Ep 71: Beyond Organic Growth- A Founder's Tale of Strategic Acquisitions with Jordan Hammond
Jan 9, 2024
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Jordan Hammond, Founder of Genuine Comfort, shares his unique approach to strategic acquisitions, emphasizing the crucial role of transparency and trust. Topics also include starting a startup, building relationships with competitors, resources for sales professionals, and struggles with expertise and entrepreneurship.
Implementing EOS and having a business operating system like EOS has been crucial in providing structure, consistency, and focus to the business operations.
Proactively reaching out to competitors, building relationships, and ensuring transparency were key factors in successful acquisitions and negotiations.
Maintaining a healthy balance between the current business and exploring new opportunities, focusing on both the golden goose and potential expansion, is a key strategy for long-term growth.
Deep dives
The success of implementing EOS
Implementing EOS has been the second biggest impact on the business after uncovering the ETA model. It provided a simple framework and structure for operations, allowing for consistency and focus. The weekly coaching sessions and recordings of sales calls have been instrumental in improving sales performance and mindset. The incentives were aligned with maximizing gross margins rather than focusing on top line revenue.
The roll-up strategy and future plans
The focus is on continuing to roll up the industry in Canada with one main deal remaining. The 2030 vision includes potential expansion into the US, exploring new product offerings or vertical integration. There is a clear commitment to the buy and hold strategy, and while exploring potential exits, majority ownership and partnership options are being considered. The emphasis is on maintaining a healthy balance between the golden goose and exploring new opportunities.
Lessons from a guru and mastermind
The experience with a guru and mastermind was not aligned with the guest's values and strategies. The importance of authenticity and demonstrated expertise is highlighted, and the value of mentorship and connections in the entrepreneurial space is emphasized. Connecting aspiring searches with subject matter experts and ensuring the right fit is essential for maximizing value.
Insights from reaching out to competitors
Proactively reaching out to competitors and building relationships yielded valuable insights and potential acquisition opportunities. Transparency, sharing numbers, and being clear about intentions were crucial in building trust and overcoming initial skepticism. Maintaining consistent communication and focusing on mutual benefits were key factors in successful negotiations.
Balance between operations and expansion
The guest aims to strike a balance between focusing on the current business and exploring new opportunities. Hiring a potential COO/integrator would allow for a shift towards a visionary role, while maintaining majority ownership. Plans for potential acquisitions in new industries and the formation of a small fund for future expansion are under consideration.
Today we speak with Jordan Hammond, owner of Genuine Comfort. Jordan grew his business from scratch to $5m in turnover before turning to strategic acquisitions to nearly triple his top line while simultaneously doubling the profit margins.
During the episode, Jordan shares his unique approach to reaching out to competitors, building relationships, and ultimately executing successful acquisitions. He walks through the crucial role transparency plays in fostering trust during these intricate negotiations.
We also discuss the difficulty in integrating those acquisitions effectively and even the importance of a business operating system like EOS.
If you are looking to acquire a great business, check out the Buy and Build Accelerator- a program designed to help you acquire the right business, quicker. Bootcamp was founded by Paul but the curriculum is developed and presented by former guests of the podcast: https://www.buyandbuildaccelerator.com/
Enjoy!
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