Embracing a Deal-First Mindset for Business Growth with Ace Chapman
May 17, 2023
In the world of private equity, few individuals possess the depth of experience and insight that Ace Chapman brings to the table. Ace, a veteran in Private Equity with over 20 years of experience, made his mark by acquiring an online stock market simulator in the early days of the Internet. Through strategic changes, he grew the user base from 10,000 to 250,000, generating a remarkable 100x cash-on-cash return. This achievement laid the foundation for Ace's illustrious career, during which he built systems to streamline the process of creating private equity funds, completed close to 200 deals, and served as a General Partner for 8 funds.
Ace's leadership and strategic acumen have not only yielded impressive returns but also fostered trust and loyalty among his partners, who continue to collaborate with him fund after fund. His expertise and track record have earned him a reputation as a deal-maker extraordinaire.
THE PHILOSOPHY OF DEAL-DRIVEN GROWTH
At the heart of Ace's approach lies the philosophy of deal-driven growth. He recognizes that organic growth and sales are valuable components of business success. Ace's focus is on seeking and capitalizing on deals that can catapult his businesses to new heights. Whether it's acquiring new assets, purchasing underperforming companies to turn them around, or partnering with strategic investors, Ace views deals as a primary driver of growth and profitability.
Ace's deal-first mindset translates into a systematic approach to deal-making. He leverages his extensive network, industry expertise, and financial acumen to identify potential deals and assess their viability. With a focus on strategic alignment and value creation, Ace navigates the complexities of negotiations, due diligence, and deal structuring.
THE PRACTICAL APPLICATION
Ace's deal-first philosophy starts with examining every aspect of the profit and loss (P&L) statement to identify opportunities for ownership. By acquiring businesses that align with his existing operations, he converts expenses into assets. For example, purchasing a bookkeeping company allowed Ace to consolidate expenses, increase profitability, and position the business for future growth. This approach transforms previously incurred costs into revenue-generating entities and amplifies the return on investment.
The second aspect of Ace's philosophy revolves around capitalizing on businesses that have already built the necessary infrastructure. Rather than reinventing the wheel, Ace seeks out companies with complementary offerings, allowing him to instantly access talent, systems, and operational efficiencies. For instance, acquiring a virtual assistant (VA) company eliminated the need to continually hire and train VAs, significantly reducing costs and streamlining operations. By leveraging existing infrastructure, Ace accelerates growth and mitigates common challenges associated with scaling businesses.
Ace's deal-first philosophy provides a refreshing perspective on business growth and ownership. By converting expenses into assets, leveraging existing infrastructure, and strategically acquiring businesses, Ace maximizes value creation opportunities and builds a diverse and profitable portfolio. While challenges exist in managing disparate businesses, Ace's exit-focused mindset ensures long-term success and creates a pathway for consistent growth. Entrepreneurs and business owners can learn valuable lessons from Ace's approach and explore its potential.
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For my whole discussion with Ace Chapman, and more on this topic and others discussed:
Listen to the Full DealQuest Podcast Episode Here
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FOR MORE ON ACE CHAPMAN:
https://www.linkedin.com/in/ace-chapman/
https://www.youtube.com/channel/UCaNlGb8yu09Pvp-kUsyeW-w/videos
https://www.acechapman.com
Corey Kupfer is an expert strategist, negotiator, and dealmaker. He has more than 35 years of professional deal-making and negotiating experience. Corey is a successful entrepreneur, attorney, consultant, author, and professional speaker. He is deeply passionate about deal-driven growth. He is also the creator and host of the DealQuest Podcast.
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