Navigating Family Business Succession, Business Model Changes, and Changes in Hiring Sales Reps
Kurt Palmer studied to be a chemical engineer and stumbled into his family's printed circuit board supplies distribution business. He and his brother worked with their dad and eventually executed a well-planned family business succession.
That led to a transaction, selling the family-owned business to their largest manufacturer supplier, and Kurt found himself with a new perspective - balancing the manufacturer's interest against the distributor's.
Later, he moved from materials to capital equipment selling to the same industry, adding another layer to his understanding of industrial business, including a global perspective since the transaction was with an Asian company, and the machinery business was in Germany.
Kurt shares insights on strategy, family business succession planning, navigating a transaction, differences between distribution and manufacturing, comparing the sale of materials to capital equipment, and even a discussion of our work together helping him hire top-level sales talent.
Connect with Kurt for more on his family business succession, transition from distribution to manufacturing, and sales hiring best practices.
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Family Business, Strategy, Sales Channel and Hiring Top Sales Reps - Kurt Palmer on Industrial Growth Insitute Episode 38
Episode Recap
Summary
In this episode of the Industrial Growth Institute podcast, Ed Marsh interviews Kurt Palmer, a seasoned professional in the PCB manufacturing industry.
Kurt shares his journey from studying chemistry to leading a family business, discussing the challenges and lessons learned during leadership transitions, the importance of strategic growth, and the impact of automation in manufacturing.
He reflects on succession planning, the complexities of selling a family business, navigating identity post-sale, and the evolving landscape of sales and marketing in the industry.
Kurt's business and sales experience span various industries, but also international cultures from Taiwan to Germany, and experience on the manufacturing side, selling directly and through sales channel, and the distributor side, selling on behalf of a manufacturer. Additionally, he has experience in both capital equipment and consumables sales.
The conversation also touches on the significance of trade shows, leveraging LinkedIn for business relevance, and providing advice for future generations in family businesses.
Takeaways
- Kurt transitioned from chemistry to a family business unexpectedly.
- Leadership transitions in family businesses require clear communication.
- Inorganic growth can lead to painful lessons if not managed well.
- Selling a business brings both relief and a loss of identity.
- Understanding the friction between distribution and manufacturing is crucial
- Traveling for work requires discipline in maintaining health and productivity.
- Hiring salespeople with industry experience doesn't guarantee success.
- Cultural differences impact sales strategies between regions.
- Automation is becoming essential due to labor shortages in manufacturing.
- Marketing strategies must evolve to engage customers effectively.
Takeaway Quote from Kurt Palmer
- "We needed to start to either grow organically or look at somebody to buy."
Outline
00:00 Introduction to Industrial Growth and Kurt's Journey
02:22 From Chemistry to Family Business
04:40 Transitioning Leadership in Family Business
10:15 Inorganic Growth and Lessons Learned
15:18 Selling the Business: Opportunities and Regrets
17:22 Navigating Identity After Selling
22:23 Understanding Friction Between Distribution and Manufacturing
26:28 Traveling and Maintaining Work-Life Balance
29:13 Hiring Challenges in Sales
35:30 Cultural Differences in Sales Approaches
38:05 Insights from Equipment and Materials Sides
39:45 Trends in Automation and Service Contracts
42:29 Marketing Strategies and Customer Engagement
45:14 The Role of Trade Shows in Lead Generation
46:57 Leveraging LinkedIn for Business Relevance
48:47 Advice for Family Business Transitions
55:13 Future Trends in Manufacturing and Automation
When's the right time to prepare your family-owned industrial manufacturing business for sale?
Several years in advance. More from middle-market industrial M&A expert and investment banker Rudy Scarito.
How can you improve your sales hiring process?
Learn about the system I helped Kurt implement to hire top-producing sales reps.
