Episode description
Jack Ogilvie, founder of Techwood Consulting, shares his experience of implementing an Employee Stock Ownership Plan (ESOP) in his digital agency. The decision to go the ESOP route was driven by a desire to do right by his employees and create a positive impact. The ESOP allowed employees to have equity in the business, providing them with a sense of ownership and the opportunity to build wealth. Jack emphasizes the importance of having the right people in leadership positions and creating a strong company culture. He also highlights the role of faith in guiding his decision-making process. In this conversation, Jack Ogilvie shares his experience of selling his business to an ESOP and then to a strategic buyer. He discusses the factors that influenced the valuation of his company, including EBITDA multiples and the importance of having a systematic and well-run business. Jack also talks about the process of selling to a strategic buyer and the importance of building relationships and networking. He shares insights on earnouts, the role of cash in deals, and the need for flexibility and negotiation. Jack emphasizes the importance of being intentional with time and finding joy in the work after an exit.
Keywords
ESOP, employee stock ownership plan, digital agency, equity, impact, leadership, company culture, faith, selling a business, ESOP, strategic buyer, valuation, EBITDA multiples, earnouts, cash deals, networking, negotiation, time management
Takeaways
- Implementing an ESOP can be a way to do right by employees and create a positive impact.
- ESOPs provide employees with equity in the business, allowing them to build wealth and have a sense of ownership.
- Having the right people in leadership positions and fostering a strong company culture are crucial for the success of an ESOP.
- Faith can play a role in guiding the decision to implement an ESOP and create a more meaningful business. Valuation of a business is influenced by factors such as EBITDA multiples and the systematic nature of the business.
- Building relationships and networking can lead to opportunities for selling a business to a strategic buyer.
- Earnouts can be negotiated to include longer earnout periods with lower targets to reduce pressure.
- Cash deals are preferable to stock deals in order to have more control and liquidity.
- Being intentional with time and finding joy in the work after an exit is important for personal fulfillment.
Sound Bites
"ESOPs provide employees with equity in the business"
"ESOPs are a cool way to share the benefit with employees"
"ESOPs are a match made in heaven for digital agencies"
"There was an old partner I had, we had some debt in the books."
"The business was a system at that point. It was a core values."
"If you guys had implemented this, something like EOS or some type of management system, did you guys use EOS?"