. It’s just you happen to have a great team, which has made it go seamless, or almost seamlessly.
Unknown Speaker 32:41
I would I would agree with the latter. Yeah. And there’s always going to be things that pop up, you know, along the way. You know, it’s like, you know, it’s like you’re buying a house or like we build a house College Park five years ago, never did that before, had no clue what we’re getting into. And our builder was great. We used for this at Valley. Great It completely seamless process now of course, there was things that popped up along the way. There was little things that came up but because I had a relationship with Ed and I trusted and I did a great job it we worked through it you know like something have we moved in you know a little something happened and and not to get into the weeds but no questions asked at send a team out fixed it boom done. So that that’s that’s the key is that you’re dealing with the right people.
Jordan Ostroff 33:27
Alright, so then let me ask the question slightly differently to see if we get a more help not helpful. You’re more fixable answer and working on somebody can lean can do forward. If you were if you did the last, let’s say two years over again, knowing what you know now, what’s the one or two things you would have done differently?
Rob Legenhausen 33:49
Jordan Ostroff 33:53
with regards to doing the deal, yeah.
Rob Legenhausen 33:59
It’s a really tough one. Man,
Jordan Ostroff 34:00
you know, I got to give you at least one time. You know, I went through the rest of them really easily. So
Unknown Speaker 34:06
I, you know, I don’t want to minimize this thing and say like that it’s all it’s all gravy. But I mean, we have not had. Yeah, we have not had any major obstacles at this point. All right,
Jordan Ostroff 34:20
we then maybe women just starting earlier, knowing I’m easy it’s been maybe make it a four year transition. So the three or even then like you’re still so far so good,
Unknown Speaker 34:29
you know, to that your point there, you know if anything, maybe even pushing it out a year or two. I mean, I said I only say that because like, so I’m building my business now focus into my business now. And now taking on this other business and integrating that with what I’m doing now. We have we’ve since hired an additional staff, right, so that was a big thing. If I could have changed anything. I think the answer The answer that I’m gonna tell you is I wouldn’t hired the additional steps sooner. Okay, so not I wouldn’t say like delay the the transition, but I would have, I would have hired more more infrastructure sooner,
Jordan Ostroff 35:10
which makes it easier to get people to fill into roles that are now open, or things that need to happen a little bit differently
Unknown Speaker 35:15
totally, and would allow me to also then, like focus more on continuing to build my business now between now and by the time that the deal gets put into place. Gotcha. Or in the transitions when Scott exits the business, which is again, another two years roughly from now, right? I would, you know, I could still focus on what I’m doing day to day.
Jordan Ostroff 35:33
Alright, so then over the next two years, what are the like the three biggest benchmarks or changes or things we all need to work on? To make sure it goes smoothly?
Unknown Speaker 35:43
Yeah. So there’s a couple things there. It’s defining roles for once the seller exits the practice. So it’s going to be you know, sort of the planning like we mentioned earlier with the three of the three buyers in a room, saying, okay, who’s going to handle this is going to handle that really more expectation? We try to meet Michael Austin and I, the three buyers, we try to meet regularly, like, at least every week or two, we’ll sit down for 2030 minutes and just kind of talk through, you know, like, Hey, what do you guys foresee happening here? You know, do you think this person on our team is going to want to stay like after Scott leaves? Or do you think maybe they’re going to want to retire what Scott retires? So it’s more it’s more of that type of strategic planning.
Jordan Ostroff 36:26
You know, staff wise, I’m an infrastructure I think now like we’re pretty solid.
Unknown Speaker 36:31
So yeah, it’s, it’s, it’s, it’s more than just kind of figuring out, like, who’s going to be be taken on what’s that went live? Nobody’s gonna be surprised. Right? Right. Oh, if you do it, if you rush a deal, and you jump into it too fast, that I think oftentimes, you can create messes that it would have been easier upfront, to just kind of like, prolong it a little bit more like kind of, you know, and then do that plan up front. You know, three years. I mean, it’s a big book, I mean, the deal that we’re doing it’s it’s a substantial business, right. So there’s a lot of moving parts. to it, and I think, you know, for us at least three years was the right was the right amount of time.
Jordan Ostroff 37:05
And it sounds like you’ve got a lot of benefit of having two other buyers with you all working together because it’s, you’re splitting something up, you know, three ways instead of just one way or two ways.
Unknown Speaker 37:14
Definitely. And the way that we did it was we kind of divvied up the clients based on personality. So it was almost like a fantasy football draft, not to, like minimize it like this, but I will. We literally sat in a room. We pulled up all of Scott’s clients on a monitor, and we started to divvy him out. We said, okay, you know, this is Mr. Johnson. He lives in College Park. He went to university Florida and likes to play golf and drink beer. Okay, he’s ROPs this guy’s an engineer, works for Lockheed, you know, this guy, you know, it’s very academic. Okay, that’s Michael. You know, this guy went to Rollins is an MBA. Okay, that’s Austin. And that’s how we started the process. Now, it’s not you know, it’s not completely set in stone, like if somebody doesn’t get along or that there’s right now at you know, clash or whatnot. You know, cuz, let’s face it, everybody’s gonna like Rob. I mean, I don’t know why wouldn’t but you know, like, not everyone’s gonna like Jordan. But yeah,
Jordan Ostroff 38:07
when we know why.
Unknown Speaker 38:10
So, you know, shoot things like that pop up then obviously we can like make moves and you know again I, I say it again the client has to come first they have to be Yeah.
Jordan Ostroff 38:20
I like it. I mean, it seems like I don’t want to say you guys lucked into a good spot because it’s not luck. But you guys really work yourselves into a spot with so many intangible benefits to make this as easy as possible.
Unknown Speaker 38:35
Yeah, that’s a really interesting word and I I use that word a lot as well. Sometimes I’m reminded, you know, gentle Tommy like, you know, I mean, it’s not all luck. I mean, you worked your tail off and right, you know, you put yourself in a good position, but, you know, I I think it’s both and I really do. I think it’s it’s part timing, I think it’s part being in the right place. You know, I think it’s also hustle and I think it’s also you have to have all those ingredients. Coming together, kind of in a in a smart way in an authentic way, you know, the way that I met Scott to begin with, we had a mutual client, I sell life insurance, I used to go to people’s homes and sell product, all transaction. And I had a client that I was sitting at the kitchen table just like this. And I’m making a recommendation for life insurance and the client looks at me She’s like, well, this looks really good. But before I sign anything with you, I gotta run it by my other advisor, Scott. And I’m like, great. Like, I’m gonna definitely lose this case. It’s guys
Jordan Ostroff 39:35
gonna be like this kids a young idiot.
Unknown Speaker 39:37
Exactly which I was. So. So the client, her first name is Judy. I love her. She’s still a client of ours at this day. So Judy, she says to me, Well, you know, my guy Scott, he’s in College Park. And you know, here’s his number if you want to call him that’s like, great, you know, let me let me reach out to your guy. I don’t know if he does insurance. I don’t know. But um, I had nothing to hide. It was the right thing for Her. So I was like, yeah, you know, I’ll call Scott. So God gives me Scott’s info. I go back to my john Hancock office at the time in Maitland, and I call Scott. And I’m, like, really nervous making the call, like, I’m terrified. Like,
Jordan Ostroff 40:14
I think this guy’s gonna yell at me, you know, like, he doesn’t know me from what do you do? Yeah. And you
Unknown Speaker 40:19
know, for my clients. So I get them on the phone, and I’m going on and on. I’m telling them, you know, I’m probably going how’s it with john Hancock, and you know, I met with your client, Miss Judy, and here’s what I recommend. And finally, he said, the first thing he says he goes was like, slow down. Is it better for Judy?
Rob Legenhausen 40:38
And I’m like, Yeah, yeah, it’s definitely better for Judy. And Scott goes, that’s cool. Go ahead. You can do it. I’ll even put in a good word for
you. I don’t know. I’m like what
Unknown Speaker 40:50
really? It was not was the last thing others I mean, I have like a list of her bottles, right. Like, I think the guys they’re going to screaming me cursing me, you know, get the hell away from my client
Jordan Ostroff 40:59
names. a three inch notepad with like if this though, totally I
Unknown Speaker 41:02
did and then like I’m thinking, you know, maybe best case scenario he doesn’t do insurance business so like he’ll like, let me do it also will split the commission that’s very you know standard in the insurance business. He didn’t ask for Penny he literally said make sure that it’s better for charity. And that was my first encounter with Scott Brown. So you know, you go back to your question, it’s like it’s part time and it’s part hustle it’s part you know, I if I didn’t make that call, a lot of guys wouldn’t have made the call. Right? They would just like kind of tuck your tail between the legs just go home. Like I’m gonna you know, that one’s done. So you know, I have it’s both man it’s both
Jordan Ostroff 41:38
that’s great. Yeah, thank you it I you know, they’ve done some recent studies that have found that like, there is a component of luck but ultimately like it’s not it’s not just luck. It’s you know, luck is that intersection of opportunity and drive and hustle and that’s where Reno random you know, the best thing you do at a random chance based upon everything that you’re doing yourself. Cool. Yeah. Alright, so that puts us at about the 40 minute mark. Wow. Yeah. So listen to this if you have a topic or a type of profession or something you want us to go over, shoot me an email Jordan, j r da n at Jordan law, FL com. Like I said, you know, we had people do the merging businesses, we had someone asked for the separation of business or the lead partner leaving types or anything along those lines, let us know you know, we want to make sure that we’re getting the stories out there that are most helpful for you all. And then we’ll end this podcast the way that we end or I guess, well, In this video, we and all the rest of them if somebody pays Oh, actually now before we do that, can you give us the contact information again?
Unknown Speaker 42:41
Yeah. 407-648-1881 is our main office line in College Park. ww Karen partners calm that’s ke r o n. Partners. plural.com. Its partners with a Z. Just kidding. Yes. It’s an S So that’s how you can reach out to us Rob like and housing. I’m the only one in town with that name lgn ha USC and you can reach me, LinkedIn, Facebook, all the above. happy to speak with anybody about transitions about the business about entrepreneur, anything you want to talk about. Happy to talk.
Jordan Ostroff 43:16
Alright, so now that we’ve got that, if somebody remembers nothing that you’ve gone over with them for the last 40 minutes, yeah. What’s that one piece of advice? You want as many business owners as possible to know.
Rob Legenhausen 43:28
Great working on the business, not just in the business? Oh,
Jordan Ostroff 43:34
Unknown Speaker 43:36
That’s, that’s a great one. It’s right from E myth. It’s, if you haven’t read e myth, it’s like a super short read. It’s like that big. The whole concept is about don’t get caught up in the day to day activity so much. You know, for us, it’s selling investments, right. step back and look at what we mentioned earlier, packaging the company to sell it down the road. What’s the exit strategy, so be Working on the accounting be working on the marketing be working on the team members you know don’t just get caught up in the day to day so much and any of our lawyer listeners I like the E myth non the real regular e myth a lot better than like the E myth attorney book. Oh, I didn’t know they had one just for lawyers.
Jordan Ostroff 44:16
Yeah, I don’t know if that’s the only specific one he has but I’m just sitting here like too many lawyers run their law firm not like it’s a business and like you just read the original one if you want to read the letter one afterwards great, but I think I got a lot more out of the the regular one I don’t know what the
Unknown Speaker 44:31
that’s really cool. I didn’t realize that maybe they have one for phase. I could say something I didn’t know that. But you know, and it’s funny you mentioned that you’ve done a great job with working on your business and I’ve seen you with the podcasts and with it’s about time you had me on during the during the videos, doing the stuff doing the marketing company, you know, you’re very active on Facebook and social. So you know, you’ve done a great job with that. You know, I’ve been a lot of buddies and clients that are that are in law and you know, really smart guys gals but they’re not always great at working on the business. They’re all good working in the business. But you know i mean bringing in being a Rainmaker is a completely different thing than like being able to read a contract right or to do law so it’s you know, you got to have both.
Jordan Ostroff 45:15
So we have a we break it up as miners binders and grinders. So your miners, your CEO, your you know, top of the person coming up with the ideas, your binders, the one generating the clients, bringing them in, have them sign up their grinders, the ones doing the legal work. I love it.
Rob Legenhausen 45:28
It’s awesome. I’m not heard of that one yet.
Jordan Ostroff 45:30
Yeah. All right. So emeth work on your business, not in your business, at least as much as you can. That’s it. Yeah, the work has to happen wonderfully. But the more you work on the business itself, the easier it will be to do a great job in the business. Hundred percent. All right. Thank you so much.
Rob Legenhausen 45:47
Thank you, Jordan. Thanks, guys. Happy Friday.
You’ve been listening to let’s get up to business from Jordan law. We hope you’ve enjoyed the podcast. would consider sharing the show. We would also love an honest five star review through iTunes, Spotify, Stitcher, or whatever pod catcher you use. If you are interested in being a guest on the podcast, please contact producer Mark through email that mark at Jordan law f l.com. Use this subject line podcast guests in your email. Thank you. We look forward to speaking to you again soon.
Jordan Ostroff 46:42
it’ll drop on Thursday.
But whatever. It’ll be Friday, the next day.
Transcribed by https://otter.ai