September 17, 2024 • 39 mins
Welcome to the "Show Me The Way" podcast with David Seitter
In this episode of "Show Me the Way," Dave and guest Brett Gordon, Founder and President of McCownGordon Construction, explore his incredible journey from entry-level construction worker to C-suite executive, owner of a construction company, and philanthropic leader. He also discusses the why he chose an ESOP as his exit strategy for selling the business.
Ep. 54 —How Brett Gordon Built a Billion-Dollar EmpireBrett’s journey began in California, but his family soon moved to Iowa, where he spent his early years before the family relocated to Denver. Brett later graduated from Thomas Jefferson High School in Denver and pursued higher education in construction science at Colorado State University.
Learning the Ropes in ConstructionAfter college, Brett joined J.E. Dunn Construction Company in Kansas City, where he started at the entry-level and quickly demonstrated his knack for handling large construction projects. Despite economic challenges, Gordon proved his mettle by taking on significant responsibilities and establishing a solid foundation in the industry.
Building Walton ConstructionAn ambitious spirit led Brett to join Walton Construction Company, a small firm where he quickly rose through the ranks. There, he wore multiple hats, managing operations, sales, and hiring. Through his hard work and dedication, Walton transformed from a $6 million-a-year company to a $750 million-a-year enterprise.
The Entrepreneurial Leap: Founding McCownGordonIn 2001, Brett decided it was time to start his own business with his long-time colleague, Pat McCown. With just a small project to start, they built McCownGordon Construction from the ground up. Despite beginning with minimal resources and performing many tasks themselves, including demolition and cleanup, Brett and Pat's tenacity paid off. The company quickly scaled, achieving remarkable growth and completing numerous large-scale projects.
McCownGordon's Growth and ValuesUnder Brett's leadership, McCownGordon expanded significantly, ultimately becoming a billion-dollar enterprise with 1,500 employees. The success can be attributed to three core values: honesty, integrity, and performance. These principles, deeply embedded in the company's culture, ensured that every associate and client was treated with respect and fairness.
Transition to Employee Ownership: The ESOP JourneyAs Brett began planning his exit strategy, he wanted to ensure the company's continuity and reward the associates who contributed to its success. This led to the establishment of an Employee Stock Ownership Plan (ESOP), making all associates co-owners of McCownGordon. By transitioning to a 100% ESOP, Brett and Pat ensured the company remained in capable hands, fostering a sense of ownership and responsibility among the employees.
Brett Gordon's Philanthropic EndeavorsPhilanthropy has always been close to Brett's heart. Even during challenging economic times, McCownGordon committed to giving back a portion of its profits to the community. Post-retirement, Brett continues to focus on philanthropic initiatives, supporting organizations that make a meaningful impact on people's lives.
Lessons from Brett Gordon's JourneyAs Brett reflects on his journey, he emphasizes the importance of client care, maintaining core values, and treating associates and clients with respect. His story serves as an inspiration to entrepreneurs and business owners, highlighting the significance of humility, integrity, and relentless pursuit of excellence.
Brett Gordon's story is a remarkable example of what one can achieve with dedication, perseverance, and a clear ethical compass. From sweeping floors to building a billion-dollar enterprise and giving back to the community, Brett's journey offers valuable lessons for anyone aspiring to make a mark in the business world.
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Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Dave (00:00):
Show me the way episode 54 of the Colorado Construction Explorer.
Ladies and gentlemen, a very excitingepisode coming up with Brett Gordon.
Interesting from this vantage point,entry level and construction company
to becoming a C suite executive in asecond company, to becoming the owner,
starting at the very, very bottomof a company that's now doing an
(00:25):
extraordinary amount of work to now.
Fulfilling his dream ofbeing a philanthropic leader,
valuable lessons throughout.
Very humble person.
The kind of person you want to holdup as the model for becoming the true
business owner that all of us wish to be.
Stay tuned.
You will enjoy this.
Welcome
(00:57):
to show me the way a podcastpresented by Spencer Fain, LLP
about business succession planning,the merger and acquisition
experience and successful exits.
Welcome I am your host Dave Sider.
Joining me on today'sshow is Brett Gordon.
Brett Gordon's journey began fromthe mountains of Colorado, something
(01:19):
that he and I know very well.
Brett Gordon is an excellent skier.
He went to school, he'll tellyou about that experience.
He started as a construction workerand became ultimately an owner of
a significant construction companyand then helped to create an ESOP,
That allowed his employees to benefitfrom the company that he created.
(01:40):
And now he's a philanthropicleader in the Midwest.
Brett, welcome to the show.
Thank you, Dave.
Pleasure to be here.
Right.
If you would give us, I'd like to havein every instance, our speaker, I'd
relate to people and usually the way Ido it is by going into the background.
So let's start at the beginning.
Where were you born and raised?
Brett Gordon (01:59):
I was actually born in California, but shortly after I was
born, my family moved back to Iowa andmy dad went to Iowa state university
to get his architectural degree.
So I lived in Ames, Iowa untilI was about 10 years old.
(02:20):
And then after my dad got out of college,he got a job in Denver and he moved to
Denver, like I said, I think in 1971.
So I was in Denver before it reallyevolved as a big city and in a big city.
So it's much different todaythan it was when I grew up there.
(02:41):
So it's fun to go there and visit,but I don't spend a lot of time there.
I, I, I typically go rightthrough it and go up into the
mountains and enjoy the mountains.
Dave (02:52):
It's funny because you moved there about 1970, I moved there in 1970, I don't
know if you ever compared those notes,but Brett lived in Denver, and I lived in
Boulder, so those are two different partsof the world, but I, I stipulate, counsel,
that Denver in 1970 is not Denver in 2024.
(03:13):
Is absolutely a different environment.
So where did you go toschool, high school, college?
Let's
Brett Gordon (03:20):
see.
I went to a couple ofstints in high school.
One, I lived up in Dillon, Coloradofor basically my freshman, sophomore
and junior year high school andwent to Summit County high school.
And so the skiing backgroundprobably started there.
(03:43):
in the mountains and lived up there.
And then we moved back down toDenver and I graduated from Thomas
Jefferson High School, which is inDenver Public Schools area, right over
kind of by Cherry Creek Reservoir.
Dave (03:57):
So, so people would know, I don't, I think Summit High School
was right outside of Breckenridge?
Brett Gordon (04:02):
It is, yes, between, it was in Frisco.
Okay.
So those,
Dave (04:08):
those of you out there in radio land will know probably where Breckenridge is.
That'll give you a point of reference.
Then you went to college.
Tell us about your college experiencebecause you started out, well, first
of all, I can tell you ladies andgentlemen, he's an athlete, but you
started out in his athletic endeavor.
Brett Gordon (04:24):
Yeah, I, fortunately I was a pretty well rounded athlete and had
a couple of scholarship opportunities.
And I took a soccer scholarship.
At Metro State, which isright in downtown Denver.
So I was able to actually liveat home and I think they paid
(04:45):
a little bit of my tuition.
And so I played soccer there and theyhad a pretty good team that was very
competitive, made it to the sweet16, my freshman year, final 16 teams.
And now I was fortunate enoughas a freshman to actually
start and play every game.
(05:07):
You know, unfortunately,I, I blew out my knee.
Freshman year, and back then we just tapedit up and, and you played through it.
So I, I played the remainder ofthe season with a torn ACL and,
and really didn't even know it.
And then I was in a summer tournament.
Gosh, down in Texas.
(05:30):
Gosh, I think we were at Texas Tech.
I don't know, there's probably12 college teams there.
Anyway, I re injured my knee, couldn'tplay that next fall, and I ended up losing
my scholarship, which, you know, one ofthose bumps in the road, and decisions.
That changer, a whole trajectory oflife and where you go that year that I
(05:53):
had to sit out, didn't have the moneyto go to school, but I worked and I
ended up working one of the high risesin downtown Denver and went up to
Fort Collins where I went to Coloradostate university later that next fall.
And found out that theyhad a construction program.
I started working in construction.
(06:15):
My dad was essentially in that fieldfrom the time I was probably 15
years old or 16 years old, workingon job sites and building buildings.
And so got a, a vastconstruction background.
My father ultimately worked for areally large developer in Denver.
(06:36):
And they probably did almost back then,probably 70 percent of the high rises in
downtown Denver, all of them are stillthere, but fortunately I was able to work,
put enough money away and go to school.
And I went up to Colorado state.
I got my undergraduate degree inconstruction science or construction
managing, what they call it today.
Dave (06:57):
We also have a natural rivalry because Brett did go to Colorado State
and I went to the University of Colorado.
So it's an ongoing struggle for a certaintime of year, although not so much the
last few years, thanks to Coach Prime.
But the Rams will be back.
I, I've had to buy a lot of
Brett Gordon (07:15):
lunches, Dave, over few years.
, you know, that's typically the, that'stypically the loser side of the bet.
So I think I've picked up thecab a lot more than you have.
The game's have been competitive and, butyou know, I think Colorado State's been on
a losing and much more than the buffalos.
Dave (07:37):
But the, uh, Fort Collins is a wonderful town, needless to say.
You've got your experienceup at Colorado State, left
Colorado State, and went where?
Brett Gordon (07:48):
Went to work for a large construction company
based in Kansas City, J.
Dunn Construction Company.
Most people on thispodcast probably know them.
So they, they hired meright out of school.
And in 1984, when I graduated,unemployment was about 10%.
(08:08):
And when I graduated, Igraduated actually in December.
Yeah.
So there's like maybe 26 of us in ourgraduating class in construction science,
and two of us out of the 26 had jobs.
Dave (08:25):
Wow.
Brett Gordon (08:26):
So I was fortunate enough to be one of those two that had a job.
I had done an internship withthem prior summer and they offered
me a job and they came to me.
I started working, I think, onDecember 27th, because I didn't have,
I didn't have 10 cents in the bank,probably after graduating college.
(08:47):
And they said, well, we're going tomove you to Kansas City for a year.
So, I came to Kansas City in 1984.
For what was supposed to be oneyear of training at the home office.
Forty years later, I'mstill in Kansas City.
Dave (09:04):
And neither one of us have adjusted to the humidity.
Brett Gordon (09:08):
People ask me what I miss most about Colorado.
It's the weather.
It's quite frankly, warmer there inthe winter and cooler in the summer.
Yeah,
Dave (09:18):
exactly.
Brett Gordon (09:19):
We might get a lot, they might get a lot more snow, but way to
the air is just much more temperate.
You just don't have the extremes.
Dave (09:29):
Well, and in fairness, Colorado knows how to deal with the snow, too.
They do that as well.
They do a very good job with that.
So do you, when you go to a largeconstruction company, do you start,
quote, out in the field or do you startin the, I mean, how does that work?
Brett Gordon (09:42):
So I started in the field in a trailer and, you know,
I've been on a lot of high risesin my prior graduation dates.
So when I started.
In Kansas City, there was a projectright at Grand and 19th Street.
Cruising Grand was inneed of the high rides.
(10:02):
And so I started, I started outin the field in the trailer.
And they gave me achoice when I graduated.
Do you want to be in the field?
Or do you want to, do youwant to be a superintendent?
Or do you want to be a projectmanager working the office?
And I chose working in the office.
And so from that decision, they broughtyou up through the operation side,
(10:25):
through the office and his projectmanager, fortunately, rose the ranks
and just continued to grow in theconstruction industry and in my career.
Dave (10:36):
So honestly, ladies and gentlemen, he did start at very much
the entry level and stayed with thiscompany for quite a while, but there
were some more changes in your life.
What happened after.
You're so germ with Mr.
Dunn's company.
Brett Gordon (10:52):
When I was at Dunn, great organization and a great
training ground, highly respectthem and still respect them today.
They had a lot of growth justa few years before I got there.
So.
As I looked at the playing field, I'lljust say that just everybody around
me was, there were five or six orseven people that were two or three
(11:15):
years older than me and had been withthe company two or three years old.
I just didn't think I was going toget the opportunity to Colony shots
and Dave knows me better than most.
I don't have a lot of patience
Dave (11:28):
that that.
Okay.
All right.
Wait a minute.
Wait a minute.
This guy's very humble andlow key, but if he gets quiet,
you better get real nervous.
That's all I'm saying.
Brett Gordon (11:38):
So I had an opportunity and I weighed that opportunity with.
I'm going to wait till all those guys infront of me retire or all those people
in front of me retire when they're 65and I'm 60 and they get to actually
make some major decisions in a company.
I chose and I went to work with a, atthat time was a really small company,
(12:01):
about a 6 million a year company.
And that company's name was theWalton Construction Company.
There were probably 10 of us in theoffice and 10 of us in the, in the
field and just was able to take myexpertise and working on bigger projects.
And I ended up going right in andrunning the majority of their large
(12:27):
projects, that experience, that company.
When I left from that 6 milliona year to, I think when I left
there were 700, 750 million a year.
And I had hired probably90 percent of those folks.
Ran the operations side,did sales, did everything.
(12:48):
One of the beauties of going from J.
Dunn to Walton.
Long was just a lot smaller thumband so you had to wear many more hats
and they gave you a lot more hats towear because there was nobody to wear
them except for who was ever thereand it was a blessing and a great
(13:09):
opportunity for me to learn and grow.
I think I was a VP by the timeI was 31 years old and I ran the
operations by the time I was 20.
32 years old, 33 years old, and we'rebuilding big buildings, I mean, huge
buildings, some of the most iconicbuildings and can see from Bordeaux
(13:30):
Hall to Spain, 17 lanes of interstatewith the pylons and big projects.
That I had the opportunity, fortunateenough to have that opportunity.
Yeah.
Worked hard, get my head down andmost projects were successful.
(13:50):
The company was successfuland it was good enough.
Dave (13:55):
So you were there for a few years and then there was a, another
venture that you got involved with.
Could you share that, what happened there?
So
Brett Gordon (14:05):
like a lot of entrepreneurs, you just have it in your, In your makeup
and in your DNA to be entrepreneurialand go try it for yourself.
And so after 13 years with WaltonConstruction Company and five with Jay
Dunn before that, I had the itch to gostart my own company and I had a business
(14:29):
partner that We started the companytogether, and we'd actually worked at J.
Dunn together since 1980, actuallysince my internship, so back to 1983,
then Pat McCown was his name, and Patcame over to the Walton Construction
Company, probably 1996 or so.
(14:51):
And so we worked together at WaltonConstruction Company for about three
years and then we just, we said,Hey, we can do this ourselves and
not that I'm never going to say thatwe had the right way to go do it and
they weren't doing it the right way.
We just thought we could approachthe construction process and
(15:17):
building a company underneath ourown morals, ethics, and philosophies.
We had an open script and wewere able to go out there.
We started our own company and,and we did so, and, you know,
we hit the ground running.
We built relationships throughout thecity with developers and architects.
(15:41):
We were destined to do all thoserelationships and the majority
of those relationships werepeople that built big buildings.
And so we were able to continuethose relationships on.
When we started our own company, obviouslythey don't let you go build a 50 million
job financially, economically, they'relike, well, how do you ever build one?
(16:07):
Obviously in my career,I built many of them.
They go, no, no, have you, youguys ever built your company?
Well, no.
And so you just.
I mean, they have to be street businesspeople and make smart business decisions.
And I'm not sure I would have hiredsomebody that just started the
company, regardless what the resumesaid to go put a 10 million, 50
(16:30):
million investment in risk out thereon somebody that's never done it.
So I think our first job,actually our first job was
probably about a 20, 000 job.
F lab one facilities.
And I fortunately wrapped the dome,that facility, and we ended up doing
a small little kitchen renovation.
(16:51):
And Pat and I actually didn't work.
We get the demo on the weekends,
Dave (16:56):
but that's fantastic.
Brett Gordon (16:58):
Yeah.
You know, and then we didn'thave anybody working for us.
Dave (17:02):
Right.
Brett Gordon (17:02):
Right.
Let's say it was the first project andPat and I did work and subcontracted.
All the plumbing and electricaland drywall and that type of work,
but the demolition and kind ofthe day to day, just construction
stuff, cleanup, sweeping.
Well, Pat and I did it either at
Dave (17:21):
night or on the weekends.
So ladies and gentlemen,how would you like this?
He starts out with a huge company,goes to the next company and he
starts with that first company.
I don't want to say at the very bottom,but you know, entry level, let's say
it that way, goes to the next company.
And that next company.
He is running massive projects.
(17:41):
And he is a significant person in theC suite to the third project that he's
the owner and he's sweeping the floors.
I mean, this guy has doneit all over his career.
Tell us about that company now.
Where is it today?
Brett Gordon (17:54):
We count Gordon today.
We're doing right at a billiondollars a year with 1, 500 employees.
And it's a long ways away from whenit was Pat and I sitting at my kitchen
table, two employees, and I think ourfirst, first year, half year count or
(18:15):
fiscal year, I think we did 600, 000.
Yeah, we did about 600,000 that first six months.
The first year and so it was,and boy, we were working hard.
I mean, we were cool.
Gosh, it, it never stopped from havingto do your own estimates, write all
(18:38):
your own proposals, do your own payroll.
You get, you had to wear,you had to do everything.
You had to sell it, you had to estimateit, you had to build it, you had
to PM it, you had to close it out.
Pretty drastic change that, that secondyear, first full year, I think we
actually, we went from that 600, 000to 13 million, well, 13 million that
(19:03):
first year and a funny side story.
To that is I'm out at springbreak that following year.
This is probably 2001 spring break, 2001.
I get a phone call from Pat said, Hey, Ijust got this really strange phone call.
(19:24):
Yeah.
You guys said, ah, I don't know ifthey're pulling our legs or not.
Well, it was Inc magazine and Incmagazine had called and started
asking all these questions.
And then I get back into the office thenext week and there's another phone called
what Inc magazine, and they start askingfor our audited financials and our, you
(19:48):
just strange anyway, long story madeshort, we are, We're sitting there and
we ended up becoming the second fastestgrowing business in America, Inc magazine,
Dave (20:02):
but that I never knew 20,
Brett Gordon (20:05):
whatever that was 20, 21, and then the next year we were
the fourth fastest growing companyin America, just by percentages.
Cause that's, it was pretty astronomicalfrom 600, 000 to 13 million.
I think we doubled.
In size nine out of the first 10 years,the company really did very, very well.
(20:32):
And just took off and thewhole community embraced us.
Dave (20:37):
Ladies and gentlemen, here's the big lesson learned, at least from me,
knowing him for you all this, this entireprocess, a guide, not even a native to
this area of the world is recruited.
And he comes here and he starts outat a library at the entry level.
And through three,three journeys is built.
A huge company.
(20:58):
Knowing Brett, he's never gonnasay he built it on his own.
He was, he was probably at the helm,along with Pat, guiding the ship.
But Brett is not the kind of personto say he did it all by himself.
A quite unparalleled story, to be blunt.
And it's always very impressive tosee people that be able to Begin
at entry level and take somethingvirtually, virtually no money.
(21:21):
And I think you told me when he came,you can't see how much money you
didn't have in your pocket, literallyto the size business that you have.
So what, what are some of thememorable things that you can recall
from your, from your journey thatyou were late to business owners?
Because, you know, this is one of thereasons I wanted to do the podcast.
(21:43):
A lot of people saying,I want to be Bill Gates.
I want to be.
Whoever, on the national scale, Elon Musk.
And I'm going, you know, we'vegot a lot in the Midwest, people
who are highly successful.
It's too difficult to be Elon Musk.
It's too difficult to be Bill Gates, okay?
(22:05):
But there are people that are, I believe,equally successful and they're here.
And the point is to reach out andfind out what was instrumental in
their life to make these memorableexperiences for them, to allow them to.
Frankly grow and develop thebusiness the way you did.
What, what would it be for you?
(22:26):
A couple of examples.
Brett Gordon (22:27):
There's probably a couple of things.
And one was always just tryingto take care of the client.
We had three core values at McAllenWharton that we try and live each and
every day and every minute of every day.
And, and not just Pat and I hadthat vision and core values, but
(22:47):
our core values were honesty.
Integrity, performance, and that honestystandpoint was tell the truth above
all else, whether that's good news, badnews, whatever the news is, you tell
it and you tell it as early as you can.
The integrity part, again, it's, it'sjust do what you say you're going to
(23:12):
do when you say you're going to do it.
Treat those that are around you withthe same amount of respect that you
would want them to treat you with.
And so treat others like youwould like them to treat you.
Pretty simple mantra.
And then performance, again, it's kindof do what you say you're going to do,
(23:32):
meet those schedules, those deadlines.
And do that to the best that you can doit for the client, for your associates.
And so you have that component.
And then as you're growing, we hadall of those associates in the office.
Yeah.
And it's how you treat theminside the four walls of the
(23:54):
business that really matters.
And one of the key componentsthat made us successful and one of
the things I'm most proud about.
It is in Kansas City, we're the bestplaces to work for 17 years in a row.
And that's the longest that anybodyhas had in 17 years in a row are
(24:16):
the best places to work and allthat means is that you're treating
your associates as partners in yourbusiness, just like the subcontractors.
They do work with every day.
They're the, they're the ones out, outthere actually getting it done between
his field personnel and superintendents.
Those boots on the ground, those are thepeople that make, make you successful
(24:41):
and you have to treat them right.
And so when we win those awards, it's,that means we were doing something right.
You know, all of the associatesin the office, you know, we're
getting treated well and gettingtreated like owners in our business.
Dave (24:58):
Well, that leads to the next evolution of the business
I'd like you to talk about.
And that is, you didmake them owners of it.
Tell us about that.
Brett Gordon (25:08):
We did.
Like any other entrepreneur, as yougo through that, that process, there,
there has to be some exit strategy andit's debatable whether there's four or
five ways to get out of your business.
But.
You know, they're, they're real, it'spretty limited, literally is four or five,
(25:28):
depending on how you carve that up, waysto move on and get out of your business.
One of those methods, you want to takecare of those folks that, that actually
got you there and the associates inside.
And we explored doing a management buyout.
(25:49):
The folks that were reallymaking a difference in the
company and helping us drive.
The success of the company,but construction is a very
capital extensive business.
You have to leave so much equityin the company for bonding
(26:10):
capacity, for the insurance.
So you have a construction company,unlike a lot of other businesses, that
if you're successful, you make a lotof money, you take a lot of the money
home, you leave some in there for growth.
In the construction industry, You haveto have so much capital in the company
(26:33):
and that that capital grew to suchextent that Our management team, quite
frankly, couldn't afford to buy a cell.
And so the other viable option, there'stwo kinds of options with, with an ESOP.
There's, you can do a partial ESOP,and you can, you can start off at
(26:54):
40%, 50 percent or a hundred percent.
I mean, we did a hundred percentand I'll explain why we didn't a
hundred percent here in just a second.
You know, the hundred percent ESOP.
And Pat and I ended up financingthat again, the amount of capital
that we had in the company, therewasn't anybody on our staff, even
(27:18):
though we empowered them and enrichedthem along the way, they didn't have
that kind of capital to buy us out.
So we essentially loaned themthe money to, and we financed it.
Pat and I did.
So on January one of 2015,
(27:39):
every.
Associate in the company was no,and that was the mechanism and the
vehicle that we were able to use wise.
To reward those folks that helpedus build the company, helped us
deliver upon our promises and theycan be enriched along the way.
(28:04):
And so we elected to do theESOP and we elected to jump
all in at a hundred percent.
And for those of you that know or don'tknow, if you do a portion of ESOP,
ESOP's for one, one of the benefitsof doing an ESOP is the corporation
or the company doesn't pay taxes.
(28:26):
So that for easy math, let'sjust say you're doing, you're
making 10 million a year.
Normally, the company wouldend up paying about 40%.
Of that, or $4 million in taxes.
And if you did a partial ESOP onthat $10 million and said you did
(28:47):
50 50, only a partial componentof that, you save the taxes.
So on that $4 million in taxes, you'd,you would pay $2 million in taxes
if you did 50 50 on that equation.
And one the, one of the issues that as.
(29:08):
I know that when you're doing thattransition, even though you're saving
that 2, 000, 000 in the taxes, if youdid a 50, 50 percent ESOP on the 10, 000,
000 example, that 2, 000, 000 would sitthere and you can't use it for anything.
The Department of Labor steps in.
(29:29):
And said, and completely protects thatnugget of money or that tax money.
And so you're doing the ESOP, you'reenriching the associates, but there is
a bucket of dollars that are sitting outthere that the company can't utilize.
If you, the a hundred percent ESOPthat complete 4 million in savings and
(29:49):
taxes that you would have the company.
To utilize those dollars for investmentsin buying other ESOPs, other companies,
other professional companies.
So if you do the 100 percent ESOP,you have that leverage to utilize
Some of the savings that you're notpaying in taxes and investing it back
(30:10):
in the business, where if you do thepartial, you're, you're handcuffed
and you can't utilize those dollars.
So, so we jumped all in anddid the a hundred percent ESOP.
And if opportunities would come alongwhere there's another construction
company that has a niche that youlike, it's in a different marketplace.
(30:33):
You can go in and purchase that company.
You can use those dollars.
To make that business decision andbuy them and leverage those dollars
to the benefit of the associates.
Dave (30:48):
And so you've had a great deal of success to the point
now that you are on the outside.
You've delivered up the companyto The associates in the new
leadership, you've now entered thephilanthropic stage of your career.
Would that be a nice way ofsaying, although you've, you've
always done some of that.
Yeah.
(31:08):
How do you, what wouldyou call yourself now?
Philanthropist
Brett Gordon (31:12):
boy, old and retired.
Yeah.
Yeah.
Roll back in just part of ourDNA, just like taking care of
the associates and the clients.
Was to be philanthropicallyengaged in the community.
And so part of our original businessplan that we incorporated from day one
(31:35):
was to get 10 percent of our profitsaway tropically in the community.
And so from the very first dollarMcAllen board never made, it was
our desire to get 10 percent ofthe actual, you know, profits away.
Yeah.
We did a phenomenal job of doing that.
I'll go back to, gosh, trying to think,had the crash in 2008, 2007, 2008,
(32:06):
and many companies across the countryin all different facets were impacted
by the economy and the marketplace.
All of the philanthropic companiesthat we'd been donating to,
they still needed the money.
Well, we weren't making the same kind ofmoney, but we still donated to the, and
(32:28):
so I, I think the peak percentage thatwe gave away of our profits was 22%.
And during like 2007 or 2008,those were difficult years.
We never lost money, but weweren't making money like we were
making, but we were still giving.
(32:49):
At that high level, because allof the charities and philanthropic
organizations in the city still need them.
And then we're actuallyless people donating.
And so they, they were strapped.
And so part of our DNA was givingback and we did, and we ended up
being philanthropic company of thecity a couple of times, and it was
(33:14):
just another facet of something that.
You know, I'm very proud of thatwe were able to help so many in
the community that, that needed it.
And so our giving is something that wasjust baked in and it really kind of just
comes from those Christian values thatyou get 10 percent of what you make,
what, yeah, try and help others in need.
(33:36):
And so.
We've done that, and Icontinue to do that today.
Just, I don't know how to definemyself today, but I'm still very
engaged in the philanthropic community.
And try and give dollars to theorganizations that I know are going
to move the needle and make changes inyoung people's lives, and just people
(34:01):
in general, you know, the organizationsthat I choose to philanthropically
give to, I do so with a purpose, andthat purpose is to That it actually
will come and change people's livesin the future and make them better.
Dave (34:17):
And this, ladies and gentlemen, is the reason you
need to get to know Brett Gordon.
Let me ask you three questions, if I may.
What would be the biggest lesson that youwould articulate to people who are in the
process of retiring from their business?
Yeah,
Brett Gordon (34:33):
retirement is, I struggled at first, like a lot of people do.
Good.
At all.
I'll put a little funny context to this.
And Dave's heard this before.
Yeah.
I, I started my own business soI could be the boss somewhere
because I'm not the boss at home.
And I love my wife, Becky dearly.
(34:53):
And when I retired and I was doing 10miles an hour a day and night entertaining
clients and doing philanthropic andcivic duties throughout the community,
we running pretty hard and then all of a
I'm home and I'm in Becky's space.
(35:14):
And Evan Flo and trying togenerate her home relationship
because so much of it was focusedon my time outside of the home.
She's one who raised our kidsand put great effort into
that and did a great job.
But when I retired, not that Istepped on her toes, you know, she
(35:38):
felt guilty that she wasn't off doingsomething and I'm sitting here not.
Doing anything and I'mwatching her not go out.
And so there was a little bit of evidenceflow from a relationship standpoint.
Give me my space.
You know, I've had your space for thelast 40 years while you're doing that.
So don't just invade my space.
(35:59):
And so again, once again, Irealized I wasn't the boss.
I had to step back and not just take myfoot off the gas at the office, but I
had to take my foot off the gas at home.
So that's one thing I will say for anybodythat retires, you have to think of your
spouse and those loved ones around you.
(36:22):
They haven't had that full on endeavor.
24 7 or the focus that you gaveto your business and you're
trying to bring that home.
They love you, but they don't want that.
And you have to learn to temper that.
Building a business whereyour name's on the door.
(36:44):
Can everybody associatesthe company with you?
It's a learning lesson to.
To take a step back and not be thatrecognizable face of the organization.
There are other people wanting itthat you put in place and if you
did your job well, you train themwell, it's going to continue on.
(37:07):
And so it's.
You're not that decision maker.
And that's probably themost difficult thing.
Uh, and so it's, it endsup being two pronged.
One, you learn that you're not thatdecision maker at home until you learn
you're not that decision maker at work.
And you have to come to a placewhere that's okay, but you entrusted
(37:29):
other people to make those decisions.
And so I'll, I'll just say that, but yougot to allow yourself to To rely on the
people that you did put in those places.
Dave (37:40):
A very humbled man, ladies and gentlemen, who has somehow been able
to negotiate all of these twistsand turns and journeys in his life.
Brett, if someone were to try to reach outto you, how would they get a hold of you?
Brett Gordon (37:54):
You know, I still have my McCown Warden.
Email address and it'sbjordan at mccallengordon.
com and I'm still accessible on that.
I have really pulled away fromLinkedIn and I don't do social media.
I never had time for it.
(38:15):
Yeah, I don't do Facebook.
I don't do, so you can try and reachout to me through my email and I, and
I still read my emails every day and gothrough them and difficulties that way.
Ping me on LinkedIn and I lookat it every once in a while, but
Dave (38:32):
don't,
Brett Gordon (38:32):
don't get mad at me.
It's not a quick return becauseit's, I, I've stayed away from
the social media standpoint.
Dave (38:41):
Well, thanks again to Brett.
Ladies and gentlemen, if you're insearch of assistance, go to davidsider.
com and schedule a consultation.
Also make sure to subscribe tothe show, rate it, and leave me a
comment on your favorite podcastplatform such as Spotify or Apple.
Thanks again to Brett and ladies andgentlemen, until next time, be safe.
(39:02):
And
I want you to know that this podcast.
is provided for educational purposes.
It does not constitute legal adviceand it is not intended to establish
an attorney client relationship.
The recommendations contained in thepodcast are not necessarily appropriate
for every individual or business indetermining the best course of action.
(39:25):
Business owners should consult with anattorney on their distinct circumstances.
Show me the way episode 54 of the Colorado Construction Explorer.
Ladies and gentlemen, a very excitingepisode coming up with Brett Gordon.
Interesting from this vantage point,entry level and construction company
to becoming a C suite executive in asecond company, to becoming the owner,
starting at the very, very bottomof a company that's now doing an
(00:25):
extraordinary amount of work to now.
Fulfilling his dream ofbeing a philanthropic leader,
valuable lessons throughout.
Very humble person.
The kind of person you want to holdup as the model for becoming the true
business owner that all of us wish to be.
Stay tuned.
You will enjoy this.
Welcome
(00:57):
to show me the way a podcastpresented by Spencer Fain, LLP
about business succession planning,the merger and acquisition
experience and successful exits.
Welcome I am your host Dave Sider.
Joining me on today'sshow is Brett Gordon.
Brett Gordon's journey began fromthe mountains of Colorado, something
(01:19):
that he and I know very well.
Brett Gordon is an excellent skier.
He went to school, he'll tellyou about that experience.
He started as a construction workerand became ultimately an owner of
a significant construction companyand then helped to create an ESOP,
That allowed his employees to benefitfrom the company that he created.
(01:40):
And now he's a philanthropicleader in the Midwest.
Brett, welcome to the show.
Thank you, Dave.
Pleasure to be here.
Right.
If you would give us, I'd like to havein every instance, our speaker, I'd
relate to people and usually the way Ido it is by going into the background.
So let's start at the beginning.
Where were you born and raised?
Brett Gordon (01:59):
I was actually born in California, but shortly after I was
born, my family moved back to Iowa andmy dad went to Iowa state university
to get his architectural degree.
So I lived in Ames, Iowa untilI was about 10 years old.
(02:20):
And then after my dad got out of college,he got a job in Denver and he moved to
Denver, like I said, I think in 1971.
So I was in Denver before it reallyevolved as a big city and in a big city.
So it's much different todaythan it was when I grew up there.
(02:41):
So it's fun to go there and visit,but I don't spend a lot of time there.
I, I, I typically go rightthrough it and go up into the
mountains and enjoy the mountains.
Dave (02:52):
It's funny because you moved there about 1970, I moved there in 1970, I don't
know if you ever compared those notes,but Brett lived in Denver, and I lived in
Boulder, so those are two different partsof the world, but I, I stipulate, counsel,
that Denver in 1970 is not Denver in 2024.
(03:13):
Is absolutely a different environment.
So where did you go toschool, high school, college?
Let's
Brett Gordon (03:20):
see.
I went to a couple ofstints in high school.
One, I lived up in Dillon, Coloradofor basically my freshman, sophomore
and junior year high school andwent to Summit County high school.
And so the skiing backgroundprobably started there.
(03:43):
in the mountains and lived up there.
And then we moved back down toDenver and I graduated from Thomas
Jefferson High School, which is inDenver Public Schools area, right over
kind of by Cherry Creek Reservoir.
Dave (03:57):
So, so people would know, I don't, I think Summit High School
was right outside of Breckenridge?
Brett Gordon (04:02):
It is, yes, between, it was in Frisco.
Okay.
So those,
Dave (04:08):
those of you out there in radio land will know probably where Breckenridge is.
That'll give you a point of reference.
Then you went to college.
Tell us about your college experiencebecause you started out, well, first
of all, I can tell you ladies andgentlemen, he's an athlete, but you
started out in his athletic endeavor.
Brett Gordon (04:24):
Yeah, I, fortunately I was a pretty well rounded athlete and had
a couple of scholarship opportunities.
And I took a soccer scholarship.
At Metro State, which isright in downtown Denver.
So I was able to actually liveat home and I think they paid
(04:45):
a little bit of my tuition.
And so I played soccer there and theyhad a pretty good team that was very
competitive, made it to the sweet16, my freshman year, final 16 teams.
And now I was fortunate enoughas a freshman to actually
start and play every game.
(05:07):
You know, unfortunately,I, I blew out my knee.
Freshman year, and back then we just tapedit up and, and you played through it.
So I, I played the remainder ofthe season with a torn ACL and,
and really didn't even know it.
And then I was in a summer tournament.
Gosh, down in Texas.
(05:30):
Gosh, I think we were at Texas Tech.
I don't know, there's probably12 college teams there.
Anyway, I re injured my knee, couldn'tplay that next fall, and I ended up losing
my scholarship, which, you know, one ofthose bumps in the road, and decisions.
That changer, a whole trajectory oflife and where you go that year that I
(05:53):
had to sit out, didn't have the moneyto go to school, but I worked and I
ended up working one of the high risesin downtown Denver and went up to
Fort Collins where I went to Coloradostate university later that next fall.
And found out that theyhad a construction program.
I started working in construction.
(06:15):
My dad was essentially in that fieldfrom the time I was probably 15
years old or 16 years old, workingon job sites and building buildings.
And so got a, a vastconstruction background.
My father ultimately worked for areally large developer in Denver.
(06:36):
And they probably did almost back then,probably 70 percent of the high rises in
downtown Denver, all of them are stillthere, but fortunately I was able to work,
put enough money away and go to school.
And I went up to Colorado state.
I got my undergraduate degree inconstruction science or construction
managing, what they call it today.
Dave (06:57):
We also have a natural rivalry because Brett did go to Colorado State
and I went to the University of Colorado.
So it's an ongoing struggle for a certaintime of year, although not so much the
last few years, thanks to Coach Prime.
But the Rams will be back.
I, I've had to buy a lot of
Brett Gordon (07:15):
lunches, Dave, over few years.
, you know, that's typically the, that'stypically the loser side of the bet.
So I think I've picked up thecab a lot more than you have.
The game's have been competitive and, butyou know, I think Colorado State's been on
a losing and much more than the buffalos.
Dave (07:37):
But the, uh, Fort Collins is a wonderful town, needless to say.
You've got your experienceup at Colorado State, left
Colorado State, and went where?
Brett Gordon (07:48):
Went to work for a large construction company
based in Kansas City, J.
Dunn Construction Company.
Most people on thispodcast probably know them.
So they, they hired meright out of school.
And in 1984, when I graduated,unemployment was about 10%.
(08:08):
And when I graduated, Igraduated actually in December.
Yeah.
So there's like maybe 26 of us in ourgraduating class in construction science,
and two of us out of the 26 had jobs.
Dave (08:25):
Wow.
Brett Gordon (08:26):
So I was fortunate enough to be one of those two that had a job.
I had done an internship withthem prior summer and they offered
me a job and they came to me.
I started working, I think, onDecember 27th, because I didn't have,
I didn't have 10 cents in the bank,probably after graduating college.
(08:47):
And they said, well, we're going tomove you to Kansas City for a year.
So, I came to Kansas City in 1984.
For what was supposed to be oneyear of training at the home office.
Forty years later, I'mstill in Kansas City.
Dave (09:04):
And neither one of us have adjusted to the humidity.
Brett Gordon (09:08):
People ask me what I miss most about Colorado.
It's the weather.
It's quite frankly, warmer there inthe winter and cooler in the summer.
Yeah,
Dave (09:18):
exactly.
Brett Gordon (09:19):
We might get a lot, they might get a lot more snow, but way to
the air is just much more temperate.
You just don't have the extremes.
Dave (09:29):
Well, and in fairness, Colorado knows how to deal with the snow, too.
They do that as well.
They do a very good job with that.
So do you, when you go to a largeconstruction company, do you start,
quote, out in the field or do you startin the, I mean, how does that work?
Brett Gordon (09:42):
So I started in the field in a trailer and, you know,
I've been on a lot of high risesin my prior graduation dates.
So when I started.
In Kansas City, there was a projectright at Grand and 19th Street.
Cruising Grand was inneed of the high rides.
(10:02):
And so I started, I started outin the field in the trailer.
And they gave me achoice when I graduated.
Do you want to be in the field?
Or do you want to, do youwant to be a superintendent?
Or do you want to be a projectmanager working the office?
And I chose working in the office.
And so from that decision, they broughtyou up through the operation side,
(10:25):
through the office and his projectmanager, fortunately, rose the ranks
and just continued to grow in theconstruction industry and in my career.
Dave (10:36):
So honestly, ladies and gentlemen, he did start at very much
the entry level and stayed with thiscompany for quite a while, but there
were some more changes in your life.
What happened after.
You're so germ with Mr.
Dunn's company.
Brett Gordon (10:52):
When I was at Dunn, great organization and a great
training ground, highly respectthem and still respect them today.
They had a lot of growth justa few years before I got there.
So.
As I looked at the playing field, I'lljust say that just everybody around
me was, there were five or six orseven people that were two or three
(11:15):
years older than me and had been withthe company two or three years old.
I just didn't think I was going toget the opportunity to Colony shots
and Dave knows me better than most.
I don't have a lot of patience
Dave (11:28):
that that.
Okay.
All right.
Wait a minute.
Wait a minute.
This guy's very humble andlow key, but if he gets quiet,
you better get real nervous.
That's all I'm saying.
Brett Gordon (11:38):
So I had an opportunity and I weighed that opportunity with.
I'm going to wait till all those guys infront of me retire or all those people
in front of me retire when they're 65and I'm 60 and they get to actually
make some major decisions in a company.
I chose and I went to work with a, atthat time was a really small company,
(12:01):
about a 6 million a year company.
And that company's name was theWalton Construction Company.
There were probably 10 of us in theoffice and 10 of us in the, in the
field and just was able to take myexpertise and working on bigger projects.
And I ended up going right in andrunning the majority of their large
(12:27):
projects, that experience, that company.
When I left from that 6 milliona year to, I think when I left
there were 700, 750 million a year.
And I had hired probably90 percent of those folks.
Ran the operations side,did sales, did everything.
(12:48):
One of the beauties of going from J.
Dunn to Walton.
Long was just a lot smaller thumband so you had to wear many more hats
and they gave you a lot more hats towear because there was nobody to wear
them except for who was ever thereand it was a blessing and a great
(13:09):
opportunity for me to learn and grow.
I think I was a VP by the timeI was 31 years old and I ran the
operations by the time I was 20.
32 years old, 33 years old, and we'rebuilding big buildings, I mean, huge
buildings, some of the most iconicbuildings and can see from Bordeaux
(13:30):
Hall to Spain, 17 lanes of interstatewith the pylons and big projects.
That I had the opportunity, fortunateenough to have that opportunity.
Yeah.
Worked hard, get my head down andmost projects were successful.
(13:50):
The company was successfuland it was good enough.
Dave (13:55):
So you were there for a few years and then there was a, another
venture that you got involved with.
Could you share that, what happened there?
So
Brett Gordon (14:05):
like a lot of entrepreneurs, you just have it in your, In your makeup
and in your DNA to be entrepreneurialand go try it for yourself.
And so after 13 years with WaltonConstruction Company and five with Jay
Dunn before that, I had the itch to gostart my own company and I had a business
(14:29):
partner that We started the companytogether, and we'd actually worked at J.
Dunn together since 1980, actuallysince my internship, so back to 1983,
then Pat McCown was his name, and Patcame over to the Walton Construction
Company, probably 1996 or so.
(14:51):
And so we worked together at WaltonConstruction Company for about three
years and then we just, we said,Hey, we can do this ourselves and
not that I'm never going to say thatwe had the right way to go do it and
they weren't doing it the right way.
We just thought we could approachthe construction process and
(15:17):
building a company underneath ourown morals, ethics, and philosophies.
We had an open script and wewere able to go out there.
We started our own company and,and we did so, and, you know,
we hit the ground running.
We built relationships throughout thecity with developers and architects.
(15:41):
We were destined to do all thoserelationships and the majority
of those relationships werepeople that built big buildings.
And so we were able to continuethose relationships on.
When we started our own company, obviouslythey don't let you go build a 50 million
job financially, economically, they'relike, well, how do you ever build one?
(16:07):
Obviously in my career,I built many of them.
They go, no, no, have you, youguys ever built your company?
Well, no.
And so you just.
I mean, they have to be street businesspeople and make smart business decisions.
And I'm not sure I would have hiredsomebody that just started the
company, regardless what the resumesaid to go put a 10 million, 50
(16:30):
million investment in risk out thereon somebody that's never done it.
So I think our first job,actually our first job was
probably about a 20, 000 job.
F lab one facilities.
And I fortunately wrapped the dome,that facility, and we ended up doing
a small little kitchen renovation.
(16:51):
And Pat and I actually didn't work.
We get the demo on the weekends,
Dave (16:56):
but that's fantastic.
Brett Gordon (16:58):
Yeah.
You know, and then we didn'thave anybody working for us.
Dave (17:02):
Right.
Brett Gordon (17:02):
Right.
Let's say it was the first project andPat and I did work and subcontracted.
All the plumbing and electricaland drywall and that type of work,
but the demolition and kind ofthe day to day, just construction
stuff, cleanup, sweeping.
Well, Pat and I did it either at
Dave (17:21):
night or on the weekends.
So ladies and gentlemen,how would you like this?
He starts out with a huge company,goes to the next company and he
starts with that first company.
I don't want to say at the very bottom,but you know, entry level, let's say
it that way, goes to the next company.
And that next company.
He is running massive projects.
(17:41):
And he is a significant person in theC suite to the third project that he's
the owner and he's sweeping the floors.
I mean, this guy has doneit all over his career.
Tell us about that company now.
Where is it today?
Brett Gordon (17:54):
We count Gordon today.
We're doing right at a billiondollars a year with 1, 500 employees.
And it's a long ways away from whenit was Pat and I sitting at my kitchen
table, two employees, and I think ourfirst, first year, half year count or
(18:15):
fiscal year, I think we did 600, 000.
Yeah, we did about 600,000 that first six months.
The first year and so it was,and boy, we were working hard.
I mean, we were cool.
Gosh, it, it never stopped from havingto do your own estimates, write all
(18:38):
your own proposals, do your own payroll.
You get, you had to wear,you had to do everything.
You had to sell it, you had to estimateit, you had to build it, you had
to PM it, you had to close it out.
Pretty drastic change that, that secondyear, first full year, I think we
actually, we went from that 600, 000to 13 million, well, 13 million that
(19:03):
first year and a funny side story.
To that is I'm out at springbreak that following year.
This is probably 2001 spring break, 2001.
I get a phone call from Pat said, Hey, Ijust got this really strange phone call.
(19:24):
Yeah.
You guys said, ah, I don't know ifthey're pulling our legs or not.
Well, it was Inc magazine and Incmagazine had called and started
asking all these questions.
And then I get back into the office thenext week and there's another phone called
what Inc magazine, and they start askingfor our audited financials and our, you
(19:48):
just strange anyway, long story madeshort, we are, We're sitting there and
we ended up becoming the second fastestgrowing business in America, Inc magazine,
Dave (20:02):
but that I never knew 20,
Brett Gordon (20:05):
whatever that was 20, 21, and then the next year we were
the fourth fastest growing companyin America, just by percentages.
Cause that's, it was pretty astronomicalfrom 600, 000 to 13 million.
I think we doubled.
In size nine out of the first 10 years,the company really did very, very well.
(20:32):
And just took off and thewhole community embraced us.
Dave (20:37):
Ladies and gentlemen, here's the big lesson learned, at least from me,
knowing him for you all this, this entireprocess, a guide, not even a native to
this area of the world is recruited.
And he comes here and he starts outat a library at the entry level.
And through three,three journeys is built.
A huge company.
(20:58):
Knowing Brett, he's never gonnasay he built it on his own.
He was, he was probably at the helm,along with Pat, guiding the ship.
But Brett is not the kind of personto say he did it all by himself.
A quite unparalleled story, to be blunt.
And it's always very impressive tosee people that be able to Begin
at entry level and take somethingvirtually, virtually no money.
(21:21):
And I think you told me when he came,you can't see how much money you
didn't have in your pocket, literallyto the size business that you have.
So what, what are some of thememorable things that you can recall
from your, from your journey thatyou were late to business owners?
Because, you know, this is one of thereasons I wanted to do the podcast.
(21:43):
A lot of people saying,I want to be Bill Gates.
I want to be.
Whoever, on the national scale, Elon Musk.
And I'm going, you know, we'vegot a lot in the Midwest, people
who are highly successful.
It's too difficult to be Elon Musk.
It's too difficult to be Bill Gates, okay?
(22:05):
But there are people that are, I believe,equally successful and they're here.
And the point is to reach out andfind out what was instrumental in
their life to make these memorableexperiences for them, to allow them to.
Frankly grow and develop thebusiness the way you did.
What, what would it be for you?
(22:26):
A couple of examples.
Brett Gordon (22:27):
There's probably a couple of things.
And one was always just tryingto take care of the client.
We had three core values at McAllenWharton that we try and live each and
every day and every minute of every day.
And, and not just Pat and I hadthat vision and core values, but
(22:47):
our core values were honesty.
Integrity, performance, and that honestystandpoint was tell the truth above
all else, whether that's good news, badnews, whatever the news is, you tell
it and you tell it as early as you can.
The integrity part, again, it's, it'sjust do what you say you're going to
(23:12):
do when you say you're going to do it.
Treat those that are around you withthe same amount of respect that you
would want them to treat you with.
And so treat others like youwould like them to treat you.
Pretty simple mantra.
And then performance, again, it's kindof do what you say you're going to do,
(23:32):
meet those schedules, those deadlines.
And do that to the best that you can doit for the client, for your associates.
And so you have that component.
And then as you're growing, we hadall of those associates in the office.
Yeah.
And it's how you treat theminside the four walls of the
(23:54):
business that really matters.
And one of the key componentsthat made us successful and one of
the things I'm most proud about.
It is in Kansas City, we're the bestplaces to work for 17 years in a row.
And that's the longest that anybodyhas had in 17 years in a row are
(24:16):
the best places to work and allthat means is that you're treating
your associates as partners in yourbusiness, just like the subcontractors.
They do work with every day.
They're the, they're the ones out, outthere actually getting it done between
his field personnel and superintendents.
Those boots on the ground, those are thepeople that make, make you successful
(24:41):
and you have to treat them right.
And so when we win those awards, it's,that means we were doing something right.
You know, all of the associatesin the office, you know, we're
getting treated well and gettingtreated like owners in our business.
Dave (24:58):
Well, that leads to the next evolution of the business
I'd like you to talk about.
And that is, you didmake them owners of it.
Tell us about that.
Brett Gordon (25:08):
We did.
Like any other entrepreneur, as yougo through that, that process, there,
there has to be some exit strategy andit's debatable whether there's four or
five ways to get out of your business.
But.
You know, they're, they're real, it'spretty limited, literally is four or five,
(25:28):
depending on how you carve that up, waysto move on and get out of your business.
One of those methods, you want to takecare of those folks that, that actually
got you there and the associates inside.
And we explored doing a management buyout.
(25:49):
The folks that were reallymaking a difference in the
company and helping us drive.
The success of the company,but construction is a very
capital extensive business.
You have to leave so much equityin the company for bonding
(26:10):
capacity, for the insurance.
So you have a construction company,unlike a lot of other businesses, that
if you're successful, you make a lotof money, you take a lot of the money
home, you leave some in there for growth.
In the construction industry, You haveto have so much capital in the company
(26:33):
and that that capital grew to suchextent that Our management team, quite
frankly, couldn't afford to buy a cell.
And so the other viable option, there'stwo kinds of options with, with an ESOP.
There's, you can do a partial ESOP,and you can, you can start off at
(26:54):
40%, 50 percent or a hundred percent.
I mean, we did a hundred percentand I'll explain why we didn't a
hundred percent here in just a second.
You know, the hundred percent ESOP.
And Pat and I ended up financingthat again, the amount of capital
that we had in the company, therewasn't anybody on our staff, even
(27:18):
though we empowered them and enrichedthem along the way, they didn't have
that kind of capital to buy us out.
So we essentially loaned themthe money to, and we financed it.
Pat and I did.
So on January one of 2015,
(27:39):
every.
Associate in the company was no,and that was the mechanism and the
vehicle that we were able to use wise.
To reward those folks that helpedus build the company, helped us
deliver upon our promises and theycan be enriched along the way.
(28:04):
And so we elected to do theESOP and we elected to jump
all in at a hundred percent.
And for those of you that know or don'tknow, if you do a portion of ESOP,
ESOP's for one, one of the benefitsof doing an ESOP is the corporation
or the company doesn't pay taxes.
(28:26):
So that for easy math, let'sjust say you're doing, you're
making 10 million a year.
Normally, the company wouldend up paying about 40%.
Of that, or $4 million in taxes.
And if you did a partial ESOP onthat $10 million and said you did
(28:47):
50 50, only a partial componentof that, you save the taxes.
So on that $4 million in taxes, you'd,you would pay $2 million in taxes
if you did 50 50 on that equation.
And one the, one of the issues that as.
(29:08):
I know that when you're doing thattransition, even though you're saving
that 2, 000, 000 in the taxes, if youdid a 50, 50 percent ESOP on the 10, 000,
000 example, that 2, 000, 000 would sitthere and you can't use it for anything.
The Department of Labor steps in.
(29:29):
And said, and completely protects thatnugget of money or that tax money.
And so you're doing the ESOP, you'reenriching the associates, but there is
a bucket of dollars that are sitting outthere that the company can't utilize.
If you, the a hundred percent ESOPthat complete 4 million in savings and
(29:49):
taxes that you would have the company.
To utilize those dollars for investmentsin buying other ESOPs, other companies,
other professional companies.
So if you do the 100 percent ESOP,you have that leverage to utilize
Some of the savings that you're notpaying in taxes and investing it back
(30:10):
in the business, where if you do thepartial, you're, you're handcuffed
and you can't utilize those dollars.
So, so we jumped all in anddid the a hundred percent ESOP.
And if opportunities would come alongwhere there's another construction
company that has a niche that youlike, it's in a different marketplace.
(30:33):
You can go in and purchase that company.
You can use those dollars.
To make that business decision andbuy them and leverage those dollars
to the benefit of the associates.
Dave (30:48):
And so you've had a great deal of success to the point
now that you are on the outside.
You've delivered up the companyto The associates in the new
leadership, you've now entered thephilanthropic stage of your career.
Would that be a nice way ofsaying, although you've, you've
always done some of that.
Yeah.
(31:08):
How do you, what wouldyou call yourself now?
Philanthropist
Brett Gordon (31:12):
boy, old and retired.
Yeah.
Yeah.
Roll back in just part of ourDNA, just like taking care of
the associates and the clients.
Was to be philanthropicallyengaged in the community.
And so part of our original businessplan that we incorporated from day one
(31:35):
was to get 10 percent of our profitsaway tropically in the community.
And so from the very first dollarMcAllen board never made, it was
our desire to get 10 percent ofthe actual, you know, profits away.
Yeah.
We did a phenomenal job of doing that.
I'll go back to, gosh, trying to think,had the crash in 2008, 2007, 2008,
(32:06):
and many companies across the countryin all different facets were impacted
by the economy and the marketplace.
All of the philanthropic companiesthat we'd been donating to,
they still needed the money.
Well, we weren't making the same kind ofmoney, but we still donated to the, and
(32:28):
so I, I think the peak percentage thatwe gave away of our profits was 22%.
And during like 2007 or 2008,those were difficult years.
We never lost money, but weweren't making money like we were
making, but we were still giving.
(32:49):
At that high level, because allof the charities and philanthropic
organizations in the city still need them.
And then we're actuallyless people donating.
And so they, they were strapped.
And so part of our DNA was givingback and we did, and we ended up
being philanthropic company of thecity a couple of times, and it was
(33:14):
just another facet of something that.
You know, I'm very proud of thatwe were able to help so many in
the community that, that needed it.
And so our giving is something that wasjust baked in and it really kind of just
comes from those Christian values thatyou get 10 percent of what you make,
what, yeah, try and help others in need.
(33:36):
And so.
We've done that, and Icontinue to do that today.
Just, I don't know how to definemyself today, but I'm still very
engaged in the philanthropic community.
And try and give dollars to theorganizations that I know are going
to move the needle and make changes inyoung people's lives, and just people
(34:01):
in general, you know, the organizationsthat I choose to philanthropically
give to, I do so with a purpose, andthat purpose is to That it actually
will come and change people's livesin the future and make them better.
Dave (34:17):
And this, ladies and gentlemen, is the reason you
need to get to know Brett Gordon.
Let me ask you three questions, if I may.
What would be the biggest lesson that youwould articulate to people who are in the
process of retiring from their business?
Yeah,
Brett Gordon (34:33):
retirement is, I struggled at first, like a lot of people do.
Good.
At all.
I'll put a little funny context to this.
And Dave's heard this before.
Yeah.
I, I started my own business soI could be the boss somewhere
because I'm not the boss at home.
And I love my wife, Becky dearly.
(34:53):
And when I retired and I was doing 10miles an hour a day and night entertaining
clients and doing philanthropic andcivic duties throughout the community,
we running pretty hard and then all of a
I'm home and I'm in Becky's space.
(35:14):
And Evan Flo and trying togenerate her home relationship
because so much of it was focusedon my time outside of the home.
She's one who raised our kidsand put great effort into
that and did a great job.
But when I retired, not that Istepped on her toes, you know, she
(35:38):
felt guilty that she wasn't off doingsomething and I'm sitting here not.
Doing anything and I'mwatching her not go out.
And so there was a little bit of evidenceflow from a relationship standpoint.
Give me my space.
You know, I've had your space for thelast 40 years while you're doing that.
So don't just invade my space.
(35:59):
And so again, once again, Irealized I wasn't the boss.
I had to step back and not just take myfoot off the gas at the office, but I
had to take my foot off the gas at home.
So that's one thing I will say for anybodythat retires, you have to think of your
spouse and those loved ones around you.
(36:22):
They haven't had that full on endeavor.
24 7 or the focus that you gaveto your business and you're
trying to bring that home.
They love you, but they don't want that.
And you have to learn to temper that.
Building a business whereyour name's on the door.
(36:44):
Can everybody associatesthe company with you?
It's a learning lesson to.
To take a step back and not be thatrecognizable face of the organization.
There are other people wanting itthat you put in place and if you
did your job well, you train themwell, it's going to continue on.
(37:07):
And so it's.
You're not that decision maker.
And that's probably themost difficult thing.
Uh, and so it's, it endsup being two pronged.
One, you learn that you're not thatdecision maker at home until you learn
you're not that decision maker at work.
And you have to come to a placewhere that's okay, but you entrusted
(37:29):
other people to make those decisions.
And so I'll, I'll just say that, but yougot to allow yourself to To rely on the
people that you did put in those places.
Dave (37:40):
A very humbled man, ladies and gentlemen, who has somehow been able
to negotiate all of these twistsand turns and journeys in his life.
Brett, if someone were to try to reach outto you, how would they get a hold of you?
Brett Gordon (37:54):
You know, I still have my McCown Warden.
Email address and it'sbjordan at mccallengordon.
com and I'm still accessible on that.
I have really pulled away fromLinkedIn and I don't do social media.
I never had time for it.
(38:15):
Yeah, I don't do Facebook.
I don't do, so you can try and reachout to me through my email and I, and
I still read my emails every day and gothrough them and difficulties that way.
Ping me on LinkedIn and I lookat it every once in a while, but
Dave (38:32):
don't,
Brett Gordon (38:32):
don't get mad at me.
It's not a quick return becauseit's, I, I've stayed away from
the social media standpoint.
Dave (38:41):
Well, thanks again to Brett.
Ladies and gentlemen, if you're insearch of assistance, go to davidsider.
com and schedule a consultation.
Also make sure to subscribe tothe show, rate it, and leave me a
comment on your favorite podcastplatform such as Spotify or Apple.
Thanks again to Brett and ladies andgentlemen, until next time, be safe.
(39:02):
And
I want you to know that this podcast.
is provided for educational purposes.
It does not constitute legal adviceand it is not intended to establish
an attorney client relationship.
The recommendations contained in thepodcast are not necessarily appropriate
for every individual or business indetermining the best course of action.
(39:25):
Business owners should consult with anattorney on their distinct circumstances.
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