Commercial Integrator 2023 - 33

actually make things. " We don't manufacture
anything, " he says. " We are special
because of our people. We spent a lot of
time over the years developing a process
by which to hire people and bring them
into the culture of our company. "
A Celebratory Culture
So, let's take a look at that culture. Spinitar's
culture celebrated milestones and achievements,
having a focus on taking care of
employees to ensure company success.
Rewards for service anniversaries included
a watch at fi ve years, a cruise at 10 years,
personalized giſt s at the 15-year anniversary,
all the way up to a Viking Cruises
voyage from Rome to Athens aſt er 25 years
of service. Employees of the quarter and of
the year, as well as top-performing teams,
were treated to trips to Mexico, Jamaica,
the Bahamas, Hawaii, etc. " Our approach
was always to fi rst take care of our people,
and they'll take care of the company, " Irvin
states. Aſt er all, both Rogina and he knew
that Spinitar employees were the company's
most important asset.
The Decision to Sell
Once the duo approached their mid-60s,
they realized that they needed to think
more seriously about succession planning.
They weren't looking for a liquidity event,
but they started having various conversations
with other integration fi rms about
merging, acquiring or being acquired.
'[We were] told
over and over by
our contacts in the
industry that we'd
fail. We succeeded
with faith and a
belief in our people.'
- Jay Rogina,
former principal
and CEO, Spinitar
" Those conversations were really fun, "
Irvin recalls. " They were a nice break from
the day to day. They made us think of the
bigger picture. They're exhilarating conversations,
and a lot of people are having
them in our industry. "
Rogina adds further detail to the story.
" We were not looking at selling the business
at the time we sold it, " he reveals.
" We were in the process of buying another
company. A couple of companies reached
out to us, [but] we didn't think it was a
serious thing. Then, we went down the
path and, the next thing you know, we had
a letter of intent. It was a surreal feeling. "
Aſt er doing due diligence and discovery
to further evaluate the acquisition of another
integration fi rm, Irvin and Rogina
hour that they were
decided at the 11th
not going to follow through with the
purchase. " Within 30 days of us backing
away, [and] still interested in acquiring
another business to help scale the company,
we were approached by Solutionz, "
Irvin relates. Very quickly - within 60 days,
in fact - Spinitar went from being a buyer
to being a seller.
Solutionz, a Pacifi c Palisades,
Calif.-based AV integrator, was an ideal
choice for Spinitar. It resulted in an increased
footprint for the company in the
west, as well as no job losses for Spinitar's
150 employees. In that way, it represented
greater growth for everyone involved.
" There's a lot of excitement, but a lot
of reservation when it comes to selling a
business, " Rogina explains. " Then, there's
the task of standing in front of employees
and delivering the news. It was one of the
hardest things to do. " Aſt er all, Spinitar employees
had grown used to the Spinitar culture
- and they loved it. So, naturally, there
would be questions. " The biggest change in
any transaction is the culture, " Rogina says.
" I don't think there's any questions or anything
that you can do to compare cultures
until you're in it. You don't know what you
don't know until you experience it. "
Succession Planning
(Above) Spinitar had a culture that celebrated
milestones and achievements,
refl ecting a focus on caring for employees
as a means of driving success.
(Right) Mike White and his son, Robert.
commercialintegrator.com
It's worth asking whether the average
business owner goes into business with
some idea of a succession plan - for
example, a liquidity event, an acquisition,
a transition of the business to a family
member, etc. Many go into business with
goals in mind that revolve around creating
JUNE 2023 Commercial Integrator 33
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Commercial Integrator 2023

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