Episode Summary
In this session, we explore what to do when the rosy forecast does not materialize, and you need to restructure your firm. This includes how to determine who to layoff, when to lay them off, how to do so in the proper way, how to support the now former employees during the transition and how to preserve the culture and keep morale up with the remaining employees.
About the Guest
Ken Yager and Tim Stone are the Founder & President and Senior Managing Director, respectively, of Newpoint Advisors Corporation, a turnaround consulting firm dedicated to helping financially distressed small and lower-middle-market businesses recover and grow.
Key Takeaways
See full transcript below for key insights from this episode.
Full Transcript
Greg Alexander:
Hey, everybody. This is Greg Alexander, founder of Collective 54 and welcome to the Pro Podcast. This is a show dedicated to helping founders of boutique professional services firms make more money, make scaling easier, making an exit achievable, etc. etc. And today, we have a very interesting topic and the topic is restructuring and layoffs. It’s kind of a bummer to have to talk about this topic, but it is coming up. You know, we’re recording this in June of 2024, we’re about halfway through the year and we have some members of Collective 54 whose rosy forecast to kick the year off with didn’t materialize and they’re gonna have to figure out how to cut some expenses. In the services business, that means trimming some heads. So we have two experts, restructuring experts with us today, two members of Collective 54, Ken Yager and Tim Stone of Newport Advisors. So first, when I send it over to you guys and Ken, I’ll start with you. Can you give a brief introduction of yourself and the firm, and then I’ll jump into some questions.
Ken Yager:
Fantastic. All right. Yes, I’m Ken Yager, founder and president of Newpoint Advisors Corporation. We’re around 11 years. We’ve got 30 professionals all over the United States helping smaller companies with distress caught five to 50,000,000 dollars in revenue. Is the typical client base. I’ve been at this for 35 years, worked with companies of all different sizes and now work with just dedicating ourselves to focusing on being a service company for the small and distressed. I will add one caveat. One thing too. We talked about the bummer, right? So everybody wants a growth coach, and this is why I’m in Collective 54 because Greg Alexander, you are an amazing growth coach.
Greg Alexander:
Sure.
Ken Yager:
But, you know, what people don’t know, they also need is a down cycle coach. And that’s why we’re here.
Greg Alexander:
Sure. Yeah, exactly. Well, we’re glad you’re here because this has gotta be done correctly. Yeah, Tim, why don’t you tell the audience a little bit about yourself?
Tim Stone:
Thank you, Greg. Tim Stone, Newpoint Advisors Corporation. I’ve been at Newpoint for 11 years. My background primarily focuses in the financial area of companies helping them to decide really if they are going to downsize what’s the benefits of downsizing in specific areas. So, glad to be on this topic today. Thank you.
Greg Alexander:
Very good. So, guys, I’ve got four questions that I’ve prepared and I’m just going to jump into those. And, and to keep this orchestrated correctly, Ken, I guess I’ll let you quarterback, I’ll send them to you. And then when you think Tim has some things to add, I’ll let you direct us in that way. Yeah. So question number one. So what are the key factors to consider when deciding which employees to lay off during a restructure?
Related Episodes
Ready to Scale, Sell, or Exit Your Firm?
Join Collective 54 — the only peer community built exclusively for founders of boutique professional service firms.
Apply for Membership