That your offering could have big implications. And the offering is Personal Guarantee Insurance pgi. So as probably every listener knows, the personal guarantee, the PG looms over the SBA ecosystem and prevents many would be entrepreneurs who might otherwise buy a business from doing so.
Acquiring Minds
How to De-Risk the Personal Guarantee
Excerpts · 257 segments · ~1:10:41 long
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The risk of just losing everything is too high. Countless potential searchers have asked me, have asked in webinars what is the way around the PG and doing an SBA style acquisition? And the answer has always been a flat there is not one.
But PGI Personal Guarantee Insurance could effectively change that. There's still the personal guarantee, but the risk of it, the bite of it, is potentially mitigated. So we're going to dive deep into this over the next hour.
Let's start with introductions. Brendan, if you'd go first.
Yes. Will you hit the nail on the head? This is a big pain point in this space and we're trying to solve it. And I first learned about this space about 10 years ago when I was in business school about the search funds, about entrepreneurship through acquisition.
I spent my career at the State Department before that, so I wanted to get some experience operating in a business setting before I moved into the space. Then five years as a consultant, including some time at Hiscox, which is a specialty insurer here in the US and then about a year and a half ago, Ryan and I started talking. Ryan and I went to college and to high school together, known each other…
We've always wanted to do something together and we actually thought about buying an insurance agency with an SBA loan. But the personal guarantee was a sticking point for me and my family. And Ryan had had a personal guarantee at a previous company.
So about a year and a half ago we started building this company to try to solve this pain point in this space.
Great. Thank you, Ryan.
Hey, thanks, Will. My name is Ryan Conner. I grew up outside of D.C. and was a lawyer and worked after law school at some law firms and then was at some insuretech and fintech startups.
Really diving into the regulatory as part of that journey. As Brendan mentioned, I had a personal guarantee, and it was for about $2.7 million. I didn't have $2.7 million to my name at the time.
And I woke up every morning thinking about it and then would kind of. Lose sleep at night, every night. And when Brendan said, you know, let's do eta, let's, let's jump in here, I just couldn't really convince him to take that jump and take on that risk because psychologically, it's pretty devastating.
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