Searcher & Seller Stories - Tenacity, Teamwork, and Trust: The Eleven Software Success Story
The Searchers’ Perspective: Hannah Greenberg and Alex Lopez
Discipline in Focus From the outset, Hannah and Alex were committed to their industry focus. Their target was clear: the hospitality and real estate sectors, where they could leverage their expertise and passion. This discipline was tested repeatedly as they faced the inevitable challenges of the search process. When results were slow, the temptation to broaden their outreach loomed large. Yet, they remained resolute, trusting the process and resisting the urge to deviate from their defined path. Their story underscores the importance of staying true to one’s strategic focus, even when immediate results are elusive.
Leveraging the Community A pivotal element of Hannah and Alex’s success was their ability to harness the collective wisdom and support of the search fund community. Every interaction, whether with mentors, peers, or industry veterans, provided valuable nuggets of information that enriched their journey. This sense of community not only offered practical insights but also bolstered their morale during challenging times. Hannah and Alex’s experience highlights the significance of building and maintaining strong relationships within the search fund ecosystem.
Human Connection and Humor Throughout their search, Hannah and Alex emphasized the importance of coming across as genuine and relatable. They infused their outreach with personal touches, sending ‘Happy Retirement’ cards, playful Berkeley bumper stickers to Stanford alumni, and acknowledging veterans with a ‘Happy Veterans’ Day’ message. These gestures, while seemingly small, established a rapport with potential sellers, setting them apart from the more transactional approaches often seen in the industry. Their ability to blend professionalism with a touch of humor and humanity was a key differentiator in their search process.
The Seller’s Perspective: Peri Pierone
Finding the Right Buyer For Peri and the co-founders, the primary goal was to create a liquidity event that would benefit all shareholders, including employees. They aimed to sell the business in 2020, but the pandemic's impact on the hospitality sector delayed these plans. By 2021, the focus was on finding a buyer who could provide a strong valuation and maintain the company's culture. Peri first encountered Hannah and Alex at a hospitality conference where he received a handwritten note from them. This personalized approach stood out amidst the usual emails and calls, prompting Peri to consider their offer seriously. Despite the bankers' initial skepticism about searchers, Hannah and Alex's energetic optimism and commitment to maintaining Eleven's culture impressed Peri. Their ability to communicate directly with him, bypassing the bankers, further strengthened their position.
Navigating Challenges The sale process was not without its hurdles. Initially, Eleven went exclusive with another buyer who later backed out due to a delayed deal in the pipeline. This setback led Peri to reconnect with Hannah and Alex, who then had to navigate the complexities of closing the deal with multiple stakeholders involved. The process took 93 days, a period that felt long to Peri but was handled with grace by Hannah and Alex. They managed to keep the board and other stakeholders informed and aligned, demonstrating their ability to handle pressure and maintain transparency.
Preserving Culture and Legacy A significant factor in Peri's decision to sell to Hannah and Alex was their commitment to preserving Eleven's culture and identity. Unlike larger PE firms that might have absorbed the company, Hannah and Alex were focused on maintaining its unique position in the market. Their thoughtful approach to transition, including engaging with employees and honoring Peri's contributions, ensured a smooth handover.
A Blueprint for Success
The story of Eleven Software’s acquisition by Hannah Greenberg and Alex Lopez, guided by Peri Pierone’s leadership, highlights the importance of disciplined focus, community leverage, and human connection in the search and acquisition process.
Their experience offers a compelling blueprint for future searchers and sellers alike, illustrating that success in the search fund world is not just about finding the right business but also about building trust, maintaining discipline, and connecting on a human level. In the end, it’s these elements that truly make the difference in turning a search into a successful acquisition.
