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How2Exit: Buying A Flat Pack Businesses - A International Roll-Up.
What you missed on How2Exit This week
Ronald Skelton
August 06, 2024
Weekly Recap
E236: Buying a Flat Pack Business: Challenges, Triumphs, and Lessons Learned in Acquiring a Business -
About the Guest(s):
Mark Moodley: Mark resides in Australia and has been deeply involved in small business operations, buying and selling entities. He has an extensive background working for a European car manufacturer and has transitioned into mergers and acquisitions after completing courses from well-known industry experts.
Gia Cilento: Living in the metro Detroit area near Ann Arbor, Gia has a background in marketing, publishing, and advertising. She entered the mergers and acquisitions space during COVID-19 and has formerly owned a company since 2007. Gia is an intern of Jay Abraham, adding to her depth of knowledge and expertise in the field.
Walid Costandi: Based in Orlando, Florida, Walid has a rich history as a serial entrepreneur starting back in 1995. He has been heavily involved in engineering, real estate, and business growth operations. Walid's hands-on operational approach focuses on helping employees maximize their careers within the companies he manages.
Episode Summary:
In this engaging episode of the How2Exit podcast, host Ronald Skelton introduces the dynamic team behind multiple acquisitions in the flatpack and cabinetry industries. Ronald, along with Mark Moodley from Australia, Gia Cilento from Detroit, and Walid Costandi from Florida, discuss their latest Australian acquisition and their expansion strategy in the US market. They transparently share their experiences, from identifying industries suitable for acquisition to navigating the due diligence process and managing changes post-acquisition.
Mark Moodley delves into the flatpack industry, emphasizing its versatility and integration into everyday household items, such as kitchen cabinetry. Walid and Gia explain the operational efficiencies and marketing strategies employed post-acquisition, emphasizing employee well-being and community impact. The team also outlines their criteria for potential new acquisitions, stressing the importance of companies being cash-flow positive, scalable, and managed independently of the new owners. They further highlight the importance of a strong general manager to lead operations post-acquisition.
Key Takeaways:
Industry Identification: The team chose the flatpack and cabinetry industry due to its ubiquity, straightforward operations, and the potential for customization and growth.
Due Diligence Learnings: The length and depth of the due diligence process taught the team valuable lessons, especially about assessing the state of machinery and building trust with senior employees.
Operational Efficiencies: Post-acquisition, focusing on improving employee working conditions and investing in new machinery has enhanced production efficiency significantly.
Marketing Upgrades: Modernizing the digital presence and utilizing community involvement have been crucial strategies for improving brand recognition and customer engagement.
Acquisition Criteria: Key criteria for future acquisitions include having an experienced general manager, operational scalability, and a company being cash-flow positive.
Notable Quotes:
"Due diligence is always done. Sometimes you do it correctly before you acquire it, and sometimes you do it after you stroke the check." - Ronald Skelton
"The most important way is that there is a general manager there who can carry on the business." - Mark Moodley
"We want to nurture our employees, build good relationships, and ensure they work in a safe environment." - Gia Cilento
"We like everything home and remodeling, kitchen, bath, appliances, and supporting services." - Walid Costandi
"Listening has been really good because effectively we did go in and say we'd like to improve the business." - Mark Moodley
Article:
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