Episode 57 - Navigating Business Frontiers: Entrepreneurial Insights and Tax Strategies

The Andrew Holland Podcast

In this conversation, Andrew Holland interviews Joshua Hayes, a CPA, a Partner and the Tax Practice Leader for the West Region at Eide Bailly, about his expertise in mergers and acquisitions and working with high-net-worth individuals. Josh shares his background growing up in a family construction company and how it shaped his understanding of entrepreneurship. He shares insights on the impact of culture in organizations and the future of the economy and tax policy. Josh delves into the complexity of tax policy and the role of CPAs in navigating it. He highlights the impact of tax complexity on businesses and the challenges it poses. Additionally, Josh discusses the emotional volatility of being a business owner and the personal sacrifices involved. He concludes by offering advice on starting a company versus buying one.
Takeaways
Trust and understanding are crucial in the advisor-client relationship.
Entrepreneurs are driven by the game of entrepreneurship and the desire to make a difference.
Tax decisions should be viewed in the context of long-term costs and consequences.
The decision to involve a tax professional depends on the criticality of the decision and its impact on the success of the business.
Entrepreneurs who have experienced both success and failure are more resilient and adaptable.
Younger generations have the potential to create new technologies and solutions that will shape the future. The definition of 'soft' in the business world has changed over time, and it is important to adapt to the evolving challenges and problems.
Longevity in a company can be valuable and staying with one company for a significant period of time can provide unique experiences and opportunities for growth.
Tax policy is complex, and it is necessary to consider both the tax base and the tax rate when determining revenue generation.
The complexity of tax policy can have a significant impact on businesses, and it is important for business owners to stay informed and adapt to changes.
Being a business owner involves dealing with both high highs and low lows, and it is important to plan and manage risks during challenging times.
Entrepreneurs have an intrinsic drive to succeed and often continue to seek new challenges and opportunities even after selling or transitioning their businesses.
Preparing for a business transaction requires changing the rules of operation and focusing on demonstrating viability and profitability to potential buyers.
Competitive advantages can lead to higher multiples in transactions, particularly in synergistic acquisitions where the buyer is seeking to gain a competitive edge.
Chapters
00:00 Introduction and Background
00:21 Introduction of the guest and his background (Josh Hayes)
01:53 Mergers and Acquisitions in the Current Economy
02:02 The Importance of Understanding Clients' Perspectives
04:18 Growing Up in a Family Construction Company
05:34 The Value of Entrepreneurial Experience
07:10 The Mindset of Entrepreneurs
11:08 The Loneliness of Entrepreneurship
14:53 The Importance of Trust in the Advisor-Client Relationship
16:21 Deadly Tax Implications to Avoid
18:48 When to Involve a Tax Professional
22:19 Industries with Preferential Tax Treatment
24:33 The Infatuation with Technology and Service Companies
26:35 The Importance of Culture in Organizations
28:10 The Impact of Personal Traits on Entrepreneurial Success
35:45 The Consequences of Economic Downturns
38:29 The Role of Nature and Nurture in Entrepreneurship
41:26 The Future of the Economy and Tax Policy
50:41 Reasons for Optimism for People 40 and Younger
52:28 The Changing Definition of 'Soft'
54:24

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