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JOSH PICHLER

Spectrum leverages rise of the ‘Supertemp’

Josh Pichler
jpichler@enquirer.com

Doug Ventura’s client has a huge opportunity. The business has grown to about $20 million in annual revenue and is in strong financial shape. With financing and maybe two years of work, Ventura thinks his client can acquire multiple competitors, take market share, and emerge with a business that’s three or four times its current size.

So what’s the problem? Ventura’s client, whom he declined to name for confidentiality reasons, has limited experience with mergers and acquisitions.

“If he did two of those acquisitions, he’d be a private equity firm’s dream,” Ventura said. “But he’s got to show the ability to bring those in, digest them and leverage them.”

That’s where Spectrum comes in. Ventura, a former executive vice president at Reynolds & Reynolds Co., started the advisory and consultancy firm in 2010 and spent the next four years testing the concept before moving into a new phase of growth this year.

The firm is developing relationships with service providers including Cintrifuse and ConnXus to source future opportunities, and also working on a pilot project with a local law firm.

Spectrum’s three full-time partners work with a portfolio of companies on strategic challenges. The firm is also capitalizing on what Harvard Business Review calls “The Rise of the Supertemp” by connecting experienced C-suite executives who have retired or don’t want to work full time with promising young companies that need help breaking into the next stage of growth.

The model keeps those talented executives involved in the business world, and allows companies to access significant operational expertise without having to hire a full-time employee or traditional consulting firm. Both sides retain much-valued flexibility.

National firms with a similar platform include the Business Talent Group, a full service firm with offices across the country, and Axiom, a global firm that provides temp lawyers to nearly half of Fortune 100 companies.

Spectrum’s ideal engagement is a 24-36 month project with a company generating between $10 million to $30 million in revenue. In exchange for its work, Spectrum can receive cash, a success fee, or equity, depending on the project and company’s maturity. Spectrum has worked on eight projects so far.

The firm recently added Jeff Fenter, a retired Procter & Gamble executive, as its chief marketing officer, and is now formalizing strategic partnerships to scale the business.

“There are companies with great ideas that sometimes lack the executive talent or the leadership to really get those ideas off the ground,” Fenter said.

“A lot of the elements that make companies great have to do with the quality of the executive leadership, the presence, focus and experiences people are bringing to bear.”

Spectrum is positioning itself to serve the region’s swath of private and family-owned businesses, and select startups that are booking revenue and facing a businesses challenge the executive team lacks the bandwidth to manage.

Cintrifuse, the business-led initiative to support high-potential startups in the region, is working to connect young companies with experienced talent. Cintrifuse interim CEO Nancy Koors has referred several local startups to Spectrum and said the firm brings a unique value proposition to the market.

“One thing that can kill startups is rapid growth if the team hasn’t had time to put the right infrastructure in place or can’t scale as fast as necessary,” Koors said. “A team like Spectrum can come in, bring additional credibility, and give that startup time to recruit the right full-time employee.”

Spectrum includes four full-time executives who work with a portfolio of clients, and is building a roster of experienced executives from a wide range of sectors. The firm can embed those executives in companies for set periods of time if necessary to accomplish strategic objectives.

Ventura said the firm is currently equipped to handle four long-term engagements at any point in time, as well as shorter strategic projects. It plans to grow in size so it can eventually manage up to 12 engagements at a time.

“We don’t want to create a body shop,” he said.

Closer look at Spectrum

Spectrum has four full-time employees, including three principals with specific areas of expertise.

• Doug Ventura: President and CEO. Experience in equity and debt financings; mergers and acquisitions; strategic alliance strategy and execution.

• Johnny Kaissieh: Vice president and COO. Experience in product development; mergers and acquisitions; international business operations and transactions; telecommunications and networking.

• Jeff Fenter: Chief marketing officer. Over 26 years of experience in Information Technology; marketing; human resources; and sales. Background primarily in consumer packaged goods industry.

• Spectrum’s fourth employee is Ron Moore, the firm’s finance director.

• For more information: http://www.spectrumbuilt.com/