Part 1 of a 3-Part Series
ProCopy president Mike McGuirk makes fervent claims in support of Flex Technology Group’s acquisitions model and strategy.
Mike McGuirk has no regrets, especially about selling his dealership, ProCopy Office Solutions in Phoenix, Arizona, to Flex Technology Group (FTG) in 2016.
Three years later, he couldn’t be more pleased with the way things have worked out. That’s because McGuirk still serves as ProCopy’s president, running the dealership pretty much as he had been all along. And, thanks to the FTG model, he and his partners at ProCopy have been able to reinvest a portion of their payouts into what’s on the verge of becoming a $300-plus million organization.
We wrote about Flex Technology Group’s acquisitions model in the June issue, and McGuirk is adamant FTG’s acquisition model works.
McGuirk wasn’t looking to sell when he was contacted by his old pal Frank Gaspari, CEO of FlexPrint and head of FTG. Their shared history traces back to their days working for Global Imaging Systems when Gaspari was running Global’s Chicago operations and McGuirk, Global’s Arizona operations. That history and trust provided the foundation for the deal, as did sitting down and learning about the reinvestment piece of the FTG model.
Remaining a partner in the organization and an investor was important for McGuirk, but equally important was being able to maintain the local flavor of ProCopy.
“We’re a boutique company,” said McGuirk. “We charge a little more, but we do a lot of little things for value and we still make decisions locally.”
He was honest with his employees when he explained the decision to sell. He’s been the acquirer and the acquired during his tenure in the industry, so he knows the dynamics of the acquisitions game.
“I’m not going to lie and say nothing is going to change,” McGuirk recounted telling his employees. In keeping with the FTG model, the intention was to maintain the DNA of ProCopy, and that’s exactly how things have played out.
“It’s business as usual and we’re performing at a higher level than when we were acquired,” stated McGuirk.
Of course, McGuirk still has to hit his numbers, which is to grow 5% to 7% a year. This year, things are moving in that direction, and McGuirk reported that ProCopy is doing very well from a profit perspective. Plus, there are corporate initiatives he has to adhere to.
“I don’t agree with every direction we go, but I can express my opinion, and then, we move forward as one team,” stated McGuirk.
A few things have changed, however, and for the better in McGuirk’s view. For example, FTG is responsible for ProCopy’s financials, HR, and IT, three areas that were handled internally prior to the acquisition.
“Those three areas were never my focus, and they do a great job,” said McGuirk.
He also has an HR and finance liaison at FTG.
“It’s like having a virtual CFO or CIO,” stated McGuirk.
For ProCopy employees, no one has lost a job as a result of the acquisition, and for those whose positions were redundant, they either retired, decided to look for another local opportunity, or found a home at Gaspari’s FlexPrint, nine miles away in Mesa.
Another benefit of being in the FTG family is access to resources for out-of-state accounts.
“They have that down, and we can support accounts almost anywhere in the country,” observed McGuirk.
At last count, FTG has acquired 12 dealers. ProCopy was among the first of its acquisitions. McGuirk described his dealership as more of a copier-centric company compared to the MPS-focus of FlexPrint and Laser Options, the Arizona-based company that was acquired prior to ProCopy.
“They’re better at this than us,” added McGuirk. “We’re in MPS, but only in our bigger accounts, which are supported by FlexPrint techs.”
He appreciates being part of the family and sharing best practices with fellow FTG leaders, much the same way he does at SDG where he is the new president of that dealer group. He does the same at BTA West events, where he serves on the board. While he’s always willing to tout the FTG model, he acknowledges it’s not his job to recruit dealers.
The one question he hears most often from other dealers at industry events is how much control FTG takes away. His answer remains consistent, very little.
All in all, McGuirk relayed a great experience so far and he remains enthusiastic about the FTG team and the support they provide.
“This is a top-notch bunch of guys,” said McGuirk. “They’ve put together an A-team of support, and that’s nice to have.”
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