Fourth Annual BRAVAS Summit Charts Accelerated Game Plan
The members and associates of the BRAVAS Group met in Chicago last week to further their effort to lay base business process practices in place and look to the future. The theme: Creating Enterprise Value, shared the importance of building financial/operating standards, elevating performance, and reaching consensus on reporting and management system details.
Founders Paul Starkey & Steve Firszt outlined a future where member companies would band together to provide a vehicle for a high-multiple $100M valuation. Starkey explained, “The notion of a strategic buyer for these businesses is not far off. The important thing is for companies to work as a unit and not independent outposts. The essence of this model is local autonomy with a baseline business system beneath it.”
He continued, “We’ve learned that implementing the business system can be fast-tracked and believe waves of small groups (15 to 25 companies) can be assimilated into the system going forward. Our first Group will pave the way for others to be fast followers.” The group agreed to close the door for new members in Group 1 on August 1st. Some of the current associates will roll-over to Group 2 and new companies will be joining effective August 1 as well.
The group discussed several disruptive approaches to achieving aggregate value, ultimately in the public market. Concerns about failed attempts in the past were shared and differences were highlighted by the “do the work first” approach that BRAVAS has adopted.
Firszt commented, “Some people get hung up on our lack of identical assortment, software diversity, differences in selling and install methods, and even slight customer differences.” He continued, “Our view is these are not the first-order fundamentals for a successful multi-location model.”
BRAVAS has long stated that a strong, replicable business model built on shared reporting and management fundamentals was the key to creating a continental (USA & CANADA) super-power in custom integration.
“Compared to the standalone small company, a $200M company can do so many more things to build value in the marketplace. Recruiting, sales training, tech training… for starters,” said Starkey. Chuckling, he added, “And don’t forget the business system enhancements that can be layered over the process platform we’ve spent the past 3+ years implementing.”
“This is what acquiring companies do: improve economies, refine systems, document process details, and so forth.”
The Group met for the larger part of 24+ hours from Wednesday to Thursday afternoon. Member workshops and private sessions were interspersed with presentations from sponsor companies currently serving the Group: Audio Control, Dish, D-Tools, LEON Speakers, Surge-X, Origin Acoustics, Sound United, Access Controls, NetSertive, Vantage/Q Motion, One Firefly, Peerless and Pro Source.
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