So you work for a midsize company. All of us want to do better in our job. There is a personal satisfaction from doing good work. There is another component-–meeting the expectations of your boss. In a midsize company, that’s usually the business owner unless it is a public company or it’s owned by a private equity group. Would it be useful to get into the mind of the midmarket business owner? Might that help you in your job? Well, I found somebody who has personally owned 45 midmarket companies and has dealt with thousands of business owners.
I interviewed Rob Slee, founder of Midas Nation, a network of advisors who help business owners create more value in their business. He has written the most authoritative book on the private capital markets where the midsize companies raise capital and get bought or sold. If you are looking for platitudes or fluff talk, you won’t hear it from Slee. He tells it like it is. So, if you want some unvarnished insights into the mind of the midmarket business owner, jump in, strap your seat belt, open your mind and get ready for a wild ride on Midmarket Radio.
In the interview, Slee talks about the motivations of business owners of privately owned companies. He examines when the companies are started and reach a revenue threshold that adequately supports the lifestyle of the owner. Slee notes than many business owners are not interested in increasing the value of the business beyond that point.
He also discusses the differences in the mentality of the millennial business owner versus that of baby boomer owners. Millennial owners don’t generally see the business as a lifelong venture, rather something that they build and sell. On the other hand, many baby boomer owners have an attachment to their business because of the long association and also because their personal identity is often tied to the business. How much of a fun job and latitude you, as an executive in such a firm have, will have depends on the owner and their motivations.
A majority of midsize businesses in America are owned by baby boomers. Many have their life’s savings in their business. You’ve heard about the pronouncement that $10 trillion of equity will change hands over the next 10 years. How many of these businesses do you think will actually sell given that sellers will outnumber buyers, particularly as the cost of capital increases and easy credit becomes scarce? Also, many business owners will be unable to sell their business for a multitude of reasons, including the business’ overdependence on the owner, inflated owner valuation and the poor state of the business. Have you wondered about the kind of business you are working in?
Of course, many midmarket companies are publicly owned, private-equity-owned or are non-profits. The situation with those companies is different.
If you’d like to hear Slee’s interview and more of his insight, you can listen to my podcast www.midmarket.org/midmarketradio. Additionally, you will find one new CEO or midmarket expert interview every week on Midmarket Radio.
Ram V. Iyer is the President of the Midmarket Institute in Princeton and host of ‘Midmarket Radio’. The Institute helps midsize companies identify and overcome important challenges by sharing insights in original and curated content (articles, whitepapers, presentations, videos, podcasts and guides), solutions and tools - online (www.midmarket.org), on the rad
Ram V. Iyer is the President of the Midmarket Institute in Princeton and host of ‘Midmarket Radio’. The Institute helps midsize companies identify and overcome important challenges by sharing insights in original and curated content (articles, whitepapers, presentations, videos, podcasts and guides), solutions and tools - online (www.midmarket.org), on the radio and at in-person events.
