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Nov. 26, 2022

Ep 279: Rejection Can Protect You From Doing The Wrong Deal With Mike Ringel

Ep 279: Rejection Can Protect You From Doing The Wrong Deal With Mike Ringel

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Transcript

0:00 Hey, we're welcome to today's episode is gonna be another shorter episode. But this is about called deal breakdown recovering cool and interesting stories, we have our guest, those Mike Ringel, who is a business exit experts, so we're not talking about a cool transition that he helped a business exit out. Go ahead and start off man what you got? 0:21 Yeah, so no thanks for having me, you know, you know, we're gonna entrepreneurs, you never know what's going to happen. Right? And we talked in the last segment, you got to be what do we call exit ready, because you never know when somebody's going to come along. And we talked about, you know, one of my clients, they went from nothing and sold the business last week for over $30 million. I never see it coming. could have predicted it two years ago. But you know, sometimes it just happens. And I was working with a another company, actually a doctor group, you know, a group of doctors. And, you know, we put together some really great plans, we did a cash balance plan, which allowed the doctors to put away six figures a year get a huge tax deduction for it. Most business owners don't know what's possible, right? They know about the 401k, and the answer profit sharing to get up to about 67,000 a year. But if your business owner is making a lot of cash flow, and want to put money away, well, there are other plans called Cash Balance plans, defined benefit plans, where you could put six figures away and give a little bit away to your employees. Right. So we put a plan together, 10 years ago, the doctors are cranking they're making a ton of money. They're having a great time to grow the business. And we're about to because the laws change when we start to expand that plan. And then out of nowhere, right? An m&a company came to them, and said, We want to buy your practice for $30 million. So what do you do? Right, you're young, you're you're, you're a young doctor, you built the practice, you nailed the sale, do you not sell? And, you know, after a lot of conversation, you know, we looked at some tax strategies. And you know, it's interesting, we're going down this road, we're looking at tax strategy, we're going to save them a lot of money in taxes. And then, you know, all of a sudden, we're about I'm about to help them do this deal that's going to save them about I would say, save them, he was looking to defer taxes for 30 years, think about it. Would you rather pay $9 million in tax today? Or kicking the can down the road for 30 years? Yeah, 100%. Right. So we're about to do this plan is going to be great for everybody. Again, something you know, is worthwhile can do for you, not the price you pay. So everyone's gonna they're gonna make money, we're gonna make money. You know, and one thing I learned in my career is you never count the money until it's in your bank. 100% Yeah. And then an article in Forbes magazine came out, they said, This strategy is on the IRS Dirty Dozen. Meaning that they're looking at it, and they're looking at it hard. And here are the penalties if you do the do implement this strategy. And you never want to screw with the IRS. 3:17 No. 3:21 Well, the deal that I was putting together imploded right there, lawyers said no way we touch on this with a 10 foot pole, they wound up selling the business and paying the tax to pay the tax. And so you know, at some time, it's some time in your life, if the deal is too good to be true. If the deal is really good, you take the money off the table, you move on with your life, and you do it in such a way that you're not going to get hurt. And you know, as the the architect of the strategy to save on taxes, and the fees that will be generated. Thank goodness, I learned that you never get attached to you know, a deal. Right? You know, I know you're in real estate, have you had a deal a property fall through? 4:09 Every all the time all the 4:11 time, you can't get emotional about it. So, you know, I was like, so my kids, you know, didn't you know, didn't go to college and, you know, we we had to, you know, we couldn't buy the nicer car, but you know, I'm okay, we have our health. 4:28 You're still here today. That's all that matters. That's all that 4:30 matters. So there'll be another one there'll be a different deal something will come along that would be able to provide value but that probably would have been the biggest deal in my entire career. And I'm actually grateful that that came out this year. Because if we did the deal and then it came out next year that this our strategy hit the IRS Dirty Dozen and they look back at what we did even though everything that we do. You know I do is black and white. Yeah. If Turn around if he unraveled it, you know, it could have been devastating for the client and myself. So I'm kind of thankful that it didn't close. 5:08 Yeah. And I think for everybody that does deals out there, as I said, Don't Don't count on until it hits it don't have time in the system. And there's always more, there's always more opportunity out there. There's always more deals out there, and there's gonna be plenty of opportunity. 5:24 You know, one of the things you asked me, you know, before was, you know, famous, a quote that comes to mind. And one of them that I live by is rejection is God's protection. Meaning, you don't know why you got rejected today. It still hurts. It'll hurt for a long time. And someday you'll look back and go. Wow, I'm really glad that didn't happen. Yeah, you have kids? 5:55 I do have kids. How old? Are they? 532. 5:59 Do they listen to you? 6:02 Occasionally, 6:03 yeah. Okay. So my kids were that age, I actually said that quote to them, because my daughter didn't make the soccer team. You know, it's devastating. We don't make the travel team and all your friends do. And I said, Allison, you know, just remember, rejection is God's protection. You never know why you got rejected today. It stings like heck, but someday you'll look back, and you'll know why. And then sure enough, we found out why we're glad she didn't make the team. And she goes, you see that? Rejection is God's protection. And I'm like, wait a minute, you listen to me. Like you hear what I say. So in business, like you said, you know, you don't count it until it's done. And even then 6:48 I like the like, the I like even the story with your kid because it shows that they they might not be like they're listening, but they are listening. Whatever it comes through as like, Oh, that was right. That was 7:03 I was right. Really? You know, and then you never why and you never want to admit it. Like I remember we needed by some, some clients for the house. And you know, here in Jersey, we go. You go to Home Depot, you go to Lowe's, you go to Sears, you go to the appliance store, my dad tells me to go to PC Richard, I don't know if you have that in California, but 7:24 they're going to New Jersey. All right. Well, 7:28 no, it's just long story short, he was right. And I had to call my dad up and said, Dad, you were right. That was the place to buy it. And it hurts man. He never wanted to get that. 7:43 Alright, well, I hope you all enjoyed this story. That was interesting. Well, that's all I got, man. This is. This is good, man. That's good enough. We're 7:53 good. All right. 7:55 Thanks for coming on. Go check them out. Mike Ringle on LinkedIn and then we're gonna have a link in the bio below. Please go check it out. Business exit strategic list, and we'll see on the next episode. Thanks for coming on. Have a great day, guys. Awesome. Thank you.

Daniel Esteban Martinez Profile Photo

Daniel Esteban Martinez

Host/ Ceo/ Speaker

I have been an entrepreneur since 2018. I come from a regular home just like most people. My dad worked on the roads in the Chicago area for over 30 years. He always taught me to work with my brain, instead of my body. Your body can only take so much abuse. I learned so much from my father. He always pushed me to work smarter and not harder.

I have owned and operated a trucking business for 2 years. I started learning real estate in 2019. Fell into the Data & Skiptracing business in 2020. My partner Anthony & I started Hivemind in 2021.

I have done a ton of different jobs coming up from painting, to door-to-door sales, telemarketing, truck driving, and loading trailers. What I learned most is that I want to stay in the digital business space. The leverage you can have delivering digital products to the marketplace can yield limitless possibilites.

I started The List Guys in 2020. It is a data and skiptracing service. We provide seller and buyers list nationwide. My clients have been getting great results and I am proud to help people killing it.

I started the Hive in 2021 with my partner Anthony Gaona. It is a real estate and business mastermind. It also comes with a all in one CRM, that can host unlimited websites and users.

Starting the Hivemind has been an amazing journey so far. Seeing one of our users make his 6 figure month in June 2021 leveraging our software, I know there will be plenty more to come!