Navigating Success – Denis Brosnan

Thought-Leadership Insight with Denis Brosnan

We caught up with Denis Brosnan, the current Portfolio CEO to many business units in the CORA Group. Denis has had years of experience operating software companies and has even been on both sides of an acquisition deal. In this interview he shares with us his leadership insights on vertical market software, M&A expertise, and more.

Background & Career

What Was Your Career Background Prior to Joining Jonas?

I began my career as a lawyer, though I never really wanted to be one. A business school professor encouraged me to go to law school, but no one hires fresh graduates to be CEOs, so I had to work my way up. After several years, I joined a software company that was later sold to a public firm. That led me into consulting, helping software companies grow and sell. Eventually, I became an operator – I was President or CEO of three different private equity-backed businesses. One was an acquisition target for CORA. While they passed at the time, I met Matt Otchet (CORA’s CEO) a few years later, and now I’m here. I love the balance of my role, half operations, half M&A and asset management.

Do You Believe There Were Any Experiences You Gained Through Working with Jonas That Allowed For A Successful Career Transition Into The Roles You Have Here?

CORA’s decentralized model is the foundation of my success. Returning to operations wasn’t difficult – I brought in dashboards, processes, and disciplines. Once those were in place, building the right team was key. CORA’s decentralized, entrepreneurial culture empowers operators to make decisions. Leadership support makes a big difference.

What About Jonas Kept You Engaged In The Work Here And Willing To Continue Your Career With The Company?

That’s an easy one – it’s the people. What we have within Constellation is unique. We have an infinite time horizon and a culture of succession and growth; we talk about replacing ourselves with new people often. I get to promote talent and watch them develop. The leadership support at CORA and Jonas is incredibly valuable.

Industry Leadership Insights

In Your Opinion, What Makes Jonas a Great Home for Vertical Market Software (VMS) Companies?

Our “buy and hold forever” philosophy is what makes us a great home. Founders and corporate carve-outs value continuity for employees and clients. It’s important to them that their people and clients are taken care of.

We’re also strong operators. Many founders have taken their business from A to C, but can’t get their business to the next level or don’t want the personal risk – they remember what it’s like eating ramen noodles and don’t want to go back to those days again. That’s where we come in, we bring the tools and expertise to help.

We’re also forward-thinking, investing in AI and innovation where others can’t. We’re one of the largest software acquirers in the world – we really understand the business and where it’s going. This makes us an increasingly attractive landing spot for software businesses.

How Do You Personally Stay Ahead of Industry Changes and Disruptions?

It’s tough. Trade shows are my best source of information. Meeting people face-to-face, spending time with them, that’s how you hear what’s really happening. You must take what you read online with a grain of salt.

After events, we debrief on what we saw and heard and how that impacts our growth initiatives. We figure out the adjustments to the plan and move forward. We don’t overanalyze; we act.

What Are the Most Important Leadership Qualities Needed to Succeed in VMS Today?

I think the most important thing leaders can do is listen, ask questions, and then work the problems. The great thing about Constellation is that we’ve identified the commonality of problems these companies face. While every situation is unique and requires some nuance and thought and subtlety – through our playbook of best practices we realize that the issues are kind of the same.

I was recently coaching one of the executives about the importance of getting down to the level of the problem with people that are working it and encouraging them to be transparent, vulnerable, and take some risks. I coach them to say what they think should be done, debate it through and then see what happens. We value flexibility, speed and entrepreneurship, so to be a manager in this business, you need to put your boots on and get dirty with everyone else.

M&A Strategy

How Does Jonas Set Up Our Acquired Companies for Success?

While every acquisition is different, our approach is consistent. Being acquired is an extraordinarily disruptive event, naturally employees and customers are concerned as there are many changes going on. The first thing we do is meet employees and customers early, face-to-face, to build trust and answer questions. We really try to establish personal contact because software businesses are all about the people. We don’t sit and hide behind e-mail.

Communication in the first 30, 60, 90 days is crucial. We introduce our frameworks and explain their purpose. Then we reinforce through regular meetings and annual events like CORA University. Over time, alignment happens, and the business moves forward.

What Do You See as the Most Critical Factor for a Successful M&A Transaction in the Software Space?

Understanding the customer base, how strong the relationships are, where there’s growth potential or risk. It’s more art than science, and we spend a lot of time debating it.

What’s an Example of a Past Acquisition that Delivered Unexpected Value or Lessons?

Web Recon has succeeded my wildest expectations. It was simple, well-run, and had a great team. Because I understood the business from my legal background, I knew how to support them. My job was easy, which was to encourage them to continue to be what they wanted to be and grow from there. Various team members have grown within the business and now are doing what they love.

What Advice Do You Have For A Business Owner Thinking of Selling Their Business?

Take your time, be very deliberate and considerate of the opportunities. Don’t be afraid to ask questions. You’re not expected to be an expert, it should feel unfamiliar. We’re patient, transparent, and consistent in our communication. If our model isn’t the right fit, that’s okay. We’re looking for long-term alignment, like we had with Jack Gordon at Web Recon. It’s a process and a relationship of trust and it takes a while – but it’s an investment we’re willing to make.

What’s A Key Lesson You’ve Learned From Scaling A Software Company That You Wish You Would Have Known Earlier?

Be open to different approaches. Don’t delay tough cost-cutting decisions – they’re often necessary early on. Scaling at the expense of profitability is risky. Entrepreneurs that do well are the ones that stick to their knitting. Owners that struggle are the ones that scaled too deep and wide and too fast.

Future Outlook

What Makes You Excited About The Future Of Jonas?

As we continue to grow, we continue to grow. It’s a genius business model. It’s not easy to manage, I appreciate the leadership and what they put into it and understand the challenges.  The fundamental aspect of reinvesting capital to buy and run businesses that generate more capital, is so clever. Those of us in the system have the job of maintaining it and preparing it for the next generation too.

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