Oct 6, 2026 · 20 min
Connecting Excellence tests a decentralized acquisition model
S12 Ep9: Midweek Takeaway with Scott Ellam, CEO of Connecting Excellence Group PLC #XCE
The acquisition shows how a listed recruitment group plans to combine local autonomy with centralized ownership, Bitcoin holdings, and further expansion.
- 1Connecting Excellence completed its first recruitment acquisition while preserving James Gray’s local identity and leadership.
- 2The deal included market-value payment for 8.216 Bitcoin, alongside additional equity-related consideration and director-loan arrangements.
- 3Scott Allan outlined a pipeline of profitable owner-managed recruitment firms and incentives designed to retain high-performing staff.
Don't miss
Scott Allan explains how James Gray can retain its local identity while operating within Connecting Excellence’s listed group structure.
The brief
Scott Allan joins Kevin Hornsby and Phil Carroll after Connecting Excellence completes its first recruitment acquisition, James Gray Recruitment and James Gray Engineering.
The deal is presented as a test of Connecting Excellence’s decentralized model: James Gray keeps its identity, leadership, and local operations while gaining group ownership.
Scott explains the consideration, including market-value payment for 8.216 Bitcoin and additional equity-related terms, while discussing how director loans can affect owner-managed businesses.
The conversation turns to earnings, recruiter compensation, commission timing, and equity-linked incentives intended to retain high-performing staff after joining a listed company.
Scott closes by describing growing inbound interest and a pipeline of further recruitment acquisitions, positioning the first deal as a starting point rather than an endpoint.
What was said on this episode
17 statements · 14 positive · 3 neutral
Connecting Excellence expects a strong performance through late 2026 and into 2027.
“looking forward to a strong run into the back end of the year and into 27 now.”
Listen at 0:34
About 1,000 UK owner-managed recruitment firms are profitable, cash-generating, and lack exit strategies.
“there's 1,000 UK based. owner managed, executive and specialist recruitment firms that are profitable, cash generating with no exit strategy.”
Listen at 1:33
Connecting Excellence addresses a major market gap as a listed Bitcoin-backed acquirer.
“there's a massive gap in the market for XCE as a listed entity with a Bitcoin balance sheet”
Listen at 3:26
Additional acquisitions and Bitcoin holdings make Connecting Excellence more attractive to targets and hires.
“The more robust we are as a company and the more attractive we become as well to the next acquisition or the next revenue generating hire.”
Listen at 5:06
James Gray will retain its identity within Connecting Excellence.
“James Gray stays James Gray.”
Listen at 5:53
Reporting subsidiary results to the listed group enables faster acquisitions.
“they report their results up to the listed group. So that enables us to do more acquisitions at a faster pace.”
Listen at 6:23
Connecting Excellence paid market value for James Gray’s 8.216 Bitcoin.
“we paid market value for the Bitcoin, 8.216 Bitcoin.”
Listen at 7:50
The James Gray acquisition produced a £150,000 net cash outflow.
“there's a remaining £150,000 net cash outflow with the transaction.”
Listen at 8:29
Director loans indicate that the privately owned business is generating substantial cash.
“It's a good sign that the business is producing that kind of cash.”
Listen at 9:14
Connecting Excellence expects to retain 75–85% of James Gray’s EBITDA.
“XCE group expects to retain 75 to 85% of EBITDA based on the terms and agreement that we have in place.”
Listen at 10:45
Connecting Excellence’s acquisition model is designed to protect the group against downside.
“what we wanted to design was a replicable copy and paste acquisition model that protects the group to the downside”
Listen at 11:04
Compounding acquisitions, hiring, and incentives benefits shareholders over the medium to long term.
“the more we can compound the acquisitions and the hires into the business, and the more we can incentivize the performance, the better it is for shareholders over the medium to long term as well.”
Listen at 15:21
Connecting Excellence has maintained an MNAV multiple currently around 2.2.
“What we've managed to do is hold a 1.752, currently about 2.2 on our MNAV.”
Listen at 16:54
Connecting Excellence has averaged a valuation roughly twice its Bitcoin holdings.
“We've been on average, I would say Kevin, probably worth twice as much as the Bitcoin that we hold throughout the year.”
Listen at 17:03
Connecting Excellence’s premium reflects investor belief in continued Bitcoin accumulation and compounding.
“I think that's a reflection on a investor's belief that we can continue compounding and adding Bitcoin over time.”
Listen at 17:09
Recruitment businesses will compete for Connecting Excellence capital within one to two years.
“at some point over the next one to two years, you're going to start seeing these businesses compete for our capital.”
Listen at 18:41
Competition among acquisition targets will strengthen returns on capital and compound shareholder results.
“that makes the return on capital stronger and stronger and stronger and keep compounding the results for shareholders.”
Listen at 18:50
Statements are attributed to the speaker as said on the episode and reflect their view at the time, not PodLume's. They are not advice.
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