Dan Strull didn’t mind sharing the transaction spotlight a couple of weeks ago when an unprecedented seven office dealer acquisitions were reported to the trade press. The deals represented some of the industry’s biggest brands, including Kelley Connect, Novatech and Flex Technology Group, and portend an active summer for wheeling and dealing.
Strull, the CEO of Woodland Hills, California-based GoodSuite, isn’t known for frequenting the M&A scene, but his acquisition of Amerimac Office Products in Lancaster, California, represents his second deal in less than a year. Last fall, GoodSuite closed a deal to obtain Strata IT of Los Angeles, and Strull has an eye on several opportunities that could materialize sooner than later.
In this edition of Two-Minute Drill, Strull discusses the latest M&A opportunity as well as his vision for GoodSuite’s growth, which includes an ambitious three-year plan that, if executed, will double the size of the company.
Tell us a little about how the Amerimac Office Products opportunity came about.
Strull: I believe it was their vendor rep who told them to talk to us, since [Amerimac] wanted to align with a company that would take good care of their employees and customers. My wife and I met with Amerimac’s husband and wife team [Rich and Barbara McLemore], who had been in business for about 45 years. They were relocating to be closer to their grandkids and basically wanted to find the right dealer to carry on their company. They were such a sweet couple, and my wife was saying, ‘We have to acquire them.’ I’m thinking, there goes my negotiating power [laughs].
Amerimac has good customers and great employees, but the competition had been nipping at their toes, so the timing for a deal was good. I really like that they’re connected to the area, so this will help us establish a nice market share. It’s located in Lancaster, where they’ve rejuvenated their main street with restaurants and hotels. One of my best friends was closely involved with the project, so it’s connected to my heart. I’m passionate about going strong into that area.
How long would it take to pull the deal together?
Strull: About a year. They didn’t do a great job of utilizing technology, so we had to piece all of the information together. Our vice president of operations, Thomas Chacko, orchestrated the entire thing and did a great job of pulling all of the information together. Once he did that, the deal made a lot of sense for us. It was a very smooth transition process.
What did you find most appealing about Amerimac?
Strull: They’re in one of those communities, called Antelope Valley, that really appreciates the local touch. They already had counted some of the biggest companies in the area as customers. We saw it as a great opportunity to cross-sell our IT services and A/V offering. There are great client verticals—schools, defense contractors, manufacturers—exactly what we’re looking for. No one customer or customers account for a large percentage of their business. It was really a good match for us, and we’re willing to invest and commit to the area.
What’s next for GoodSuite?
Strull: We have our eyes on a couple of places, deals that I would like to see happen this calendar year for sure. I wouldn’t rule out acquiring another IT company. We have some really big plans; a three-year vision with the intention of covering all of the state of California. We want to double our size and reach $30-plus million in three years. That will be accomplished through acquisition, product diversification, marketing and organic growth. We have a lot of work to do, but I’m confident we can make it happen.
