Founder-to-Founder Partners aims to level playing field in M&A

SAN FRANCISCO—With private equity continuing to drive acquisitions across the security industry, longtime entrepreneur Rob Chamberlin believes many business owners are leaving value on the table when it comes time to sell.  

To help founders better prepare for what is often the largest financial transaction of their lives, Chamberlin has launched Founder to Founder Partners (F2F), an advisory firm focused on helping security and fire business owners maximize company value and navigate successful exits. 

Chamberlin, founder and managing partner, said the firm was created to provide entrepreneurs with guidance from advisors who have firsthand experience running companies and navigating transactions. 

“We've sat in your chair,” Chamberlin said. “How do you take a good company and set it up to make it great so you can have the best possible outcome for yourself and your family?” 

Preparing long before a sale 

Initially focused on security and fire businesses, F2F aims to engage with owners 12 to 24 months before a potential sale, helping them strengthen operations and improve profitability. 

“We want to be engaged with founders and owners probably 12 to 24 months before they're contemplating an exit,” Chamberlin said. “There are a lot of things you can do from an operational perspective to get from good to great.” 

The firm's approach includes helping companies expand EBITDA, reduce customer concentration risk, increase recurring revenue and improve financial reporting.  

Chamberlin said one of the most common mistakes owners make is focusing too heavily on revenue growth instead of profitability and valuation drivers. 

“Everybody likes to talk about running a $10 million business or a $15 million business,” he said. “Again, the net's the thing that counts, and the net's the thing that is really going to drive your valuation.” 

Leveling the playing field 

Drawing on his experiences completing transactions with strategic buyers, public companies and private equity firms, Chamberlin said founders are often negotiating against professionals who complete deals every day. 

“Private equity guys are better at it than we are,” he said. “They do transactions every day. Most owners maybe do one or two transactions in their life.” 

‘Passion project’ 

While Founder to Founder Partners could eventually expand into adjacent service industries, Chamberlin said the firm's immediate focus is helping security and fire business owners achieve better outcomes. 

“This is more of a passion project,” he said. “The intent is to work with a limited number of CEOs and founders who want to maximize the value of their company and exit on their own terms.” 

Photo courtesy of Founder to Founder Partners