.png)
In our continued quest of radical transparency, follow along as we are openly sharing information to build trust and keep all stakeholders updated through a monthly newsletter. Thanks for joining us on this journey!
TLDR
Brokered deal flow was slow in August, picking up in September
Nurturing a local network is paying immediate dividends
Intern help has stabilized the pipeline
Deep Dive: The New Acquisition 6-Month Transition Plan
Final Thoughts from Duncan: Building the Team & Culture
Shoutouts
Our MBA classmate and friend Matt McAllister for passing along a great deal opportunity over a beer and connecting us with his KeyBank team.
Another MBA classmate and friend Richey Hansen for providing deep industry insights into a potential roll-up game plan.
Rob Carpenter for providing his insights into a local and smaller franchise acquisition and showing a potential franchise roll-up road map for the BPH team.
Wins & Losses
Win: Increased Deal Flow → The summer months were painfully slow with brokered deal flow, and early August was no exception. However, in the very late stages of August and into early September we have already seen an uptick in both the quantity and quality of deals hitting the open market.
Win: Intern Onboarding and Implementation → Annika and Matthew were eager to jump into the process and have already shown promise in keeping our pipeline full. We are incredibly encouraged about their quick adaptation and fresh perspectives and we are excited to have them as part of the team!
Win: Building Banking Relationships → In late August we found an opportunity that shows promise, but will take some creativity from a lending perspective. Through dozens of phone calls with local and national lenders, we have gained in-depth insights into the funding process and have proved our reputation of honest partners capable of getting a deal across the finish line.
Loss: Early Transition Hurdles → In late July, we secured a path towards additional team funding that we knew would cause some turmoil in the status quo of the Brandt Point team. Leaning on our core value of radical transparency, we were able to calmly address our concerns and adjust our process moving forward. We struggle to call this a "loss" because we knew this would be a potential adjustment period and we are proud in the way we worked through an early challenge.
Activity by the Numbers: August
319 = Newsletter subscribers
44.2% = Last month's newsletter open rate
34 = Deal-specific outreach to CO business brokers
22 = Deals evaluated
10 = Meetings with sellers/owners
0 = LOIs submitted
Subject Deep Dive:
The New Acquisition 6-Month Transition Plan
Our transition plan for the new acquisition is designed to ensure a smooth and effective integration into the newly acquired business. Drawing from our past work with scaling startup companies and from trusted sources like the Entrepreneurial Operating System (EOS) framework, Systemology, and our board of advisors, this plan emphasizes the importance of patience, observation, and building trust in the first year of ownership. By following a structured yet flexible approach, the goal is to set a solid foundation for long-term success and sustainable growth without rushing into drastic changes.
Month 1: Introduction & Trust-Building
Meet the Team:
Establish rapport by holding individual meetings with key team members. The goal here is to listen and understand each person’s motivations, challenges, and aspirations.
Get the team to buy into our vision for the company and their role and opportunity in that growth.
Communication:
Establish open communication channels to keep everyone informed of the transition process.
Utilize weekly meetings to provide clarity on goals without disrupting existing operations. Keep meetings structured and consistent.
Month 2: Observation & Data Collection
Understand and Document the Core Operations:
Shadow key roles in the business to fully understand how the day-to-day activities are managed. Record and observe key business processes without jumping in to make immediate changes.
Conduct a thorough financial review to identify areas of strength and concern, focusing on cash flow, cash conversion cycles, margins, and revenue streams.
Customer Feedback:
Engage with existing customers to understand their experiences and perception of the business. This will provide a baseline for assessing areas of improvement later in the process.
Month 3: “Systemology” System Documentation Process
Process Mapping:
Begin mapping out the critical business processes by documenting how key operations like sales, customer service, and production flow in the business.
Start identifying inefficiencies, bottlenecks, or manual processes that could eventually be automated. Again, resist the urge to make immediate changes.
Prioritize Core Systems:
Determine which systems need the most immediate attention. Focus on documenting these first and ensuring that they are scalable. Systems like lead generation, order/service fulfillment, and invoicing should take priority.
Month 4: Strategic Planning
Traction EOS Strategy Development:
Set the “Vision/Traction Organizer” from the EOS framework. This will involve creating a clear 1-year plan based on the data gathered, prioritizing initiatives that will have the most significant impact on growth and efficiency.
Begin building a scorecard to track key performance indicators (KPIs) across different areas of the business.
Updated SWOT Analysis:
Perform a SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) based on what has been learned about the business to define key areas to focus on in the next 12 months.
Month 5: Refining the Roadmap
Process Improvement:
Begin low-risk process improvements based on observations from the earlier months. Focus on non-disruptive tweaks that can enhance efficiency (e.g., automating invoicing or standardizing client onboarding).
If needed, begin evaluating potential technological solutions to streamline operations. Introduce them slowly without overwhelming the team.
Customer and Revenue Growth Plan:
Based on insights gathered, develop a customer acquisition and retention strategy using the EOS’s quarterly rock approach - focus on the KPIs that lead to the most impactful result.
Build upon the current strategies of increasing customer lifetime value and adding cross-sell or up-sell opportunities to maximize revenue.
Months 6-12: Execution & Goal Setting
Begin Implementing Key Changes:
Start implementing bigger, system-wide changes, such as new software or expanded roles for key employees, but ensure the team is fully onboard.
Evaluate and Adjust:
Review the impact of any changes made in the business and gather feedback from the team. Continue measuring KPIs from the EOS scorecard to ensure the business is on track for its 12-month goals.
End-of-Year Vision:
Close the first year by setting goals for Year 2. Reflect on the changes made and how they have impacted operations and growth, and use this to inform a more aggressive expansion or improvement plan for the next year.
Key Priorities Throughout the Transition Plan
Do No Harm: Focus on building trust and understanding the business before making significant changes.
Document Everything: Use Systemology to ensure all processes are well-documented for scalability.
Set Clear Vision & Traction: Use the Traction EOS framework to prioritize key initiatives and establish accountability.
Learn Before You Act: Implement the advice from our mentors and advisors by gathering insights before taking action, focusing on incremental and strategic growth.
This approach ensures that we take a measured, strategic path in the first year while building the foundation for long-term success.
Final Thoughts
Duncan here - As we punch through Labor Day and sunset the summer, I’m optimistic about the months ahead as we push to close out 2024 on a high note. Adding Annika and Matthew to the team has improved both culture and efficiency. Broadening our team culture from two to four enhances our weekly enjoyment and energy. It’s been fun to share both professional and personal wins and losses every week. Additionally, their ability to keep the top of the pipeline full has enabled me and Josh to go deeper into the opportunities that are getting further into our pipeline. I am excited to see new deals that come on the market in this latter half of the year and our ability to analyze a high quantity of deals in a high-quality way.
Your support fuels our journey forward, and we are immensely grateful.