Episode 10 marks the final episode of our three-part series on how businesses are formed in the government contracting market. In this episode, we delve into an intriguing path to success - the private equity buy and build, with Robert Miller, the Chief Executive Officer of SilverEdge Government Solutions (“SilverEdge”), a portfolio company of Godspeed Capital (“Godspeed”).

SilverEdge is a purpose build provider of cybersecurity, software, and intelligence solutions to U.S. federal government, defense, and intelligence customers. The company was formed through the vision of Godspeed and the management team, as well as the acquisitions of Varen Technologies, Exceptional Software Strategies, Savli Group, QVine, Counter Threat Solutions, and Gardetto Engineering. With a strong focus on innovation and efficiency, they have successfully served numerous government agencies, leaving a lasting impact on the industry.

In this episode, Robert shares how SilverEdge was founded, the strategic role of private equity in its growth, and the advantages it provided in a competitive market. We explore the intricacies of working with private equity investors, integrating six companies in one year, the opportunities and challenges presented, and how they contribute to the long-term vision and expansion of SilverEdge.

Tune in now to gain exclusive knowledge from Robert Miller, the CEO of SilverEdge, as we conclude our series on building a business in the government contracting market.

Hi, hello and welcome to another episode of Beyond Strategy, an ACG National Capital Region podcast focused on the leaders that drive innovation, enhance understanding, and achieve market-clearing outcomes in the National Capital Region. I am Andy McEnroe of Raymond James Defense and Government Investment Banking team.

I am Jenn Wappaus of the Infinity Group at RBC Wealth Management.

Episode 10 marks part three of our series focused on how businesses are built in the government contracting market. This episode takes a detailed look at the private equity buy and build strategy as we sit down with Robert Miller, CEO of SilverEdge Government Solutions, a portfolio company of Godspeed Capital. SilverEdge is purpose built as a provider of cybersecurity, software and intelligence solutions to US federal government, defense and intelligence customers.

Robert Miller serves as the CEO of SilverEdge and has over 20 years of national security and technology experience. Prior to joining SilverEdge, he was the Executive Vice President of Parsons Defense and Intelligence Business Unit, responsible for growth within the IC, DoD, and supporting agencies.

Working with management to establish and build SilverEdge is Godspeed Capital, a middle market private equity firm focused on investing in government services, solutions and technology firms. Godspeed is committed to a collaborative approach to building businesses over the long-term, that is guided by established principles including an open environment, a management and people focus, a proactive attitude, an altruistic and ethical culture, and a commitment to service and success.

In this conversation, you will hear Robert's views on what leadership qualities are required to be successful at Speed in a buy and build strategy. We'll also hear how important culture is into ensuring a successful growing company under a new common brand.

Now, here's our discussion with Robert Miller.

We are excited to be joined today on Beyond Strategy by Robert Miller, CEO of SilverEdge Government Solutions. Thank you for being here.

Thank you for having me.

Today's episode focuses on how private equity firms are creating differentiated businesses in the government contracting market through buy and build strategies. Robert, I can think of no better CEO to talk to about this topic. Just given how active you and SilverEdge have been over the past several months, what challenges does a buy and build strategy pose that organically growing a business may not?

Thanks Andy for the question. I'd start off by saying, I think integration and cultural alignment would be one of the first challenges. When you acquire multiple businesses and build those into a larger enterprise, really integrating diverse cultures, people, processes, systems becomes a significant challenge. Each acquired company has its own way of doing things, and then you have to collectively provide that single vision operating model and it can be complex. I would offer careful planning, effective communication, and really strong leadership across the entire platform is required to kind of harmonize those disparate elements.

I would say that financial complexity is another one. When you acquire multiple businesses, it does involve complex financial transactions, you're structuring deals, you're basically managing and accounting and running the finance of each organization as a standalone and the overall enterprise, managing debt, managing cash. Significant importance when you're running six, seven businesses under one enterprise umbrella. I'd also see talent and a cultural dilution when you think about it. Just the process of an acquisition and integration can be unnerving to employees. Not knowing the unrest and the resistance that may come, but retaining that key talent and, I would say, maintaining the entrepreneurial spirit of the acquired companies.

Understanding the culture and the micro cultures is super important to make sure you don't have that cultural dilution. Because you did buy a business or an asset because they were successful in some, right? You don't want to dilute that. I would say among those, those would be the biggest challenges.

Lucky for SilverEdge and for Godspeed in backing SilverEdge, you've written the book on leadership. I have also been able to leverage your past experience, having been a leader at Parsons and KeyW and at several other smaller companies prior to the endeavor with SilverEdge. As an executive or a leader in this type of situation, the buy and build strategy situation, what qualities are required to be successful versus operating within an entrepreneurial or large company environment?

Great question. I think strong leadership and change management would come to mind when you think about the buy and build strategy. It does require executives to have an ability to manage and inspire diverse teams from diverse company backgrounds. Secondarily, I would say really having the ability to create a strategic vision and execution. You can work at large business, a small business, but really the buy and build strategy and leadership that's required, you have to have that strategic vision and be able to execute upon it because you are at the forefront leading that enterprise. In some cases in a big business, you may just be a little fish in big pond, if that makes sense.

I would say financial discipline and acumen, having a really solid understanding of the financial complexities deal structures, valuations, the ability to really make financial sound decisions really comes to mind. I'd say relationship building and stakeholder management, when you think about building strong relationships with internal and external stakeholders that include investors or employees or customers or even partners for that matter, is really to essential in the buy and build strategy. You got to be able to proactively, engage with those stakeholders, answer any concerns and more importantly, I think, establish really a collaborative partnership to foster a unified and successful ecosystem.

Then lastly, I would say, adaptability or maybe flexibility. It really involves navigating a dynamic and ever-changing environment. You have to have the ability to adapt, be flexible, having really an unwavering resilience in the face of uncertain and unexpected challenges that may shift internally or more importantly, externally just due to market dynamics.

Robert, once you came on board with Godspeed and SilverEdge, how did you go about building out your management team?

Great question Jenn. I think first and foremost, it started with understanding and clarifying what the organization needed. I assessed the strategic objectives that I was trying to answer with bringing in a leadership team. Identified key areas and really more importantly, I think the specific roles and responsibilities within the management team that I needed. I did an internal assessment first. I evaluated the talent within the legacy organizations, exceptional software strategies, and the savory group, making sure that I understand the management, their performance, their skills, and then potential for growth.

But then looking externally, to complement that internal talent, leverage my internal portfolio. Bringing on a chief administration officer, Emily Ringer. I call her my number one draft pick. She manages everything from HR, communication, and talent acquisition. Second was Mr. Jeremy Ross. All things business development capture, proposal management, proposal operations. Then I would say our Chief Financial Officer, Mr. Steve Dolsky. All thing accounting, finance, and contracts. As mentioned previously, managing one company, now six, you're really running an enterprise plus six accounting and finance teams as a collective.

Then internally, we have our Chief Technology Officer, which was a self-promote, Mr. Fishal Desai, who runs basically all things innovation, our IT department, and our hyper automation from a business process perspective. Then I had the opportunity to bring in some P&L leaders that are just industry leaders at large to run our disparate businesses in Virginia or Maryland.

I think first and foremost though, and the thing that fits all those people was the cultural fit. Making an assessment that one, I wanted them to be humble servants of the people because at the end, our employees are a brand. I wanted to make sure that the leaders that were leading our people were humble servants of the people. I think that was super important. Then I think most important to me is really being able to create a high performing team. I think that came with collaboration. We could have picked A-players, but being able to have a players collectively work as a high performing team, I think, is sometimes a challenge. I wanted to make sure that that collaboration piece was going to hit home and that we created a high performing team.

Let's dig into SilverEdge a little bit more. First, is there any significance behind the name and then what is SilverEdge striving to bring to the market?

I would say yes. Silver is associated with strength and reliability. It represents precious metal, which I'm assuming you're aware of. It delivers on high quality services and building more of like a long-term client partnership was the intent behind it, reliability and something that was trusted. The Edge piece was more of us wanting to stay at the forefront of innovation, pushing the boundaries and staying on the cutting edge of delivering solutions to our customers. But overall, the name SilverEdge captures the essence of the company's mission. Strength and reliability of silver and forward-thinking mindset, staying on the leading edge, SilverEdge.

I love it. As part of the episode, we like to focus on leadership and culture in an evolving organization, which you guys obviously are. Robert, you've assembled and merged six organizations. What do you focus on as a leader and how has the culture of the organization changed?

Yeah, great question. I'd say I focus on several key aspects to ensure really smooth integration and drive positive cultural transformation. First and foremost, I'd say communication. Open and transparent communication is really vital during periods of organizational change. Really prioritizing communication is the rationale behind creating that vision for an integrated organization.

I'm big on alignment. Bringing multiple organizations together requires aligning people and processes and goals. We've had tiger teams all along that are really the essence of keeping that alignment in align. Creating a shared sense of purpose and establishing those common objectives that I would say transcends any one specific individual and more importantly, the overall group. When you acquire six businesses, or even one for that matter, empowering your leadership, I think, is super important. Every level of the organization, every person in the organization has value in some form or fashion.

I encourage employees to contribute their ideas and their expertise no matter what task we're talking about. I think by valuing their input and involving them in decision making, it creates a sense of ownership and engagement and more importantly, a commitment to the combined organization.

Then I would say, lastly, probably fostering a shared environment. I work closely with key stakeholders to define the future state of the organization. I try to articulate the compelling vision that inspires and motivates. But this vision really serves as a guiding light that I would say helps individuals from all backgrounds and cultures come around that common set of values and goals for SilverEdge.

Let's talk about the M&A acquisitions. What did each bring to the SilverEdge portfolio?

Okay, this is like when you meet somebody and you have to remember all the names.

You love all your children, Robert, you're each a child of SilverEdge.

Equally the same. I'll start with the first three Varen [inaudible 00:12:58]. Varen asses fundamentally, different businesses, but had significant overlap because of the customer that they served. Varen was more of a cybersecurity software development engineering play. Exceptional software strategies, had a cyber piece, but also had geographic, GIS information systems background that was very attractive. The Savory Group was a provider of information technologies and services and solutions to the intelligence community, heavily driven by ServiceNow and implementation integration expertise, they were also a elite ServiceNow partner.

In October of last year, we acquired Cubine and Counter Threat Solutions within two weeks of each other. Really Cubine has a broad array of capabilities, most on the software development front, DevSecOps, solutions architects. But I think most importantly had a SaaS offering, which they call Soar. It's a development platform with a focus on AI, ML, data visualization, and open source collection, analysis, and cross domain solutions.

Counter Threat Solutions was more of your mission savvy subject matter experts with a focus on analytics. Then our last acquisition was Gardetto Engineering, which specialized in digital design, hardware design, and hardcore systems engineering.

M&A is often described as building an airplane while you're flying an airplane. When you think through the strategy of how you went about acquiring those companies and what they brought to the portfolio, were you guided by a thesis? How did you balance the need to acquire at speed to build up a substantial scaled company and maximize the opportunity for your team to be able to assess what they had and create any revenue or cost synergies that may be available through the combination?

Yeah, great question. The original thesis of SilverEdge, which is still our thesis today, was create a mid market disruptor that's delivering cyber software and intelligence solutions to the intelligence community and DoD at large. With that, I would say, answering the second part of your question, I would focus on timing. Every acquisition had its unique requirement and benefit to the overall SilverEdge platform. One could have been the initial three in establishing the base platform of the company.

I would say the last two or more technology bolt-ons, placement and access played a big role into Cubine Counter Threat Solutions from an intelligence community play. But I think when you looked at it as a collective, it really comes down to being able to make one plus one equal three and having it be immediately accretive to the platform. There's a certain level of integration that you can do on any one acquisition, albeit now six. There's a timing element to making sure that you're able to stretch the organization to a certain point, but not max it out, if that makes sense.

Excellent. The SilverEdge website focuses on certain key principles required to be successful. What are they and how do you apply the SilverEdge principles to day-to-day operations?

Yeah. We had the unique opportunity to rebrand the first three companies into what is now known as SilverEdge, and one of those opportunities was creating the core values of the company. One of those things that I mentioned previously about empowering is I went around and listened to most everyone that would speak to me about the cultural importances to them. I think most importantly, bringing the experience that I've had along with our leadership team and what they've had in wanting to form the company that we all wanted to be a part of.

What you see is really the core values that we set out and really being authentic, collaborative, diverse, innovative, having integrity and being resilient as the things that kind of elevated. We could have gone on for pages with keywords that it would have been our core values, but these are what we really try to focus on. The first one, being authentic. It's pretty self-explanatory. We wanted to create a company that, open door… It was like you were talking to your neighbor, just having an authentic work environment, really having the ability to have social engagement and internal mobility, creating opportunities for people. More importantly, I think having an enduring career sounded the horn for being authentic.

I'm one from a growth background, being collaborative. We found that being able to nurture talent and collaborate closely with our customers and internally allowed us to really think big and deliver for what's best for our country. Diversity of thought. Because in the end, together we all have unique viewpoints and we can tackle unique challenges when we have a diverse feedback and environment for our team where they feel comfortable sharing their thoughts while truly being authentic.

Being innovative, staying on the edge. As I mentioned, we want to bring top technology talent together to solve our nation's most challenging problems. The way that we do that is by being innovative. Integrity. If I had to label these as one through N, integrity would probably be the first and foremost because it matters. It's not what you do when someone's around, it's what you do when someone's not around. Really wanted to make sure that we had a team that was trustworthy and reliable, that we encourage open and honest communication, take responsibility for our actions, the good ones and the bad ones.If we prioritize integrity, we create resilient teams and lasting growth.

Then with that, I would say lastly is being resilient. I would say we have an unwavering resiliency and I think at the end, if we focus on transformative growth and scalability and sustainability that's repeatable, we can face anything that's going to hit us in the market space as long as we are resilient and have an unwavering resilience.

I think I already know the answer to this question because you've talked about the people and the A-players that you've brought to bear and you just highlighted some key characteristic qualities that clearly are differentiating your people and the processes by which you go about it. But what are the key differences for SilverEdge that allow it to continue to be successful for your customers?

Yeah, it's a great question. I would say first and foremost, I think the buy and build strategy is a differentiator. By acquiring these businesses and integrating them into kind of a complementary company, we can leverage those strengths really in a more comprehensive and differentiated way and I think we can do it faster than most. I would say the buy and build strategy with the essence of speed is a differentiator for us really from a service and a solutions portfolio.

When you look inherently at the company today, I would say there's two or three things that I think uniquely set us apart. One is soar which is our software as a service offering. Collectively, I would say that's both a technical and contractual innovation and I would love to get more in depth but I would tell you that has been at the forefront of our innovation with the acquisition of Cubine. I would also say number two would be our defensive cyber support. Key differentiator in the marketplace from a operational perspective in the customers that we're supporting and what we're doing. I would say on a nation state level. Then lastly, I would say hyper automation heavily driven by a system of engagement with ServiceNow.

Among those three, I would say the list goes on but those would be the service portfolio differentiators. We have a customer-centric approach. It's not any different than most companies, but we really emphasize understanding and meeting the unique needs of our customers to develop agnostic tailored solutions and really maintain that approach so we can foster trust and loyalty and customer satisfaction long-term.

Then lastly, I would say agility and innovation. Really when it comes down to us embracing the agility piece, what we can do within a small business, I think, sets us apart from how big businesses operate. I've had the opportunity to work for two small businesses, one mid-market publicly traded, one large private company, one large publicly traded company. I would say being radically agile in this market space is a differentiator in your ability to scale an organization and scale it fast because you're not weighted down by long-term bureaucracy, politics and other things that just slow businesses down inherently.

We spent a lot of time today talking about what differentiates SilverEdge and some of the positive attributes of the buy and build strategy as this is part three of a three-part series focused on the formation of businesses in the government contracting market. But are there any buyer-beware? What I mean by that is any red flags that would say that the buy and build strategy is not for an executive or is not for a company here based on your experiences to date?

I think there's inherent qualities that leaders have. Are you talking specifically from a personnel perspective?

From a personnel perspective or if you're an entrepreneur and you're thinking about trying to embark on this either by finding a sponsor to back you or by doing it yourself by leveraging the balance sheet. Does it require a certain personality as an executive to be successful here? Does it require certain characteristics as a company to be successful here?

I think there is inherently lessons that were learned, at least in the year and a half that I've been at SilverEdge. When you look at the market space, sure, you could take an entrepreneur that has a standalone business and they want to scale and do a buy and build and leveraging the balance sheet, leveraging financing, debt, et cetera, they can go and make immediately one plus one equals three. There's impacts in the market whether they're company valuations that are being driven up, interest rates. Just in general, being able to build a leverage buyout model and being able to operate it from a financial architecture.

I think collectively, when you looked at all the pieces that go into a buy and build strategy, there's not a one-size-fits-all, there's not a book to read. I think collectively, at least with Godspeed, you have unique individuals that have a variety of different backgrounds that I think collectively lend itself to having a successful team that can move forward more in a high performing team kind of manner, similar to what SilverEdge is. But more importantly, I think on the private equity side, I wouldn't say there's buyer-bewares, just understand what you're getting into.

But there's a lot of companies out there, there's a lot of innovation, there's a lot of enterprise value to be created. Just make sure you understand what you're getting yourself into.

You should write the book on it after this. What's next for SilverEdge?

I think 2024 is going to be a huge year. We're going to continue our inorganic growth strategy for 2023. Hope to see another one to two acquisitions that get bolted on in 2H of this year. We'll continue our organic growth strategy, which we've implemented for about a year and a half now, and really kind of just push the edge on pursuing organic, single award, revenue-generating contracts that are going to transform the collective SilverEdge. Being able to make one plus one equals three is hard work and we are heads down on the grindstone right now.

We're embracing digital transformation internally at SilverEdge. We've invested our own time and energy in deploying ServiceNow within our own company to transform how we do business. With our SaaS model, we've enhanced our customer engagement and partnerships strategy with that. Then I think a focus on talent moving forward, talent development, and I would say talent retention are going to be key focus areas for SilverEdge moving forward.

That's a lot. I love it. You guys certainly have a lot on your plate with that. Best of luck. As we progress to the end of the interview and our time together, we like to pivot towards life lessons that could be additive to the audience. What's one lesson your career has taught you that you think everyone should learn at some point?

That's a deep one. It's essential to recognize that… I would say learning is a lifelong journey. The more you learn, the less you know. I think of being adaptable and really staying relevant is a key critical piece to thrive in your career. I would say being humble is one of those things that allows us to acknowledge our limitations. More importantly, I think learn from others and foster meaningful connections based on a mutual respect and understanding.

For me, growth and development, having really a growth mindset and embracing challenges and seeking new experiences is at the forefront. I can learn from anybody, so I embrace feedback. Stay curious, and really embrace change.

Love it. A lot of the words that you've used throughout the podcast today [inaudible 00:26:48]. We end all of our interviews with what we think is the most imperative question that we ask. What is the most important thing that we should know about Robert Miller?

The most important thing you should know about Robert Miller is my family is the most important thing to me. I'm just a humble guy from Georgia that loves my wife and kids and I'm living the American dream.

Certainly appreciate your time today. Robert Miller, CEO of SilverEdge, a Godspeed Capital-backed portfolio company. Congratulations on all the success you've had to date and best of luck, as Jenn said earlier, on the continued success here moving forward.

Thank you, Andy and Jenn. Truly appreciate the opportunity to be on the podcast. See you out on the road. Thank you.

Well, special thanks to Robert Miller, CEO of SilverEdge Government Solutions, for joining us on this episode of Beyond Strategy. I really liked his insight, Jenn, into what's required to build under this construct of buy and build. It's not the easiest thing to do. It's certainly not for everyone. But really what he's doing and the team he's brought in is differentiating the company in the marketplace.

Yeah, he said it was a people game and you can tell by the team that he built out.

Yeah, you can't lose the people game.

Can't lose the people game. Then communication all the way down on why making changes and what they're trying to do in the organization. It was great. Great interview.

Well, special thanks to you, the listener, as always, for joining us on this edition of Beyond Strategy and ACG National Capital Region Podcast. If you enjoyed this podcast, we'd encourage you to subscribe wherever you get your podcasts from. For Jenn Wappaus, I am Andy McEnroe. We'll catch you on the flip side.