Even with interest rates higher than they’ve been in 17 years, the breadth and pace of mergers and acquisitions in the security industry are astounding. I receive solicitations weekly. Peers in the industry have sold equity to third parties to raise capital for rapid growth, merged to serve customers on a national or global level, or taken a payout to start the next chapter of their lives. I wish them well.
We’re doing something different. We are passionate about building a multi-generational, privately-owned company with limited shareholders. Why do we think differently than most? Here are a few reasons:
I don’t deserve all the rewards.
I didn’t build Pref-Tech. We did. If I sell shares, I benefit. We don’t. If I were to sell, I would transfer value to an outside party in return for cash in my checking account. If I were to sell, I would relinquish control to a third party who won’t likely appreciate the 18-year journey or those who have weathered the journey. I don’t believe that is fair to our employees, our customers, or our vendors. I would rather continuously share our successes in the form of great pay, exceptional benefits, uncommon profit sharing, high-quality tools and equipment, and the best training we can buy for our teams. Rather than waiting for some pay day in the future, let’s live our best lives today and every day.
Shares can divide people.
Shares deliver their value when sold. As such, shareholders are usually focused on selling their shares at the right time for the most money. When a private company has numerous shareholders with different goals and different timelines, relationships often get broken. I’ve witnessed it. I’ve lived it. When I’m on my deathbed, I won’t care about a windfall I received when selling a company. I won’t care about how many “successful exits” I’ve had in business. I will care about relationships. I will care about leaving a legacy of wisdom and value for those I love. I believe I can honor employee contributions in ways other than shares, maintain healthy relationships, and eliminate the tyranny of shareholder greed by minimizing the distribution of Pref-Tech’s shares.
The greatest rewards don’t come easy.
I like to do difficult things. Great challenges bring out the best and the worst in us. They force us to grow. They also lead to great satisfaction and fulfillment. Starting a business is hard. Keeping a business for many years is even harder. Roughly 30% of businesses make it to 10 years, and only 3% to 4% of businesses make it to the fourth generation. If we’re going to get Pref-Tech to the fourth generation, there will be many challenges. We will face death, recession, failure, poor decisions, technological changes, and many other obstacles. Think about our great, great grandchildren looking back on 150+ years of Pref-Tech, though. Won’t they be thankful for those who have built a company of significance? I hope so.
Pref-Tech is not for sale. We’re committed to long-term relationships with everyone we employ and engage. We’re committed to building an exceptional company that stands the test of time. I believe that makes us different than most. I believe it makes us more valuable to those we serve. I believe it is right. God willing, our families generations from now will stand on our foundation, wear the Pref-Tech logo proudly, serve customers fanatically, and reap great rewards.
PGRIT,
Shaun
