Nominee Name/Nominee Company NameOutstanding Tech CEO Award: Marc Shiffman, SMS Assist
Finalist for the:Outstanding Tech CEO
About the Nominee: Marc Shiffman serves as the President and Chief Executive Officer at SMS Assist, in addition to serving on the board of directors. With over a decade of experience leading SMS Assist, most recently as president and chief financial officer, Marc has been a driving force behind the company’s rapid revenue and profitability growth, and he has overseen the development of technologically driven, market-leading solutions in the facilities management industry. SMS Assist is redefining the way service providers and property owners work together by delivering unprecedented transparency and control within the facilities maintenance industry. Retail stores, banks, restaurants, rental homes, and more make up the 200,000+ properties that rely every day on SMS Assist’s technology platform, in-house subject matter experts, and 24/7 support. SMS Assist leverages its network of 20,000 skilled providers across more than 55 trades to deliver an exceptional maintenance experience to the communities where we live and work. During Marc’s tenure, SMS Assist has grown to more than 1000 employees. In June 2016, SMS Assist raised $150 million at a $1 billion valuation from Goldman Sachs Investment Partners, the same team that invested in Uber, Facebook, Pinterest, and Spotify. Before joining SMS Assist, Marc provided strategic, financial, and operating support to entrepreneurs leading early-stage startups as they transitioned to hypergrowth mode. Prior to that, Marc worked as a senior executive in corporate finance and general management at MacAndrews & Forbes-owned-and-operated companies including Revlon, The Coleman Company, and Sunbeam Household Products. Marc earned his bachelor’s degree in economics from the Wharton School of the University of Pennsylvania and his MBA from The University of Chicago Booth School of Business. Marc currently serves on the Chicago Innovation Board of Advisors, and in July 2019, Marc was named to the Crain’s Chicago Business Tech 50 list.
Why they should win: Marc Shiffman has made an outsized impact from his earliest days as SMS Assist’s 25th employee to becoming CEO in April 2019, bolstering the company with level-headed leadership and bold vision during periods of rapid growth, steady progress, and unexpected change. A hard-charging, consensus-building, forward-thinking executive unrelentingly committed to his team, Shiffman exemplifies the best of Chicago’s technology community.
Keeping the lights on is critical for any business. SMS Assist understands the concept. The facilities maintenance firm is dedicated to squeezing out efficiencies and costs for a wide range of industries, including retail, financial services, food services, property management and healthcare.
The Chicago-based company, with 750 employees, services more than 200,000 properties across the US, handling everything from landscaping and reactive maintenance to floor care and preventative maintenance. Through a combination of state-of-the-art technology and human know-how — including in-house subject matter experts that span 55 trades — SMS Assist delivers high quality maintenance experience, including 24/7 support.
SMS Assist is among a select group of businesses that have established themselves as unicorns — defined as privately owned, VC-backed companies valued at $1 billion or more. In June 2016, SMS Assist raised $150 million with a $1 billion valuation. In January 2023, the company was acquired by Lessen.
Alan Jones, National TMT Deals Leader and San Francisco Office Managing Partner at PwC, recently sat down with Marc Shiffman, former President & CEO, as part of our series with industry-leading unicorns. They discussed how SMS Assist has emerged as one of the industry leaders and how it maintains a strong focus on customer excellence and business success.
Marc Shiffman, former President & CEO, SMS Assist
PwC: What is your model for business success and financial results?
Shiffman: We have been profitable since Day 1. We focus on the customer and giving them exactly what they want. We believe that by creating value we help elevate our business. People are always willing to pay for value. Since the company was founded about 20 years ago, we have worked hard to instill this philosophy in our workforce. The concept revolves around the idea that if we take a customer-centric view, we adapt our services and structure to fit the marketplace — and profitability follows.
PwC: What impact did the pandemic have on SMS Assist and how did you navigate it?
Shiffman: Prior to the pandemic, we had to deal with a couple of other very difficult events: a polar vortex event that hit -17 degrees Fahrenheit for four days and social unrest in Chicago. During those events, we had to shift to remote work. So, when the pandemic hit, we were equipped to deal with it. We sent everyone home. They already had laptops, voice over IP phones and headsets. The transition wasn’t painful. In fact, we were up and running within 24 hours. The planning that went into this is rooted in my background. I was in New York City during the 9/11 terrorist attacks. That event taught me that it’s critical to think ahead and prepare so that you don’t miss a beat when an event like a storm, unrest or pandemic takes place.
PwC: SMS Assist has won awards as a great place to work. What is the basis of a highly successful business culture?
Shiffman: I have to admit, I’m a bit old school. If it were up to me, everyone would be in the office five days a week. But I recognize that isn’t realistic or smart. A hybrid workforce is the new reality, and you can’t fight the current. So, the thinking then shifts to how can we build an effective hybrid framework?
One critical element is communication. During the pandemic, customer visits, industry events and meetings seem to have completely disappeared. I focused on humanizing interactions through daily notes to the workforce, along with a periodic newsletter. I talk about my work, my family and my own struggles. I work to build a sense of unity and purpose. At the same time, we have an incredible office space with breakout areas, conference rooms, lounges and collaborative work areas. You have to provide the appropriate spaces and tools that allow people to do their work in the best possible way.How Allbirds is sprinting towards sustainability goals
PwC: What does it mean to be a good corporate citizen and how does that translate into a business culture?
Shiffman: First of all, integrity is a core value, and SMS Assist has zero tolerance for anything but the highest ethical standards. Phenomenal companies don’t compromise their values. It starts with who you hire, how you train people and what you expect from them. In addition, the executive team must walk the walk. Integrity is never negotiable.
PwC: What does it take to help drive excellence throughout the organization?
Shiffman: We don’t want to achieve our objectives; we want to exceed them. In order to make this possible we do a deep dive into our annual forecasting and budgeting. It’s line item by line item. It includes revenue by customers and every department and employee. We want to understand how we’re spending and what investments we’re making. This provides an illuminated path for our goals and metrics. It also translates into a process-oriented perspective.
PwC: How do you deal with all the volatility and turbulence in today’s world, including inflation, high energy prices, geopolitical instability and other factors?
Shiffman: During the pandemic we had to tighten our belts and approach spending more deliberately. As we exited the pandemic, we took our investments in our business up a notch. We started spending about 30% more on technology and building out more robust tools for our sales and operations teams. These strategic investments have paid off handsomely. Despite the turmoil in supply chains and the business world overall, we have been able to attract new customers and penetrate new vertical markets through new service offerings. For us, the key has been to adopt a more agile planning process. It’s no longer possible to plan three to five years out. You have to plan three to six months out. You also have to think long and hard about how to strategically spend your money through the filter of keeping the customer the top priority.
PwC: How can a fast-growing company balance spending and profitability? How can it avoid excessive cash burn?
Shiffman: The reality is that whether you’re an emerging leader or a long-established company, you have to have the right targets, metrics and goals in place.
“You have to be able to measure the milestones, and you have to hold yourself accountable. It’s important to ask some tough questions, like: What did we really achieve? What is still possible? If you have to change course, that’s okay.”Marc ShiffmanFormer President & CEO, SMS Assist
There’s nothing wrong with admitting you may have gone in the wrong direction. The thing is, if you keep continuing down the path that isn’t working, you can burn cash and encounter bigger problems. Pulling back on the reins or changing course is actually part of what leads to success. It doesn’t mean that the underlying strategy isn’t sound, and you won’t get to your destination. It just means you need to be more thoughtful and patient about the process.
PwC: How do you see SMS Assist evolving over the next few years?
Shiffman: In 2022, our revenue will be about $800 million. We expect to hit more than $1 billion in revenues for 2023. It’s been an interesting and exciting journey. We already have an exceptional platform, and we will continue to invest in it.
From left: Lessen CEO Jay McKee and SMS Assist CEO Marc Shiffman (Photo Illustration by Steven Dilakian for The Real Deal with Getty, Lessen, SMS Assist)
Property-services startup Lessen agreed to acquire competitor SMS Assist for $950 million in the first major proptech deal of the year.
Lessen raised $500 million in debt and equity to finance the deal, which included Monroe Capital and Invitation Homes as investors, Bloomberg reported. The Scottsdale-based company was valued at $1 billion in 2021, but the latest funds value the startup at more than $2 billion.
Lessen is a real estate management platform that connects property owners and managers to electricians, cleaners and other service providers, specializing in large-scale renovations and updates between tenants. It raised $170 million in its Series B round in 2021, reaching unicorn status; Fifth Wall is a leading investor, while Khosla Ventures, General Catalyst and Navitas Capital invested in multiple rounds.
The deal will speed up Lessen’s push into a larger clientele base in residential real estate. With the acquisition, the company said it will be able to serve 250,000 properties — residential and commercial — each year and facilitate 2.5 million maintenance requests. In addition to its existing abilities, Lessen’s acquisition will enable the company to make minor repairs, an expertise of SMS.
Renovation work is overseen by Lessen’s in-house project managers, according to the acquisition announcement. The company is in more than 40 markets.
McKee, who is staying on as chief executive officer, previously founded single-family rental company Colony Homes America, which merged with an affiliate of Starwood Capital Group in 2015.
Recent developments in the proptech sector have been a mixed bag. Scott Rechler’s RXR last month abandoned plans for a SPAC to merge with a proptech company and agreed to return $345 million to investors. The shift came as proptech stocks for former power players like Opendoor went down the gutter.
But there’s still an appetite in the proptech sector for funding. Fifth Wall recently raised a record $866 million for a proptech fund, the largest-ever dedicated venture fund of its kind. Investors included CBRE and Equity Residential.
The fast-growing technology firm expands to a larger and fully built-out workspace in Chicago formerly occupied by Tribune Publishing
CHICAGO (October 5, 2021) – Savills represented SMS Assist in a new, long-term lease totaling 114,383 square feet. The technology company will relocate from its current headquarters at 875 North Michigan Avenue to the first four floors of One Two Pru located at 130 East Randolph Street in the space previously occupied by Tribune Publishing. Savills Vice Chairman Robert Sevim and Associate Cullen Hurley advised SMS Assist in its real estate process.
SMS Assist provides property management solutions designed to simplify maintenance services for residential and commercial properties. More than 200,000 properties and a network of over 20,000 users utilize the cloud-based software. SMS Assist was searching for a more effective work environment to accommodate its expanding business in a building with abundant amenities, allowed opportunity for growth, and possessed an open floorplan that mirrors its innovative and progressive company culture.
Savills conducted a workplace analysis and geographic information system study that examined SMS Assist’s current headcount, talent recruitment strategy, and space and building utilization to determine the optimal criteria for its new workplace. The team identified a rare opportunity in the former Tribune Publishing space at One Two Pru that was designed as a modern media center containing all the necessary technology firm requirements. The floorplan, spread across four floors, features a large reception space, open workstations, numerous formal and informal conference rooms, multiple huddle areas, and an expansive café.
The space comes fully built out with top-line furnishings and a grand staircase that connects all floors. The like-new conditions provide a favorable economic outcome for SMS Assist while allowing flexibility for growth within its space and the building. The new office expands the company’s headquarters footprint by 20,000 square feet and includes a private entry on Stetson Street. SMS Assist will relocate in Q1 2022.
“SMS Assist is a true disruptor in the technology industry, and its new headquarters at One Two Pru provides the firm with the ability to develop its market-leading solutions in a unique and distinctive setting,” said Sevim.
“As forward-thinking creators, we saw a long-term opportunity in a recently renovated workspace that required minimal capital investment designed with a modern company in mind,” said Marc Shiffman, CEO of SMS Assist. “The environment at One Two Pru is a truly perfect fit for our productivity and cultural goals, as our company continues to evolve and grow.”
The recently renovated One Two Pru is a 2.3-million-square-foot, two-tower development located in the East Loop neighborhood at Randolph and Stetson. The interconnected structures are fixtures in the Chicago skyline, overlooking Millennium Park and Lake Michigan. It features expansive green space, rooftop deck, contemporary lounge, health club, wellness programming, and concierge services. In 2021, the property received the WELL Health-Safety Rating, which assesses and verifies a commercial property’s operations to reduce virus transmission and prepare for a healthy, safe return-to-office experience.
Shiffman recently took over the top job at SMS Assist. While he’s new to the corner office, Shiffman was employee No. 25 and has long been a crucial part of the management team that built SMS, serving as chief financial officer and, later, as president, keeping operations humming. The company brought web, mobile and data analytics to the dreary business of scheduling the many services that commercial property owners need. A few years ago, the company made a successful move into residential services.
Who knew? He has a twin brother, David, who is an investment banker in New York.
CHICAGO, April 29, 2019 — SMS Assist, a leading facilities management technology company, announced today that Marc Shiffman has been named chief executive officer, effective immediately. With nearly a decade of experience leading SMS Assist, most recently as president and chief financial officer, Shiffman has been a driving force behind SMS Assist’s rapid revenue and profitability growth, and has overseen the development of market‐leading solutions for customers and Affiliates. He succeeds outgoing CEO Taylor Rhodes, who is departing the company to pursue a new opportunity.
“SMS Assist has gotten to where we are today by staying true to our founders’ vision, hustling harder than anyone else in the industry, and continuously reimagining how to best serve our customers and Affiliates,” Shiffman said. “It is my honor to step into this role as SMS Assist’s CEO. By working together with our entire SMS team to fully realize the potential of what we’ve started, there’s no limit to what we can achieve.”
SMS Assist founder and chairman of the board Mike Rothman started the company with a vision for disrupting facilities management—an often complicated, costly part of doing business that he knew could be vastly improved through the application of technology.
SMS Assist has gotten to where we are today by staying true to our founders’ vision, hustling harder than anyone else in the industry, and continuously reimagining how to best serve our customers and Affiliates.Marc Shiffman, CEO of SMS Assist
“Marc is an impressive, proven executive who has been instrumental in our success to date,” Rothman said. “I am proud of his accomplishments, as well as those of the entire SMS Assist team, whose commitment to excellence has gotten us where we are—a leader in our industry. I look forward to working with Marc on our next chapter of growth.”
With more than 900 employees today, SMS Assist powers facilities management services for a diverse roster of Fortune 500 clients through a growing network of 20,000 affiliate subcontractors. The company’s technology platform offers customers and affiliates real‐time quality assurance, transparency and cost‐containment across more than 186,000 service locations coast to coast.
“SMS Assist has a winning team and with Marc at the helm—with his deep understanding of the business and his strong ability as a leader—we will only grow stronger,” said Ryan Hinkle, SMS Assist Board member and Managing Director for Insight Venture Partners. “Marc has an exceptional understanding of our business, culture and the needs of our employees, customers and affiliates. We look forward to his leadership as we continue to disrupt and reinvent this industry.”
SMS Assist enhances how customers experience some of the nation’s biggest brands, streamlining all aspects of facilities management for retail and restaurant chains, banks, residential communities, and more. One of Chicago’s fastest‐growing companies, SMS Assist has earned numerous industry recognitions from the likes of Forbes, Deloitte, and the Illinois Technology Association.
Before joining SMS Assist, Shiffman worked as a senior executive at MacAndrews & Forbes‐owned‐and operated companies including Revlon, Coleman, and Sunbeam. He has a Bachelor of Science in economics from the Wharton School at the University of Pennsylvania and an MBA from The Booth School of Business at the University of Chicago.
About SMS Assist SMS Assist is a facilities management provider that exists to deliver unprecedented choice, control, and speed of service to 186,000 properties like retail stores, banks, restaurants, parking garages, gas stations, and more. Customers benefit from instant, cloud-based access to more than 20,000 verified Affiliates and a customer service team available every second of every day. It’s a new approach for an industry in need of a better solution. SMS Assist investors include Pritzker Group Venture Capital, Huizenga Capital Management, Insight Venture Partners, and Goldman Sachs Investment Partners.Contact:Elisabeth Klisser312-265-2047eklisser@smsassist.com
SMS Assist has promoted Marc Shiffman to president. Since joining the technology company as employee No. 25 in 2010, Shiffman has been instrumental to its years of rapid growth and market leadership in multisite property management, serving as chief administrative officer, chief operating officer and chief financial officer, a role he will continue. Shiffman holds degrees from the Wharton School at the University of Pennsylvania and the Booth School of Business at the University of Chicago.
