E238: Overcoming Setbacks: How Landon Mance Mastered Industrial Service Business Acquisitions - Watch Here

About the Guest(s):

Landon Mance: Landon Mance is the co-founder of Backbone Planning Partners and a seasoned acquisition entrepreneur. He has a strong background in wealth management, particularly focusing on helping small and medium-sized business owners grow their enterprises and maximize value. Landon is also an active investor, having recently acquired Nevada Tree Service. Aside from his professional ventures, he is a dedicated family man and an advocate for enriching human connections.

Episode Summary:

In this captivating episode of the How to Exit Podcast, host Ronald Skelton engages in a vibrant discussion with Landon Mance, co-founder of Backbone Planning Partners. The episode uncovers Landon's unique journey from a family background woven with entrepreneurial spirit to his current endeavors in acquisition and wealth management. Landon shares intriguing insights into the acquisition of Nevada Tree Service and the strategic decisions behind it, shedding light on the intricacies of managing and scaling a blue-collar business.

The conversation dives deep into the challenges and triumphs of acquisition entrepreneurship. Landon elaborates on the importance of understanding business fundamentals and preparing for unexpected financial hiccups. He emphasizes the value of retaining experienced employees during transitions and outlines the significance of leveraging professional guidance in wealth management. This episode is a must-listen for aspiring entrepreneurs and seasoned investors alike, offering nuggets of wisdom on strategic business growth, acquisition tactics, and the indispensable human aspect of business relationships.

Key Takeaways:

• Acquisition Strategy: Landon stresses the importance of understanding the business fundamentals and the necessity of bringing in experienced operators to manage day-to-day activities.
• Financial Preparedness: The episode highlights the critical need for comprehensive financial planning, especially when leveraging debt for acquisitions.
• Human Connection: Landon underscores the value of genuine human connections and their role in business success and personal fulfillment.
• Growth Challenges: Insights into managing unexpected expenses and cash flow challenges post-acquisition are discussed.
• Professional Guidance: The importance of holistic financial advisory services to ensure both business growth and personal financial stability is emphasized.

Notable Quotes:

1. "I love entrepreneurship. I love the idea of acquisition entrepreneurship via an acquisition as opposed to starting something. I don't think I'll ever start something again in my life."
2. "A lot of small business owners that have experienced some level of success, they are beholden to their lifestyle."
3. "Building up the cash reserves means that you got to take less cash out of the business, mister or misses business owner."
4. "I have a really interesting perspective because I get to see the up-to-date financials for, you know, call it 20 successful small businesses."
5. "Human connection is just such an important part of being a good human and being a good business person."

Article:

Excelling in Entrepreneurship: Insights from Ronald Skelton and Landon Mance

Key Takeaways:

• Strategic Acquisition: A well-considered acquisition strategy can offer substantial growth opportunities, evident from Landon Mance's success with Nevada Tree Service.
• Sound Financial Management: Understanding and maintaining sound financial practices, including judicious borrowing and reinvestment, are pivotal for sustained business growth.
• Human Connection in Business: The value of building strong human connections cannot be underestimated, both in business transactions and personal growth.

Navigating the Landscape of Acquisition Entrepreneurship

In the thrilling world of mergers and acquisitions, Ronald Skelton and Landon Mance stand as noteworthy figures, offering insights into the highs and lows of entrepreneurial ventures. In their recent conversation on the How to Exit podcast, Skelton, the host, delves into Mance’s dynamic journey, spotlighting key lessons from his experience as a co-founder of Backbone Planning Partners and an acquisition entrepreneur.

Strategic Acquisition: The Nevada Tree Service Case Study

Landon Mance's successful acquisition of Nevada Tree Service serves as a prime example of how strategic planning and execution can lead to fruitful entrepreneurship. Initially drawn by the robust financials and market presence of the company, Mance and his partner made a calculated move to acquire the tree-trimming business.

"I was really interested in it… A tree trimming business in Las Vegas, where I live, came on the market… and ended up closing on the acquisition of Nevada Tree Service on June 1 of 2023," Mance shares.

The strategic aspect of his acquisition was not just about purchasing a business but understanding its core strengths and leveraging existing talent. By recognizing the quality of the crew and the business’s solid foundation, Mance ensured a smoother transition and immediate operational efficiency.

Investing significantly in the business, rather than adhering strictly to the widespread notion of acquiring with minimal down payments or leveraging high debt, Mance ensured financial stability. His cautious approach enabled sustainable growth, crucial for long-term success.

Sound Financial Management: Balancing Debt and Growth

An essential theme from the conversation revolves around the principles of robust financial management. Mance’s decision to inject substantial equity while acquiring Nevada Tree Service underscores the importance of maintaining a healthy balance between funding and operational capital.

"We put 550,000 of equity in, and then we financed the remaining… Our principal and interest payment is about 16 and a half month," Mance explains, highlighting the pragmatic approach of leveraging finances without overburdening the business.

This adherence to sound financial strategies emphasizes the need for business owners to thoroughly understand their cash flow cycles and avoid excessive debt. Over-leveraging, as discussed, can lead to severe cash flow issues, especially in businesses dependent on cyclical revenues.

Additionally, Mance’s observations about witnessing challenges faced by other acquisition entrepreneurs due to high debt stress the importance of cautious financial planning. This holistic understanding of financials, both personal and corporate, is instrumental in ensuring business viability.

Human Connection in Business: Building Relationships for Success

Beyond the numbers and strategic maneuvers, the conversation reveals the profound impact of human connections on business success. Mance emphasizes the invaluable role that personal interactions and relationships play in driving business and personal growth.

"Human connection is just such an important part of being a good human and being a good business person… I'm gonna make an effort to get on an airplane and go out and connect with some people," Mance shares, illustrating his commitment to fostering deeper relationships.

This emphasis on connecting with people transcends business and taps into the core of entrepreneurial success—understanding and empathizing with stakeholders. Whether it's partnering with a friend to manage a new acquisition or prioritizing client relationships in wealth management, Mance’s approach highlights the significance of trust and rapport.

In his wealth management firm, Backbone Planning Partners, this philosophy extends to offering personalized, comprehensive financial planning and business strategy services, ensuring clients feel valued and understood.

Recapitulating the Insights:

Ronald Skelton and Landon Mance’s dialogue presents a treasure trove of insights for aspiring and seasoned entrepreneurs alike. From the intricacies of acquisition strategies to the pillars of sound financial management and the irreplaceable value of human connection, each takeaway offers a lesson in excellence.

Through strategic and cautious acquisitions, like that of Nevada Tree Service, entrepreneurs can achieve sustainable growth. Simultaneously, maintaining keen financial discipline ensures businesses thrive without succumbing to the pitfalls of debt. Finally, embedding human connections within business dealings not only fosters success but also enriches the entrepreneurial experience, reinforcing the essence of trust and collaboration in business.

By integrating these philosophies, entrepreneurs can navigate their ventures with astuteness and emotional intelligence, paving the way for both financial success and personal fulfillment.

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