Brian Frank, COO, Visual Edge Technology
Brian Frank had a pretty good idea of what the future would look like for the office technology dealer universe, and the president of Graphic Enterprises Office Solutions wanted to play a big role in shaping that future for his company by following an M&A path to growth. Frank’s first deal was to obtain CalGraph, a dealer that offered sales and service for wide-format printing devices.
Negotiations for a second acquisition began in 2002. They didn’t quite turn out as Frank had planned, but in hindsight, they definitely panned out better than he had hoped.
The then-software company that Frank approached, Visual Edge Technology, just so happened to be carving out an acquisition strategy of its own and was looking to hammer out its first deal. Its CEO, Austin Vanchieri, counter-pitched the idea of Visual Edge acquiring Graphic Enterprises Office Solutions.
Austin Vancheieri,
chairman and CEO,
Visual Edge Technology
“It was our baby,” Frank said of Graphic Enterprises, which he and several managers had acquired from Frank’s father, one of the company’s founders. “It took us two years to decide that this was what we wanted to do and that we would feel comfortable with it. The unknown is the thing…everybody has or knows about a horror story of a deal gone bad. Fortunately for us, Austin was the right kind of man to do business with and his message was consistent. The things he laid out and promised turned out just as he said they would.”
Now the chief operating officer of Visual Edge Technology (VET), Frank was one of nearly 100 VET team members making the rounds at ITEX 2018 in Las Vegas last month. A majority of the 70 attendees represented the dealerships that comprise the operational aspect of VET; the balance represented seven members of the holding company, including Frank, Vanchieri, Senior Vice President Michael Brigner and Vice President of Business Planning and Analysis David Ramos.
Multipurpose Event
VET chose ITEX as the venue for its quarterly presidents and managers meeting, as well as two-day training sessions for sales and service, both administered by Pros Elite Group. Frank is a huge supporter of the concept in not only does it enable the VET member companies to receive uniform operational improvement training from a leading industry provider such as Pros Elite Group, it furnishes the opportunity for sales and service personnel to become acquainted and learn more about one another. Holding the Presidents Meeting in Las Vegas also allowed Visual Edge Technology to play host to a trio of presentations given by Wells Fargo, Continuum and HP.
“David Ramos spearheaded this idea,” Frank said of the ITEX meetings. “The exposure is good and we want people to know who we are. All of our presidents are here, and it seemed like an ideal opportunity for them to interact with some of the manufacturers. We also love the idea of continuing education on the service and sales side. Any time you can help your people get better, it’s a good thing. We’re excited about what we’re trying to accomplish here.”
Visual Edge Technology’s Presidents Meeting
Moreover, the ITEX exposure enables VET to gain greater recognition with dealers from around the country, some of whom are in the exploratory phase for researching a possible transaction. Unlike many other M&A platforms in the industry, Visual Edge Technology is not seeking to buy out retirement-ready executives in order to fold operations into their collective. Teams that join the “strategy” maintain leadership, autonomy, the company name and corporate culture. Nor is VET a savior for struggling companies to unload a book of business or related assets; only top performers with a vision for growth are sought. Frank notes that, to date, only one top executive of a firm that has joined Visual Edge Technology’s stable of dealerships has departed, via retirement.
Considering that VET has completed 20-plus deals in the last 24 months alone, it is an impressive track record. Frank said the company believes it is on course to reach $400 million in annual sales by the end of 2018, and topping the $500 million mark by the end of 2019 is not out of the question.
“We think we have a unique approach that appeals to many dealerships,” Frank added. “We have a pipeline of candidates that we’re constantly cultivating. We have big aspirations.”
Sales Training
Steve Rolla was a sight to behold. The senior partner of Pros Elite Group was part cheerleader, part storyteller, part Pentecostal minister and a powder keg of ideas and inspiration. It isn’t easy holding court for a 10-plus hour marathon sales training session, even when spaced over two days, but with some help, Rolla was able to engage and enwrap a conference room filled with Visual Edge Technology dealer member sales reps, vice presidents and managers.
Phil Schaefer, XMC Inc.
One of the attendees was Phil Schaefer, vice president of sales for the East Region with Memphis, TN-based XMC Inc. “What I tried to pull out was tangible, actionable tips that I can use in the various aspects of sales management, to complement what I’m already doing,” he said. “The Pros Elite team is great, they’ve got a whole arsenal of support, services and sales training that is very intriguing. It was definitely worth it.”
Some of the topics that Schaefer found most intriguing included territory design. Too often reps are qualified on their ability to handle a geography, rather than analyzing the current base, dealer market share, the location of current placements and how that territory fits their sales assignment. Pros Elite emphasized the importance of evaluating the sales assignments for a team and the territories, making sure that they are properly aligned.
“It sounds elementary, but in the fast and furious world of sales management, a lot of times you’ve got a turnover that brings a sense of urgency,” Schaefer said. “If you’re not really looking at the process of territory design, you’re just putting square pegs into round holes, and you’re not giving the territory or (more importantly) the rep a real opportunity to succeed because of the relevancy of their sales assignment.”
Pipeline analysis and qualifiable sales assignments were other areas that resonated with Schaefer. One topic that was close to his heart is scholarship programs. XMC partners with higher education institutions to set up internships, and he likes the idea of establishing a scholarship, which can help the dealership identify individuals who are interested in the industry. Schaefer works out of the Nashville office, and that territory has a strong higher education presence.
One aspect that Pros Elite Group emphasized was the importance of taking the time to gradually implement a consistent approach, as opposed to incorporating major, immediate changes.
“There are some metrics that we can measure that will dictate success and performance,” Schaefer said. “One of the overall themes was managing to outcomes. A lot of times, we look at the specific, unique metrics—how many expiration dates did you capture last month, how many new deals did you create? We can get really myopic, and like a hitter in baseball, we change their swing, move the elbow up or down or move the foot up in the batter’s box. That can really cause some issues, because we’re not really coaching or managing to the outcome, which in our business is driving revenue.”
