WEBVTT - EYL #112 Big League feat. Darrell Freeman Sr. 0:00:00.040 --> 0:00:03.600 An illegal alien from Guatemala charged with raping a child 0:00:03.680 --> 0:00:07.480 in Massachusetts. An MS thirteen gang member from Al Salvador 0:00:07.720 --> 0:00:11.840 accused of murdering a Texas man of Venezuelan charged with 0:00:11.920 --> 0:00:15.840 filming and selling child pornography in Michigan. These are just 0:00:15.920 --> 0:00:19.680 some of the heinous migrant criminals caught because of President 0:00:19.720 --> 0:00:23.320 Donald J. Trump's leadership. I'm Christy nom the United States 0:00:23.320 --> 0:00:28.120 Secretary of Homeland Security. Under President Trump, attempted illegal border 0:00:28.160 --> 0:00:31.680 crossings are at the lowest levels ever recorded, and over 0:00:31.760 --> 0:00:34.960 one hundred thousand illegal aliens have been arrested. If you 0:00:35.040 --> 0:00:38.920 are here illegally, your next you will be fined nearly 0:00:39.000 --> 0:00:43.000 one thousand dollars a day, imprisoned, and deported. You will 0:00:43.040 --> 0:00:46.680 never return. But if you register using our CBP home 0:00:46.720 --> 0:00:50.120 app and leave now, you could be allowed to return legally. 0:00:50.479 --> 0:00:55.240 Do what's right. Leave now. Under President Trump, America's laws, 0:00:55.400 --> 0:00:57.840 border and families will be protected. 0:00:57.920 --> 0:01:00.000 Sponsored by the United States Department of Homeland Security. 0:01:01.200 --> 0:01:05.160 All right, guys, welcome back. Ey L is still in Atlanta, 0:01:06.000 --> 0:01:08.520 enjoying our time out here. And this is a this 0:01:08.600 --> 0:01:12.040 is a very special episode for a few different yes, yes, yes, 0:01:12.120 --> 0:01:19.759 so dal Freeman really, dal Freeman Senior, this is gonna 0:01:19.760 --> 0:01:22.600 be an interesting conversation because so if your loyal listeners 0:01:22.640 --> 0:01:26.760 are your leader, you know that we interviewed Swimming Husky. 0:01:27.440 --> 0:01:30.760 Shout out to the whole team. So those guys have 0:01:30.800 --> 0:01:35.520 a unique pizza operation that they're running, and they're from Nashville, Tennessee. 0:01:35.560 --> 0:01:38.880 But now they have they have a shop in Memphis, 0:01:38.959 --> 0:01:40.959 they have a couple of shops in Atlanta. They just 0:01:41.000 --> 0:01:44.160 opened the Sacramento shop and that we were talking about. 0:01:44.160 --> 0:01:46.920 You know that they're more than just restaurant tours there. 0:01:47.480 --> 0:01:49.320 They have the real estate played behind it and all 0:01:49.360 --> 0:01:52.960 of that. So when we did the episode, I guess 0:01:53.000 --> 0:01:57.960 one of the guys have must forwarded to yeah, mister 0:01:58.040 --> 0:02:00.640 Freeman and turns out that he's at one of their 0:02:00.680 --> 0:02:02.600 mentors and business partners. 0:02:02.600 --> 0:02:03.480 I just learned as well. 0:02:03.960 --> 0:02:08.400 So that started the conversation of like, yo, yah should 0:02:08.400 --> 0:02:09.000 interview him. 0:02:10.800 --> 0:02:13.200 Was like he's the old Okay. 0:02:13.639 --> 0:02:14.480 So it's like all. 0:02:14.480 --> 0:02:18.160 Right, so keeping in the Nashville We've interviewed a few 0:02:18.160 --> 0:02:19.000 people from Nashville. 0:02:19.000 --> 0:02:23.520 Now out there we got snoop. 0:02:22.200 --> 0:02:28.200 Right now, go to the plane part two. 0:02:29.000 --> 0:02:30.400 You want to talk about first. 0:02:30.400 --> 0:02:32.680 So this is the first time somebody flew into the 0:02:32.680 --> 0:02:36.160 interview now commercial like literally like, hey, I'm leaving Tennessee 0:02:36.320 --> 0:02:38.480 with my plane to fly to Atlanta right now. 0:02:38.800 --> 0:02:40.760 He did. That's the first he did. He did. 0:02:40.840 --> 0:02:45.119 He flew, he flew himself private plane to the airport, 0:02:45.520 --> 0:02:47.640 did the interview, and then he's going Ferrari shop. 0:02:48.000 --> 0:02:50.200 So it might be for this. 0:02:51.680 --> 0:02:59.400 Dal Freeman so serial entrepreneur, founder of Zecon Zikon Computer 0:02:59.560 --> 0:03:03.200 computer Services and is an IT company. He actually sold 0:03:03.480 --> 0:03:06.480 to BG Staffing. I started in nineteen ninety one, sold 0:03:06.480 --> 0:03:10.120 it in twenty seventeen for twenty three million dollars three million, 0:03:10.240 --> 0:03:11.040 twenty three million. 0:03:11.040 --> 0:03:12.799 You break it down for you, okay. 0:03:13.000 --> 0:03:17.320 Twenty nineteen million cash making their stock and a three million. 0:03:17.120 --> 0:03:21.320 Dollar okay, came to twenty twenty three million, has two 0:03:21.360 --> 0:03:25.480 thousand dollars in it that you startarted with. That's a good, 0:03:25.520 --> 0:03:27.519 great return, I know. 0:03:27.880 --> 0:03:30.600 I mean there's a stock broke in here somewhere that 0:03:31.440 --> 0:03:32.440 put those numbers. 0:03:33.800 --> 0:03:35.960 Don't let that go over you, please don't, please don't. 0:03:36.960 --> 0:03:39.800 He's also the co founder of Relyant Bank. He is 0:03:39.840 --> 0:03:44.080 a real estate investor, big time real estate investor. He 0:03:44.200 --> 0:03:49.880 is the co founder of Pinnacle Construction partners. He also 0:03:50.000 --> 0:03:55.480 is a chairman of S three asset recycling solutions company. 0:03:55.840 --> 0:04:00.560 Anything I'm missing, Troy uh. He has a two dollars 0:04:00.680 --> 0:04:05.560 general he competed, he completed, not competed, completed ten iron 0:04:05.600 --> 0:04:06.160 Man races. 0:04:06.800 --> 0:04:11.160 Yes, I mean, and and he's a his stock investor. 0:04:13.800 --> 0:04:15.400 So I think we got it all. 0:04:16.560 --> 0:04:21.919 I'm trying to hit the table. So yeah, his reputation 0:04:22.200 --> 0:04:25.000 precedes itself. So first and foremost having me thank you 0:04:25.040 --> 0:04:26.200 for joining us. I was just about to say thank 0:04:26.200 --> 0:04:29.839 you for joining us, no problem. So let's jump right 0:04:29.880 --> 0:04:31.479 into it because this is an interesting conversation. I was 0:04:31.480 --> 0:04:35.680 telling you, we've never had anybody that has sold their business. 0:04:35.680 --> 0:04:39.240 We've had a couple of people that's been offered, you know, buyouts, 0:04:39.240 --> 0:04:41.800 but they haven't taken it. So you've actually built, You 0:04:41.880 --> 0:04:43.720 built a business, and then you sold the business, and 0:04:43.760 --> 0:04:45.720 now you're in the process of actually helping other people 0:04:45.760 --> 0:04:47.880 in teaching them that game. 0:04:47.960 --> 0:04:49.760 Right, So can you. 0:04:49.720 --> 0:04:53.000 Walk us through that that first process, because it's a 0:04:53.000 --> 0:04:55.480 long process. From nineteen ninety one to twenty seventeen, that's 0:04:55.520 --> 0:04:58.200 a long process. But how did what was that steps 0:04:58.200 --> 0:05:01.120 into building that business and then selling that business? 0:05:01.279 --> 0:05:04.400 So I started the company in the office the size 0:05:04.440 --> 0:05:07.159 of a closet, with two thousand dollars in savings, my 0:05:07.200 --> 0:05:08.040 wife's credit cords. 0:05:08.480 --> 0:05:11.680 You're still married to it. Rights lost a couple of 0:05:11.760 --> 0:05:13.240 credit cards a long way, but we got them back. 0:05:15.360 --> 0:05:19.760 So it went from one person to about three hundred people. 0:05:20.920 --> 0:05:24.480 And the main things that when you're building a business, 0:05:24.839 --> 0:05:28.560 you want to build stability, You want to build you 0:05:28.600 --> 0:05:30.960 want to get customs with long term contracts. 0:05:31.800 --> 0:05:33.160 You want to create a history of. 0:05:33.160 --> 0:05:37.719 Performance, and you want to build a business around people, 0:05:38.360 --> 0:05:41.839 not around yourselves, around yourself. And so what happens most 0:05:41.880 --> 0:05:46.000 of the times is the entrepreneur builds the business around 0:05:46.120 --> 0:05:51.360 his or herself. And so I built the business from 0:05:51.440 --> 0:05:54.240 nineteen ninety one to somewhere in two thousand and six 0:05:54.360 --> 0:05:57.479 or seven. I built it from ten thousand and sales 0:05:57.520 --> 0:06:01.400 to about sixteen million in sales. But I recognized that 0:06:01.480 --> 0:06:04.080 I couldn't take it any further because I didn't have 0:06:04.080 --> 0:06:08.920 the skill set. Oftentimes entrepreneurs are the CEOs because they 0:06:08.960 --> 0:06:12.000 started the company, but they were really not qualified to 0:06:12.000 --> 0:06:14.800 be the CEO. So I really wasn't qualified to be 0:06:14.839 --> 0:06:17.800 the CEO. But since I owned off the stock, I 0:06:17.839 --> 0:06:20.760 was the CEO. But I recognized one day when I 0:06:20.800 --> 0:06:25.280 built this team of great people and the sales were 0:06:25.279 --> 0:06:28.400 stagnant for a couple of years, I recognized it wasn't 0:06:28.400 --> 0:06:31.080 the people that I built around me, that it was 0:06:31.160 --> 0:06:36.279 me that was the problem. And so I fired myself. 0:06:37.320 --> 0:06:40.120 So in building a business, don't build it around yourself. 0:06:40.200 --> 0:06:44.240 Build it around people. Get loan, you know, be it 0:06:44.279 --> 0:06:48.960 for long, long term contracts. Build it around people, established 0:06:49.440 --> 0:06:55.479 long streams of revenue. So I fired myself and I 0:06:55.600 --> 0:06:58.800 hired a CEO of a company that was one of 0:06:58.800 --> 0:07:03.200 our competitors, and he had been with a company that 0:07:03.600 --> 0:07:08.600 had gone from zero to over one hundred million, and 0:07:08.640 --> 0:07:12.000 so I offered him the presidency of role at my company. 0:07:13.200 --> 0:07:16.680 And so now you got this nice little package that 0:07:16.840 --> 0:07:20.360 is not built around you that people are starting to 0:07:20.360 --> 0:07:22.640 look at and say, man, I could buy that team 0:07:22.720 --> 0:07:27.200 and that company. It's not Darell Freeman. It's actually a 0:07:27.200 --> 0:07:30.120 company that stands on its own. So he took it 0:07:30.160 --> 0:07:32.880 from sixteen million to about. 0:07:32.640 --> 0:07:35.280 Forty million a year a year. 0:07:35.640 --> 0:07:38.640 Okay, sixteen I'm sorry, sixteen million a year in revenue 0:07:38.880 --> 0:07:41.960 to about forty million a year in revenue. Our conversations 0:07:42.000 --> 0:07:45.600 would go like this. I would say, why don't we 0:07:45.640 --> 0:07:48.680 try this? I was a chairman. He would say, he 0:07:48.720 --> 0:07:51.840 would say back to me, when I tried that at 0:07:51.840 --> 0:07:53.720 the other company, this is what happened. 0:07:55.040 --> 0:07:57.280 So he came to the table with. 0:07:57.240 --> 0:08:01.560 A bunch of experience, right, And so I built a 0:08:01.600 --> 0:08:06.480 company around people got long term contracts. I had an 0:08:06.760 --> 0:08:11.720 outstanding accounting department, because you need to have numbers. They 0:08:11.840 --> 0:08:14.880 need to be they need to be numbers that are 0:08:15.280 --> 0:08:18.040 all your TC's across all your ic to be dotted 0:08:18.720 --> 0:08:21.520 every year. Even though I didn't have to. I got 0:08:21.520 --> 0:08:24.600 a certified audit. I got all our numbers outed it 0:08:24.720 --> 0:08:25.280 every year. 0:08:26.000 --> 0:08:26.360 And so. 0:08:27.800 --> 0:08:33.320 When we got to about forty million, we got it 0:08:33.360 --> 0:08:34.920 was like a We got to forty million, but we 0:08:34.920 --> 0:08:38.640 couldn't get any higher. And I recognized at that time 0:08:39.160 --> 0:08:42.560 I had the forty million dollar team. I didn't have 0:08:42.600 --> 0:08:45.800 the hundred million dollar team. It is before when I 0:08:45.840 --> 0:08:48.560 was leading it, I had the sixteen million dollar team. 0:08:49.080 --> 0:08:51.040 But for me to go from the forty million dollar 0:08:51.080 --> 0:08:52.960 team to the hundred million dollar team, which was my 0:08:53.040 --> 0:08:58.120 goal goal, I wouldn't need to replace those team members, 0:08:58.440 --> 0:09:02.520 but those team members like family to me, and so 0:09:02.600 --> 0:09:06.800 I decided at that point, as opposed to bring it 0:09:06.840 --> 0:09:11.000 in a whole new team, that it was time to sell, 0:09:11.880 --> 0:09:14.320 it was time to exit. And it was a perfect 0:09:14.360 --> 0:09:18.400 point because many of our contracts were at the beginning 0:09:18.440 --> 0:09:21.840 stages where they had their most value, and we had 0:09:21.880 --> 0:09:25.160 a long history of stable customers that we had built, 0:09:25.960 --> 0:09:30.920 and we had built it even though I'm an African American, 0:09:31.440 --> 0:09:33.840 I did not build a black company. 0:09:34.440 --> 0:09:37.319 I built a quality company. And so. 0:09:38.840 --> 0:09:42.720 When you do that in the marketplace and you create 0:09:42.880 --> 0:09:50.040 cash flow and consistent ebitdah, people recognized Green. So I 0:09:50.080 --> 0:09:55.040 approached a a banker here in Atlanta and said, we're 0:09:55.040 --> 0:09:59.000 interested in selling, and we talked about the business and 0:09:59.040 --> 0:10:01.640 what it needs. You know, what needs to change in 0:10:01.679 --> 0:10:03.199 the business, et cetera. Accept and I said, hey, I 0:10:03.240 --> 0:10:06.680 can make those adjustments. And so we put the business. 0:10:06.760 --> 0:10:10.000 We went through a process with the banker. Now, choosing 0:10:10.040 --> 0:10:14.120 the banker is that's a very important decision because you 0:10:14.160 --> 0:10:16.280 want to choose the best banker for your industry. So 0:10:16.320 --> 0:10:20.320 I chose the best banker for the information technology staffing industry. 0:10:20.640 --> 0:10:23.400 A banker that was selling two or three businesses a month. 0:10:24.440 --> 0:10:26.880 I mean they were they knew who the buyers were, 0:10:27.000 --> 0:10:29.280 they knew who was who would be interested. They knew 0:10:29.320 --> 0:10:30.360 how my business should look. 0:10:30.520 --> 0:10:32.640 And so how does that search process work? 0:10:32.760 --> 0:10:34.719 Right, Like, if I'm a person that has I want 0:10:34.720 --> 0:10:37.240 to sell the company, how do I know, like this 0:10:37.320 --> 0:10:38.560 is the best person in the industry. 0:10:38.800 --> 0:10:39.960 So I interviewed them. 0:10:40.120 --> 0:10:42.000 Okay, I interviewed them. 0:10:42.240 --> 0:10:44.240 So I wanted to see who was the best in 0:10:44.280 --> 0:10:46.400 the business. So I called a couple of VC funds, 0:10:46.760 --> 0:10:49.720 uh VC people and they said, well, if we're buying 0:10:49.760 --> 0:10:52.040 a company, we normally will buy it from here. And 0:10:52.120 --> 0:10:54.840 so we found a guy by the name Alan Bugler, 0:10:54.960 --> 0:10:56.520 Child's advisor here in Atlanta. 0:10:57.040 --> 0:10:57.800 He was terrific. 0:10:57.840 --> 0:11:00.800 I mean he you know, he brought he brought the 0:11:01.640 --> 0:11:05.040 So we put the package together. He brought the players 0:11:05.040 --> 0:11:08.400 to potential buyers at the table, and we met with them, 0:11:08.440 --> 0:11:09.679 had drinks with them, talk with them. 0:11:09.720 --> 0:11:10.199 The first time. 0:11:10.280 --> 0:11:13.840 The first offer was like fourteen million dollars, and I said, guys, 0:11:14.679 --> 0:11:15.400 here's the other thing. 0:11:15.559 --> 0:11:18.280 You gotta know what your value is. I knew that 0:11:18.320 --> 0:11:18.880 wasn't the number. 0:11:19.880 --> 0:11:21.520 You walked in with it in your mindset. 0:11:21.800 --> 0:11:24.080 So how do you value Because all right, so if 0:11:24.120 --> 0:11:26.439 you if you're making if the company is making forty 0:11:26.480 --> 0:11:31.400 million a year gross gross, right, right, So how did 0:11:31.480 --> 0:11:33.800 you decide? Because I always heard this like like was 0:11:33.840 --> 0:11:36.640 it ten times the net that you're bringing in? Is 0:11:36.640 --> 0:11:38.079 that like a rough hand. 0:11:37.880 --> 0:11:40.840 No, So it varies, but it varies by industry. 0:11:41.000 --> 0:11:44.040 So in the staffing business, at that time, business was 0:11:44.400 --> 0:11:49.400 businesses were selling for anywhere from five to seven times 0:11:49.440 --> 0:11:57.960 ebitdah and that uh, income before taxes, interest, appreciation and 0:11:58.360 --> 0:11:58.880 some other. 0:11:59.520 --> 0:12:01.559 Okay, that's happening. 0:12:02.320 --> 0:12:05.080 So where they where they they. 0:12:04.520 --> 0:12:05.440 Kind of level out. 0:12:05.920 --> 0:12:07.800 You know, what the business is worth if you take 0:12:07.840 --> 0:12:10.240 out if you take out what you paid in taxes, 0:12:10.240 --> 0:12:13.240 what you paid out and depreciation, what you paid out 0:12:13.480 --> 0:12:16.160 I think I said taxes, what you put out an interest, 0:12:16.360 --> 0:12:18.960 and so it kind of puts the business on a 0:12:19.040 --> 0:12:21.400 level playing field. So you strip all those things out 0:12:21.640 --> 0:12:24.720 and find out what the actual cash flow of the businesses. 0:12:24.840 --> 0:12:28.480 And so in our business, I sold it for about 0:12:28.520 --> 0:12:30.240 five six times ibad. 0:12:31.480 --> 0:12:33.800 Uh and so that's what it was true. That's a 0:12:33.840 --> 0:12:34.760 lot of business was selling for. 0:12:34.840 --> 0:12:39.680 Now I am now in the recycling business information technology 0:12:39.679 --> 0:12:45.120 recycling business business. The multiple for ebadad sales for in 0:12:45.120 --> 0:12:48.840 this business is eight to fourteen times, so it has 0:12:48.880 --> 0:12:51.480 a chance to be way more valuable right than the 0:12:51.520 --> 0:12:54.559 first one. And so that's how you so you took me. 0:12:54.840 --> 0:12:57.640 You determine what your ebadat is and then you know 0:12:57.760 --> 0:13:01.360 in the marketplace what we're trades at. And one way 0:13:01.360 --> 0:13:02.560 you can do that is you can go to the 0:13:02.559 --> 0:13:04.880 stock market and find an IT company. You look at 0:13:04.880 --> 0:13:07.640 their stock and see where it's trading at the market cap, 0:13:07.679 --> 0:13:10.320 and then you look at their ebadah. Then you can 0:13:10.360 --> 0:13:14.719 capulate the multiple from that because what the market cap 0:13:14.800 --> 0:13:16.400 is what the company is selling at. 0:13:16.679 --> 0:13:20.120 So so you sold, all right, so five times what 0:13:20.320 --> 0:13:25.720 you were kind of bringing in that for layman terms 0:13:25.800 --> 0:13:28.400 kind of similar to that, similar to that, So you 0:13:28.480 --> 0:13:31.240 knew you had that twenty million dollar number. So when 0:13:31.240 --> 0:13:34.400 they came in fourteen the first offer, what was your 0:13:34.400 --> 0:13:38.840 response like, was it a negotiation or what? Just like 0:13:39.720 --> 0:13:42.280 fled out no good, okay, yah good? And how many 0:13:42.320 --> 0:13:44.319 other offers came before that twenty million? 0:13:45.240 --> 0:13:49.920 Officers came in different ranges And so sometimes people they 0:13:49.920 --> 0:13:51.720 may offer you that, they may say, well, hey, we'll 0:13:51.760 --> 0:13:55.440 give you fourteen million cash cash, we'll give you four 0:13:55.440 --> 0:13:58.040 million of our stock and another four million in earnout. 0:13:58.320 --> 0:14:02.920 So all I can about was cash, because if I 0:14:02.960 --> 0:14:05.360 took your stock and they didn't do anything, and if 0:14:05.400 --> 0:14:10.920 your stock is private, it's worseeness to me. Right, And 0:14:11.920 --> 0:14:14.520 if I took four million in earnout, earnout means I 0:14:14.559 --> 0:14:16.160 got to perform for a certain period of. 0:14:16.080 --> 0:14:21.320 Time to get that. Well, I didn't want that. 0:14:21.400 --> 0:14:26.120 I wanted the majority of the sale to be cash. 0:14:26.760 --> 0:14:29.920 And so so the. 0:14:29.120 --> 0:14:32.960 Nineteen million cash and a million of stock that was 0:14:33.000 --> 0:14:37.560 publicly traded that actually doubled when I had it. 0:14:39.120 --> 0:14:42.440 So and then we want to three million earnout. 0:14:42.480 --> 0:14:44.360 Yeah, that's the part I'm thinking about. So the earn 0:14:44.440 --> 0:14:46.200 out part, are you still working? 0:14:46.200 --> 0:14:48.200 You sell the company, but you're still working, and you 0:14:48.240 --> 0:14:50.760 have like things you need to meet, goals you need 0:14:50.800 --> 0:14:52.360 to meet to reach the three million. 0:14:53.400 --> 0:14:55.600 I'm gonna now, I'm gonna take you back to when 0:14:55.640 --> 0:14:59.760 I fired myself and hire the person the earnout. So 0:14:59.800 --> 0:15:05.520 it was nineteen million cash on April third and a 0:15:05.600 --> 0:15:09.840 milligan stopped. Then a three million dollar earnout that was 0:15:09.880 --> 0:15:15.840 over a two year period based on the company's performance. Right, 0:15:16.160 --> 0:15:20.320 And so since I had a team in place, I 0:15:20.320 --> 0:15:23.920 didn't have to go and do that performance. Because we 0:15:23.960 --> 0:15:26.800 had a team in place that was running the company. 0:15:26.880 --> 0:15:31.640 And when the when BG Staffing bought my company, I 0:15:31.720 --> 0:15:35.400 explained to them that I had a CEO and a 0:15:35.440 --> 0:15:38.360 great management team and that they ran the company that 0:15:38.480 --> 0:15:41.480 I didn't. And so they put some targets out there 0:15:41.520 --> 0:15:44.200 for us to hit, for the team to hit get 0:15:44.240 --> 0:15:44.960 to the three million. 0:15:45.360 --> 0:15:48.520 I have one hundred million dollar team, definitely the US. 0:15:48.560 --> 0:15:50.480 They hit the numbers. I got the three million. 0:15:51.320 --> 0:15:53.440 Now what I also did when I sold the company, 0:15:53.440 --> 0:15:54.800 there was a there was a group of people that 0:15:54.840 --> 0:15:56.360 had been with me for a long time. 0:15:57.240 --> 0:16:00.080 Ask about that. 0:15:59.200 --> 0:16:00.520 They built me for a long time. 0:16:02.200 --> 0:16:04.600 And I had a good friend of mine who started 0:16:04.600 --> 0:16:06.760 the company with me back in nineteen ninety one, who 0:16:06.800 --> 0:16:11.240 had retired a whole bunch of years back. And so 0:16:11.600 --> 0:16:13.720 I called them all into a room and I said, 0:16:14.240 --> 0:16:15.680 you all have been with me for a long time. 0:16:15.720 --> 0:16:18.000 I remember I just got the wire. And I said, 0:16:18.760 --> 0:16:20.880 here's a check. Here's a check for you, a check 0:16:20.920 --> 0:16:24.120 for you, a check for you, big checks that they 0:16:24.120 --> 0:16:31.280 ain't never seen before. And then one individual has two 0:16:31.360 --> 0:16:36.160 he had two small kids, and I said to him, 0:16:36.200 --> 0:16:37.240 I said, I know why. 0:16:37.080 --> 0:16:40.000 You're working, because he was my age. You know why 0:16:40.040 --> 0:16:40.400 you're working. 0:16:40.400 --> 0:16:43.840 You got two small kids. You're working because college fund, 0:16:43.880 --> 0:16:45.360 et cetera, et cetera. I said, what I want you 0:16:45.400 --> 0:16:48.280 to do is you go home to your wife and 0:16:48.360 --> 0:16:50.320 you find out from her what it's going to take 0:16:50.720 --> 0:16:53.120 to send your two kids to college. These kids for 0:16:54.400 --> 0:16:57.800 eight ten years old. You go home and find out 0:16:57.840 --> 0:17:00.120 what's going to take to send them to college. I'm 0:17:00.160 --> 0:17:01.760 back tomorrow and let me know what that number is. 0:17:02.320 --> 0:17:05.600 He went home, He came back, tell me what the 0:17:05.680 --> 0:17:08.119 number was. I told myself, go in his office and 0:17:08.160 --> 0:17:12.000 cut the check for that number. When you build a 0:17:12.040 --> 0:17:14.200 business around people, you got to take care of your people, 0:17:15.480 --> 0:17:17.080 and you got to realize that the people that are 0:17:17.080 --> 0:17:19.440 on your team, they. 0:17:19.320 --> 0:17:22.359 Are the ones that make the company valuable. 0:17:22.960 --> 0:17:23.520 It's not you. 0:17:24.600 --> 0:17:26.800 So you see all you see a bunch of companies 0:17:26.840 --> 0:17:31.400 today where they built the companies around them themselves. 0:17:32.680 --> 0:17:35.240 You can't grow that way. When everything has to flow 0:17:35.280 --> 0:17:35.760 through you. 0:17:36.680 --> 0:17:40.880 It's hard to grow, and it's not you're not building 0:17:40.960 --> 0:17:43.280 value because if you want to go sell it, they 0:17:43.440 --> 0:17:45.960 know that if you if you get hit by a 0:17:46.000 --> 0:17:49.919 bus tomorrow, you that the party's over. But if you 0:17:49.960 --> 0:17:54.320 build a team that has value. 0:17:53.280 --> 0:17:55.040 Can we go back just for a second, because I'm thinking, 0:17:55.240 --> 0:17:57.320 and I guess in twenty twelve, when you decided, like, 0:17:57.800 --> 0:17:59.439 in order for this company to grow, I need to 0:17:59.440 --> 0:18:02.359 set back to find myself. What's that process like? Is 0:18:02.400 --> 0:18:04.880 it like a you have to like weigh these things 0:18:04.880 --> 0:18:06.959 in the mirror. It's like, because I don't imagine this 0:18:07.000 --> 0:18:09.000 is like an ego check or it's a humbling experience. 0:18:09.760 --> 0:18:12.800 That's That's the other thing. You don't need to have 0:18:12.840 --> 0:18:16.480 an ego as an entrepreneur. You have confidence, but you 0:18:16.480 --> 0:18:20.399 don't need to have an ego. So I knew, now. 0:18:20.400 --> 0:18:23.399 Mind you, at sixteen million a year, I had a 0:18:23.400 --> 0:18:26.080 great lifestyle. I had a plane, but it wasn't I mean, 0:18:26.080 --> 0:18:26.400 I had. 0:18:26.280 --> 0:18:31.080 A little plane. It wasn't a plane I got now, 0:18:31.560 --> 0:18:32.400 but I had a little plan. 0:18:32.480 --> 0:18:34.119 I was thinking, like I had a car but okay, 0:18:35.640 --> 0:18:36.360 But but. 0:18:36.880 --> 0:18:38.720 It was a comfortable lifestyle. 0:18:39.359 --> 0:18:44.280 But for the people around me to grow and to develop, 0:18:46.520 --> 0:18:49.000 I needed to grow that company to help them grow 0:18:49.000 --> 0:18:50.520 and develop. 0:18:50.760 --> 0:18:52.000 You got you. 0:18:52.000 --> 0:18:54.119 You know people that have been with you for ten years. 0:18:54.280 --> 0:18:56.560 One start out as a junior accountant. For me to 0:18:56.600 --> 0:18:59.520 need a CFO, I need to grow that company so 0:18:59.520 --> 0:19:04.560 she could grow into that role. And so growing a 0:19:04.600 --> 0:19:08.080 company for me was more so about the people than 0:19:08.119 --> 0:19:13.879 the money. When when I sold the company, now I 0:19:13.880 --> 0:19:15.840 told you I started with two thousands and savings. 0:19:17.320 --> 0:19:21.360 My payroll was two My payroll was a million dollars every. 0:19:21.119 --> 0:19:24.720 Two weeks in ninety one. 0:19:24.680 --> 0:19:31.720 No, fifteen, sixteen, seventeen, it was a million dollars every 0:19:31.760 --> 0:19:36.440 two weeks. It was about the people, and so we 0:19:36.520 --> 0:19:39.840 ran a company that was about the people. I'm doing 0:19:39.840 --> 0:19:42.760 the same thing with Street Recycling Solutions. It's about the people. 0:19:44.480 --> 0:19:47.320 So when you walk away with the twenty million, a 0:19:47.320 --> 0:19:48.880 couple questions I have about. 0:19:48.560 --> 0:19:51.680 That, it's good, I assume. 0:19:51.720 --> 0:19:54.400 So I'm gonna do it again way more. 0:19:54.480 --> 0:19:58.480 I believe. I believe what is the strategy to mitigate taxes? 0:19:58.520 --> 0:20:00.960 Is that? Or you just have because it's like ordinary 0:20:01.000 --> 0:20:01.560 income right now? 0:20:01.680 --> 0:20:05.480 No, it's not ordinary income. It's uh, it's tax capital games. 0:20:05.600 --> 0:20:10.840 It's like a stock cap. Okay, but you do. But see, 0:20:11.440 --> 0:20:14.240 you go through all that math in your head when 0:20:14.240 --> 0:20:16.160 you set the number twenty million, and whatever the number 0:20:16.200 --> 0:20:18.399 you set, you set that number in your head, and 0:20:18.400 --> 0:20:20.640 then you go through. You meet with your turney and say, 0:20:20.680 --> 0:20:22.480 this is what the deal looks like. You meet with 0:20:22.520 --> 0:20:24.959 your accountant. This is what the deal's look deal looks like, 0:20:25.200 --> 0:20:27.960 and then they tell you at the end of all 0:20:28.000 --> 0:20:30.280 of that, what you're going to have. And then you 0:20:30.320 --> 0:20:32.359 go to your wife and say, Okay, this is what 0:20:32.520 --> 0:20:35.919 it's going to be, and you realize that you're set. 0:20:36.320 --> 0:20:38.960 Like if you can't go out and do stupid stuff, 0:20:39.840 --> 0:20:43.560 but if you go out and make reasonable investments, you're good. 0:20:43.960 --> 0:20:47.440 Your kids are good. And if you make reasonable investments, 0:20:47.600 --> 0:20:51.240 their kids are good. And so it wasn't a big 0:20:51.320 --> 0:20:56.359 It wasn't a and for me, unlike somebody who gets 0:20:56.440 --> 0:21:01.360 a big contract to play some sport, I had accumulated 0:21:01.400 --> 0:21:03.560 over the years all the things that we had wanted, 0:21:04.240 --> 0:21:05.840 you know what I mean, I didn't I didn't have 0:21:05.840 --> 0:21:07.600 to go out and buy another house. We already had 0:21:07.600 --> 0:21:09.439 a house. I need to go out and buy a 0:21:09.480 --> 0:21:11.320 car if we already I mean, all the things that 0:21:11.359 --> 0:21:13.800 we had wanted, all the we had ran it. We 0:21:13.880 --> 0:21:18.280 had lived a pretty simple lifestyle. I mean, I had 0:21:18.280 --> 0:21:21.359 to plane this big, but I could have afforded a 0:21:21.400 --> 0:21:24.840 plane this big, but I didn't. And so that's the 0:21:24.920 --> 0:21:28.120 other thing is stay in your lane. You always stayed 0:21:28.119 --> 0:21:30.159 in our financial lane, even though our lane may have 0:21:30.200 --> 0:21:35.400 been this big we lived in this part. So even 0:21:35.440 --> 0:21:37.239