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Author: Gerald O'Dwyer
Case Study: Jim Fanning’s Journey with BlackmoreConnects – From Corporate Executive to Multi-Channel Deal-Maker
Case Study: Jim Fanning's Journey with BlackmoreConnects – From Corporate Executive to Multi-Channel Deal-Maker
Written By: Gerald O’Dwyer III
The PE Guru — Blackmore Partners, Inc | August 20, 2024
Background:
Jim Fanning had spent much of his career as a corporate executive in industries like building materials, consumer durables, and distribution. He gained initial exposure to private equity through M&A activities while working with large corporations like Overhead Door and Mohawk Industries. However, while Jim’s corporate roles offered security and growth, he sought more entrepreneurial opportunities—ones that would allow him to leverage his deep operational experience while playing a critical role in deal-making and company growth within the private equity (PE) ecosystem.
Jim’s biggest challenge lay in making the jump from a corporate environment to the private equity world. He realized that while he had significant expertise in operations, he lacked the network, deep industry knowledge, and branding necessary to make a smooth transition into the PE space. Jim knew that to succeed, he needed to shift from being viewed as an executive who could manage companies to someone who could originate deals, execute on them, and serve as a valuable partner to private equity firms. This is where BlackmoreConnects became pivotal.
Challenges:
- Limited Network in Private Equity:
- Although Jim had a solid network from his corporate roles, it didn’t extend far into the private equity space. He needed to establish relationships with PE firms, investors, and intermediaries who could open doors to deal flow and new opportunities.
- Shifting Identity from Corporate Executive to Private Equity Partner:
- Jim wanted to shift his personal brand from that of a corporate executive to an operating partner, dealmaker, and eventually, an advisory board member in private equity deals. This transformation required Jim to develop a deep understanding of what PE firms value in executives and operating partners.
- Understanding the Private Equity Playbook:
- Although he had some experience working with PE firms, Jim didn’t fully understand the nuances of private equity deal-making, including how to evaluate deals, present himself as a deal partner, and ultimately leverage his skills to generate deal flow.
- Becoming a Deal Originator:
- Jim’s goal was not just to participate in deals but to originate them. He needed to figure out how to position himself as a valuable resource to both PE firms and business owners, allowing him to source deals directly.
The BlackmoreConnects Journey:
BlackmoreConnects provided Jim with the structure, education, and resources he needed to achieve his goals. His journey involved several critical steps that transformed him into a successful deal originator and operating partner.
Step 1: Expanding the Private Equity Network
Challenge: Jim’s first challenge was to expand his network within the private equity space. Without key contacts, Jim knew he would remain on the outside looking in.
BlackmoreConnects Solution:
Through BlackmoreConnects, Jim gained access to a robust network of over 170 private equity firms. The platform connected him with key players at conferences, workshops, and networking events. BlackmoreConnects also provided tools like Pitchbook and Syndex, which Jim used to identify PE firms and investors that aligned with his expertise.
What Jim Did:
- Targeted Networking: Jim began systematically targeting PE firms that had a history of investing in lower middle-market companies within his sector expertise—building materials, consumer durables, and distribution.
- Follow-Up Strategy: Jim developed a rigorous follow-up strategy, ensuring that every contact he made through BlackmoreConnects was nurtured. He tracked his interactions, followed up regularly, and always kept himself top of mind with potential partners. His goal was to reach out to every PE contact at least once every quarter.
Results:
- Within months, Jim had significantly expanded his private equity network, building relationships with both general partners and operating partners across the country. His network of PE firms grew to over 170 firms, and he had an ever-growing list of 300 contacts.
Step 2: Shifting from Executive to Deal-Maker
Challenge: Jim’s next goal was to reposition himself as more than just an executive; he needed to be seen as a deal originator and operating partner who could bring value to both PE firms and business owners.
BlackmoreConnects Solution:
BlackmoreConnects provided Jim with access to workshops, panels, and expert Q&A sessions where he could learn from seasoned private equity professionals. These sessions taught Jim how to hone his personal brand and value proposition, focusing on the unique skills he could bring to the table.
What Jim Did:
- Crafting His Value Proposition: Jim reframed his experience to highlight how his operational expertise could drive value creation for PE firms, particularly in companies that required operational improvements, turnarounds, or scaling.
- Positioning as an Operating Partner: He branded himself as an ad hoc operating partner, someone who could step in early during the deal evaluation phase, work closely with business owners, and help PE firms assess operational risks and opportunities.
- Moderating Panels: Jim started moderating panels at BlackmoreConnects events, using this platform to establish himself as a thought leader in the space. This not only built his credibility but also allowed him to engage more directly with key PE players.
Results:
- Jim’s ability to position himself as an operating partner led to multiple engagements with PE firms. He began to be invited into deals earlier in the process and was able to contribute meaningfully to both the operational and strategic aspects of deals.
- His visibility in the private equity community increased, and he started receiving inbound deal flow from PE firms and business owners alike.
Step 3: Becoming a Deal Originator
Challenge: Now that Jim had built a network and established himself as a credible operating partner, his next challenge was to become a deal originator. This required building relationships with business owners and being seen as a trusted partner who could facilitate transactions.
BlackmoreConnects Solution:
BlackmoreConnects emphasized the importance of building long-term relationships with business owners and utilizing tools like Pitchbook to source potential deals. Through BlackmoreConnects workshops, Jim learned the intricacies of deal origination, including how to identify targets, approach owners, and structure deals.
What Jim Did:
- Building Relationships with Owners: Jim used his operational background to build relationships with business owners, particularly in the lower middle market. He positioned himself as a partner who understood their businesses and could help facilitate successful transactions.
- Leveraging Tools: Jim used Pitchbook and Syndex to identify potential acquisition targets and track deal flow. He also worked with investment bankers and intermediaries to source deals and present them to PE firms.
Results:
- Jim successfully originated several deals by leveraging his network and relationships with business owners. His role evolved from simply participating in deals to becoming a key deal originator who added value throughout the entire process.
- He built a reputation as someone who could source, evaluate, and execute deals, leading to continued opportunities for advisory and board roles.
Results:
- Expanded Role and Influence:
- Jim’s ability to originate deals and work closely with both PE firms and business owners positioned him as a critical player in multiple transactions. His role expanded to include advisory board positions, operating partner roles, and deal origination responsibilities.
- Credibility in the Private Equity Space:
- Jim rebranded himself as an essential part of the private equity ecosystem. His transformation from a corporate executive to a PE deal-maker was a direct result of the knowledge, network, and tools he gained through BlackmoreConnects.
- Successful Deal Flow:
- Jim built a deal pipeline that allowed him to consistently stay engaged with multiple deals at once. His ability to source deals early in the process made him invaluable to the PE firms he worked with.
Playbook for Executives: How to Replicate Jim Fanning’s Success
Step 1: Build and Expand Your Network
- Targeted Outreach: Use platforms like BlackmoreConnects, Pitchbook, and Syndex to identify PE firms that align with your industry expertise. Target lower middle-market firms that value operational improvements and have a history of working with executives like you.
- Track and Follow-Up: Create a tracking system for every contact you make, ensuring that you regularly follow up with each one. Aim to contact every key person in your network at least once per quarter with updates, insights, or questions.
- Attend and Engage in Conferences: Attend relevant PE conferences and workshops, making sure to actively engage with participants. Ask questions during panels, participate in discussions, and make yourself visible to PE professionals.
Step 2: Reframe Your Value Proposition
- Identify What PE Firms Need: Understand the pain points PE firms face in the industries where you have expertise. Position yourself as someone who can solve those problems—whether through operational improvements, scaling, or strategic repositioning.
- Create Case Studies: Develop case studies from your past experiences that showcase your ability to drive value creation in companies. Highlight measurable outcomes like operational turnarounds, increased EBITDA, or successful exits.
- Be an Operating Partner: Instead of presenting yourself as an executive seeking a job, brand yourself as an operating partner or deal originator. Emphasize your ability to work alongside PE firms to source, evaluate, and execute deals.
Step 3: Become a Deal Originator
- Leverage Your Industry Knowledge: Use your knowledge of the industry to identify potential acquisition targets. Focus on building relationships with business owners who may be looking to sell in the near future.
- Use Deal-Sourcing Tools: Leverage tools like Pitchbook, Syndex, and investment banker connections to identify and evaluate potential deals. Create a pipeline of opportunities that you can present to PE firms.
- Build Long-Term Relationships with Owners: Approach business owners as a trusted partner rather than just an intermediary. Build relationships over time, understanding their business goals and positioning yourself as someone who can facilitate successful exits.
Step 4: Execute and Refine
- Track Your Success: Keep a detailed log of the deals you’re involved in, the outcomes, and the feedback you receive from PE firms. Use this to continually refine your approach and value proposition.
- Stay Engaged with Multiple Opportunities: Don’t put all your eggs in one basket. Continue to diversify your deal flow by staying engaged with multiple PE firms and business owners. Ensure you have a broad pipeline of opportunities to work on.
Step 5: Build a Personal Brand as a Thought Leader
- Moderate Panels: Volunteer to moderate panels at PE events, conferences, and workshops. This will increase your visibility and position you as a thought leader in the space.
- Publish Articles: Share insights from your journey through blogs, LinkedIn posts, or even articles published through BlackmoreConnects. Highlight lessons learned and success stories to build credibility.
Conclusion:
Jim Fanning’s journey with BlackmoreConnects serves as a powerful example of how executives can successfully transition into private equity. By expanding his network, repositioning his brand, originating deals, and continuously refining his approach, Jim became a key player in the PE world. Executives following the playbook outlined above can replicate his success by leveraging the resources, knowledge, and opportunities provided through BlackmoreConnects.
