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Michael K. Pearson, like many entrepreneurs, founded Union Packaging. Because he thought he could do better or fill a gap in the market. For food-based packaging, he thought he could build a workforce within urban communities, set competitive prices, and compete with some large multinational companies.
He also wanted to stay close to home and establish a long-time career path by leaving Philadelphia and suburban Philadelphia. With this, he gave people the opportunity to get high-paying jobs in tech-based careers that didn’t require college as a platform to build on. individual financial independence.
The company, which employed about 100 people at its peak, focused on recruiting, developing and retaining talent from what he called “non-traditional sources.” For example, he hired Philadelphia Public School graduates with learning differences, recruited job-ready participants from the Philadelphia prison system, and recorded new arrivals from 16 countries.
In 2019, Union’s package was sold to LBP Manufacturing, owned by Pritzker Private Capital. Despite the company’s unique hiring practices, Pearson said the due diligence process was like any other.
They looked at financial and personnel records, and talent. In that due diligence process, his employees were rarely discussed, other than identifying key team members he wanted to keep.
“So it became the focus of the process and the mission of how we acquired that talent was no longer the focus of the discussion.”
When Pearson received inquiries about the sale of the business and learned of the roll-up strategy being implemented by the Pritzker-owned company, he was told that his company was a key component of that strategy. It was where he thought he could get a multiple that matched his expectations thanks to strategic purchases.
“And this is probably the most important point. “While we were doing that, I shared my profits and let them profit. It’s not my responsibility, but I’m better positioned financially and lifestyle-wise with my family. When you have that type of mission, selling a business can be a very emotional and difficult process. It is designed to. If you can no longer fully commit to its mission and you have an exit.In your running strategy you should take an exit strategy.
Pearson spoke on the Smart Business Dealmakers Podcast about selling a company and preparing for post-sale life.
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