Searcher & Seller Stories - Effective Search Tactics: The Acquisition of CSW
Effective Search Tactics: The Acquisition of CSW
Sam Krieg and Hill Hamrick's acquisition of Central Storage & Warehouse (CSW), a Wisconsin-based cold storage business, demonstrates the power of personal connection and innovative search tactics in successful business acquisitions. Their partnership didn’t start with a specific business idea, but with an entrepreneurial spirit forged through college pig roasts, shared background, and professional transitions. Their decision to embark on a search for a business to acquire was rooted in their friendship and a desire for meaningful, hands-on entrepreneurship. Their approach offers three valuable tactics and takeaways for entrepreneurs and investors in the search fund ecosystem.
Tactic I – Personal Storytelling
Sam and Hill differentiated themselves by leveraging their personal narrative and authenticity. After quickly realizing that the market was crowded with private equity, searchers, and strategic acquirers, they revamped their website to highlight stories of their friendship and shared experiences - positioning themselves as entrepreneurs rather than 'traditional' corporate or financial buyers. Telling their story enabled them to authentically connect with people to whom they reached out, and particularly resonated with sellers, who saw them as potential partners rather than just investors.
Tactic II - Deep Industry Knowledge Leading to Personalized Outreach
Sam and Hill were committed to an industry thesis-driven search, which proved to be a key differentiator when connecting with business owners. They invested significant time to develop a deep understanding of the industry and each business' unique context and challenges engaging owners and experts to accelerate learnings and receive warm introductions from trusted industry insiders. Their industry knowledge enabled personalized, detailed communications both in their initial outreach and in their follow-ups, credibly painting themselves as capable stewards to possible sellers.
Tactic III – Creatively Connecting with the Seller
Sam and Hill set out to “build relationships, not just buy a business,” which brought a people-centric view to their search. When they engaged CSW's owner early on through personalized communications and a nuanced understanding of the cold storage industry, it was their persistence and genuine interest in CSW's legacy that fostered trust with the owner. From sharing their love of BBQ to golf to dinners to hand-written notes, they consistently found new ways to connect and build a meaningful relationship with the seller which helped them overcome his initial resistance in engaging with them. These actions led to a genuine friendship between them, that extended outside the transaction.
Key Takeaways
1) Authenticity and personal connection can be transformative in search processes, paving the way for successful acquisitions.
2) Deep industry knowledge is critical when conducting outreach with owners, as it demonstrates competency and genuine interest.
3) Creative, meaningful ways to connect with sellers (e.g., connecting about shared interests like BBQ or golf, handwritten notes, personal phone calls, fun 'non-work' activities) can make a significant difference.
Want more?
Read Eleven Software's Seller & Searcher Story here and PageVault's Seller & Searcher Story here.
