Redefining Acquisitions

Carving an Innovative Path in Business

Hailing from Vancouver, Trish Higgins embarked on an inspiring journey. From the revered halls of Yale and Harvard, she journeyed to the pulsing heart of Wall Street, ultimately finding proper alignment in establishing her own respected and flourishing company with her husband and brother-in-law: Chenmark. They have made a name for themselves by being innovative and disciplined and championing a team-first approach. As a thought leader in acquisition entrepreneurship and one of Chenmark’s founding members, Trish shares their fascinating perspective on navigating the highly fragmented space. With no definitive path to success, this diverse and turbulent ecosystem is teeming with opportunities waiting to be discovered by those willing to plunge into the fray. Breaking from traditional pathways, the Chenmark team created a holding company encompassing various industries. While not mainstream a decade ago, this innovative approach resonated with the founders, allowing them a first-mover advantage in an increasingly popular space.

HoldCo Considerations

“In establishing a holding company, ponder your motivations,” says Trish Higgins. She suggests asking: “Am I truly invested in the intricate workings of a business, or am I more attracted to the investor lifestyle?”

This is vital, as she highlights that “when you’re working with small businesses, even if you’re in a holding company structure, you’re gonna have to get involved and get your hands dirty.”

It’s not about “passive ownership” where one might sit around “thinking capital allocation thoughts all day.” Instead, it’s about ensuring you’re ready to “step in and run it” when facing leadership issues. She advises future entrepreneurs to “make sure you’re getting into it for the right reasons” and to understand the need for patience.

Further, she notes that establishing a holding company “can be slow going.” It begins with “buying one business” and then another, learning how to navigate these operational waters along the way. Higgins concludes, “It pays to be patient in the early days to build up what you want your company to really be and stand for, and not rush into it.”

Carving Your Path

Despite her remarkable achievements, Trish underscores the need for individuality and creativity in the pursuit of success. She stresses that there is no ‘one size fits all’ approach, and each person must chart their own course, guided by their unique visions and strengths.

“There’s much opportunity in the space, which can be wonderful, but it’s not at a stage where you can just rinse and repeat.”

Every deal is unique, and every venture a new adventure, making the journey as exhilarating as the destination itself.

Guidance for Searchers

When asked what advice she would give traditional searchers looking to build their cap table, Trish advocates for investors who bring a rich blend of practical experience and theoretical knowledge to a search fund venture. These seasoned veterans, who have ‘been there’ and ‘done that,’ serve as guiding lights with their wisdom and understanding in the complex journey of a searcher.

Investors like A.J. Wasserstein, equipped with both financial acumen and real-world business experience, exemplify the type she recommends. Yet, Trish also understands that the final choice depends on various aspects, including the founder’s background, personality, and strategy.

For those interested in running a small business, there’s another path worth considering - the Chenmark GVP Program.

Specifically designed to equip ambitious individuals with the necessary skills, this program involves one to three years of progression through three stages, with advancement determined by performance, skill set, and opportunity availability within Chenmark’s network of businesses. Notably, the program values character and attitude above prior experience, focusing on molding effective future CEOs. So, if you’re eager to join an impressive team and are ready to embark on an exciting journey, the Chenmark GVP program might be the perfect fit.

An Uncharted Voyage

Trish urges those interested in the field to define their path to success. No strategy is set in stone in the vast and varied world of small business acquisitions. Trish challenges everyone to discover an approach that resonates with them and to pursue it courageously.

Trish Higgins’s extraordinary journey is a testament to the power of innovation and determination. Her experiences and insights illuminate the path for budding entrepreneurs and underscore the infinite possibilities for personal success in this dynamic world of business acquisitions.

Chenmark’s blog offers bite-sized wisdomquick to digest yet rich with insight. Perfect for those who value their time but crave substantial knowledge.

https://chenmark.com/weekly-thoughts/

Lisa Hooey embraced a pivotal moment in her professional career when she made the decision to leave Scotiabank Global Banking and Markets after seven years of honing her financial acumen, exiting as Associate Director of Global Loan Syndications, to embark on the path of becoming an acquisition entrepreneur. Drawing on her extensive experiences in the corporate world, including international expansion, driving operational efficiencies, and executing high profile deals in global banking, Lisa was inspired to pursue entrepreneurship through the search fund model. It resonated with her, as it allowed her to leverage her transactional experiences while returning to her operational roots and fulfilling her passion for entrepreneurship.

She launched her fund called Freda Capital—the name an homage to her strong and inspirational grandmother. Lisa is quick to acknowledge the people who provided the crucial guidance she needed in her early days of exploring this path including her mentors, advisors and other search fund entrepreneurs. She learned from them, including how to identify valuable investors who were truly beneficial partners rather than mere sources of capital. By being methodical, she was able to compile a list of ideal investors, some of whom graciously made introductions on her behalf.

Importance of Vision and Persistence in Fundraising

Before she formally launched her fundraise, she took the time to cultivate relationships with these investors, understanding their pivotal role as long-term partners in her entrepreneurial journey. One critical lesson she shares is the importance of hustle in the fundraising stage, comparing it to the effort needed in finding a business to buy. A successful fundraise, she emphasizes, requires professionalism, a clear vision, persistent follow-ups, and a compelling pitch.

However, the most crucial part is defining your deep “why,” which is not the financial upside the search fund model can provide but the intrinsic motivation that keeps you going when the going gets tough.

For Lisa, part of her unwavering motivation stems from her resolute dedication to forging a path for more women role models in entrepreneurship and executive positions. As Canada’s first exclusively woman-led traditional search fund, she feels a profound sense of obligation to surpass expectations and demonstrate the immense value that women leaders bring to the table. Her determination to “knock it out of the park” is fueled by the aspiration to inspire more investors to embrace and support women leaders, fostering a more inclusive and diverse business landscape.

Invitation to Connect and Final Thoughts

Freda Capital’s growth strategy emphasizes long-term planning and investment in the acquired business. Lisa intends to cultivate a robust company culture that encourages creativity, innovation, and learning from mistakes. Her diverse experiences, including her time as a competitive athlete and server, have bolstered her resilience, discipline, and personable approach – essential skills for effectively leading and inspiring a high-performing team.

Advice for Aspiring Female Entrepreneurs and Investors

When asked what advice she’d give to aspiring female entrepreneurs and investors, Lisa emphasizes the importance of believing in oneself. Acknowledging the common struggles women face, including self-doubt and imposter syndrome, Lisa encourages women to have faith in their own abilities and experiences, urging them to embrace calculated risks. She also emphasizes the value of building a solid network, sharpening one’s skills, and being resilient as critical elements for success.

Lisa highlights the significance of fostering transparent and trusting relationships with potential sellers when considering businesses to acquire. By understanding their motivations for selling and ensuring a genuine need for an operator to assume control, Lisa’s focus on relationship-building proves vital for overcoming acquisition challenges and securing long-term success. Her objective is to achieve a win-win outcome for business owners, leveraging the flexibility her fund provides to preserve their years of hard work and sacrifice while driving sustainable growth that builds upon their legacy.

Resilience and the Power of Embracing New Opportunities

As she puts it, setbacks are inevitable when you’re reaching for the stars, but they should be embraced as valuable learning opportunities rather than insurmountable roadblocks. In her perspective, each setback encountered along the entrepreneurial path has the potential to fuel personal growth, refine strategies, and ultimately propel one closer to success.

As a trailblazer in the search fund space, Lisa is setting an example for aspiring entrepreneurs who wish to leverage their skills and passions through the search fund model. Her dedication to preserving a legacy, building trust, and fostering sustainable growth will undoubtedly contribute to Freda Capital’s success as she continues her journey to acquire and grow an exceptional business.

In conclusion, Lisa extends an invitation to connect with any business owner looking to transition their business. She asks that Freda Capital be kept in mind and invites potential business partners to reach out to her via LinkedIn. She is a testament to the power of resilience, self-belief, and being open to new opportunities and pathways. Her journey offers valuable insights and advice for aspiring female entrepreneurs and investors looking to break into the industry.