In this episode, Trusted Counsel’s Evelyn Ashley and John Monahon speak to Senior Counsel, Tom Wardell who joined the firm in early 2018. If you missed the press release on Tom’s joining Trusted Counsel, you can read it here. Additionally, Tom was president and CEO of Versyss from 1988 to 1993. Versyss was a provider of computer systems for small businesses and based in Boston and Los Angeles. It was the largest provider in the United States for the physician practice and credit union industries and one of the top-three providers for the construction and building-supply industry. Tom’s experience with buying and selling Versyss gives him unique insight and practical understanding of our clients’ businesses and the operating problems and issues they face. We’re pleased to share with you our in-depth interview with Tom Wardell.
According to Tom, he and his business partner David knew what they were getting into when they bought Versyss. They had a good sense of where the mistakes were and what the problems were. Upon takeover, they immediately set out to get rid of expensive R&D projects. Next, they tightened operations which meant eliminated various projects and there were necessary layoffs. Lastly, they decided to set the foundation for a larger concept that entailed positioning the company as a “systems integrator.” They managed to turn the business around in 60 days in terms of having it run in the black, and therefore, generating cash that they could use for operations.
Absolutely critical during the process was having a strong executive team. Tom said “You wind up needing people who first of all buy into your vision. Secondly, you need to know how to assign responsibility and hold people accountable without pushing or scaring them.” The business success can also be contributed to managers who created a strong team.
Tom ultimately sold the business because a true systems integration business required an engineering/programming creating thinking group that was different than what the company was at the time. Secondly, his business partner became very unwell. Based on his partner’s illness, Tom thought it best to sell the business instead of continuing this entrepreneur undertaking.
During the course of the podcast, CEOs, business owners, and C-level executives will learn:
The biggest challenges Tom faced when he bought the business
What prompted him to start wearing bow ties (it started when he bought the business!)
How he got the business out of the black in 60 days
Advice for CEOs or first-time entrepreneurs looking to sell a business
To learn more about the steps that you should be taking inside your business now to make it more attractive for a successful sale visit our dedicated website www.preppingtheprincess.com. Also, be sure to check out our new e-book titled Prepping the Princess: Is Your Business Ready to Sell? Download the e-book here. The e-book is compiled of a collection of conversations recorded over the course of 2018 as a podcast series on our podcast show called “In Process: Conversations About Business in the 21st Century.” The show is hosted by Evelyn Ashley and John Monahon of Trusted Counsel. The e-book is designed to give the enterprising business owner an idea of how to prepare for an exit, even if that transaction is years away from fruition.
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