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  • ​72% of small business owners don’t have an exit plan and 54% intend to leave in 10 years. We have a succession crisis. – Forbes Nationwide Study of Small Business Owners

  • ​Accenture reports that over the next 10 years, $30 trillion in assets will pass from boomers to their heirs in the United States alone. - Forbes​

  • In the next 10-15 years, it is expected that more than 8 million privately-owned companies will be sold or transferred. – Daily Herald

  • There are a wealth of products in the marketplace that if used efficiently and universally across the entire platform, will be transforming to the business, allowing management to run the business instead of allowing the business to run them.

  • ​A digital transformation allows management and employees more time to effectuate change where it means the most, in top-line and bottom-line numbers

  • Microsoft Azure and Business Central, while relatively new, are rooted in thoughtful integrations, so that virtually all legacy systems of companies can be seamlessly transitioned and provide much more meaningful feedback in near real time.

  • ​Less than half of the businesses that are started today will be in existence 24 months from now.  Less than 20% will make it to year 5.

  • LSOC does not invest in start-ups or turn-arounds for The Legacy Alliance.  Only companies that are in need of optimization.

  • Franchise businesses have a much higher rate of success and longevity than other businesses.  This is because of systems and processes that are mandated by the franchiser by applying a franchise model (defined systems and processes to each company)

  • LSOC implements the systems and processes, like a franchise, into each of The Legacy Alliance portfolio companies.

  • A centralized hub, LSOC, receives all prospective portfolio company proposals and begins the process of evaluation.

  • If a prospect is not a fit for The Legacy Alliance, it does not mean that it is not a good company worth investment; it just doesn't match our needs at the time.

  • Prospect investment and consideration by one of the LP's is a possibility if The Legacy Alliance declines and a specific opportunity aligns with the expertise or passion of one of our investors.

  • Investment Bankers

  • Financial Advisors

  • Insurance Brokers

  • EO

  • CFT

  • Legacy Advisors

  • Limited Partners

  • Legal Referrals

  • LSOC Contact

  • SOC has a nine (9) step process for the successful integration and management of portfolio companies. This process gives us the best possibility of success to reach our stated objectives, which are to double the EBITDA and double the multiple of the company.

  • Those steps are broken down into three (3) Macro phases with associated timing

  • 95% of the prospects will not make it into the second step of the first phase.

  • Evaluation Phase has three steps, the first two of which have scorecards to maximize efficiency and objectivity.  Only upon reaching a designated score, can the prospect move on to the next phase.

  • Steps One and Two; The 72-Hour Diligence and the On-Site Review happens before the notification to investors of an opportunity.

  • The next few slides are an example of the notification, investors will receive, along with calendar invites for an all group conference call and individual appointments to answer any questions related to the opportunity on a 1:1 basis, with LSOC.

  • First Step Scorecard that looks at the macro conditions of the prospect company.

  • Thirty-one (31) criteria measured and scored independently across differing members of The Legacy Alliance and LSOC.

  • Higher level; Is it and Industry we want to be in?; Does the industry have good tailwinds?; Do any any of our investors or members of TLA have expertise or connections that could help this project?; Stability of industry and company, etc.

  • Must score over 75% to progress

  • Second Step Scorecard - more specifically evaluated with 64 data points in mind.

  • Completed after an on-site visit by LSOC and appropriate LP involvement.  Visit includes separate meetings with C-Suite/Owners and managerial/operations staff.

  • Scorecard evaluates more specific measures of the company against the industry.  Cagr's, Competition, COGS, Systems analysis, Process analysis, Can TLA and LSOC make a material impact on the business to provide the best opportunity of success to reach our stated objective of the double/double., etc.

  • Must score above 80% to proceed

  • An independent financial evaluation is performed on the company to allow for maximum objectivity and uniformity for the investors as they see multiple prospects.

  • A twenty-four (24) page analysis is provided with a customized and normalized summary to give a snapshot of the financial due diligence performed.

  • The evaluation shows not just the company valuation, but also shows how the prospect has performed amongst their private and public competitors in a number of different categories.

  • A go-forward pro forma is prepared and presented as an example of what LSOC believes can happen in the first 24 to 36 months.  Pro forma example attached below.

  • Once we have secured initial feedback from the LP's and know that there is an interest in securing the company, LSOC engages in the 4th step.  This begins the second phase

  • Our Full Due Diligence is done during this time and as long as nothing major arises, our intent is to close within the next 60 days.

  • Upon successful acquisition of the company, the On-boarding and Stabilization steps are activated and LSOC is laying the building blocks to reach the double/double.

  • Phase 3 of the process is where the gas is put on the proverbial fire.  Optimizations in both Operations and Sales and Marketing.

  • While the 9th step starts to be implemented, the tactics of this step have been contemplated all the way back in Step 2 and has grown throughout each additional step.

  • The prospect company at this point should have renewed/revitalized management in place and full integration in all systems.



The Legacy Alliance’s wholly owned subsidiary and operating company, LSOC, is charged with the evaluation, ideation and execution of the prospects and turning them into successful portfolio companies.​ 

​Utilizing our proprietary processes that bring objectivity and uniformity to an otherwise varied process, the diligence and subsequent onboarding process is streamlined for maximum efficiency. This process is put in place to help our top two (2) objectives: 1.) To protect and preserve the capital of our investors.  2.) Grow the company so that they can reach double the EBITDA and double the multiple.

Prioritized on The Legacy Alliance portfolio, LSOC additionally evaluates and executes on behalf of LP’s in separate engagements.​

Ryland Reed

Digital Transformation / KPI's

Rick Groesch III

Commercialization / Human Capital

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