Oct 6, 2026 · 20 min
Connecting Excellence tests its acquisition model with James Gray
S12 Ep9: Midweek Takeaway with Scott Ellam, CEO of ConnecEng Excellence Group PLC #XCE
The transaction offers an early test of whether Connecting Excellence can combine recruitment growth with a Bitcoin treasury strategy and decentralized ownership.
- 1Connecting Excellence’s first recruitment acquisition adds James Gray’s businesses while preserving their brands and operational autonomy.
- 2The deal includes 8.216 Bitcoin and highlights how directors’ loans can shape value in owner-managed recruitment companies.
- 3Scott Ellam says the completed transaction is strengthening Connecting Excellence’s pipeline of potential acquisitions and inbound interest.
Don't miss
Scott Ellam says completing and demonstrating the first acquisition is generating inbound interest and strengthening Connecting Excellence’s pipeline of potential deals.
The brief
Scott Ellam joins Kevin Hornsby and Phil Carroll after Connecting Excellence completes its first recruitment acquisition, bringing James Gray Recruitment and James Gray Engineering into the group.
Ellam presents the deal as a test of Connecting Excellence’s model: James Gray keeps its brand, leadership and autonomy while the parent consolidates ownership and results.
The consideration included the market-value purchase of James Gray’s Bitcoin holdings and addressed directors’ loans, a structure Ellam says can unlock value in owner-managed businesses.
The conversation weighs recruitment economics, employee retention and combined earnings against Connecting Excellence’s Bitcoin treasury and market valuation.
The standout claim is that publicly completing the first transaction is already generating more inbound interest, helping build a pipeline of further recruitment acquisitions.
Ellam leaves the group’s strategy clear: scale a network of independently run recruitment businesses while using the first deal to validate the next ones.
What was said on this episode
13 statements · 12 positive · 1 neutral
Connecting Excellence expects a strong business run through late 2026 and 2027.
“we've just completed the first acquisition. So yeah, looking forward to a strong run into the back end of the year and into, into '27 now.”
Listen at 0:32
The UK has 1,000 profitable owner-managed specialist recruitment firms lacking 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
More acquisitions and Bitcoin holdings will increase Connecting Excellence’s attractiveness and robustness.
“the more acquisitions we make, the more attractive we become and the more Bitcoin we have on our balance sheet. 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 5:00
Connecting Excellence’s decentralized model enables faster acquisition activity.
“that enables us to do more acquisitions at a faster pace.”
Listen at 6:28
Connecting Excellence’s acquisition model increases Bitcoin per share for shareholders.
“It's the same model that increases Bitcoin per share for our shareholders.”
Listen at 8:02
Directors’ loans can indicate that a privately owned business generates substantial cash.
“it's a good sign that the business is producing that kind of cash.”
Listen at 9:14
XCE Group 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 10:46
XCE designed an acquisition model intended 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
A high-billing recruiter could earn roughly £20,000–£21,000 in equity options over five years.
“they're able to earn in comparison with that, say, £20,000, £21,000 worth of equity options over a free 5-year period.”
Listen at 12:08
Compounding acquisitions, hires, 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 from approximately 1.75 to 2.2.
“What we've managed to do is hold a 1. 7.5 to 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 Bitcoin growth, revenue growth, and management quality.
“I think that's a reflection on A, investors' belief that we can continue compounding and adding Bitcoin over time, and B, that the operational business can keep compounding and increasing revenue over time, and C, the the quality of the board and the team that we have in the business.”
Listen at 17:09
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.