Proof in Action

Habberstad and OWL — The Beginning: Assessment, Fractional CFO Services, and Mergers & Acquisition Project Management

Like most OWL clients, the Habberstad team was referred to us through our mutual contacts. When Erik and Andrew Habberstad reached out, they were looking for some assistance with their accounting processes. As their business grew, they needed direction to ensure that their operational and accounting processes were clearly defined, accurate, secure, and compliant. OWL Partner, Tom Olney, and Senior Accounting Project Manager, David Guilbeault, worked with Habberstad to complete an Accounting and Operations Assessment. They reviewed Habberstad’s accounting department's capabilities, systems, and processes. The OWL team looked for gaps between existing procedures and the best practices in the automotive industry. Additionally, OWL examined their current operational workflows looking where steps could be taken to mitigate risks and prevent fraud. Here are some of the pain points that were identified during the assessment:

• Inefficiencies and lack of standard processes between the dealership locations were overwhelming the accounting department.
• Managing multiple locations with processes that were not clearly defined left them struggling to get the accounting month closed and financial statements submitted on time.
• Habberstad’s desire to expand the company meant they needed an experienced financial leader who could manage the accounting team’s current workload, provide guidance and expertise, and serve as an advisor to clarify and support this growth vision.

With an established relationship, Habberstad signed on with OWL to manage the acquisition of a local powersports store, which would become Habberstad Powersports. As is often the case with smaller dealer groups, acquisitions don’t happen all that often. They benefitted from OWL’s experience in completing over 35 transactions and Tom’s expertise in the intricacies of buy/sell transactions in the dealership world. OWL has a well-developed process from pre-APA due diligence through opening entries, real estate transactions to post-divestiture runoff. Tom and David referred the Habberstad team to Walt Czarnecki Jr., an experienced automotive M&A attorney who played a crucial role in closing the deal. OWL’s team coached Andrew when any issues and questions arose, and the deal was closed successfully. This marked Andrew’s first addition to the Habberstad holdings.
 

Habberstad and OWL — The Next Phase: Negotiation for New DMS and Making the MSP Move

Part of building strong and enduring partnerships comes from actively listening to a client’s needs. During ongoing work around previous engagements, the Habberstad team made David aware they wanted to explore alternatives to their existing DMS provider. With knowledge that their contract would be up in less than a year, OWL was contracted to undertake negotiations with the current and prospective vendors. Part of that process relied on existing knowledge of structure and setups, as well as conducting in-depth exploratory calls to assess the DMS as well as third-party integrations to aid not only in securing a financially sound deal but also ensuring that the store’s needs were met. The analysis includes an apples-to-apples illustration, and also maintaining mindfulness of the intangible costs associated with transitioning the single most important piece of software within an operation.

OWL maintains strong relationships with a variety of vendors, including one of the prospects Habberstad was evaluating. We arranged demos multiple times throughout the process and offers insights based on our experience to ensure every stone was overturned. In this case, Tekion emerged as a front-runner and competitive bids were obtained for software, training, and additional services that mitigated hidden costs and unexpected expenses.

Part of the early negotiation discussions with the Habberstad team allowed us to preview our DMS Project Management offerings as part of our Professional Services. During that negotiation process, David also gained insight that they may be exploring a change in IT provider and immediately connected them with our knowledgeable team of Project Managers. Once Tekion was chosen by the client, they then contracted OWL to oversee the DMS conversion.

These findings, and the now established partnership between Habberstad and OWL, led to OWL being engaged to negotiate a contract with DMS vendor, Tekion. OWL has strong relationships with a variety of vendors and was able to work with Tekion to arrange demos and ensure that the DMS would meet Habberstad’s needs. OWL obtained a competitive bid for the software, training, and additional services provided by Tekion; reducing hidden costs and unexpected expenses. Once the decision to move to Tekion was made, OWL Professional Services was contracted to complete the project management of the DMS conversion to Tekion.

OWL’s IT Team performed an assessment and because the process of converting the client to OWL’s MSP platform. Over the course of a weekend, outside of the operating hours of each department, network gear, PCs, printers, and third party equipment was replaced or cutover. The Client Success Team then worked closely during the next few weeks to ensure the transition remained smooth.

Habberstad and OWL — Continuing Together: DMS Conversion and Construction Support

OWL’s Professional Services team conducted in-depth discovery which significantly assisted Tekion in completing setups to meet the client’s needs. Project Managers worked closely for many months, liaising between all of Habberstad’s department heads, executive leadership, and the Tekion team members assigned to the project to ensure everything remained on track. Training and setups were completed, and OWL provided on-site support for go-live to ensure any issues were met with quick resolutions, embracing the role of being an extension of Habberstad’s team.

OWL continues to work with Habberstad on a construction project at Bay Shore, and providing IT support as employees and equipment are temporarily relocated for renovation. It is a top priority for us to mitigate any interruption to business to maintain their high level of customer service.

Collaboration with OWL on special projects has allowed Habberstad to focus on daily operations and customer service and still achieve:

• Growth through strategic planning and openness to change.
• Increased efficiency and productivity through access to industry experts for guidance and specific skills.
• Preparation for future growth with minimal downtime and without sacrificing daily operations.

Partnering with OWL has been a game-changer for the Habberstad Auto Group. Their expertise in accounting, IT, and operational efficiency allowed us to streamline our processes, execute a seamless DMS transition, and successfully acquire Habberstad Powersports. Their hands-on support and deep industry knowledge have been invaluable in positioning us for future growth. OWL has truly become an extension of our team, ensuring we stay ahead in an evolving automotive landscape. 

- Andrew Habberstad, Vice President/Owner, Habberstad BMW