2023 Annual Letter
A Year of Growth, Reflection and New Beginnings
Dear Friends,
I hope this letter finds you in good health and high spirits. I am delighted to take a moment to reflect on the year 2023 and share with you the key highlights, achievements, and insights that have shaped this year for me both personally and professionally.
Results & Key Achievements
In the first half of 2023, our dedicated sales and services team at a leading Energy SaaS business exceeded expectations, delivering outstanding results for our key customers. We achieved an impressive return on invested capital, surpassing 4x, while also reducing operating costs for these customers. It was a humbling experience to see our small and committed team working cohesively to provide exceptional service to our customers. This accomplishment marked a significant milestone in our journey to provide sustainable solutions in addition to optimization solutions to the Energy Industry. Notably, we forged two major agreements with leading midstream companies, strengthening our long-term industry partnerships. My expectations are high for this team and what they will achieve in 2024 and beyond.
After dedicating over five years to building our business across North America, with a valuation marked by nine figures and growing from 7 to over 120 employees, it was time for me to embark on my next journey. The lessons, experiences, and insights gained during this time have been invaluable. I consider it my real-world Master's in Sales and Marketing, filled with ups and downs, (not to be understated, there were a lot of experiments and failures throughout the years which provided the richness of lessons) but made possible through the unwavering support of remarkable individuals such as Ed Vansicklen, Nicole Rogers, Corey Bray, Dave McLellan and many more.
Many of these lessons will be carried forward and applied to my next endeavour, one that has been brewing for several years. Leaving the Energy SaaS business in June marked a new starting line for me, but I remain an early investor and continue to engage with my old team as they strive to exceed customer expectations and grow the business.
A Nova Scotian Summer
The summer of 2023 provided a rare opportunity for me to step back, reflect, and recharge with my family. Encouraged by my wife and persuaded by a few close friends, we decided to spend seven weeks in Nova Scotia, surrounded by the beauty of our family lakes. It was a summer filled with cherished moments, family and friends, sports, road trips, and much-needed relaxation. During this time, I committed to regular journaling, which helped reaffirm my purpose and values, setting the stage for my ongoing plan to acquire and operate a Canadian SMB.
The Launch - Pantheon Row Ventures
Returning to Calgary in late August, I was more than eager to embark on my journey to find a suitable Canadian SMB. I immersed myself in learning about the Entrepreneurship Through Acquisition (ETA) process over the summer months, formulating a structured plan and gaining insights into the financing landscape. While I had decided to embark on a self-funded search, a fortuitous introduction to Regenerative Capital Group (RCG) by a good friend, Iggy Domagalsi, captured my interest in a potential partnership with like-minded, intelligent individuals (Like the saying goes if you want to go fast, go alone. If you want to go far, go together). The RCG experience was exceptional, providing valuable learning opportunities and developing several lifelong friendships.
Throughout the fall, I focused on learning and testing various investment hypotheses and exploring several industry segments. This included meetings with prospective investors, networking with experienced searchers and operators, connecting with banks, brokers, M&A advisors, and engaging with business owners. The support and guidance I received from countless individuals have been unexpected and invaluable. Meeting business owners, listening to their stories, learning about their successes and challenges, and discussing potential ideas for the future has been an extreme source of energy for me. I am looking forward to meeting many more business owners in early 2024.
December marked the official launch of Pantheon Row Ventures, as I set out to find a good Canadian SMB to acquire through a self-funded search. Whether you are a small business owner or a like-minded investor, I welcome you to reach out for a conversation over a call or coffee. More information can be found at www.pantheonrowventures.com/criteria
Market Landscape
The coming decade is expected to witness the final chapter of the Silver Tsunami, where many baby boomer-owned businesses will require succession plans. This presents a significant opportunity for all stakeholders to successfully transition these businesses into their next chapters. The sentiment seems strong that we will see a surge in businesses coming to market in the first half of 2024.
While the high-interest rate environment may exert downward pressure on business valuations, I believe that Owners and Buyers openly communicate, build trust and are willing to collaborate can overcome this challenge. Canadian banks and subordinate debt lenders are eager to grow their portfolios within this segment, and the majority of investors I've spoken with plan to maintain or expand their investments in 2024.
Learnings
The second half of 2023 has been a period of continuous learning, a cadence I am looking forward to maintaining in 2024. I’ve also captured detailed learnings and thought-provoking content in the Unconventional SMB newsletter. Here are some key highlights:
Seek guidance and listen to others who have been successful in what you are attempting to achieve but always adapt their advice based on your own experience
Embrace a mindset of innovation, curiosity and questioning conventional ways of doing things
Construct financing models that align with the values and needs of all stakeholders. Different outcomes typically demand different actions
Contrary to common belief, there are many Canadian businesses seeking succession plans that remain untapped by searchers
Explore regenerative business practices, as they offer both environmental benefits and a competitive edge
Taking more breaks to shift your mind delivers huge improvements to creativity
Structured weekly and monthly read & reflecting days have been the best investment
It’s taken over a decade of experimentation but meditation has become a regular tool in my toolbox
Continue to slow down, pause and enjoy the now
A Few Books
"10 Commitments of Conscious Leadership" by Jim Dethmer
"Who Not How" by Dan Sullivan
"Search Funds and Entrepreneurial Acquisitions" by Jan Simon
"Who: The A Method for Hiring" by Geoff Smart
"Extreme Ownership" by Jocko Willink
"Elevate Your Team" by Robert Glazer
"The ABC Model Breakthrough" by Dan Sullivan
"Buy Then Build" by Walker Deibel
Challenges & Gratitude
The past year brought its share of challenges, some chosen and some unexpected. My decision to stop consuming alcohol and increase my focus on physical and mental health proved immensely rewarding, resulting in improved sleep quality, cognitive abilities, weight loss, blood pressure reduction and increased energy levels. Today marks 365 days of zero alcohol. I also completed three running races, tracked 378 Garmin activities with 1683 km of running and biking and completed 1229 minutes of meditation.
I am profoundly grateful for the unwavering support of my wife, Kelly, and my children, who inspire me daily.
I am grateful to the numerous individuals who have lent their ears and continue to ask how they could assist. Including Pierre Magnan, Doug Gray, Kyle Bialas, Christian L, Patrick P, Reed MacDonnell, Rod Brown, Iggy D, Jeff Blacklock, Chad Hayden, Patrick Allan, Liz MacRae, Josh Wood, Jordan Martel, Russel Palmiter, Shawn K, Mario Nigro, Chen F, Dustin Owen, John Davidson, and the list goes on.
I am grateful for those who doubted my endeavours saying it cannot be done or it does not work that way. It all contributes to my growth, provides a different lens and fuels my determination.
As I look ahead to the journey in 2024, I am more excited than ever. Every setback and unexpected outcome in life has the potential to yield many good things that would not have been possible otherwise. In the words of Jocko Willink, "Good - It's how I operate."
Thank you for your continued support, and I look forward to the adventures that lie ahead.
Warm regards,
~JD~
