Episode 34

When a Nonprofit Buys a For-Profit with Dave Shaffer

Listen on  iTunes    Android     Stitcher   Libsyn

Episode 34

When a Nonprofit Buys a For-Profit with Dave Shaffer

Listen on  iTunes    Android     Stitcher   Libsyn

by goldenburggroup

Today’s episode explores a unique path that one nonprofit took to transition from steady, incremental growth to a dramatic program expansion and impact: buying a for profit company.

We spoke with David Shaffer, CEO of First Step Staffing. In 2015, First Step Staffing was a $2 million nonprofit organization providing employment opportunities for low-income, hard to employ people (including those who are homeless and citizens returning from incarceration). The nonprofit took

a bold step by purchasing a for profit staffing firm with annual revenues of about $20 million!

One year after the purchase, First Step staffing was using the combined infrastructure to have a much larger impact on the community. They provided employment to over 2,100 of Atlanta’s homeless, and 86% of those working over 180 days were able to rent their own residence!

This unique conversation explored:

  • Identifying the company to purchase
  • Being willing to walk away from the wrong deal
  • Due diligence necessary to purchase a for profit company
  • Financing the purchase of a for profit company
  • Merging two entities with very different organizational cultures
  • Identifying metrics to track
  • Understanding the purchase’s impact on charitable contributions (they went up, listen to find out why)

Links:

First Step Staffing Website
First Step Staffing Twitter
First Step Staffing Facebook Page

 

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