E220: From Corporate to Trailers: Shane Ehrsam Discusses His Journey to Trailer Dealership Ownership - Watch Here

About the Guest(s):

Shane Ehrsam is a seasoned business operator and entrepreneur specializing in mergers and acquisitions within the B2B services sector. Raised by entrepreneurial parents, Shane began his career studying entrepreneurial management in college before spending eleven years climbing the corporate ladder in an industrial uniform provider company. After being laid off in 2021, Shane pivoted to business ownership, acquiring a three-location trailer dealership in the Dallas-Fort Worth area. Today, Shane actively manages this operation while discussing growth strategies and sharing insights on entrepreneurial journey and business management.

Episode Summary:

In this engaging episode of the How2Exit podcast, host Ronald Skelton sits down with Shane Ehrsam to delve deep into the world of mergers, acquisitions, and the hands-on experience of operating a business. Shane shares his journey from being laid off during a corporate restructuring to successfully acquiring and managing a multi-location trailer dealership. Interlaced with practical advice, Shane's story highlights the importance of perseverance, informed decision-making, and operational excellence in the entrepreneurship acquisition landscape.

Shane Ehrsam provides an in-depth look into his strategic approach to identifying and acquiring the right business. From leveraging his experience in the B2B services to navigating the complexities of SBA loans, Shane's journey is filled with invaluable lessons for aspiring business owners. He emphasizes the significance of understanding the business fundamentals, building strong relationships, and being a hands-on operator to ensure smooth transitions and sustainable growth.

Key Takeaways:

• Entrepreneurial Background: Shane's upbringing in a family of entrepreneurs and his extensive management experience laid the foundation for his successful transition into business ownership.

• Effective Search Strategy: Utilizing a combination of personal outreach and education programs, Shane efficiently identified and acquired a viable business within a few months.

• Navigating SBA Loans: The importance of understanding and working closely with multiple banks during the deal-making process to secure favorable financing terms.

• Employee Relations: Smooth transitions involve clear communication and building trust with existing employees to maintain operations and morale.

• Growth and Expansion: The potential for geographic expansion and professionalizing sales processes to double or triple business revenue while enhancing customer and employee experiences.

Notable Quotes:

1. "For me, it was like, all right, I've decided I'm going down this path, so let me absorb all the information as fast as I can so that I can go out and execute a search with as much efficiency and as quickly as possible." - Shane Ehrsam

2. "Look for those things where I can help in that way versus changing the technical aspects of anything that we did." - Shane Ehrsam

3. "I very much love what I do. It's very rewarding work. I will never, knock on wood, I will never go back to a large corporation as an employee." - Shane Ehrsam

4. "I wish I had unlimited funds for a number of reasons, but a big part of that is so I can continue to invest in searchers." - Shane Ehrsam

5. "I'm long on Texas. I'm long on trailers." - Shane Ehrsam

Article:

Inside the Acquisition Lab: Journey to Buying a Trailer Dealership with Shane Ehrsam

Key takeaways:

• Operational Focus: Emphasizing the importance of deep operational involvement during the early stages of acquisition to better understand and refine business processes.

• Strategic Relationships: Building robust networks with lenders and within the business community to streamline acquisition processes and aid business growth.

• Employee Buy-in: Prioritizing employee relationships and satisfaction during and after the transition to ensure smooth operations and continuity.

Exploring the Origins: From Corporate to Ownership

In the How to Exit Podcast, host Ronald Skelton converses with Shane Ehrsam, revealing a compelling journey from climbing the corporate ladder to owning a thriving trailer dealership. Shane’s story is rooted in a rich entrepreneurial background. Raised with parents who owned a home care franchise, Shane always saw himself aspiring to be a business owner one day. After earning a degree in entrepreneurial management and a subsequent 11-year tenure climbing the realms of industrial uniform services, he set his sights on real business ownership.

In a twist of fate, a restructuring layoff in 2021 became the catalyst for his foray into acquisition entrepreneurship. With a severance package in hand and a bookshelf graced by Harvard Business's guide to buying small businesses (a gift from his father), Shane was poised to take the leap. His next logical step led him to Walker Deibel's Buy Then Build methodology, eventually becoming part of Walker's Acquisition Lab.

Reflecting on this journey, Shane highlights, “I knew that my severance was going to run out and I wanted to replace my income... I had decided I’m going down this path, so let me absorb all the information as fast as I can so that I can go out and execute a search with as much efficiency and as quickly as possible.”

Building a Robust Search and Acquisition Strategy

Shane's path was methodical. He did more than just scour databases; he dedicated substantial effort into creating relationships. By leveraging both automated email campaigns and cold calling brokers, Shane built a solid foundation for his search. It was through one such broker cold call that he stumbled upon a lucrative, yet-to-be-listed trailer dealership.

“Hey, I sent you an email. Just wanted to introduce myself... do you happen to have anything that fits that criteria?” Shane recounted how a casual cold call turned into uncovering an ideal acquisition target – a three-location trailer dealership in Dallas Fort Worth.

After 30 days of negotiating the letter of intent (LOI) and another 90 days in closing procedures, Shane sealed the deal with an SBA loan. This thorough approach, aligned with his prior relationship-building with lenders, enabled a faster, smoother transaction.

To all aspiring acquisition entrepreneurs, Shane advises: “You can't know enough bankers and lenders, especially when you're starting out... even once you're in business, your needs might change and you need to have those banking relationships."

Effective Employee Integration and Retention Strategies

Transition post-acquisition is often fraught with tension, especially among employees. Shane adopted a symbiotic approach, ensuring continuity and confidence among the workforce. When introduced as the new owner, he tackled the inherent apprehensions head-on by working closely with employees, understanding their pain points, and treating them as indispensable assets.

“It took several months, and proving to them that I was going to keep my word and I was going to do the things necessary to improve the business,” Shane reflected regarding his initial days as an owner.

A strategic move was his decision to hold off on any changes for the first 90 days, giving himself time to understand the business intricacies and proving his stability to the team. After the evaluation period, he rewarded them with off-cycle raises and continued identifying growth areas.

His rapport-building extends not only internally but also externally through active engagement in customer appreciation events and trade shows. Recognizing the significance of a localized 'in-town' dealership model, Shane’s hands-on, personable approach has significantly augmented employee satisfaction and customer loyalty.

The Road Ahead: Growth, Expansion, and Vision

Sustaining a business, especially one acquired, is an ever-evolving journey. Shane not only manages his dealership’s daily operations but also explores avenues for growth. As he strategizes on doubling or even tripling his business, the focus remains on enhancing operational efficiency and building stronger client relationships.

“We're going to continue to have more and more businesses, more and more residents, more and more construction... there's a lot of room for us to grow,” Shane revealed, underscoring his optimism for geographic and industry-specific expansion.

By delving into his firsthand experience, Shane’s journey personifies the balance of strategic planning and adaptive execution. His persistent pursuit of knowledge and commitment to integrated relationships stands as a testament to the power of tenacity and engagement in the SMB acquisition space.

Shane’s story is inspiring for potential acquisition entrepreneurs: a profound blend of learning, networking, and operational involvement, ensuring a business thrives not just on spreadsheets but through cohesive, collective effort.

---- MORE COOL STUFF ---

Are you ready to take your podcast listening to the next level? Subscribe to "DEEPER by How2Exit" newsletter and never miss out on our latest episodes. Join our  newsletter  HERE

Want to stay in touch with what's happening in the Main Street M&A Space?  Subscribe to Growth & Acquisitions(Formerly The Hub)