Mergers and acquisitions aren’t the only types of deals that can help your business grow inorganically, and sometimes it can be helpful to think outside the box. Creative deal-making can supercharge your growth, if you can identify and capitalize on opportunities.
Damon Gersh is a master of recognizing and taking advantage of opportunities like this. Damon is the President and CEO of Maxons Restorations, Inc., an innovative leader in the property damage restoration industry. Damon is a winner of the Ernst & Young Entrepreneur of the Year Award, the Fast Company Award for Leadership, and Inc. 500 and Inc. 5000 awards. Damon is also a Past President of the Entrepreneurs’ Organization New York City Chapter, the co-founder of the Gathering of Titans annual entrepreneurial conclave, and the co-founder and Past President of Restoration Affiliates, LLC.
In this week’s episode of the Fueling Deals Podcast, Damon and I talk about some of the innovative and creative deal-making strategies he has employed to turn his business into a leader of the restoration industry. Damon shares how having a passion for his work and aligning his values to his business decisions have helped him create some unique and powerful alliances with competitors in the industry, as well. I hope you are able to learn much from our conversation.
Finding Your Choke Point
One of the keys of Maxons Restorations’ success was when Damon identified and capitalized on the “choke point” of his industry. For the restoration field, this choke point is found in the availability of experienced and capable people who know how to clean up after major disasters. When the 9/11 attacks rocked New York City, Damon recognized that there would need to be intense cleanup efforts for a long time, and he locked down as much of the experienced crews in the city as he could with exclusivity agreements.
Doing so allowed Damon to ensure that the available talent in his field were working for him during the cleanup process, and his army of 1,600 employees were major players in Manhattan’s restoration efforts. This gained his company a significant amount of brand awareness and national recognition. Damon strategically used deals to strengthen his company while shutting out competitors.
Partnering With the Competition
Following the 9/11 cleanup, Damon recognized another opportunity to use deals to help position his company. He formed Restoration Affiliates as a partnership with major competitors from diverse geographic regions as a way to refer clients to other organizations working in areas where Maxons does not operate. Damon realized that the industry is stronger together and was able to unify many players in the industry under one umbrella, despite earlier similar efforts that had failed in the past.
While it may sound counterintuitive, strategic alliances with competitors can often be highly beneficial to all parties involved. Maxons gives and gets referrals through Restoration Affiliates, and they are able to partner on projects too big for competitors to handle alone. As Damon demonstrates, there are many possibilities for deals that can strengthen your company outside of standard mergers and acquisitions. The key is to be flexible in your thinking and recognize opportunities for such deals when they appear.
If you’d like to learn more about Damon Gersh and his company, Maxons Restorations, please visit www.maxons.com or call 1-800-3MAXONS. For more informative episodes of the Fueling Deals Podcast like this one, please visit us at www.fuelingdeals.com.