Ahead of BRAVAS Summit, Focus on Best Practices, Eye on Private Equity
For its 5th Summit, the BRAVAS Group members and its associates will meet October 23-25 in Chicago to address timely topics for the Group. Its opening dinner will feature speakers from The Chicago Corporation, an investment banker specializing in mid-cap deals and quite familiar with consolidation transactions.
The focus of the summit will be the business process and best practices on which the Group has been working together since Feb. 2014. The group will be celebrating its 1000-day milestone of working toward a standardized business system and getting its members to top performance.
Paul Starkey & Steve Firszt, Executive Directors of BRAVAS Group, report, “The progress that our members have made toward compliance and performance has been outstanding. Most of our companies are projecting a +15% operating profit and as a virtual group they are extremely attractive to investors.” They noted that Members & Associates of the Group reported $90M in trailing annual revenue, with the Member group itself on target to exceed $60M in 2017. Members are in active pursuit of outside investment for growth and expansion, and joint services.
BRAVAS points to efficiencies in hiring, purchasing, sales and tech productivity as the key “after-sale” levers for allowing growth in top-line and group profits.
Starkey and Firszt went on to say, “We believe the new investor will be interested in securing multiple waves of harmonized companies.” Citing a goal for as many as 100 well-operating companies in key locations throughout North America, they added, “There is a great opportunity for a $400M national enterprise in the luxury CI segment.”
The best practice agenda includes service plan & RMR initiatives, growth categories, and a recap/review of the 14-point operating system called “The BRAVAS Way”.
Attorney and multi-entity deal specialist Dennis Smith of Tripp Scott will be presenting deal structure options to the Group, as well.
As Executive Directors of the BRAVAS Group Cooperative, VITAL Mgmt helps custom integration companies adopt, and operate under, common financial management and business processes. The goal for these companies, ranging in size from $2M to $10M in annual revenues, is an investor-based integration of the companies as a national entity. Under the planned scenario, owners will get to take a large share of their companies’ value off the table while continuing in their business and building what would be the largest luxury CI organization in the marketplace.
The Group anticipates over half of its companies will complete an investment transaction by mid-to-late 2018. Plans regarding the new entity are not public at this time.