smallbusinessmanagement

Welcome to this insightful episode where we delve into the world of business strategy and exit planning with Allen Terrell Gregory, a seasoned expert in digital marketing and business acquisitions. Allen shares his intriguing transition from being a digital marketing consultant to mastering the art of helping business owners gracefully exit their business ventures.

Join us as we unpack the evolving trend of business exits and the vital strategies required for a successful and stylish departure. Allen reveals the importance of having robust standard operating procedures and reducing the reliance on the business owner, making a business more attractive for potential acquisition.

Hear Allen discuss the challenges in shifting the mindset of business owners to prepare for an exit and the crucial role of training and succession planning. He also sheds light on his criteria for acquiring businesses, focusing on service-based models and the buyer's perspective in valuations.

With plans to launch a comprehensive coaching program on exit planning, Allen's insights are a treasure trove for anyone interested in the nuances of business strategy and acquisition. Tune in for an episode that promises to be as enlightening as it is practical, especially for those plotting their business journey's next phase.

• Allen Terrell Gregory's transition from digital marketing consultant to business exit strategy specialist.
• The growing trend of business owners seeking to exit their businesses with proper planning and strategy.
• The importance of standard operating procedures and reducing owner-dependency for making a business sale-ready.
• Allen’s challenges in changing mindsets of business owners towards preparing for an exit.
• The role of training and succession planning in business transitions.
• Allen’s criteria for acquiring businesses, with a focus on service-based companies.
• Insights into the buyer's perspective on business valuation and acquisition.

The best creativepreneurs from LA to Boston share their perspective on what success means for their small creative business, and the best tips and tricks for someone who is looking to cultivate more success in their business.

- Jordan Zobrist, a fashion and advertising photographer and creative director based in Los Angeles
 - Sarah and Rick Pendergraft of PenWeddings, a husband and wife destination wedding videography team based in Tulsa, Oklahoma
 - Roberta West, a digital marketer who provides the resources and training for creatives who want to sell their products and knowledge and services online
 - Molly LaCroix of Molly Anne Photography, one of the best wedding photographers in New England

thesuccessfulcreatives.com

Episode 21:  Louisville attorney Parker Wornall joins Jim to discuss the work he does for healthcare providers.  His focus includes dental offices, foot and ankle practitioners, APRN practices, chiropractors, mental health practioners, adult day-care practices and others.

There are legal aspects to establishing a practice, developing the internal forms and processes, HR-related policies, regulatory compliance issues, planning for growth and eventually a sale or wind-down of the practice. 

Parker handles both transactional and litigation matters.  Ideally, he enjoys getting involved in the early stages to protect the healthcare provider and the practice.  He works to help avoid potential legal exposure. 

Entity Startup

There are both strategic and practical considerations for the entity structure.  This could include PLLCs, LLCs, PSCs and others.  There are issues surrounding non-provider members (e.g. investors, directors, practice business manager).  Due diligence for the proper structuring of shares may also need to be considered.

Parker has a network of colleagues in related fields, such as CPAs, who can also add valuable perspectives.

Compliance Checks

A thorough review of forms, policies and procedures is extremely important.  While COVID has highlighted some of the compliance requirements from governmental agencies, there are always the day-to-day issues related to the Department of Labor, Kentucky wage and hour and/or Federal wage and hour laws, the Fair Labor Standards act and more.

There are disparities between some of the Kentucky regulations and the Federal DEA regulations.  Testosterone clinics (nurse practitioner clinics) can run afoul of the various regulations because of the various requirements.

Employment Law Issues for Healthcare Providers

Your practice will often include individuals who are there to help run/manage the business.  Some may be salaried, while others could be 1099-based.  You may need to perform adequate reviews of credentials.  How you work with your employees and practitioners may also require guidance from your general counsel.

Non-compete and other restrictive covenants may come into play in the hiring of employees.  Parker can work to either defend the covenant or to prove why one may be invalid.  This can also include the protection of trade secrets (enforceable under the Kentucky Uniform Trade Secrets Act and Defend Trade Secrets Act of 2016).  The 3 common types of restrictive covenants in Kentucky are:

1. Non-Compete Agreements
2. Non-Solicitation Agreements
3. Confidentiality Agreements

Having properly drafted and executed contracts in place, before they are tested, is a smart option to reduce your legal expenses should an action need to be filed or defended.

Insurance Coverage Issues

Parker can help communicate the needs of the practice and its business plan to insurance professionals to ensure the risks are fully considered and adequately quoted.  Often, business specialists tend to look at the issues from a single perspective (e.g. insurance agents, CPAs, etc.).  In the role of general counsel for the healthcare practice, Parker can coordinate with each of the business partners to provide clarity and to maintain a focus on the overall business plan for the practice.

Hiring and Firing

Parker is very familiar with cases involving the Kentucky Human Rights Commission and the EEOC.  At times, these cases can also end up in litigation. 

An interesting issue recently surfaced deals with older employees who were either working from home or off work due to COVID.  If the practice is ready for them to come back to work, but they refuse, you may have exposure to actions under the Age Discrimination and Employment Act, the Federal Civil Rights Act and the Kentucky Civil Rights Act.  Each situation is unique and often complex.  Having proper contract verbiage and documentation can reduce the risk of litigation to the practice. 

Workplace Investigations

These can involve in-house HR professionals, or out-sourced HR resources.  However, some of instances may require the professional to see the advice of legal counsel to determine the best way to approach or handle a particular investigation.  Again, having well-drafted, comprehensive contracts can shield the practice from potential adverse legal actions. 

Medical Licensure Defense

Parker has significant experience defending the licenses of healthcare providers.  Most of the licensure issues are handled before the licensing boards.  Parker has successfully defended both doctors and nurses, as well as other medical providers.

Certificate of Need Applications

Many healthcare providers are required to apply for a Certificate of Need (CON) if they plan to expand a practice or start a practice.  Ambulatory surgical centers, adult day healthcare programs and others are typically required to show a need exists and how their expansion would impact that community need.  Parker can guide the application process.  He will represent the provider at the hearing.  In some cases, existing practices may want to prevent the expansion of a competitive practice.   

Sale, Dissolution or Wind-Down of a Practice

Healthcare providers may decide it’s time to transition the ownership of the practice.  In some instances, the provider receives an unsolicited offer to purchase.  Parker can help in the due diligence of the sale or purchase of the practice.  These transactions are highly complex and involve much more than often appears on the surface. 

There are multiple ways to engage Parker for your healthcare practice.  Fees and billing arrangements can be arranged to best meet the needs of the practitioner or practice at large.

If you’d like to contact Parker:

Phone: (502) 805-2303

Website: https://www.ccgattorneys.com

Thank you for taking the time to listen to this episode.  From more information on business-related issues, visit my website at www.JimRayConsultingServices.com.

Got Podcast?

Finally, if you’re interested in developing and launching a podcast for your business or organization, I’d be happy to help.  I provide this service on a regional basis.  Visit my podcast production services page for more information.

Until next time, remember, if you need help with your small business, Let’s Grow For It!

Episode 19:  I’m proud to welcome Dr. Frank Raymond to today’s podcast.  He’s Bellarmine University’s Interim Dean of the Rubel School of Business, the MBA Director and my former professor.  In this episode, we’ll discuss how business owners are making sense of the 2020 economy.  There’s a surprise announcement toward the end of the episode, so I hope you’ll listen in for that exciting news.

The economy is dealing with a number of important issues, including the impact of the COVID-19 pandemic, including a virtual lockdown of the economy.  At the same time the country is dealing with extreme social unrest and an upcoming presidential election. 

The June and July economic performance reports are encouraging.  While business owners are looking for certainty, we’re not out of the woods; far from it. 

The Stock Market Isn’t a Complete Indicator of the Economy

There are a lot of speculators in the modern market.  This increases the sensitivity to the news cycle.  Information moves more rapidly.  The reporting is more homogenous than in previous decades.  This results in a market that’s a bit detached from the actual performance of the broader market.

Fear of a second wave of COVID, employees not being able to return due to the closing of a business, supply chain interruptions and other factors are instilling fear in the consumer, resulting in further uncertainty for business owners who are able to weather this crisis.

This Crisis Is Different

Unlike previous crises, this is a healthcare crisis.  It’s risky to ignore the necessary mitigation steps to prevent the spread of COVID-19.  Even if your business reopens, consumer fears may prevent them from walking through your door.

The oil shocks of the 1970s, the dot com bust in 2001 and 2002, as well as the 2008-2009 banking failures were economic crises.  These each had slow, but strong recoveries.

This COVID-19 crisis is different.  We may snap back quickly if a cure is discovered.  People are now adapting to new ways of conducting business.  The adoption of tech-based solutions has accelerated a structural change, unlike the previous downturns.

The China Impact

There’s a lot of negative opinion surrounding China, right now.  Bringing jobs back from China may not be as easy as it sounds.  There’s still an increase in labor costs that must be absorbed and that negatively impacts profitability and innovation.  Meaningful change must be practical and feasible.  This may be more of a challenge that the headlines would lead us to believe.  Unless capital is cheap, it may not offset the increase in labor costs.

CARES Act Stimulus

This necessary program has added a tremendous amount of debt to the country’s balance sheet.  We can’t continue to pump in this massive cash influx.  Dr. Raymond questions where the concern was in previous years?  The impact of current stimulus is short-lived.  We need continued tax relief for small businesses, but more importantly, we need a long-term strategy.

The Payroll Protection Program and the increase in unemployment benefits were still short-term solutions. 

US Tax Policy

The US tax rates are relatively low compared to other countries.  Still, many of the tax cuts are short-term in duration.  Unless they are made permanent, it still doesn’t lead to certainty for medium to long-range budgeting and planning.

Repatriation of overseas held funds is risky.  Who makes the policies and how businesses are incentivized are important.  Still, how they are implemented is critically vital.  Individual businesses will be left to make their own decisions.  Some innovators will lead the way for a larger shift in a desired direction.

Transitional support systems need to be improved to help people understand which sectors will provide specific opportunities.  We should increase efforts in effective training and planning to enable them to get there.

Disruption is Actually Normal

The economic environment is still shifting.  Patience is an advantage, if you can afford it.  Supply chains may need to be diversified.  Your focus on expense control is paramount. 

Tax policy should be simplified to get rid of loopholes.  Level the playing field so companies can plan.

In closing, as a business owner, get back to your company’s core competencies.  Remember, during any economic downturn, many of your competitors are going to pull back, especially in marketing.  You may find opportunities to increase visibility, reach and impact by increasing your market-exposure before your competitors return.  There’s still market share to be gained in advance of an economic recovery.

Important Disclaimer:

This discussion is intended to be an informal exchange of ideas.  These ideas do not necessarily reflect the views of Bellarmine University. Listeners should be reminded that information provided by the participants is not a substitute for getting formal professional legal, financial or other advice. Listeners should seek advice from their lawyers, accountants, tax consultants, financial experts, or other professional advisors before making decisions that may impact their jobs or businesses.