Faces of the Partner: 5 Tech Advisors Retiring, Transitioning
The channel is experiencing a generational shift. These five long-time partner leaders are making a big change.
![Lots of businesspeople, tech advisors Lots of businesspeople, tech advisors](https://eu-images.contentstack.com/v3/assets/blt10e444bce2d36aa8/blt57cf3be405b539a5/6523f2289bdad930a6c24b1a/6-Lots-of-Businesspeople.jpg?width=700&auto=webp&quality=80&disable=upscale)
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Name: Greg Osler
Company Prior to Sale/Retirement: Mercury Communications Services
Sold Business in: 2023
Acquirer: Procure IT
Channel Futures: What were you doing prior to this transition?
Greg Osler: I moved to Dallas in 1975 and started selling large PBX telephone systems for IT&T. In 1978 I moved to Houston to run the IT&T office, but in 1979 they sold the telephone division to a French company, and I was left to babysit a bunch of technicians when I was a sales guy. In 1980, my old boss asked me to move back to Dallas and start a new private telephone company, and we named it Mercury Communication Services Inc. Three years later I bought out his shares of Mercury, and I’ve served as its president for 43 years.
Over the years, I’ve grown and expanded the business in several ways. I opened two offices in Austin and then one in San Antonio in 1990, respectfully, and then sold those offices to the employees in early 2000. I opened a security company called Mercury Protection in 1985 and then started a warranty company MOGO Interest, named after our children, Mindy Osler and Gregory Osler, in 1999. Then, I tried to start a managed service data company, Mercury Managed Services. My partners bought me out two or three years later.
Now 43 years later, Mercury was purchased by Procure IT. After four decades spent selling technology, I’ve learned that innovation will pass you by if you don’t keep growing your products and services, so it’s great to see smart people taking over Mercury to do just that.
CF: When did you retire?
GO: Well, I hope I never really retire; I’d like to keep my foot in the door. I fulfilled a six-month commitment to remain with Procure IT after the acquisition. Now, I plan to promote Procure IT here in Dallas and wherever I can help across the U.S.
CF: What motivated the decision to make this transition?
GO: Ten years ago, my wife was diagnosed with early onset Alzheimer’s at age 50. For the last five years of her illness, I was distracted and not growing the company. I let down Mercury’s loyal employees by not planning for the business’ future.
It was fortunate that Procure IT’s leadership saw the value in what we built over as a foundational component of the company. Their vision for the future of the technology procurement and management puts the customer at the center with unprecedented transparency in pricing, performance and risk. I know our loyal Mercury customers are in good hands moving forward.
CF: What does your life/career look like now?
GO: That’s the $10,000-dollar question. First of all, I need to get out of my comfort zone and make some changes to my lifestyle. My beautiful wife Amy passed away 30 days after I sold the company. I have a daughter who lives in Atlanta and graduated from the University of Georgia and a son that is a junior at Arizona State. I look forward to spending more time with them and with my old friends and some new friends, too.
CF: Do you have any advice for someone contemplating making a similar move?
GO: If you’re looking to sell or retire, do it for the right reasons. Those reasons are not about you but about your employees, family, friends and your customers. You can’t build a company by yourself; you will have to have a lot of help along the way. I would say it’s important to never forget that.
Name: Rob Molinaro
Company Prior to Sale: Chorus Communications (co-founder)
Sold Business in: 2020
Acquirer: Telarus
Channel Futures: What motivated that decision?
Rob Molinaro: Timing and value
CF: What does your life/career look like now?
RM: I transitioned to bring an agent again at Tech Mercenaries.
CF: Do you have any advice for someone contemplating making a move similar to what you’ve done?
RM: Get an attorney and make sure you have a thorough understanding of the deal. In the case where a venture capital or private equity company is involved, know that you’re not dealing with the people that you typically know. It’s going to be someone else making decisions on your forward.
Name: Jack Zoblin
Company Prior to Sale: Cory Communications
Sold Business in: 2021
Acquirer: Helm Partners, followed by Bluewave Technology Group
Channel Futures: Why did you sell Cory?
Jack Zoblin: The industry was ripe with M&A, and since we had made the pivot and were working remotely, we first sold our office building during COVID, and selling the business was the next step. After 30 years, I was ready.
CF: What does your career look like now?
JZ: Currently I have spun up a small consulting agency working directly with end users. I’m able to help small-to-midsize organizations that are looking for a strategic road map for effective change using technology.
CF: Do you have any advice for someone contemplating making a move similar to what you did?
JZ: Have your ducks in a row for a potential buyer. Buyers know what they are looking for, and you need to be prepared with all the documentation they will request. Begin now to think about what you plan on doing after the sale. For me, I worked with the company I sold to for a year, and it was a great experience.
Name: Phil Hugus
Company Prior to Retirement: Information Services Group (ISG)
Retired in: January 2023
Channel Futures: What motivated that decision?
Phil Hugus: It was simply time to move on to do a couple of things that I wanted to do before I was too old to do them! ISG afforded me a great experience during my years there, including an assignment in Europe and working in the trusted advisor channel. My relationship was/is good, just time to move in a different direction.
CF: What does your life/career look like now?
PH: While it is early days, I am in a great place. I have started my own, small trusted advisor shop, focusing on the lower end of the market – the SMB space, if you will – where there is a need, and as such, not in conflict with my relationship with ISG. I’ve traveled extensively abroad with my wife, just off 90 days in Italy and Spain, and I spend time each day writing. So far, the best of all worlds.
CF: Do you have any advice for someone contemplating making a move similar to what you made?
PH: The grass is often greener, but you need to determine if the fence is not too high to jump over. In my case, the timing was right, and the move enabled me to do some things I wanted to do before I get too old. Each person has a personal “to-do” list, but not everyone is diligent in working it!
Name: Marko Spremo
Company Prior to Sale: Telapprise
Sold Business in: December 2021
Acquirer: Bluewave Technology Group
Channel Futures: What went into that decision to sell?
Marko Spremo: Like most advisory firms that start in our segment, my business partner, Davin Lundy, and I bootstrapped the business. Starting a business as an entrepreneur typically requires much sacrifice that most people need help understanding. The commitment and responsibility of managing positive cash flow requires a personal sacrifice that can take away precious time with friends and family as well as time to do the things one enjoys outside of work.
After 20 years of running a technology advisory firm that helped midmarket and enterprise clients, it was time to find more balance in our lives while starting to look at ways to diversify our investments outside of Telapprise. At nearly 25 employees, we were in a position of what I called “no-man’s” land. We were too big to run the business as a small, agile and tight-knit group of highly capable consultants, and we were too small to have mid-level management and technology specialists. To overcome this hurdle, we faced the same issue we met when we started the company – access to capital – other than our capital from our profit and savings. To scale and expand requires hiring salespeople, sales engineers, project managers, consultants, management, etc., and building the systems, tools and training to support those individuals and clients. Residual commissions we earned from the providers comprised most of our revenue. Unfortunately, the banking industry didn’t understand our business model and was confused by us not owning customer contracts. Their willingness to invest was insufficient to meet the requirements we needed to scale. There were a few options at that point: Continue as we had been, try to obtain money from private equity, or sell to an organization with the capital to help us expand on our vision. After spending significant time and energy, we determined that the best path forward for us, our employees, and our clients was to sell to Bluewave.
CF: What does your life look like now?
MS: Life is very different now. As an ambassador and equity partner in Bluewave, I am no longer involved in daily business. I no longer spend my days thinking about the items needed to meet the requirements of our clients, employees, partners and vendors. I am very fortunate and grateful to be able to have the opportunity to take a bit of a break that allows me to focus on spending valuable time with my family and friends and being able to take time to invest in myself with new adventures, experiences, and learning.
CF: Do you have any advice for someone contemplating making a move like what you made?
MS: When you sell your business, there are many things to consider, and each person who sells their business has their reasons for doing so. If you are considering selling your business, ensure you have a lawyer with experience in mergers and acquisitions. This transaction will likely be the most significant and financially life-impacting decision you will make in your life. Leaning on an expert for invaluable insight and guidance into the process will help eliminate potential future issues. No one can predict the future, and it’s imperative that you and the organization acquiring you understand what that future looks like from not only a financial perspective but from an operational and role perspective.
You are selling your business, and the valuation of your business matters. However, the valuation model differs significantly with each potential suitor. You must understand the structure of your deal, the payout model, and the various milestones required to get there. It’s important to remember that the acquirer is paying you a significant amount of money for your business, and they expect to generate a return on that investment that should benefit both you and the acquirer. Ultimately, only you can determine what you are most comfortable with in terms of compensation and how the sale of your company is structured.
In addition to the financials, remember you are selling your company and are no longer in control. Are you ready to give up that control? Everyone has a price that they are willing to give up control; however, going from making every decision to having input on decisions is difficult for any entrepreneur. As an entrepreneur, you are willing to take risks and operate in ways that aren’t always the most beneficial to the organization but satisfy you, your clients, or your employees. Investing in a business is much different than starting a business, and just like any savvy investor, there is an expectation of a return on that investment in the future. Your emotional connection to the company won’t be there for the organization acquiring your business, and that transition can be more complicated than you think.
The valuations will be the valuations — the market mainly dictates that; however, the structure of every deal can vary greatly. For those of us that have sold in the last couple of years, some are very happy, some are indifferent, and some are extremely unhappy with how things have worked out. If you are a true entrepreneur, it’s hard to go from being an entrepreneur to an employee of an organization. With that in mind, some earnouts can extend up to five years, which is a long time to commit to. Did your five-year business plan go exactly as planned? Most likely not. And remember, as the former owner of the business, your job is to make sure you transfer as much knowledge and continuity as possible during that earnout period.
How long do you want to be committed to that earnout, knowing that the longer it is, the less control and influence you might have?
I have no regrets selling Telapprise, but it’s because we found the right buyer in Bluewave, had constructive, practical and pragmatic conversations during our negotiations, created a win-win deal structure with an earnout timeline that was realistic for both of us and received great advice/counsel during the process.
Name: Marko Spremo
Company Prior to Sale: Telapprise
Sold Business in: December 2021
Acquirer: Bluewave Technology Group
Channel Futures: What went into that decision to sell?
Marko Spremo: Like most advisory firms that start in our segment, my business partner, Davin Lundy, and I bootstrapped the business. Starting a business as an entrepreneur typically requires much sacrifice that most people need help understanding. The commitment and responsibility of managing positive cash flow requires a personal sacrifice that can take away precious time with friends and family as well as time to do the things one enjoys outside of work.
After 20 years of running a technology advisory firm that helped midmarket and enterprise clients, it was time to find more balance in our lives while starting to look at ways to diversify our investments outside of Telapprise. At nearly 25 employees, we were in a position of what I called “no-man’s” land. We were too big to run the business as a small, agile and tight-knit group of highly capable consultants, and we were too small to have mid-level management and technology specialists. To overcome this hurdle, we faced the same issue we met when we started the company – access to capital – other than our capital from our profit and savings. To scale and expand requires hiring salespeople, sales engineers, project managers, consultants, management, etc., and building the systems, tools and training to support those individuals and clients. Residual commissions we earned from the providers comprised most of our revenue. Unfortunately, the banking industry didn’t understand our business model and was confused by us not owning customer contracts. Their willingness to invest was insufficient to meet the requirements we needed to scale. There were a few options at that point: Continue as we had been, try to obtain money from private equity, or sell to an organization with the capital to help us expand on our vision. After spending significant time and energy, we determined that the best path forward for us, our employees, and our clients was to sell to Bluewave.
CF: What does your life look like now?
MS: Life is very different now. As an ambassador and equity partner in Bluewave, I am no longer involved in daily business. I no longer spend my days thinking about the items needed to meet the requirements of our clients, employees, partners and vendors. I am very fortunate and grateful to be able to have the opportunity to take a bit of a break that allows me to focus on spending valuable time with my family and friends and being able to take time to invest in myself with new adventures, experiences, and learning.
CF: Do you have any advice for someone contemplating making a move like what you made?
MS: When you sell your business, there are many things to consider, and each person who sells their business has their reasons for doing so. If you are considering selling your business, ensure you have a lawyer with experience in mergers and acquisitions. This transaction will likely be the most significant and financially life-impacting decision you will make in your life. Leaning on an expert for invaluable insight and guidance into the process will help eliminate potential future issues. No one can predict the future, and it’s imperative that you and the organization acquiring you understand what that future looks like from not only a financial perspective but from an operational and role perspective.
You are selling your business, and the valuation of your business matters. However, the valuation model differs significantly with each potential suitor. You must understand the structure of your deal, the payout model, and the various milestones required to get there. It’s important to remember that the acquirer is paying you a significant amount of money for your business, and they expect to generate a return on that investment that should benefit both you and the acquirer. Ultimately, only you can determine what you are most comfortable with in terms of compensation and how the sale of your company is structured.
In addition to the financials, remember you are selling your company and are no longer in control. Are you ready to give up that control? Everyone has a price that they are willing to give up control; however, going from making every decision to having input on decisions is difficult for any entrepreneur. As an entrepreneur, you are willing to take risks and operate in ways that aren’t always the most beneficial to the organization but satisfy you, your clients, or your employees. Investing in a business is much different than starting a business, and just like any savvy investor, there is an expectation of a return on that investment in the future. Your emotional connection to the company won’t be there for the organization acquiring your business, and that transition can be more complicated than you think.
The valuations will be the valuations — the market mainly dictates that; however, the structure of every deal can vary greatly. For those of us that have sold in the last couple of years, some are very happy, some are indifferent, and some are extremely unhappy with how things have worked out. If you are a true entrepreneur, it’s hard to go from being an entrepreneur to an employee of an organization. With that in mind, some earnouts can extend up to five years, which is a long time to commit to. Did your five-year business plan go exactly as planned? Most likely not. And remember, as the former owner of the business, your job is to make sure you transfer as much knowledge and continuity as possible during that earnout period.
How long do you want to be committed to that earnout, knowing that the longer it is, the less control and influence you might have?
I have no regrets selling Telapprise, but it’s because we found the right buyer in Bluewave, had constructive, practical and pragmatic conversations during our negotiations, created a win-win deal structure with an earnout timeline that was realistic for both of us and received great advice/counsel during the process.
As tech advisors ponder opportunities to sell their business, retire or start a new venture, the next step looks different for everyone.
Channel Futures last week commenced a multi-part series titled “Faces of the Partner,” highlighting the demographic shift taking place in the technology advisor community. In the years following COVID-19, the advisor (agent) partner community has seen some of its most established partners consolidate through the funding of private equity firms. At the same time, new, born-in-the-cloud partners have entered the fold. The series pays homage to the people past and present who have built channel partner organizations.
Part one featured people who founded a technology advisor firm in the last two years. Now part two highlights people who have recently said goodbye to their firm. In most of these instances, they sold their business to a larger company. And while the entrance of private equity and institutional investors has presented an opportunity for entrepreneurs to scale their businesses, for many of them, it has been an opportunity to earn liquidity and enter a new phase of life.
Some of the tech advisors in the images above have entered a full-on retirement. Others remain employed in some capacity but have moved away from day-to-day activities. Others have started up a new firm entirely.
Mercury’s Greg Osler
But regardless of the move they made, these partners are encouraging their peers to make their next move with clarity.
“If you’re looking to sell or retire, do it for the right reasons,” said Greg Osler, who recently sold Mercury Communication Services to Procure IT. “Those reasons are not about you, but about your employees, family, friends and your customers. You can’t build a company by yourself; you will have to have a lot of help along the way. I would say it’s important to never forget that.”
Channel Futures queried these partners about why they chose to make a change, how the transition has impacted their life and what advice their peers should hear. Read the Q&A with these tech advisors in the five slides above.
Want to contact the author directly about this story? Have ideas for a follow-up article? Email James Anderson or connect with him on LinkedIn. |
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