A Journey into Entrepreneurship through Acquisition

Reflecting on My First 100 Days as Managing Partner & CEO-in-Residence at Regenerative Capital Group.

Embarking on a journey of actively searching for a business to acquire as part of my entrepreneurship through acquisition journey with the Regenerative Capital Group has been a whirlwind of activity, both professionally and personally. I've been reflecting on the first 100 days of this experience over the past week and thought it would be valuable to share an update with the network.

Professional Growth

The learning curve has been steep, almost vertical. From getting comfortable with making cold calls to evaluating and valuing businesses, from optimizing email open rates to identifying the secret sauce of a business, everything has been new. While I love business and am passionate about finance, working with DCF and IRR models is genuinely enjoyable for me, thinking about life in 15-year intervals has been incredibly challenging yet inspirational. This steep learning curve has been an integral part of my professional growth during this journey and one I hope it continues in the future.

Personal Transition

In tandem with the professional growth, my wife and I also embarked on a significant personal journey. Our relocation to Canada earlier this year marked a fresh start in our lives. From familiarizing ourselves with our new surroundings and adjusting to referring to geographical areas as provinces instead of states, to braving the cold winters, every day has brought its own adventure. And let's not forget the hilarity of attempting to navigate driving on the other side of the road – a story I'll save for another time!

But curiosity and resourcefulness have been foundational in my personality and this move allows me to live and breathe those values every day. Beyond the logistics, it's been about embracing the challenge of starting anew with the support of RCG, family and friends, approaching each day as it comes with resilience and an open mind and asking for help when needed!

The Leap of Faith

Amidst these professional and personal adventures, a conversation with two young professionals considering transitioning from traditional finance and industry careers to entrepreneurship through acquisition prompted me to reflect on my own decision to take this leap of faith. One of the questions they asked resonated deeply: why take the risk?

The answer was simple – it was about embracing the unknown and the rare ability to start over. It was about taking agency over my time by moving away from security and leaning into potential. The potential to create impact, the possibility of working on my personal mission, the allure of utilizing business as a force for good, and as our Chairman, Mike Miller, and CEO, Cordell Jacks often say, reinventing capitalism.

Reinventing Capitalism

This idea of "reinventing capitalism" struck a chord with me. Reinventing capitalism means doing it the right way, the way it was originally intended. It means utilizing businesses as platforms for economic growth and prosperity, generating returns not by creating the world's problems but by solving them.

Businesses must become responsible for all their material impacts across people and planet, aligning with the natural systems they are nested within and draw upon as the basis for their value creation, all while generating superior rates of return on capital.

To learn more about these superior rates of return I make reference to, please review the 2022 Search Fund Study authored by Stanford University Graduate School of Business that reports on the financial returns and key qualities of search funds formed in the United States and Canada since 1984.

A Serendipitous Opportunity

It's fascinating how the chance to reinvent capitalism through entrepreneurship perfectly resonated with my personal ambitions. Interestingly, back in January 2021, while completing an MBA application for the School of Inspired Leadership , I was asked to write an essay on the question: "If you had all the time and resources in the world, and were to build an organization of your own, what would you like to create?"

In response, I wrote a thousand word essay envisioning building a meritocratic organization tasked with the responsibility of managing its vast resources as a trustee of the assets, committed to positively impacting the lives of a billion people by working on the most challenging issues facing human civilization today including climate change, health, and human rights. I imagined assembling a team of A+ professionals, strategically allocating resources based on a two-to-three-decade timeframe and thereby benefiting from being the first-mover in a largely untouched market.

Fast forward to now, it's surreal to realize that I'm living that very dream—acquiring a business, transitioning into a leadership role, and #regeneratively transforming it with a long-term perspective. While I'm aware that addressing humanity's greatest challenges requires far more than what we're committing to, I'm reminded that every monumental journey begins with a single step.

This is a reminder that a seemingly small action, like an essay in an MBA application, can set in motion remarkable journeys of change, as has been illustrated in the Butterfly Effect.

Embracing the Opportunity

Given this serendipitous alignment, embracing this opportunity was a no-brainer. This opportunity was a godsend, and I'm absolutely pleased to have taken it. Do I take this lightly? Absolutely not. Do I feel anxious and scared at how massive the goal is? Yes. Does that paralyze me? No! I focus on my Zorro Circle, as Shawn Achor in his book "The Happiness Advantage" recommends one does (with thanks to Iggy Domagalski for the recommendation). I'm focusing on mastering and feeling in control of the circle immediately around me and controlling only the controllables.

The Current Journey

Speaking of controllables, where we are in the journey today requires me to reach out to business owners, investment bankers, M&A advisors, and wealth managers across Canada, generate awareness about our fund, and fill the funnel with good businesses. We define "good" as established, growing businesses that have seen at least one economic cycle and generate between $0.5M and $5M of EBITDA annually. You'll note there is no mention of #sustainability, #regeneration, #ESG or other such filters.

That's because we believe every business can be a regenerative business. A regenerative business may not be able to work towards all of the challenges facing humanity, but it can do its part by working on a small aspect in a small geography of a large world.

All businesses can be regenerative businesses, and if we can utilize the largest wealth transfer of this generation (i.e., the silver tsunami) to validate our investment hypothesis, then we would have done our two cents' worth, is the hope.

With the great support provided by the Regenerative Capital Group and the A+ team and colleagues (pictured above from L-R Dan Kidd , yours truly, Eemaan Khan , Mei Burgin , Cordell Jacks , Yan Yang,CGA , Mike McNeil , Jessica Cullen , Lisa Cashmore , Lara (Livingstone) Lee and Mike Miller) and the mentorship of a stellar board of advisors, this has been a great experience so far.

Over the past 3.5 months, I've sent out approximately 3,500 emails, to some 1,025 companies, made 675 calls, and attended 140 face-to-face meetings to raise awareness about RCG and explore potential business acquisition opportunities.

Along the way, I've traveled over 7,500 air miles, participated in 1 The Business Transitions Forum and four networking events including 2 hosted by M&A Club Canada , leading to executing 32 NDA's and reviewing 28 Confidential Information Memorandums/ offering documents.

While I haven't submitted any LOIs yet, I don't let it bother me much because while it is easy to miss the forest for the trees, thinking about the journey and the direction, which, as Richard L. Evans puts it, is more important than speed.

Looking Ahead

Much like how individuals immersed in Tetris gameplay begin to see Tetris-like patterns in their surroundings, I've cultivated a keen interest in uncovering intriguing business opportunities and value creation patterns, whether in the products I use, the books I read, or the news I consume. This phenomenon, termed the Tetris Effect by Shawn Achor in The Happiness Advantage, has fuelled my exploration of diverse industries and sectors.

As my journey unfolds, my understanding of the Canadian economy and investment principles grows deeper with each passing day. This ongoing process brings refinement to my investment hypotheses and insights into my own nature.

Guided by Woody Allen's timeless adage that eighty percent of success comes from simply showing up, I embrace this journey with unwavering passion and determination, prepared to face each day with optimism and curiosity, fully dedicated to advancing our mission.

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Thank you for reading! If you are or know a business owner who may be considering an exit, or if you are an ecosystem partner, or a young professional eager to continue the conversation, do reach out.