James Poen
James Poen on Private Equity, Founder Transitions, and Building a Sellable Business
A practical founder conversation on preparing financials, tightening operations, and choosing the right partner—without disrupting customers or your team.
James Poen shares how Richardson Saw & Lawnmower was acquired by private equity—while he stayed on as president and took on a new acquisitions role to help roll up additional stores. This conversation breaks down what it really takes to make a business sellable, how to navigate the process without getting overwhelmed, and what founders should do 12–18 months before they ever go to market.
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About This Episode
Henry reconnects with longtime friend and EO Forum colleague James Poen, President of Richardson Saw & Lawnmower, for an honest discussion about selling a legacy business to private equity—without stepping away from day-to-day leadership.
James explains how Graycliff Partners acquired Richardson Saw & Lawnmower, how the deal came together through Merrill Lynch, Focus, and a structured buyer search, and why private equity wanted him to remain an owner and operator. His new mandate is acquisitions: identifying and evaluating other outdoor power equipment stores for potential roll-ups.
The conversation also gives listeners a grounded look at what Richardson Saw & Lawnmower actually is: a dealership model similar to automotive retail, selling and servicing commercial and consumer outdoor power equipment. James credits his early experience in the business, his father’s mechanical background, and his mother’s entrepreneurial influence for shaping both operational discipline and customer service standards.
James and Henry dig into the realities of entrepreneurship—systems, staffing, financial literacy, and adapting to changes like online purchasing pressure and shifting manufacturer policies. James emphasizes a core leadership habit: reviewing financials consistently, asking questions until you truly understand the numbers, and surrounding yourself with strong peers and advisors.
For founders thinking about an exit, James lays out a clear strategy: start early, tighten operations, interview the right specialists, and listen more than you talk. It’s a practical episode for business owners focused on business growth, leadership, and long-term planning.
Key Insights
Start preparing 12–18 months before a sale: tighten processes, documentation, and reporting cadence.
Review financials monthly; if you can’t quickly answer revenue/profit questions, you’re not ready for due diligence.
Build systems that protect margin—e.g., keep high-value technicians working (don’t waste skilled labor on low-value tasks).
Expect the sale process to get intense in the final 30 days; reduce stress by preparing early and sequencing improvements.
Private equity often wants founders to stay on—especially in fragmented industries where roll-ups depend on operator leadership.
In acquisitions, screen for owner-operators with “tread on the tire”: the best deals include leaders willing to run the business post-sale.
Adapt to online pressure and manufacturer shifts by staying nimble and moving toward stronger commercial/repeat-customer segments.
Pick strong partners: interview bankers, brokers, and M&A attorneys—and listen closely to the people who do deals every day.
Episode Transcript
This transcript has been edited for clarity and readability. Filler words and minor repetitions were removed, and formatting was adjusted for flow while preserving the original meaning and conversational tone.
Henry Harrison:
I’m really happy to welcome to the Henry Harrison Podcast—Entrepreneurs, Business, and Finance—my long-term friend and business colleague, James Poen.
Hello, James.
James Poen:
Hello, Henry.
Background & Recent Transaction
Henry Harrison:
James and I met through Entrepreneurs’ Organization. We were in a Forum group together for eight years. We got to know each other well and stayed close over the years.
James is a successful entrepreneur, and his company, Richardson Saw & Lawnmower, is now in transition. The store remains the same for customers, but your relationship to the store is evolving.
Tell us what happened recently.
James Poen:
Richardson Saw & Lawnmower was acquired by a private equity group called Graycliff Partners out of New York.
Focus acted as our investment banker through Merrill Lynch. We started with Merrill Lynch, they introduced us to Focus, and Focus ultimately found Graycliff.
Staying Involved Post-Sale
Henry Harrison:
They also have you continuing to be involved. Why do they want you around—and why do you want to stay?
James Poen:
When private equity approached me, they had a plan to acquire additional stores. They asked me to stay on as a percentage owner, so I still maintain a significant ownership stake.
I’m also the president of Richardson Saw. The staff remains the same, but my new role is acquisitions.
Business Overview
Henry Harrison:
For people unfamiliar with the business, what is Richardson Saw & Lawnmower?
James Poen:
The original store dates back to around 1945 in Garland—Garland Saw & Lawnmower. Richardson Saw & Lawnmower started in the late 1960s.
My dad joined in the early ’70s after moving from Iowa, serving in the Navy, and settling in Texas. I’ve essentially worked in the business since the late ’70s.
We’re an outdoor power equipment dealership. We sell:
Lawnmowers
Chainsaws
Weed eaters
Equipment for both contractors and homeowners
Service Model
Henry Harrison:
You also provide service and repairs.
James Poen:
Exactly. Think of it like a car dealership:
You buy the equipment
Then you need parts and service
That’s a major part of our business.
We were a John Deere dealership for many years, but Deere shifted its model—consolidating from about 500 dealers down to around 100. As a single-store operator, we were no longer part of that structure.
Family Influence
Henry Harrison:
You’ve got a mix of mechanical and business expertise. Where did that come from?
James Poen:
My dad grew up on a farm—if you didn’t fix things, you didn’t eat. He also worked in the Navy engine room, so he had strong mechanical skills.
My mom came from Dallas and owned an advertising company. Her father was in the restaurant business and was a major influence on me.
So I got:
Mechanical aptitude from my dad
Business sense from my mom and grandfather
Early Career & Learning
Henry Harrison:
You also spent time in the restaurant and hotel industry.
James Poen:
I studied restaurant hotel management at Texas Tech.
To get through college, I worked at two lawnmower stores:
One focused on speed of sales
The other focused on service
I combined both approaches—sell efficiently and serve customers well.
Financial & Operational Skills
Henry Harrison:
Running a business requires more than technical skill. How did you learn finance and operations?
James Poen:
You learn on the job—and from the people around you.
Joining EO was critical. Being in Forum with experienced business owners helped me understand financials better.
We also review our books monthly with our accountants. That’s when you ask questions and really understand how the numbers impact the business.
I’ve been surprised during acquisitions—some owners don’t even know their revenue or review their financials regularly.
You have to:
Make time to review numbers
Ask questions until you understand
Learn from peers
Adapting to Change
Henry Harrison:
How has the business evolved with technology and customer expectations?
James Poen:
Online sales have been challenging. Customers expect fast delivery—24 to 48 hours. Small businesses can’t operate like Amazon.
Manufacturers also limited what we could sell online. Now some sell directly to customers, bypassing dealers entirely.
We’ve adapted by shifting more toward commercial customers and less toward consumer retail.
Operations & Efficiency
Henry Harrison:
You’ve invested in systems over the years. Give an example.
James Poen:
From my restaurant background, I understood process control.
We implemented a system where mechanics stay at their workstation. Instead of walking around to find parts:
They input what they need
Our team pulls and delivers parts
This:
Saves time
Improves billing accuracy
Keeps productivity high
Sale Process & Advice
Henry Harrison:
What advice would you give to someone considering selling their business?
James Poen:
Start early—at least 18 months in advance.
Key steps:
Consider hiring a CFO or COO
Tighten processes
Align with strong bankers
Talk to multiple brokers
Interview M&A attorneys
Consider a quality of earnings review
The last 30 days of a deal can be intense.
Fix one thing at a time and don’t get overwhelmed.
And most importantly—listen.
Bankers and brokers do this every day. Our broker told us exactly how the process would unfold—and it did.
Life After the Sale
Henry Harrison:
What does your day look like now?
James Poen:
I have a general manager running daily operations. I stay involved but focus more on acquisitions.
Many customers don’t even know we sold—we wanted continuity.
Now I evaluate potential acquisitions:
Revenue
Product lines
Real estate
Debt
Staff
Whether the owner will stay on
That last one is critical. I can’t run 10–15 stores across multiple states day-to-day.
This isn’t like selling a house and walking away—it’s more like selling the house and continuing to live in it while building something bigger.
Closing
Henry Harrison:
That’s valuable guidance.
Thanks, James—this was fun, and I appreciate you taking the time.
James Poen:
Thank you, Henry.
Henry Harrison:
Talk to you soon.
Connect with James Poen
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