The Basics:

  1. Provide growth capital so the company has flexibility
  2. Hire the right people to leverage the Vision
  3. Create alignment
  4. Do, Teach, Monitor the fundamentals alongside Management
  5. The ScaleCo team are experts at vision building, team alignment, systems, computers, accounting, financial reporting, sales team training, pipeline management, budgeting, corporate development and much more: reducing the risk (we’ve done it before), improving the results (better), reducing the time to implement (faster) and dramatically reducing the cost (efficient).

TAC Overview

We take small businesses that few people value and turn them into growth businesses that most people value.  The TAC Method (Transform, Accelerate and Consolidate), coupled with like-minded business leaders, entrepreneurs and other life-long learners, transforms smaller companies into growth companies.

CONCEPT: Almost all small businesses do not have the resources needed to scale.  Most small businesses have never seen significant growth and scale before – doing it the first time, is always difficult.  ScaleCo not only guides our partners through these turbulent times, but has the resources that transform these businesses better, faster and much more efficiently than they ever could on their own.

SOLUTION: We invest our time and capital to implement the TAC Method for our companies.  This builds the infrastructure to scale and saves our partner companies thousands of dollars and hundreds of hours.

The TAC Method
(Transform, Accelerate and Consolidate)

What does it look like?

Can we apply clear and measurable success criteria to each business to understand it’s progressive growth? What needs to happen to complete each phase of a company’s life cycle.

(Phase 0) Perfect Deal:

  • Vision for long term growth
  • Located within 200 miles of CLE
  • Easy to understand value proposition
  • Initial EBITDA $500K+
  • Revenue $2.5M+

(Phase I) Transformation: Typically completed within 18 months of acquisition

  • EBITDA positive and growing
  • Double digit revenue/gross profit growth
  • Healthy balance sheet
  • Core management team (top 4-6 members)
  • EOS implemented
  • Growth thesis proven / Scalable growth model identified
  • Reliable financials created
  • Company can complete a budget with ScaleCo assistance
  • Basic IT infrastructure in place to scale
  • Sales pipeline management implemented
  • Operationally capable management

(Phase 2) Acceleration: Typically completed within first 5 years of acquisition

  • Double digit EBITDA growth
  • Growing EBITDA margin
  • National market scope
  • True “middle-market company”
  • Management can create their own board documents
  • Management creates own budget without ScaleCo help
  • Ready to support debt
  • Must-have acquisition target

(Phase 3) Consolidation: Run as long as possible assuming a continual 25%+ annual IRR

  • Clearly established market leader
  • Occupies a % of a market
  • $100M+ value
  • Clear acquisition pipeline and strategic targets
  • International / Global market reach
  • Conducts robust internal financial planning and analysis
  • Successive capital raises (debt & equity) to support aggressive M&A
  • Strategically capable management

Ready to Talk