Ca$hing Out 07: Bull Fighting with Nic Easley

"Cashing Out" Week 07    In this week's episode a "Bull" enters the Arena; Nic Easley managing director of MultiVerse Capital questions Dan Humiston about his business.    Our co-host Dena Jalbert from Align Advisory Management Services leads the discussion.

Produced By MJBulls Media

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Nic Easley:
Some say I actually had a tendency of your shows know of your company. You know I've seen companies once Sarah I've had some of our companies do very very well with those sorts of shows. They already would try to move forward knowing that this was established.

Dan Humiston:
Hello everyone. Welcome back to cashing out brought to you by Hoban law..

Dan Humiston:
And with me again today is my co-host Dena. Jalbert from align business advisory services.

Dena Jalbert:
Hey Dena.. Hey Dan. Hey. Well Dena. had to jump off last week.

Dan Humiston:
So we lost her last week for most of the call but we got her back.

Dena Jalbert:
Jalbert as promised or as I was hoping I guess promise that I hoped we had a lot of really good conversation over the last week with folks who may have an interest. You know it's it's a really interesting process. This phase of of what I call marketing a business. You get some folks who call you and they're super excited. And then there are others that you're you know your cake isn't down and trying to coordinate Hey can we talk to you today. No. How about Friday or. Oh no. Now I want to have my colleague involved and they have to reschedule all over again. And you know the holidays certainly don't make it a lot more simple. So it's been a bit logistical but we've had despite all that was had a lot of really good meaningful conversations and I think we're grabbing the attention of the types of folks that we want to talk to.

Dan Humiston:
You know it's when you say that I'm thinking. If it were the seller if it were me making the calls to people and there would be an appearance of desperation or of you know and it's so much nicer when you have an affiliate do it on your behalf because then those extra phone calls those extra emails doesn't come of crisis. Desperate. It comes across as efficient in what you mean. Why haven't you responded to my email. Why haven't you responded. Why didn't you return my phone call. It's I think it's a whole different set a different tone than when the owners is doing the same thing. You agree.

Dena Jalbert:
Yes it certainly does. It certainly does. And as any business owner even emotional tie I know to your business and especially in your case and the reasons we talked about in the why you're earning a couple episodes ago and it's that emotional connection that makes it really hard to do outreach on your own because you have a tendency to become more frustrated and that those emotions resonate. They come through. Yeah. Oh you're on a phone on them on a call someone and you let them know the Sago accident later. You're just tired of hearing them say something again. Or go on a tangent or talk about ourselves or what have you and so does the buffer we provide and we do this everyday all the time and so we know how these conversations go we structure them in a meaningful way to kind of cut right to it. And we also know how to to break through that Sanders will say Oh well I just emailed the managing partner I just called Chantelle and we'll sure anyone can do that I suppose.

Dena Jalbert:
But there is a finesse in a way of breaking through that inbox and crafting a value statement in a way that it resonates with investors and requires you know kind of speaking their language as well.

You down you know you don't speak that language every day. It's gonna be difficult for you to break through your answer. I like to think that we're able to take you down on behalf of folks and other advisors much like ourselves but be able to do that.

Dan Humiston:
Well you certainly make my life a lot easier and that's for sure.

Dan Humiston:
Well let's get our investor Bull on the phone. Let me see if I can get a hold of him right now Nick.

Nic Easley:
Good afternoon. You able to hear me all right.

Nic Easley:
Yeah I can hear you great Nick. It's Dan Humiston and I have my co-host with me.

Nic Easley:
Dena. Dena. Jalbert Hello there Danny.

Nic Easley:
Nice to meet you here. Virtually I'm standing pretty much on top of the 660 some year old leading bridge here in Prague. Other than our whole country so after three countries Mr. Mason actually had a break here and see a beautiful city.

Dena Jalbert:
Prague is great. I spent some time there in college and that's one of my favorite cities.

Nic Easley:
This is really cool Nick. You're the furthest gassed I've ever spoke to. Way to go.

Nic Easley:
Well depending on the day you know I might be Hong Kong Macao Guam Sri Lanka or South America. Yesterday you got me pretty far out. That's great.

Dan Humiston:
This is good. Everyone may remember Nick Easley the CEO and manager and director of multiverse capital. He was an episode I think was 30. And if you miss that show you should go back and learn all about multiverse because I mean there and everything obviously Nick's all over the world. Well let's jump into our deal will assume that I've made it past the initial view. I'll let you take it away. This is your interview.

Nic Easley:
First thing I look at it. I see you kind of go to what I know about this company. Which one of the first shows at the Javits Center years ago and you're having a separate consulting company and doing a lot of license work. That was a time that New York and pretty much gone through their process already for the first like this. I like New York for capital like you. We asked for population for the future potentiality of the industry to launch a show there in a market that really I think galvanized a lot of support but not necessarily the attraction of vendors. A lot of the local markets I mean you had name at that time we had a couple other smaller medical markets. It was I like how they took a stance like putting off someone to keep the client go to bank can't be a recurring revenue standpoint a trade show standpoint that that market specifically might not have a lot of like vendor retention rates. TURNER Yes. And kind of great venue and I think about the shows that I attended in Los Angeles in the past and in Los Angeles completely oversaturated industry term here should show them a market based on regulations policies tons of interest tons of history but also lots of other shows that happen there.

Nic Easley:
And then equally with Box and I think of you as a competitive advantage which makes markets in New York for example other than smaller type shows like Women Grow and networking events is not very many huge industry paperbacks there. So that is unique to Boston aside from me. Karen from MCI and their seed scale shows plus them having robust medical market. Definitely a good targeted East Coast kind of hub of the cannabis industry and equally even though L.A. is that stitcher regulation policy you have over 20 million people are in this greater Los Angeles kind of area. So there's that traction then look at this as an ancillary business you know from a trade show standpoint I think about media I think about trade shows I think what what's the long term scalability. Really. What was the absolute potentiality of something like this. I mean a merger or acquisition or exit. You know combining and doing some sort of like public offering. How are you going to provide the initial liquidity to your investors in here and just looks like a total sell off. So you're hoping for an acquisition at this point but then I think of what other shows from NJ bids what other shows that are out there from the ICBC the show a day mentality that so many other groups are getting into.

Nic Easley:
That's what I think that position the top 10 of the market sector of this specific sector of trade shows it doesn't meet that frame and what the commercial partnerships might exist with this show and 3 or 4 others to kind of roll those up either in this offering value or to get future offerings value start getting market share because you think without the numbers being present in front of me. What was your highest attendance trade show and then let's look at you know sorry to set the benchmark little high here and then what was the trade show. Can we say Las Vegas with MJ chambers last year and then do you hope to be bought and part of them you hope to be buying part of other things for you really can see on this into a national international congress businesses and then what's the differentiating factor from your trenches of any others having them trying in the market selected that you're really going to create revenue here other than an operational company that's given by stealing providing a lot of value to vendors and services but not generally providing copious amounts of liquidity to your investors does a really good observations.

Dan Humiston:
Dena. do you have any questions for Nick.

Nic Easley:
So Nick when an opportunity like this that has some nuances or non-traditional as you point out and governance in terms of conditions and structures what is your initial thought. Is that something that you immediately kind of put to the side or will it be something that you would evaluate if they came across your desk you know kind of what's your thought logic as an investor since I actually had a tendency of your shows know of your company.

Nic Easley:
You know I've seen companies I've had some of our companies do very very well with those sorts of shows. They argue we try to move forward knowing that this was established by one of my questions then I would think about this sort of thing I love the ancillary states because this sort of volume traction from attendees 10 years into the lake influence having additional potential revenue streams from magazines from online advertising comes from you know tying and podcasting saying and other business really media and events. So how much of you really looked into the media events you in other markets especially like emerging markets and then kind of follow certain patterns and trends and how you're trying to emulate some of those trends or use patched industry wisdom from other industries to really leverage this from what you've built and that's something that can be a part of something much greater scalability. Like if I'm an investor and I I guess a million dollar right I want to make ten dollars like because I have risk. There are some cannabis industry you're a little further insulated from that where even if like the Federal Government changes policies or some things don't open up or more states one way or another it's going to be good for you it's an antique fragile investment strategy. If the industry gets worse there's going to be more activism more need more discussions. And then if the industry gets better and there's all these new seed new companies and markets like that's going to help you. And that's the market to see as the standard grows in its current rates. You're still going to be good but you've made it this far.

Nic Easley:
If I want to know from what you need from the outset that asking is critical like you're valuing ourselves that x amount tree value or free money x amount cost money. This is the Unisys and the ownership structure. I also want to know like one of the potential past liabilities is when you buy an asset or invest in new and asthma or do an acquisition you buy the great intellectual property you buy their marketing lets you buy their essential contrast with the events centers and your vendor service providers. But then if there's taxes liabilities like crazy partnership lawsuits or somebody slipped and fell in an L.A. venue versus coming losses like that's always what I want to know like what's the upside like so in the ask what's the potential downside one it's losing all my money too since they own a company I can get troubled past things that they did that's what I call it like it's hot gas and the other reason you really push that ask because if you don't get investors see if they can come to you again they like they also see a vulnerability that you don't necessarily understand who you are what it is you do and how you're doing it otherwise you would know really bad one million you're 1 2 million you're 2 4 million you're 3 you're trying to somehow Michael case they're going to get 8 million a your forward. Like if I'm buying it for 6 million or 8 million am I going to get my money back this year and then is that gonna get the 16. And if so what did you put in place and give me the key.

Dan Humiston:
I think one of the if you have a little bit more time to examine the deck. One of the things you'll notice is that the. Partners that are going to continue to run it and stay on. The managing partners. They've been in the trade show industry for 40 plus years and they've had some of the biggest shows that have ever existed. The P.C. Expo was their biggest one which they sold for roughly a billion dollars. They owned the franchise show. They have a lifetime of experience in the trade show industry and they have relationships with all the mainstream businesses that have exhibited in the past. So that's sort of always been the play of the trade show is get ourselves in position be in the right market so that when mainstream comes in whether it's through. Most likely to be more on the hemp side of this but it was mainstream decides to come into the industry.

Dan Humiston:
I think we're in a great position to take advantage of that.

Nic Easley:
I couldn't agree more and again one of the things I did notice in the deck. Sorry I always look for like of a sense of things wrong person because you can always find a great one. The main thing important for me as an investor especially like a venture capital. During this next quarter. Private equity kind of hedge funds. When I'm managing other people's capital will they work hard for it. I can not lose that capital and do everything in my power to. How I choose that manage that buy sell investment assets to make sure I'm not losing their money or is potentially exposed under wraps. So at the end of the day even if I got Kid from farm country in Wisconsin I think I'm giving you your team my capital and I trust that team based on their experience in this market or similar industries and know how to scale this sort of business with my capital. So at the end of the day the most important I believe you know I always look at his team. After that I'll be anything these and many other things that I've brought up here. All these Dena. scouts so this is the sort of thing about answering but you it's an issue with trash and scale and market share. You know it passes those initial criteria and I do see just like you said federal legalization all these other policies are changing this scale. And then the big big big shows in the world they're gonna be taking this sort of thing up. So I would definitely kind of speculation on tradition. My initial criteria.

Dan Humiston:
Well Nick we really appreciate you taking the time to review the deck and pull yourself away from beautiful prog to talk to us. Dena. view any last minute comments for Nick or can we let him go.

Dena Jalbert:
No I think can let him go. Appreciate it. Enjoy your trip mate.

Nic Easley:
If only it was a vacation. But you know initially I think you guys did a great job. That's kind of putting together the offering. Now just understand the terms the conditions and really understanding what is it you need to achieve your goals.

Dan Humiston:
Well Nick hopefully you'll have an opportunity to get you on another call and maybe you'll be in another exotic location when we do it. Safe travels and look forward to speaking to you again soon.

Nic Easley:
Absolutely. Thanks so much for the opportunity with you guys. Great to see you. OK.

Dan Humiston:
Me just do a little bit of business and think one of our sponsors blaze which is a cannabis technology company. They make software for dispensaries and distributors and soon they'll be launching a new software for cultivation and manufacturing. Chris Violus this is a CEO over there he was on the MJBulls Podcast a few episodes ago. Good guy. So if you're a dispensary or distributor and you're looking for a software check out blaze it's blaze.ME blaze.

Dan Humiston:
K. A lot of interesting observations from Nick. You know as I said Nick is a serious guy and you can tell he really studied the dark and I feel good that he wants to take another look at it. How about you.

Dena Jalbert:
Yeah absolutely. I really appreciated his feedback and how he came down on specific data points that are meaningful to him. So it's nice to hear what what are the areas that your eyes kind of laser and tears first. Especially from my perspective and every investor has different areas that they find kind of key that they always look. The first is interesting to hear from his perspective but those were for your particular Dena. on our high level pitch information. You know what I to him and what about it gave him.

Dan Humiston:
Yeah I know. Yeah. Like I said it's always hard when people are asking you the hard questions but nice thing is he was at the shows he's knows exactly what we do. It's got a good feel for what we do and I think he's got a good feel for where something like this can go which is so much easier to when somebody kind of gets it than trying to explain it to him. That was the nice part about that. He gets it. He knows the business and it was nice.

Dena Jalbert:
Yeah absolutely. I think he gave both perspectives you know someone who's attended and has experienced it personally but then also his kind of investor being so yeah. Yes it is. There's great feedback.

Dan Humiston:
Well there was another good week. We have a busy meeting will be rolling into the holidays here and. That's going to mess this up a little bit in a good way. I mean give us a chance to catch our breath but I'm afraid we probably won't have a lot of people looking at our deal because they'll be as they should be with their families and to focus on something more important.

Dan Humiston:
But before I go I want to remind everyone if they have any questions or comments to email us at connect it MJBulls.com and also one last plug out for the music. My son does the music Jamie Humiston. He's the one that composed the music so if you liked the music let him know. His name is Jamie Humiston so Dena. have a good week and we will talk to you next week.

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