In this episode of the Thoughtful Entrepreneur, your host Josh Elledge speaks with the CEO of
Rogers Holding Group,
Patrick Rogers.
Patrick works with various companies, helping them realize the potential of acquisitions as a growth strategy. He pointed out that many business owners are so focused on organic growth that they overlook the possibility of acquisitions. With the current buyer's market, especially with many baby boomers retiring, much equity is left on the table.
Patrick explained that good acquisitions can be financed, with the average needed amount around 10% of the purchase price. The goal of acquisitions, according to Patrick, is to achieve freedom for entrepreneurs by acquiring companies that already have management in place.
Patrick emphasized the importance of having a clear exit plan and a comprehensive acquisition strategy. The strategy, he explained, depends on the desired exit plan and can involve buying competitors, expanding geographically, or acquiring complementary businesses.
Patrick shared an example of a successful acquisition in the HVAC industry, demonstrating the concept of using acquisitions to grow a company's revenue. He explained how buying a $4 million company can lead to exponential growth. The revenue doubled by acquiring another $4 million company the following year to $8 million.
This pattern continues, with each acquisition increasing the revenue exponentially. As the company's revenue (EBITDA) increases, the multiple used to determine its value increases, attracting more investment and creating value out of thin air.
Key Points from the Episode:
- Patrick's transition into mergers and acquisitions
- Types of companies Patrick works with and the value he brings to their growth plans
- The current buyer's market and opportunities for acquisitions
- The financial aspect of acquisitions and available financing
- The importance of having a clear exit plan and comprehensive acquisition strategy
- Example of a successful acquisition in the HVAC industry
- Using acquisitions to grow a company's revenue exponentially
- Calculating the value of a company using a multiple
- Patrick's association with Sterling Cooper and the importance of branding
About Patrick Rogers:
Patrick Rogers is an accomplished industry expert and business advisor, having consulted numerous organizations to enhance leadership, strategy, and culture. With a focus on acquisitions, Patrick collaborates with business owners to double their enterprises annually, while his certified exit planning expertise ensures maximum value before the sale. He embodies his advice as a business owner of two seven-figure service companies, employing acquisition for their growth.
He co-owns a property management roll-up concept and a private equity firm. Patrick excels in leadership, evidenced by achieving 42% growth as a Sales/Service Representative leader and directing naval teams, fostering his skillset. He's a dedicated father of two, an avid reader, an outdoor enthusiast, and a talented musician. Patrick's multifaceted experience showcases his business, leadership, and personal skills.
About Rogers Holding Group:
Rogers Consulting Group partners directly with CEOs to design and implement comprehensive plans integrating industry-proven methodologies. These encompass sales and marketing strategies, financial planning, strategic roadmaps, servant leadership, operational streamlining, open book management, and fostering organizational culture and morale. The company's key emphasis is perpetually enhancing "Enterprise Value," not solely in preparation for sales or offers.
The Group's mission revolves around establishing a self-sustaining business model that significantly reduces upper management stress and time investment by up to 80%. Leveraging their tried-and-true processes, they consistently achieve remarkable results, with an average company valuation increase of 4x within 3-5 years. Rogers Consulting Group's expertise lies in orchestrating lasting operational success and financial growth for their clients.
Tweetable Moments:
05:52 - "When entrepreneurs get true freedom and get out of the day to day of running their one business by being able to acquire other companies, the financials are such that they're able to get that freedom and entrepreneurs, as you and I both know, do amazing things with freedom. They give back, they impact the world in a whole new way."
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Links Mentioned in this Episode:
Want to learn more? Check out RecruitGyan website at
https://patrickvrogers.com/
Check out Patrick Rogers on LinkedIn at
https://www.linkedin.com/in/patrickvrogers/
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