068 - David Hori - Stay Interviews - Keeping Employees Engaged скачать в хорошем качестве

068 - David Hori - Stay Interviews - Keeping Employees Engaged

Overview David Hori is an experienced business buyer and operator with over 25 years of expertise, particularly in acquiring and growing profitable local companies in the $3M–$15M revenue range. Unlike typical private equity players, David emphasizes preserving founders’ legacies, valuing employees, and sustaining company culture. He has participated in multiple successful exits, including for companies acquired by Toyota and Opendoor. Key Insights 1. Exceptionally High Staff Retention in M&A • David’s team achieved an impressive 95% employee retention following a large acquisition, far above the industry norm (typically 20–25% attrition in the first year). • Factors contributing include: o Timing the closing near the new year, a period when employees are less likely to leave. o Investing considerable time in one-to-one benefits mapping to assure acquired employees their benefits and job conditions would remain unchanged. o Establishing a Culture Ambassador program: existing employees serving as mentors and guides (“big brothers”) to new hires to ease uncertainty and foster belonging. o Executives visiting acquired company sites and producing welcome videos to build excitement and convey inclusion. o Messaging focused on growth and the value of the acquired employees, directly addressing headcount and redundancy fears. 2. Personalized Understanding and Support for Employees • Conducting “stay interviews” starting from top-level managers downward to learn employees’ motivations, risk factors, and career aspirations. • Leveraging this data to tailor roles and incentives, encouraging internal mobility and engagement. • Recognizing that retention can be enhanced by offering alternative roles (e.g., moving from individual contributor to management) or flexible schedules. • Incentive alignment is critical: creatively structuring rewards and remuneration tied to individual drivers and business outcomes rather than simplistic pay raises. 3. Founder “Exit Box” Concept • A novel framework discussed is the “Exit Box” - understanding a founder’s vision for life after exit. • Due diligence includes discussing identity ties to the business, legacy concerns, care for employees/customers, and personal goals. • Highlighting potential risks if founders have no clear post-exit plan (e.g., loss of purpose). • Proactively encouraging founders with personal goals or hobbies, such as trips or projects, planned post-transaction to create a positive transition. • This human-centered approach prepares all parties for successful long-term outcomes beyond the deal closing. 4. David Hori’s Background and Focus • David brings a deep background in VC-funded startups and rapid scaling. • Recently shifted focus to buying and growing businesses himself, leveraging his operational skillset. • Focus areas for acquisition: o E-commerce businesses selling physical goods ($3M–$15M revenue). o Water-related services in the Intermountain West US, such as well drilling and pump maintenance-an underexploited sector with less acquisition competition. • In some cases, David coaches owners who feel stuck at revenue plateaus rather than pushing immediate sales, offering frameworks and partnership options to spur growth. 5. Strategic Collaboration and Market Intelligence • Craig Keegan offers extensive analytical services producing detailed roll-up and industry reports, valuable for buyers targeting specific industries and regions. • David expressed enthusiasm for these tools, recognizing the advantage of data-driven buy-side diligence. 6. Personal Development and Teaching • David involves his young daughter in understanding business and acquisitions, simplifying complex concepts to make them accessible-a testament to his passion for education and legacy. • Discussed value in teaching foundational skills like sales, law, and physics early in life.   Strategic Themes • People are the most valuable asset during and after acquisitions. • Human connection, culture preservation, and clear communication build trust and reduce costly turnover. • Understanding personal motivators and life goals creates win-win retention and exit strategies. • Founders need support envisioning life beyond their companies to avoid post-exit difficulties. • Acquiring businesses with scalable operations (owner independence) positions buyers well. • Growth coaching can be an alternative to premature sales, extending business value creation. Next Steps (for Buyers and Operators) • Implement culture ambassador programs during integrations to boost retention. • Conduct comprehensive “stay interviews” to understand and align employee goals. • Develop founder exit planning tools like the Exit Box to integrate personal goals and legacy. • Utilize in-depth industry/location reports for targeted acquisition sourcing. • Consider coaching as a strategy for owners considering exit but open to growth. #CraigKeegan #MAProfits #DEC #DECSGB #DavidHori #ToplineOperators #AcquisitionTargets #MandA