Welcome to CEOs. You should know I'm Adam West and with me is Brian Slipca True North and True North Family of Companies the CEO. Right, yeah, correct, thanks for being here today. Great to be here, Adam. We're gonna talking a little bit about True North. What are the True North Family of companies. Well, True North is really a collection of twenty plus businesses across multiple industries and sectors. We really have five work streams.
We got the m and A workstream which most of the folks in the Minneapolis marketplace, no, no, pretty well, that's the Sunbelt Business Advisors and True North Mergers and acquisitions. And then you have the transportation workstream, where of eight transportation and logistics companies all around the Upper Midwest that makeup to Senka workstream. The family of private main streak businesses. Those are manufacturing, distribution,
and quite a few other types of businesses that's been fun. Those are the heartbeat of America kind of companies. Then you have the True North Sports which is which is my Sioux Falls Cans as well as Pillbox Pillbox bat company out of Winona, Minnesota that MLB licensed bats that are pretty pretty cool. And then the last, the last work stream is on our Capital, so capital finance, where specialty finance provider across the entire country. I came my
backgrounds. I came from tcf UH and have that capital finance background and brought that over to on our Capital. Launched on our Capital three years ago and now we're one of the fastest growing capital finance companies in the US. Well, diversified, a lot of tentacles, Yeah, a lot of fun, a lot of great people, a lot of great UH partners and leaders within the businesses, and it's just been a it's just been a blessing all the way through. Yeah, networking must be a piece of cake for you.
It's just people, tons of people out there. Yeah, well there are there's not usually many folks I talked to where there there's not some sort of connection or some sort of interruptability or activation that we can make together. So it's it's it's it's been a lot of fun of the last handful of years. So what led you to where you currently are? The you know, the CEO of True North and all these all these different companies are all these
different things that you do. Well, you know, just like a lot of people have in life, they go through they go through life, and they're like, hey, what what am I chasing? Right? And And one of the things that I started to realize when I was climbing the corporate ladder and and and being in different parts of the country, traveling all around, was, you know, this question kept kept coming up. What am
I chasing? And what really filled my cup or gave me energy was the more I helped people, the more I stirred people, and the more I helped people grow and realize their dreams, the more fulfilled I was. So what started to emerge through my career in my thirties, Um, you know,
I'm in my mid forties. So what started to emerge in my thirties was this notion like, how do I put myself in a position I'd always been fairly entrepreneurial, but I was in a corporate realm, and how do I how do I transition into a more entrepreneurial setting where I can help fulfill that? Right? You know, I'm more fulfilled, but then I can help other people a lot too. So really, our collection of companies really helps business owners, helps business leaders in multiple ways. And it's I tell,
I tell folks all the time. I don't ever feel like I'm working. I mean this, I worked, right, I quote unquote work. I'm a lot, but I don't feel like I'm working. It's it's a freedom based model. Every day. Which one was your first with? Which of those areas was your first? Wouldn't? Well? You know the quick story is my my dad again, what are you chasing in life? Yeah? My father, My father asked me on his deathbed. He died of cancer about ten years ago. He asked me that question, Brian, what
are you chasing? You're traveling all around the country, You're doing you're doing well financially, professionally and all that stuff, But you know, what are you chasing in life? Because I was kind of complaining to him about you know, corporate America and all that and and uh, and he said,
why don't you go after these? When I say go after like, go acquire or go work with or invest in these heartbeat of America businesses where the people just work hard, they grind, they toil every day, they don't complain a whole heck of a lot, and they just work hard. And that resonated with me. So after his passing, that's That's when I really got going with the True North vision. And the first company was a manufacturing company up in Anoka, still owing it to this day, still part of
it to this day. And then moved into a transportation business, and then moved into some other businesses and handful of businesses. Still had a day day job, a corporate job, and then finally moved into, um, this is a full time pursuit about five years ago. Are you guy that makes quick decisions? Because I think about the things, the very little few things that I've involved with takes a while to kind of noodle it over, and
I've imagine you have to think really quickly on your feet. I'm a calculated risk person, but then but then I'm a ready, aim, fire kind of guy. Yeah, looks good, feels good. You know, um, you know it checks enough of the boxes, let's go. Yeah, I got that feeling. How have you seen your business or these businesses, these different parts of the business change over the last five years. Well, there's been a dramatic shift. I mean you think think about what's happened in
the last five years. I mean it isn't an amazing you. You had this ecoignment that was going pretty gangbusters, and then COVID brings it to a grinding home and then business as we know it has been redefined and people have had to regrip, reposition, start over. Um. It's just a little bit of everything and all the issues that that the pandemic created in the wake, you know, wake of it and um and so it's things have changed
dramatically. I think the small business uh that that you know and the family of companies I represent and lead have a unique opportunity to to help really help
our lead our country. You know, I tell people this all the time, but the heartbeat of America, the small business drives almost half of the GDP, and yet it's it's oftentimes neglected in the in the overall conversation at the national level, right And so I think, you know, bringing more awareness to that even in the twin cities around around the heartbeat of America and how we really drive the US economy, that that that's what gets me excited.
So when you think about the last five years, I think that notion and that concept has really started to be elevated and people are starting take notice of that small business really has a chance to help lead our country. Speaking of small business and you talk about mergers and acquisitions, and I know I've I've done some work for Sunbelt talking about you know, when people are ready to exit. Tell me a little bit about that, because it is a
lot of small business owners that's their pride and enjoy. How do you work through some of the emotional parts of that. Yeah, I mean the m and a part of our family of companies is really where I spend a lot of my time and a lot of a lot of the general public knows knows us the best, and that's the Sunbelt Business Advisors as as you mentioned. And really there's this tsunami of boomers, baby boomers that are transitioning their life's
work. And so when you ask that question, it's, you know, there's this huge opportunity for us to come alongside through our our collaborative approach and really help these folks transition their life's work in a meaningful and thoughtful and empathetic way. And and there really hasn't been that thought partner, thought leader that
they've had to lean on over all these years. I mean a lot of these boomers were trying to retire before there was in two thousand and eight and nine, and yet then the recession hit and they're like, you know what, We're just going to hang on for a few more years. Well now fifteen years later they're saying, Hey, I need to retire. I'm in my seventies or whatever the case may be. And I think they just need to come alongside folks that they trust, and that's that's where we that's where
we really help guide them through the process. And I think there's a huge opportunity for us to do that in a greater extent the next few years. I'm guessing you see some of these companies, maybe they were thinking about retiring five years ago or kind of wining, trying to wind things down, and then COVID happened, and some of them are more successful maybe now than they were before for sure for sure. And so when you when you had the
conversation with them, is hey, what do you want? You almost got to separate the financial decision from the human decision, Because the financial decision you're gonna always be able to justify ways as a business owner to hold the business a hit another handful of years, especially successful ones why because they're making money, So so to part with that is parting with a profit machine right or flow machine correct. On the other hand, it's like I want to spend
time with my grandkids. I've had some health problems, or I'm going through a life change, or I'm just getting older and I'm as I'm not as hungry as I used to be, or frankly, my business is making a lot of money, but it's been stuck in neutral for the last ten years. And what it needs is a young you know, young young professional to come in and really really invest time, energy and effort and passion that I've
sort of lost over the last ten twenty years. Like those are the types of conversations we're having to really help them, come alongside them and separate those decisions. Uh. And what we ultimately will find is it's actually financial is important, Like they need to they need to get a fair price and a top dollar price. And frankly, some belts, no one's better than some
belt are helping helping our clients get that top price. However, it's really understand their human reasons for selling, because the human reasons really drive deal structures or really drive m you know who who who the buyer is those types of things, because so often to these sellers, you know, they they care about their their employees and some of them maybe you still are a part of
it later and I'm assuming yep. And now there's new regulations coming through with the SBA effective August first of this year, where there's going to be the ability for the SBA to finance partial, partial transitions and just different different structures that make it a lot more creative, which I believe will be a huge online for sellers to really start to transition their life's work more intentionally and quicker.
So huge opportunity there. We talked a little bit about the last five years and kind of talking about what you you know, how that all works. Now, how about the next five years. You know, I think the next five years are going to be us executing on what we just spoke
about. We're really helping these business owners transition their life's work. I think the Trune North Holding Company will participate in that as a buyer in some strategic cases, but generally speaking, it's really helping come alongside those owners and being opportunistic to really really highlight the power of the Upper mid West work ethic, to highlight the the the the ability of the small business to really drive the
the economy in a greater way. And I think the more that our country and nation and local leaders and all that stuff starts to start to realize and see how much value the small business drives the economy, it's again there's that's another onlock. That's a huge onlock and a competitive advantage for the Upper Midwest. I like when you see I mean, I'm from the Upper Midwest.
I'm from here, from the Twin Cities. I mean, is that a noticeable difference among people in the industry, Like that whole work ethic thing, is it or is it just something we make up? You know? I think no, it's definitely. There's definitely an element of truth to the to the the heartland, right and and I say highlands, the Upper Midwest, all the way down down to you know, down to Texas. I mean, you get that heartland of the US that a really strong work ethic.
I'm not and I'm not trying to to to say anything less about the coasts, but but there's a uniqueness about us in the heartland. And and I think that we out of raising our b raising our hands saying hey, like we're here to we're here to help. We're here to take on more responsibi. It's a huge opportunity for economic boon in the US, and so from an overall national perspective, I just think we have a huge opportunity. We're talking to Brian Slipke, the CEO of True North and the True North family
of companies. So I, um, maybe I should have asked this first. I asked about the next five years, But how about the next year? Because things are changing super fast, oh boy. I mean, even the way the market has changed with interest rates, the inverted yield curve for
banks, which changes the financial sector dramatically. I mean, I just came from a meeting this morning with a with a leader of a of a community bank, multibillion dollar community bank where where they're you know, they're short term, their short term bar and is more expensive than long term borrowing. I mean, that doesn't make any sense in the global economic realm. But but it but you know, eventually it'll correct itself, right, but how long?
And in the meantime, what does that mean for the consumer? What does that mean for the business owner? What does that mean for the borrow or what does that mean for the lender? I mean, like the like the banks, I mean, the banks are gonna have to hold on, you know, because the inverty yelker is going to create a margin compression that
will last. And So from a from the layman's terms perspective, does that mean for those who are listening, Well, it means that, like there's gonna be more of a ill liquidity, an icing up of access to capital over the next year or two, so specifically the next year. So what I've been telling everybody, there's a flight to quality going on. And so
what does flight to quality mean? Will flight to quality means that there's like the business buyers, for example, who have capital, who have cash, are going to be in in a great, great advantage over the ones that are traditionally using leverage to borrow. Right, flight to quality means means that that people are gonna start making choices that are less about cheap money or like like hey, I got a really hot interest rate on this deal or whatever
I'm doing, and they're gonna go after smart money. Flight to quality. Smart money was smart money. I mean, I mean it might mean I pay more or for the cost of capital. However it's more flexible, it's more the terms are better you know that sort of thing, And that's that's what you're gonna see a lot of You've already started to see it, but you're gonna see a lot more of that trickle down and ripple down to the consumer. What would be an example of leverage if you don't go to the
capital route, if you the leverage part of it. Well, so, I mean from a leverage perspective when I'm talking about is like when you're borrow. When you're borrowing, you're using leverage to create purchasing power. So like when you when you I'll just again try to try to make it makes sense
for the consumer. Right, So, if you're buying a house, Okay, you're going to pay more higher interest rate based on where the market is right now, Right, However, could could there be a solution that provides a better better terms to still help you on the cash flow side of it? Right? That's that's what I'm telling you. That's more smart money. Right. You're you're gonna pay for it later. Don't get me wrong.
It's not like you still have to pay for it later, but there's gonna have to be um things emerge that help help the the You know, all of us, uh create that, you know, continue to have that velocity of of flow happen. You read a lot, don't you. I read a lot of Uh, I read a lot of like the Wall Street Journal. I read a lot of um, you know, uh current events type of things. Yeah. I read full books, but I do it through
audible at about one point three one point four speed. But probably the most important is all you know, the financial stuff and like you said, current events and stuff like that. Yeah. Yeah, I mean I think I think if our if, if our um, if the general population could educate themselves more on some of the current events and the and and how how money flow works and just just simple economics, I think I think our nation would be in a much better position moving forward. And frankly, this is a
political stuff. This has nothing to do with politics. This is just more education. Um. This is just us, us being smarter um relative to the to the global environment. And I think I think we'd put ourselves in a really competitive advantage. You probably have a team you lean on a little bit for some of this. Absolutely, I mean I have a great team. I mean, you know, when I think about like sun Belt or trun Earth mergers and acquisitions. I think of Chris Jones, who's who's fairly
well known in the community. He's a president of sun Belt and he's done a great job leading in that company company for many many years. We've done a really good job together as partners to really grow that business. When I think about some of the other lines of business, like Honor Capital Shay Houston, I got a great the holding company. I got a great administrative team that's that's led by very seasoned veterans, and so that helps me scale.
So I can stay above the fray and really focus on strategic and directional goals and objectives and not get meyer down and a lot of the details right, And that's the only way you can scale. I mean, think about even in life, right, I mean, it's gonna be really hard to scale or take on more if you if you are doing more, right, So, how do you actually um, how do you actually produce more by doing
less? And like what's your highest and best use. I'm a real big believer in culture and a real big believer in reducing displaced energy in life, right, So, like a lot of these contemplations, as being a CEO is is managing like life skills like that. Yeah, frankly more than like the business side. Interesting. Yeah, so it's yeah, you do have to be the human as well at the end of the day. You can't just be focused on the margins and and all that stuff. Yeah for sure.
I mean and culture, the culture. We have culture creeds a lot of our companies just so we all kind of agree to, hey, this is what we're chasing. Ready break, I mean some belt for example. I love talking about some belt because some belt we have a culture creed that's
so real. It's it's it's it's really built around helping people and successful follow So if you really take a mindset where you walk in the office every day where you're you're committed to helping people, so you aren't thinking about yourself. In fact, your steam of yourself, you don't think less of yourself, like your steam is really high, but you just your thoughts aren't on yourself. Think about how transcendent that is to really helping people into advance productivity and
and and and helping people achieve their goals and dreams. And so that's one of the reasons why some belts you know, tripled, you know, production over the last you know a handful of years is because like people are realizing that, people are seeing that where our heart is is to really help people and and and it's crazy how success success follows. How do you cultivate that culture? Can you can you intentionally make it happen or does it just have
to sort of come about organically? Wouldn't do you do anything special? Well, we have a chief culture office for Ben Utech, former former Super Bowl champions for the Yeah, so Ben, Ben's Ben's been a great part of that. UM. But but Ben always talks about and I do as well, talking about how hey, culture is either by design or default. So
I'd rather have it be by design. So we're very intentional about having a culture where we're UM, where we're talking about servant leadership over and over and over, and we check our we check our ego at the door, we check our um, you know, our our self our self ambition at the door to help others and and really continuing to focus on that every day. UM. It's again it's head transcendent sort of results primarily for for the folks
that we serve, and and that's that's what it's all about. So there's really no way to answer that other than just it's very intentional, you know, it's by design. And over time, you know, folks that really subscribe to that mantra and that mindset will rise and do really really well. Those that don't will dissipate, and eventually we'll work themselves out of the organization or just won't be uh, they won't realize their potential, but they'll be.
They'll they'll be frankly just outpaced by by those that do. You do some fun stuff in there though, too, I mean you know, oh yeah, I mean, I mean, I mean for sure, I mean, uh, just just on a personal front, you know, like we uh, you know, one of the one of the one of the assets that's part of the holding company is the Sue Falls Canaries, the base minor league baseball team, um and some of the other things that we do. So whether we have events like at a baseball game, we're big, we're
big believers and shared experiences. You know, you've build in a relationship through shared experiences. So think about that, you know, So what does that mean in the business world? While like we're during the pandemic, when everybody's working from home and keeping their distance, think about it. You aren't having shared experiences. You are at through zoom. So if you already had had a relationship, zoom and teams and all those, you know, those are
just fine. That that perpetuated relationships, but you weren't able to build relationships. So what we were intentional around during the pandemic to the extent we were allowed and we're able to. We still maintained a lot of community during the pandemic, face to face, and I think that separated us. That allowed us to build a relationship. And uh, we continue to focus on that too. So yeah, we have like we've finished out our we readed our
office at some belt a few years ago. We put a putting green at at our at our balcony. Why because shared experiences. You know, when you bring a client, let's go put and talk for a little bit. That's a shared experience, right, Let's go have a cocktails and conversations at the office, which we have a handful of times throughout the year, but formally, but then informally we probably have it two or three times a week. I mean, that's like those shared experiences are real and this this isn't
anything new for a lot of business owners. Or business leaders. But what I think what is different is the focused intentionality to do it and UM and that that that that again allow us for us to have transcendent sort of success and impact. So that's what makes your company is a great place to work. And yeah, yeah for sure, I mean, I mean, I just a great place to work. Some Belt has been honored in the last handful of years again to as one of the best places to work in the
Twin Cities. I mean, that's why we focus on shared experiences. Uh, we're gonna we're gonna recognize as as the largest and most successful by the International Business Broker Association, Uh, the most successful office in the US. And and that's by number of transactions. And again that's not by accident, that's by design, right, that's been are very intentional by by thinking less of our you know, of selfish ambition and more on others and and that
and that's UM, that's been a huge differentiator for us. How many people work for you, Well, it depending upon how you look at all the companies. But when you when you factor in people, um, whether it be UM just all the all the different companies, it's it's over a thousand. I mean across all the businesses UM and those those extend into different states and whatnot as well. But um, uh the sun Belt Truth M and A office has about sixty five professionals that are that are tied to the organization
and uh and uh we're growing. So I mean that's that's been a fun, fun part to talk about. I think the at least the names sun Belt is known throughout the community, what the baseball team is as well, those tu falls can areas and um, probably all of them. How do you guys get out in the community? How are you? How are you known? Medling in the business world, but just by anybody out there?
Yeah, I mean I think where where we've really started to uh garner attention is through our frankly philanthropy and UM focus on community, focused on giving, focus on giving back. Um. You know, I look at what we did from an impact perspective. We did an impact report for twenty twenty two
across all the businesses. I mean I reflected on that impact report. What became abundantly clear is that that we're frankly probably almost too it can never be too generous, but but like we have such an intentionality around being generous that that you look up and you're like, wow, like we did a lot of good work. And so now it's it's almost getting to the point where we're being known more as like a philanthropic sort of arm in many circles and
in areas than we are just being being business leaders. And and well that's right or wrong. I don't really care. I just I want our heart to I want our hearts and our intent to shine through. Like our our focus isn't on ourselves, it's not really helping others. That's great. Um, what's one piece of advice you've gotten from somewhere or you thought about you'd like to just you know, lay on somebody that would be helpful for anything
could have been. You know when you're first starting this, you know, the time right after your dad passed or two right now? Yeah, that I went right to I went right to that when you ask the question, uh, that question, My dad asked, what, Brian, what are you chasing? Because think about every morning when you wake up as a human, we're all chasing something like we're all we're getting up to go to work. We're getting up to and why are we getting up to go to work?
To provide for our families or you know, whatever the case may be. Or we love our job and we can't wait to you know, provide helful self fulfillment. So it's different for for all sorts of different people. But just to ask that question and to solemn lyns and really, um, just as you ask yourself that question, just what am I chasing? And just be self aware and be honest with yourself. I think that's probably the
best advice I ever got. And and to be able to share that with other or is like and have them self reflect I think is critical and important for today's today's society, probably more than ever. And um, what else would you like to people to know about True North and the True North family of companies? You know, I just directionally speaking, you're going to see us, I believe, continuing to grow and be a prominent part of the
community. I do believe that we we represent the heartbeat of America in so many different ways, whether it be the companies we run and operate, whether it be the M and A firms that we where we help people in that in that heartbeat area of the economy. Uh. And I think you're just
going to continue to see us as advocates for for small business. You're going to continue to see us give back in the community in multiple ways, be more involved in things that provide fulfillment for folks, whether it be you know, like the world of sport, whether it be the world of uh, you know, advancing just different nonprofit pursuits and uh. And I look forward to meaning a lot of people in the community in the years to come.
But but I think the one, the one overarching theme would be the question, you know what, what are we all chasing? Because if we can answer that, you know, the world's gonna be a better place? Are you guys hiring always? Always we're looking for quality, right yeah? Yeah, absolutely, And and and I um, that's one of the greatest stories I have coming to quote unquote work every day is being able to talk to
people and seeing where we can help them let their light shine. And a lot of companies will will focus on, hey, we need to we need somebody for this role, for this task, for this specific purpose. And I really like that person, but can they do that role? We when we bring in people, we assess through through a multitude of of of systems and processes. We go through whether it be the interview process or some behavioral essential things we have them inventory, they take on themselves. How can we
let their light shine? In fact, how can we bring out the best in them? I think that's a fundamental difference from like corporate versus small business. Right, So we're we're hiring the human. We're not hiring for the role. So that's that's now. It's never it's never exact, right. I mean, we still have to we have things we have to have done, but but by and large we're hiring you know, the human and how can we let their light shine more than we are hiring for like a specific
task. So that's that's a difference. So we're doing a little preview before. Brian, you mentioned something about speed of trust. What exactly does that mean? You know, speed of trust is one of those things that we all encounter as as as human beings, as being in a relationship with others. And so a speed of trust, when you think about a competitive avantage in the marketplace, is if you have the foundational element of trust. You know, wow, how powerful is that? How and how critical it is
to grow a business with people? Right, So at the turnour family companies, we really focus on establishing trust. In other words, we call the speed of trust. How are we at establishing trust, speed of trust as quickly and efficiently as possible, reducing displaced energy, establishing that foundational element of
trust, because with trust you can do almost anything. And frankly, and you look at what we've done over the last three four years and how we've grown all these different businesses, it's because of the speed of trust we've been able to scale in a really efficient way without having a lot of displaced energy. So that's that's really so then the intentionality around focused on trust. How do you do that? You build in a relationship. How do you build
a relationship through shared experiences? How do you create share experiences? You got to create a culture that's intentional. All of that is billion blocks to to do what we've been doing. Give me a quick example of displaced energy or is it just energy that's not really maximized? Displaced energy. Let's see when I when I get up, when I get up and look look for like that shoe, that a pair of shoes that I wanted to wear this morning, I can't find it. To me, that is displaced energy. So
managin in the time. It wasted time. So think about in the workplace when you're fumbling around trying to be efficient with trying to solve some problem like you know, you can't find a file on your share drive, right or things like those are all displaced energy. So how what are we doing to be intentional about, you know, reducing displaced energy. Well, it's having systems and processes that are that are like a wire frame. Right. You
guys remember Bob Ross. Yeah, so that all right, So I'm gonna get I'm gonna tell a story in Bob Ross. Okay, Bob Ross. When you would watch Bob Ross as I did as a kid, Bob Ross would be all soft and gentle, and he'd be he'd be he'd be just starting to paint and whatever and and and he'd it was crazy. I mean, he's an artist. But what you would realize through every episode of Bob Ross is that there was a system and there's a process to create his art.
So that's the point, right, is you still need even if even if we're all artists, everything we do in life is art, right, but within that, there's systems and processes to make that aren't beautiful, to make us unique and so so that that extends into this whole concept of um of really ethering we're talking about to be able to scale and grow and all that and and to reduce displaced energy. Great analogy as far as some about
business advisors. So when you you sit down with somebody, you're talking about, you know, what's going to happen with their company if they're exiting? What is sort of the what what's the biggest thing that business owners struggle with? The biggest thing they struggle with is is, uh, a couple things.
But but they're they're kind of tied together this whole one more year, like if they're if they're running profitable businesses, just one more year, one more year, and they look up, it's been fifteen years and now there
in their mid seventies. That's a problem, right, But part of that is closely tied to legacy, and they really care about their legacy and transitioning a business in a manner that doesn't impact their employees, doesn't impact the success of their you know, their business or their customers that they care deeply about. And so you know, we you try to take a position of stewardship.
We're stewards we're stewards of their business, right so how can we as a as a as a transaction advisor UM as an intermediary help them transition this this legacy and be a steward of that to the next buyer and then also me as a buyer with some of the businesses we've acquired, you know, making sure we're that we focus on stewardship of their desires, like their their hopes and dreams for that company, for their legacy, for their employees,
for their customers. Those are the those are the big things, all right. If you like what you hear right now and you're thinking, I've got a company that maybe you know, we want a sunset or you know, uh, move along, or maybe just want to know more about the True North family companies, how do people get a hold of you? Well, I mean you can definitely go to Sunbelt Midwest dot com. That's the Sunbelt
website. If you're a business owner looking to transition your life's work TNMA dot com, True North Mergency Acquisitions dot com UM is another way to do it. Also, our Trunoorth Equity Partners is our kind of our holding company, and you'll be able to get in touch with us without any problem, all right, Brian Slipkat, CEO of True North and the True North family companies, thanks so much. Yeah, thanks having for having having me appreciate it.