Frank Gaspari, CEO of Flex Technology Group, is proof positive that an MPS-focused business model and a knack for building multiple successful businesses are attractive to private equity.
Top: Flex Technology Group headquarters, Mesa, AZ.
From left to right: CJ Cannata; Frank Gaspari, CEO, Flex Technology Group; Frank Cannata; and Tom Callinan, president, Flex Technology Group
In our many dealer tours over the past two years, we’ve realized we can’t visit any of these dynamic organizations without focusing on the individual or individuals who’ve built it. Having had the valuable opportunity of meeting with several of our most tenured industry leaders and pioneers, we were eager to meet with Flex Technology Group CEO Frank Gaspari, who has a rich history in the office imaging space.
Gaspari began his entrepreneurial career in Chicago, co-founding Column Office Equipment in 1990, followed by launching Image Manufacturing in 1998.”¯Both companies were acquired by Global Imaging Systems (GIS), now a subsidiary of Xerox, in 1999 and 2004, respectively.”¯Gaspari served as president of GIS’s office technology group in Chicago, and during his tenure, his team was recognized on numerous occasions with the Chairman’s Award as GIS’s top-performing company.”¯When he left GIS in 2005 to start Flexprint LLC, the following two presidents of GIS’s Chicago operations were executives developed by Gaspari.
Having sold two of his businesses to Global, you could say Gaspari is a disciple of industry trailblazer Tom Johnson, which was apparent when he attended our 2018 Awards & Charities Dinner where we honored Johnson with a Lifetime Achievement Award. Gaspari sat with the Johnson family and was extremely generous in support of our designated charity. My perception is that Gaspari has basically adopted the Johnson model in his businesses because of his intimate knowledge of how it works firsthand.
“We have followed Tom’s model for treating the acquired companies post-acquisition,” observed Gaspari. “We allow them to run their businesses as they have been doing, maintain their cultures, share best practices, and leverage corporate resources, on their terms.”
FlexPrint doesn’t follow the model exactly the way Johnson did at Global as FlexPrint requires 50% of revenues of the acquired company come from managed print services (MPS). That’s the value proposition that FlexPrint brings to the companies it acquires. If the acquired firms aren’t already offering MPS or don’t have a strong MPS business in place, FlexPrint has the expertise and the resources to help these companies grow this segment of the business.
Gaspari is an entrepreneur who loves business the way many enjoy a sport, either by playing or observing. He loves to win! That’s the only way we can describe it! After selling two businesses, he could have easily walked away and been quite comfortable, but he had an innate drive and desire to do it again.
That’s why he founded FlexPrint. Gaspari literally built the business from nothing””no clients and no employees. Unlike his earlier entrepreneurial endeavors, this time his vision was firmly focused on MPS. Like many MPS advocates, he saw it as an ideal means to combat the erosion of print volumes.
Gaspari is humble and takes great pride in the staff he has assembled. His team has helped grow FlexPrint into what he described as one of the largest independent national providers of MPS.
With visions of growing through acquisition, Gaspari partnered with the private-equity firm Oval Partners in 2015. In addition to serving as CEO of FlexPrint LLC, he now serves as CEO of Flex Technology Group, a network of dealers, many of whom service enterprise and major accounts, as well as local SMBs in an array of markets across the United States.”¯To date, Flex Technology Group has acquired 12 dealers and projects revenues of more than $300 million for 2019 through a combination of acquisitions and organic growth. (Editor’s note: For more on Gaspari and the Flex Technology Group acquisitions model, read “The Buying Game” in this month’s issue.)
“I saw an opportunity in the national marketplace to build out a $1 billion business driven by entrepreneurs that all owned equity in the company,” he stated about starting Flex Technology Group.
Today, Flex Technology Group has more than 1,000 employees from coast to coast. Organic growth for 2018 was 4.3% with a 2019 target of 7%.
This is an ambitious initiative fueled by Gaspari’s drive and knowledge of what he’s learned over the years as an entrepreneur.
“It is all about working together to create a better choice for enterprise clients than doing business with an OEM,” he explained. “I saw what worked at Global and what did not. I wanted a new challenge because I love this business.”
Gaspari’s track record as a successful entrepreneur is well documented. He simply knows how to build and grow a business, something he’s proven again and again. Today, we believe his goal of exceeding $300 million in revenues is very realistic. As we’ve seen with dealers who have made acquisitions in the past, it is easy to acquire, but difficult to maintain at the same level of revenue the acquired company was performing at and challenging to integrate.
Gaspari is successful because he projects the image of a good guy to work for. We met his staff and they seem to be enjoying what they are doing. Gaspari is quick to praise them for their contributions and in our opinion, that is one of the keys of being a great leader.
Consider this an old adage that is often cited in business and one that I am a believer in: “Great Leaders don’t set out to be a leader. They set out to make a difference. It is never about the role and always about the goal.”
I have always admired the entrepreneurial spirit of the independent dealer and while they rise to different levels of success, it is always about achieving the goal they have set to fulfill their ambitions that determines how good or great they are.
Gaspari’s track record suggests he is one of the great ones.
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