Indiana’s succession crisis, now state-funded

Hi everyone,

The next OWN gathering is Thursday, June‌ 18, in Syracuse with Nathan Scherer. Details below. April was a good one. Colin King of Profit Mastery filled the room at VFW Carmel, the patio kept growing past 7pm, and we had folks drive nearly two hours to be there. This issue also has real news. On May‌ 6, Governor Braun launched a state succession initiative called Keep IN, and we’ve put a full section on it below along with a tight roundup of tax, capital, and sector moves.

Small rooms. Real operators. Practical conversations.

Nathan Scherer founded SEI Manufacturing, scaled it for years, and sold it to Patrick Industries (NASDAQ: PATK). After the close he stayed on as Director of Innovation. Today he is a co-developer behind South Shore Village, a 112-acre community on Lake Wawasee, and runs Start-Up Wawasee.

On June‌ 18 he is hosting us at South Shore Village and walking through the whole arc. What it took to scale SEI to the point Patrick wanted to buy it. What the deal looked like from the inside. What came after. And what he would tell himself if he could go back to year one.

Thursday, June‌ 18 | 4:‌00 to 7:‌00‌ PM

South Shore Village | 10601 N State Road 13, Syracuse, IN

$15 per ticket, food and drinks included. Free for OWN Indiana members. Capped at 50.

Format is a 45-minute conversation and open Q&A. Walk the property during the networking hour if you want to see what he is building.

If you know an operator in Northern Indiana who should be in this room, forward this their way.

The April night ran long in the best way. Colin King, CPA, CFA of Profit Mastery walked the room through how to actually read your financials and turn them into operational changes, then the patio stayed open for three hours of real conversations. New faces, returning faces, and a few people who drove nearly two hours. Thanks to Colin and to everyone who came.

OWN founders Jared Luegers and Kevin King joined Ed Mysogland on the Defenders of Business Value podcast. Why most owners don’t think strategically until it’s too late, where AI is taking small business, and what OWN is building.

Paul Lushin became a business owner at 17 and hasn’t stopped. He founded Lushin and Associates in 1997 with his wife Sarah, built it into one of the country’s leading Sandler Training franchises, and completed an ESOP transition in 2023. On Thursday, July‌ 16, he is hosting us at Lushin HQ in Indianapolis to walk through 46 years of building, two companies, and what he would warn the next 17-year-old founder about.

Thursday, July‌ 16 | 4:‌00 to 7:‌00‌ PM | Lushin HQ, Indianapolis | $15 | Free for members.

We are rolling out a low-cost annual membership in the coming weeks. Members get free access to every OWN event we put on and more. Details and pricing in your inbox shortly.

On May‌ 6, Governor Braun and OEI Director Brian Schutt launched Keep IN, the state’s new succession initiative. The framing is the same one OWN was built around. Roughly 60% of Indiana’s business revenue sits inside businesses owned by people 55+, and nationally 92% of small business exits end in quiet closure rather than a sale. Keep IN is the policy-side answer to that.

Three pieces matter for operators reading this:

1. SMB.co free valuations pilot in three READI regions. Southwest Indiana can now get free business valuations, transition readiness scans, and basic exit planning. If you are five or more years out from any kind of transition, this is the cheapest baseline you will ever get. Get a free valuation at smb.co/indiana →

2. New IBRC research on the Silver Tsunami. Phase 3 of its succession research this month, with concentration data by region and industry. Useful for searchers building a regional thesis and for owners trying to see who is around them. Read the Phase 3 report →

3. Indiana Chamber statewide succession workshops. Free, in-person, statewide. Advisors and CPAs, this is a clean referral resource for clients who are not ready for a paid engagement yet. Workshop schedule →

We will keep covering this in every issue. If you have feedback or want to introduce us to someone at OEI, hit reply.

SB 243: “responsible person” liability expanded. Indiana’s new SB 243 expands personal liability for unpaid sales and withholding taxes from owners and officers to anyone with a duty to remit. That includes controllers, payroll specialists, accounting clerks, and external fractional bookkeepers. Review job descriptions, internal financial controls, and whether your D&O policy actually covers mid-level finance staff. The Department of Revenue is also sending key notices through INTIME only, so make sure someone on the team is logging in. KSM 2026 Indiana Legislative Update →

FAIRNESS Act enforcement begins July‌ 1. AG Todd Rokita’s office said it will inspect job sites this summer to enforce SEA 76 against employers knowingly hiring undocumented workers. Construction, trades, and manufacturing operators that lean on 1099 or temp labor: audit I-9s and subcontractor agreements before July‌ 1.

Tax Amnesty window opens July‌ 15. Eight weeks to clean up state tax liabilities from before January‌ 1, 2024. Penalties, interest, and collection fees waived. If you acquired a business with inherited liabilities, this is the window. Program overview →

1099-K reporting threshold restored. The $600 threshold is killed; back to the previous $20,000 / 200 transactions level. If you adjusted reporting for the lower bar, talk to your CPA. OBBB provisions →

Employer childcare credit expanded. The Section 45F credit jumped under OBBBA with a higher cap for small employers. Real dollars if you offer or are considering childcare benefits. 2026 inflation adjustments and OBBB amendments →

SBA 504 priced at roughly 5.72% fixed for 25 years in April (5.48% for manufacturers with the fee waiver). Sub-6% fixed debt for a quarter century continues to change the math on asset-heavy deals. Current 504 rates →

Lower-middle-market multiples held at 9.8x EV/EBITDA with 3.4x average leverage, which is a meaningful gap from where most rate-era buyers want to be. If you are a seller, the pool is bigger than it has been, but buyers need the numbers to work. If you are buying, plan for seller financing. Capstone M&A Valuations Index →

Indiana bank M&A keeps moving and BayFirst exited 7(a) lending. Reconfirm your lender relationships this quarter before you sign your next LOI.

Each month, OWN is hosted at a different Indiana business. June, July, and August are locked. We need help filling September, October, November, and December.

Three formats that work well:

Open to other ideas too. Some of the best events have come from owners pitching a format we hadn’t thought of.

Want to host? Reply to this email or message Jared directly on LinkedIn. We will find a fit.

Also still open: shop visit nominations, roundtable topics, cities outside Indy where OWN should show up, and people who belong in the room.

Reply to this email with what’s on your mind: feedback on this issue, topics you want to see covered, or an Indiana operator we should know.