When a business is sold, it can create a lot of anxiety and challenges for both the existing team and the new owners. Communication is critical to making the transition as smooth as possible so the business can continue and grow.
Today’s guest, David Nemes, is an entrepreneur and an active business investor who’s been part of several acquisitions.
On this episode of The Clarity Advisors Show, David and host Ken Trupke discuss the challenges that come with the transition to new ownership, and David talks about his experience working on bank closures.
Timestamps
(00:59): David’s background
(03:01): Ensuring a smooth transition
(04:38): Communicating before the deal’s done
(05:58): Mistakes David’s made and what he’s learned
(07:51): Building internal support
(13:13): How David got into bank closures
(17:38): Explaining loss share
(20:19): Things that work and don’t work
(23:44): David’s recommended reading and listening
(27:10): Ways to connect with David Nemes
Episode Quotes
“Walking in on Day One, you’re not the smartest person in the room.” (David)
“It’s always an awkward kind of moment because there’s fear. So, you’ve just got to really be warm and tell them it’s going to be okay and we’re going to do the right things.” (David)
“One of the things that I’ve learned is to have some industry expertise that you can bring in with you, whether that’s just someone advising or the old owner sticking around. But you need a plan for leadership transition.” (David)
“I like to say I’m a mile wide and inch deep on a lot of things, and I’m a quick learner. But there’s nuance to every industry.” (David)
“In my experience, coming into companies as an advisor, it’s helpful to build some kind of internal champions – people you can count on to tell you what’s happening. They don’t necessarily have a position, but they’ve been around long enough, or they’ve just got the respect of the people.” (Ken)
“We’re not going to be successful doing nothing. We are going to be successful doing something, even if it’s not exactly right. At least we’re trying.” (David)
“The phrase I like to use is, ‘We can’t steer a parked car,’ so let’s at least get the car moving.” (Ken)
“You have to first understand how you think and what drives you and your behaviors. You have to be comfortable in your own skin about who you are and how you operate and understand that not everyone’s going to operate there, no matter what you try to force them to do.” (David)
“There’s capital, there’s opportunity, and there’s operators. I am not an operator. I help operators reach success.” (David)
Recommended Reading and Listening
- Insights from Oak Tree Capital by Howard Marks
- Warren Buffet’s annual letter to Berkshire Hathaway shareholders
- The Mystery of Capital: Why Capitalism Triumphs in the West and Fails Everywhere Else by Hernando De Soto
Connect with David Nemes
