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Leading the Charge with Steve Nevin: B2B CFO's Approach to Acquisitions and Exits
21 Plays1 year ago
Steve Nevin, Partner at B2B CFO, shares his experiences across various professional roles and the impact of consultative sales and professional services in driving business growth. Steve shares his firm’s unique approach to client onboarding, featuring a gap diagnostic analysis and a commitment to delivering immediate value. Discover how CEOs are prepared for successful business acquisitions and exits, guided by Steve's expert navigation of a client's complex growth path.
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Transcript
Introduction to the Show
00:00:00
Speaker
Welcome to The Growth Catalyst Show where we believe that growth can come in many forms, professional, personal, company, sales, you name it. I'm your host, Dan Mahoney, founder of Transcendent Sales Solutions and a guide to a world of growth possibilities. I've spent my career empowering companies and their people with strategies that accelerate growth.
Mission: Growth Stories and Insights
00:00:18
Speaker
I'm here to bring you stories of these business leaders and their trusted advisors to gain insights into their journeys and learn how they fueled their own growth. Just maybe their journey could become part of your own growth story. Are you ready? Let's grow.
This Episode’s Excitement: Welcoming Steve Nevin
00:00:35
Speaker
Welcome to the next edition of The Growth Catalyst Show. I'm your host, Dan Mahoney. I'm excited to have my next guest here today.
Introducing Steve Nevin
00:00:41
Speaker
Steve Nevin is a partner at B2B CFO. He is known as a change agent with a proven ability to translate a company's financial results into initiatives that improve the bottom line. During his 30-plus years of a professional career. He has served as a CFO, COO and president of privately held and public traded companies as small as 2 million and as ah large as 600 million. Steve, welcome to the Growth Catalyst Show. and Thank you, Dan. It's a pleasure to be here.
00:01:10
Speaker
It's great to have you and God, you know, looking at, you know, we've known each other for many years and every time I, I seem to learn new stuff about you and preparing for you as a guest today. I mean, I don't know where to start. I mean, we could be here for, we could make this into a three part episode, but I'm going to, we're going to have to use our time wisely.
Steve's Background and Education
00:01:28
Speaker
So, um, you know, I want to start is where are you actually, you're, of course you're here in Atlanta now, but where, where did it all start for you? Where are you from? I'm a New Yorker, Dan, originally from ah outside of the city in Long Island. And ah my dad had a business in Manhattan, ah grew up in New York with an older brother.
00:01:51
Speaker
and yeah we yeah Both of us went out to school in the Midwest. That's what people did back in the day growing up in the New York area. i went to We both went to schools in Ohio. But eventually I worked my way back for a while working in the in in the city. I was working at Citibank for four years there. So yeah, New Yorker, but haven't been back in many years. so Yes. And I don't know if you want to go back, but sorry, anybody listed as New York and not to offend. But I saw that you went to school in Denison University. You're now the third most famous person I know there that's famous. ah Steve Carell, is it? And Jennifer Garner were also some of your classmates. Yeah, I didn't see Jennifer on the campus or Steve, but yeah, so I was there. And then you found your way to Wisconsin for an MBA.
00:02:44
Speaker
Yeah. And I did that in part because, Dan, when I was at Denison, I accepted a commission in the Air Force ROTC and um I didn't. I really wanted to keep out of Vietnam and missile silos. So I said, well, I'm going to go get an MBA up in Wisconsin. The Air Force let me do that. And it turned out to be really good, except I had to do it through a year and a half. But, you know, going to school in Wisconsin for two summers up there, it wasn't bad duty at all. So no, no, that's a that's a nice place being in Chicago and been up there many times. And well, thank you for your service and appreciate that. And I saw that and I'm sure that led to you are a flight instructor, you aviation, you like to golf, ski, road bike, read. What is it that you is there anything you don't do?
00:03:34
Speaker
ah yeah Well, my body, you know, is telling me that, ah you know, that particular list is narrowing down over the years. My mind says there's nothing I can do, you know, I can't do, but yeah. So I'm still actively involved with golf and, and, you know, biking and running and reading and stuff like that. But you got to keep busy. That's the key, Dan. Got to keep busy. Amen. Amen. Because when we're not busy, what are we going to do? Right? Yeah. Turn the dust. So we're not going to let that happen. That's but so and And again, I mentioned in your in your introduction that you had been with, you had so many different positions, but I also look back and it sounds like you had some business development and sales roles as well too.
Early Career Reflections
00:04:20
Speaker
I did, as a matter of fact. um In fact, my out of the Air Force, um combining aviation, my first job was actually a district sales manager with Cessna Aircraft Company. I was out selling airplanes to dealers up in the yeah up in the New England area. And it was an interesting period. I had a lot of fun, didn't make any money, but I was having fun flying airplanes and stuff like that. but as a result of that stint. And then once I after that I went to Citibank in New York and I started my finance career, I realized that, you know, selling a commodity or selling something a product wasn't my thing.
00:05:04
Speaker
Um, whereas consultative sales, you know, service, professional services and sales, which let's face it, all of us are selling ourselves, but I came to realize that that was really more my forte. And so, you know, and it's of course interesting. Uh, you had to go through your careers to realize it, but where I'm sitting right now as a partner in B2B CFO is ironically a perfect fit for me. you in And we're going to talk a lot about B2B CFO in a minute, but you know going through your career, all of your experiences, I'm sure you've had some memorable positions and some things you learned all the way. Give us a couple that you that come to mind of things that really shaped and put you in the role that you're in today.
00:05:51
Speaker
Well, of course, ah those who know me know that I was the CFO at ValueJet Airlines here in Atlanta, Georgia, which was which had, of course, a lot of worldwide publicity, both good and bad.
ValueJet Airlines Experience
00:06:06
Speaker
um So um I did that IPO and was there with the founders. And that experience really had a significant impact on me because we went through you know the best of times. It was an incredible startup.
00:06:25
Speaker
started making money like the first month we started operations, which is unheard of. And of course, we were taking share right away from Delta Airlines, which is also unheard of. But you know then fast forward a couple of years and then we had that terrible crash and you know the FAA stepped in and we went through all sorts of horrible, difficult times. And you can imagine the stress um that I went through my family. And in fact, I have a picture of me and my family about six months after that horrible crash. And I look like a different person. I look like, you know, I had aged about 20 years.
00:07:04
Speaker
um So, you know, when you when I think about my career, I look back at value jet and actually some of the best work I've ever done was during that very, very difficult time period, both personally and also professionally, because really, just like everything in life, you know, it's easy to be successful when the sun is shining, you know, and everything is just going just perfect. um But when it's quite the other way, that's when individuals have to step up and perform. And I look back and I was pretty proud about how I had to go through that and and I actually succeeded. um But I've been fortunate, as you point out, I've had a number of different opportunities to grow professionally and personally. I was the i was a CFO of ah of Atlas Air out in Colorado. and
00:08:00
Speaker
ah That was a New York Stock Exchange company and significant growth period that I experienced with them. um Yeah. And I was ah president of integrated airline services largest U.S. ground handler. That was a situation where ah The owner of the company, a very famous aviator, Terry Combs, his attorney called me and brought me and they were in trouble. And so he and I spent two years working together to turn that business around. So so I've been very blessed and very fortunate to have an experience in working in these different companies and and making a difference.
00:08:40
Speaker
Well, it's, it's amazing.
B2B CFO: Largest Fractional CFO Firm
00:08:41
Speaker
And I can't imagine, uh, just telling you a story about, um, value jet, just that I can't imagine the stress and what that, what, what that would be on you or anyone. It was, it was difficult for my family and, but you know, again, you know, what is it, what makes you what, you know, I forget what the saying is, but you know, stress can supposedly make you stronger and all of that stuff. I wouldn't recommend it to anyone. No, not that for sure. Not that for sure. Well, you know, let's, let's talk and let's get into B2B CFO. And I know you've been with B2B CFO. It's about, you know, we both started, I started fractional work about the same time you did. I was about six years ago, wasn't it? Yeah, that's right. So tell me a little bit about B2B CFO and tell us about the firm.
00:09:27
Speaker
Well, the firm has been around since 1987. It was ah founded by a former Arthur Anderson auditor named Jerry Mills. And Jerry today remains our but founder, but he is very active as the CEO of the firm. um We're a little bit like a law firm in the sense that all of the partners are K-1 owners in the firm. So each and every one of us um if you will, how to buy in to join the firm. ah There's about 140 of us ah nationally. And I'm going to guess we're serving today about 2,000 companies um nationwide.
00:10:12
Speaker
Here in Atlanta, I'm the practice leader for Georgia. And Georgia is rapidly becoming one of the larger um regions for our firm. We're up to now 11 partners. uh in the firm and we just interviewed another candidate uh last week um so ah so and and jerry started this business i mean jerry's a brilliant man he he started the business wanting to change his business perspective you know as i working in an audit firm you're basically in a you know you are a historian um you're responsible for uh
00:10:50
Speaker
you know looking at the financials and making sure that they're accurate with the business owners. um And he wanted to make a change because he had run into several clients who were having difficulty. And you know the story goes he after one client meeting he went home and told his wife he said you know I think I want to do something different. I think I'd like to start a business where we can look forward with the business owner and see if we can be a very good problem solver in helping that business move forward to where they want to go. So he started B2B CFO, and what's interesting is that he said to himself, you know I'm not going to worry about training CFOs. I'm just going to go out and recruit the best out there. But what I do have to worry about is training our partners on how to learn comfortably and confidently to acquire business.
00:11:44
Speaker
Because most CFOs you know have been in offices nine to five, you know and it's a closed-in business, and most don't necessarily have to have had experience in sales, for example, or you know to have built that confidence to be able to network effectively and to know how to communicate and converse effectively. So he said, you know, what we're going to do is put together a training curriculum so that um those those those ah qualified CFOs who want to be members of our firm, we're going to train them how to um how to create a network that you can develop up for business.
00:12:25
Speaker
And so that's what we're all about.
B2B CFO's Differentiators
00:12:27
Speaker
It's been wildly successful. ah We're the largest firm of its kind in the United States. And I'm going to guess in the world. And um and it's been a joy ah to be a part of it. Let's take a moment for a quick word from our sponsor. This episode of The Growth Catalyst Show was brought to you by Transcendent Sales Solutions. Whether your company is facing uncertainty, declining sales or resource limitations, Transcendent Sales has the solution. Their team has decades of experience helping businesses find alignment to meet their growth goals and transforming underperforming sales organizations into revenue producing market leaders.
00:13:03
Speaker
They take a hands-on, results-oriented approach to solving sales challenges. Visit TranscendenceSales.com to learn more and subscribe to the biweekly Growth Catalyst newsletter for insightful growth strategies. Transcendence Sales Solutions, empowering businesses to reach new heights. And now, back to the show. I know that all fractional CFO firms um are not the same. it it it took me It took me about a minute to learn that, that one is different to the other, because I know you guys are different. um I always say there's the difference between the fractional ah advisor and strategic advisor versus someone who's doing the day-to-day, ah fractional, like more controlling, more day-to-day. Is that a good
00:13:49
Speaker
way to describe the difference where you guys are definitely on the strategic advisory side. Yeah, that's a good start. You're you're right. um One of our prime areas of differentiation is we are strategic. And what that means to the business owner is is that you know we're not about the bookkeeping. That doesn't mean that it isn't important. It is. And it also doesn't mean that we don't fix it. So half the time, ah Dan, when we go into a company, we discover that the business financial reporting is not sufficient for any number of reasons. and so
00:14:28
Speaker
It's almost a distraction. So what we have to do is first and foremost fix that. And and we do that by assisting the owner in either ah developing in-house talent or recommending adequate outsourced talent. And we also help them set up the proper chart of accounts and so forth. But we don't do the actual bookkeeping. We rely on our clients' employees to do that. But we're very involved, of course, monthly in helping them and understand how to close the financials and stuff like that. So so we use the financial reporting as the start of developing and an effective database upon which we can drive the company forward, drive towards profitability. um So that's one of the ways we're different. We look forward. We don't look back. Whereas I know that other players
00:15:24
Speaker
in this world you know do want to do the bookkeeping. That's something that they want to do, and and we respect that, but that's very different from us. um There are several other um differentiators that I would um call, and I think you and I have talked about it. um One of them is is that um our entire onboarding process with the client is very different. um We'll take eight to 10 hours of our own time to invest in a pretty detailed discovery process, which we call our gap diagnostic analysis. And what that means is, is that we'll take time to interview the owner, whoever's doing the financial reporting within the company. It could be a CPA, it could be a bookkeeper, whatever. um And if in fact the spouse is also involved in the business, we'll do a separate interview with them because not surprisingly, we hear different things.
00:16:21
Speaker
so we'll So we'll go ahead and do the interviews. We'll get financial information. ah We'll take a look at that information, do some analysis, and then we'll go ahead and benchmark the company against their peers. So at B2B CFO, we have our own software license that allows us to do that benchmarking ah process. And based on all of that information that we've collated and analyzed, we then ah come back to the owner with a strategy report and with a proposal. And so, you know, it's very insightful right from the get-go for the owner um to experience interfacing with B2B CFO. we want to We want to deliver value right from the get-go. So that that gap diagnostic analysis approach to onboarding a prospect is very, very, very important to us. We can't, in fact, we we won't bring on a client without actually going through that process. And in most cases, it's a wow for the business owner. They've never had their business benchmark. They've never had anybody really go through their business like we do. And all of that is complimentary.
00:17:37
Speaker
Well, and yeah, cause I mean, that's a eight to 10 hours and then putting a proposal to together. That's a big time commitment. It's a huge time of commitment on your, on your end. And it's, and I think it definitely wows them just to see how much somebody showing that commitment before any dollars are received. Yeah it it really makes a difference and because of that because of the investment that we make with these business owners. um I think our rate of closure is pretty high. ah Typically when we you know after two or three meetings with the owner um and we've been able to demonstrate our serious investment and understanding what's going on with them both.
00:18:19
Speaker
personally, as well as professionally, um we've already started building some good trust. Yeah, and and and you'll know after probably the first or second meeting if it's a one you want the third, I'm sure. Well, that's a good point. I mean, not every business owner ah you know prospect is a fit for us and and vice versa. um There have been many occasions where after we start to get into this analysis, we I can remember one recently where I just said to the owner, you know, um for these reasons, I don't think we're a good fit for you at this time.
Finding the Right Fit for B2B CFO?
00:18:56
Speaker
Let me refer you over to such and such or whatever it may have been. um So, yeah, I mean, and I'm reminding my partners of that all the time, too, is that and every not every opportunity is a fit for us. So, absolutely.
00:19:12
Speaker
Well, I like to read and one of the latest books I just picked up and I like to read about exit as I picked up one of these books that's from your firm that exits your any handbook just started going through it. Talk a little bit about it because I I've seen you carry one around a few times as well. yeah we Yeah, we hand them out quite ah quite liberally. so I bought one. let your Let the author know I actually purchased one. OK, I'll send a note to Jerry on that. um Well, it's a differentiator. um I mean, one of the reasons why I joined the firm is because um we have a number of proprietary tools that really add a tremendous level of value to the business owner.
00:19:53
Speaker
And ah the B2B exit handbook is certainly, I mean, that's certainly one of those tools. um It was one of the earliest books that Jerry has wrote. In fact, Jerry's written several award-winning books. The other one that comes to mind is called The Danger Zone. And another one he wrote is called Avoiding the Danger Zone. And those two books address how a company can outgrow its capital capability. In other words, you can grow so fast that you can run out of capital and cash and that's something we've seen in the practice more than once. um But the exit strategy handbook is kind of our reference work for any time
00:20:36
Speaker
We engage with a business owner who right from the onset tells us that their primary focus right now and for the next couple of years is preparing for a successful exit. And about half of our clients across the country today have engaged us to prepare them for an exit. So right from the get go, we employ the book and and the and and it's really a key reference work that's further supported by our ah software. So we've also got patents on software that are very complimentary to the book where we use that software to um to help track the company's valuation and to to help
00:21:22
Speaker
prepare and maintain the due diligence process um for a company that is looking to exit in the next couple of years. So these proprietary tools are not only differentiators, but they're a good reason why um we are so successful in bringing and delivering value to our owners. That's great. Well, I'm looking forward to finishing it.
Success Stories: Security Integrator Client
00:21:46
Speaker
um Tell me a little about anything you could share, what you're working on now, anything interesting now that you're working on that comes to mind. I'm sure there's more than one.
00:21:55
Speaker
Well, um yeah yeah, so i've got I've got a client that's a securities integrator. This is a company that ah designs and installs very sophisticated ah perimeter security systems for governmental and commercial operators. So one of their largest clients is the Georgia Department of Corrections. So they do a lot of work on prisons here in Georgia. So a lot of time, you know, I'm on the phone with my ah with my client, the owner, and he says, OK, I got to sign off. I'm walking into the warden's office or whatever it is. And of course, the stories he tells um from that interface action with this very important client is very intriguing. But with this particular company, I started working with them three years ago and um the the owner
00:22:46
Speaker
um He really stepped in as the CEO because his dad, it was a it's a 40 plus year family business, legacy business, and unfortunately his dad had a stroke a couple of years ago, so um which really prevented him from running the business further. so So he was in sales with the company already and he he had to step in to run the business. And I got a call from one of his attorneys saying, look, you know, can you meet with this gentleman? He really is in a bind. He doesn't really know how to run a business. and
00:23:18
Speaker
And unfortunately, he's in this situation. So when we started working together and by the way, the owner, he's just a wonderful gentleman, very coachable, very bright. But when we started working together, the company were was reporting losses and they we had difficulty trying to recover from the pandemic. But um he's got so much energy and so much focus and we really have meshed so well together. that today ah his company is approaching 30 million in annual revenue and extremely profitable. And we're actually talking now about, you know, maybe in three years we should think about preparing for an exit. So he's gone from a terrible situation with his dad, who's still alive, thank God, and where he was thrust into a difficult situation. And today now he is
00:24:12
Speaker
He couldn't be happier and it's exciting and all sorts of things are happening good with the business. So that's a great story. I've got others on the other side, but that's a good one. So the good ones. Yeah, absolutely. Well, Steve, you know, this is, I mean, and you covered a success story and talking about what you're working on. So that's great. So, you know, we're just about a time we're out about it. We're just about out of time. I can't even talk on this Friday afternoon. ah What's the best way to get a hold of Steve Nevin and find out and learn more to what B2B CFO could do for a company?
00:24:45
Speaker
Sure, so you can email me at Steve Nevin at B2BCFO.com. That's the letter B, number two, letter B, CFO dot.com. um and or Or you can go on our website, B2BCFO.com, where it shows all of our professionals and regional leaders, and you can learn about that. And and if you' are if a business owner is thinking about um you know, maybe preparing for an exit. We have a separate website for that called B to B exit dot.com. Steve, I've really enjoyed the conversation today and get in your perspective and insight. And thanks for taking some time on the growth catalyst show. Well, Dan, thank you so much for having me. All right. That's a wrap. All right. Jeremy cuts it there. So that's it, Steve. Perfect. so Thank you so much for that.
00:25:38
Speaker
it's It's good to hear about your client because I met your client. So you remember a few years ago, I remember him. Sounds like he's doing well. That's great news, man. That's really good to hear. Yeah. Yeah.
Guest's Appreciation and Weekend Plans
00:25:48
Speaker
Well, yeah listen, thanks so much for having me do this. I very much appreciate it. ah You got any plans for the weekend? You know, this weekend, none, and which is kind of nice because the next weekend I'm actually going to Chicago with her and a couple of guys, uh, Thursday, Friday, next week we're, we're doing pizza, eating steak, smoking cigars and going to a Cubs game.
Upcoming Events and Goals
00:26:11
Speaker
So there's like five of us.
00:26:13
Speaker
Yeah, there's, we're doing it. We're it's, we're doing an extended trica. We're calling it. So, and then, uh, yeah, then I got father's day weekend and birthday and the following week. And then, uh, just, this is my only week this month. I'm actually working the whole week. because ah you know I got short week going into yeah ah the following week. And then the last week of the month, we're we're leaving at the end of June for the first week of July, a trip to Alaska. We're taking a cruise to Alaska. Oh, how special. Well, that's wonderful. but I hear good very, very good things about that cruise.
00:26:49
Speaker
One, that'll be my, I'll only have three states left to go after that. I'll still have to get to Wyoming, Montana, actually four, Wyoming, Montana, South Dakota, and New Mexico. And then I'll have visited all 50. So. That's your bucket. That's on your bucket list. okay I got to get all of them. I got to figure out why I'm going to go to South Dakota. That's the only one I'm still trying to figure out. Well, you got, you can go sit, sit down with Christina. There you go. So. There you go. There you go. but There you go.
Farewells and Conclusion
00:27:17
Speaker
Well, hopefully you have some good weekend plan. Hopefully it's going to be nice. And thanks for taking some time, man. I really appreciate it. And it's good to see you, my friend. All right, Dan. Thank you. Bye-bye. And that's a wrap for today's episode of The Growth Catalyst Show. Remember, you can take these stories of growth and make them part of your own journey. Learn from them, draw inspiration, and let them guide your path of growth. I'm your host, Dan Mahoney, and I look forward to our next journey together. If you've enjoyed the show, please subscribe and leave a review. Until next time, keep growing.