RJ Grimshaw

Scaling Profitability through Strategic Evolution

A Decade of Transformational Leadership

From $14M to $250M in assets with a 28.60% CAGR

Discover the Journey

Introduction

The remarkable business transformation story of RJ Grimshaw showcases how strategic vision and leadership transformed UniFi Equipment Finance from a small equipment finance subsidiary into a highly profitable enterprise with significant growth in assets and market position.

This comprehensive analysis explores how Grimshaw's strategic vision and leadership transformed a small equipment finance subsidiary into a highly profitable enterprise with significant growth in assets and market position over a decade of leadership from 2013 to 2023.

Professional Background

RJ Grimshaw served as the President and CEO of UniFi Equipment Finance, a wholly owned subsidiary of Bank of Ann Arbor, from 2013 to December 2023. His journey with the organization began in August 2013 when he joined Bank of Ann Arbor as an Executive Vice President and Chief Sales Officer, bringing with him over 20 years of experience in the equipment finance and banking industry.

Pre-2013

Early Career

Vice President at EverBank Commercial Finance, responsible for growth within the Technology Division.

Senior leadership roles at Key Equipment Finance, developing expertise in steering financial organizations toward success.

August 2013

Bank of Ann Arbor

Joined as Executive Vice President and Chief Sales Officer.

Began leadership of UniFi Equipment Finance, a wholly owned subsidiary of the bank.

2013-2023

Transformation Period

Led UniFi Equipment Finance through a decade of remarkable growth and transformation.

Grew assets from $14 million to $250 million, achieving a 28.60% CAGR.

December 2023

New Chapter

Departed UniFi Equipment Finance after a decade of successful leadership.

Founded Able Leadership, continuing to apply and teach the principles that drove UniFi's success.

Industry Leadership

  • Served on the Equipment Leasing and Finance Association (ELFA) Vendor and Captive Business Council Steering Committee
  • Participated in two Industry Future Councils with the ELFA Foundation
  • Served as an Executive Director for the Equipment Leasing and Finance Association
  • Currently serves on the Equipment Finance Cares Board

Professional Recognition

  • Author of the book "ABLE Leadership"
  • A leading authority on the Intrapreneurship Operating System (IOS)
  • Certified by Coach Micheal Burt to speak, train, and teach "The Person of Interest" philosophy
  • An avid hockey coach involved with USA Hockey
  • Recognized among "The Baker's Dozen CEOs" in the equipment finance industry

The UniFi Transformation

Company Background and Acquisition

UniFi Equipment Finance is a wholly owned subsidiary of Bank of Ann Arbor, a community bank that strategically acquired the equipment finance company. This acquisition represented a significant move for Bank of Ann Arbor to enter an entirely new business line, diversifying its portfolio beyond traditional banking services.

Growth Trajectory Under Grimshaw's Leadership

Asset Growth
0
Million dollars in assets by 2023, up from $14M in 2013
CAGR
0
Compound Annual Growth Rate in assets over a decade
Profitability CAGR
0
Impressive growth in profitability metrics
Peak Originations
0
Million dollars in 2022, showing significant growth

Asset Growth Visualization

The chart below illustrates UniFi's remarkable asset growth trajectory under RJ Grimshaw's leadership from 2013 to 2023:

Strategic Evolution

The transformation of UniFi Equipment Finance under RJ Grimshaw's leadership was driven by several key strategic evolutions that differentiated the company from industry benchmarks:

Credit Quality Management

UniFi maintained lower Net Charge-Off (NCO) rates than industry averages, dropping from 1.27% in 2018 to an impressive 0.03% in 2023.

This indicates superior credit management practices and risk assessment, with tight control over delinquencies contributing to lower charge-offs and overall portfolio health.

Net Charge-Off Rate Comparison

The chart below compares UniFi's Net Charge-Off rates to industry averages, highlighting the company's superior credit quality management:

Business Volume Strategy

While industry trends showed steady annual increases in new business volume, UniFi demonstrated higher volatility with strong early growth.

UniFi's units peaked in 2019 (2,678 contracts), with recent years showing fewer but higher-value contracts (1,060 in 2023), suggesting a strategic pivot toward quality over quantity.

Ticket Size Evolution

The industry was shifting toward larger ticket sizes (2022 industry average: $78,505), but UniFi aligned with and exceeded this trend.

Average ticket sizes peaked at $108,868 in 2022, with this strategic focus on larger deals contributing to stronger profitability despite fewer total contracts.

Average Ticket Size Comparison

The chart below compares UniFi's average ticket sizes to industry averages, showing how the company strategically focused on higher-value contracts:

Selective Approval Strategy

While industry approval ratios varied between 74%-80%, UniFi appears to have pursued a more selective strategy.

This selectivity is reflected in fewer but higher-value contracts in recent years, contributing to lower charge-off rates and stronger portfolio performance.

Net Interest Income Growth

The data shows steady growth in net interest income relative to portfolio size.

This indicates effective pricing strategies and margin management that contributed to UniFi's overall profitability.

Performance Metrics

Comparison to Industry Benchmarks

The performance metrics comparing UniFi Equipment Finance to industry benchmarks (MLFI - Monthly Leasing and Finance Index) highlight how the company outperformed in several key areas:

Portfolio Growth
0
Million dollars in gross receivables by 2023, up from $20.9M in 2013
Average Ticket Size
0
Dollars per contract in 2022, exceeding industry average of $78,505
NCO Rate Reduction
0
Percent reduction in Net Charge-Off rates from 2018 to 2023
Contract Quality
0
Higher-value contracts in 2023, reflecting the quality over quantity approach

The Baker's Dozen CEOs

The recognition of RJ Grimshaw among "The Baker's Dozen CEOs" places him alongside prominent executives in the equipment finance industry from major financial institutions such as:

  • William Stephenson (De Lage Landen)
  • Adam D. Warner (Key Equipment Finance)
  • Kris Snow (Cisco Systems Capital)
  • Walter Rabin (Signature Financial)
  • Mike DiCecco (Huntington Equipment Finance)
  • Bill Mayer (Wells Fargo)
  • Tony Golobic (GreatAmerica Financial)
  • Fred Van Etten (Scottrade)
  • Gary Shivers (Navitas Leasing)
  • RJ Grimshaw (Bank of Ann Arbor)
  • John Thain (CIT)
  • William S. Henak (TCF Equipment Finance)
  • Kent Adams (Caterpillar Financial)

This inclusion highlights Grimshaw's standing among industry leaders and the recognition of his achievements in the equipment finance sector.

Leadership Philosophy

While the financial metrics and performance data tell a compelling story of success, RJ Grimshaw's leadership approach can be inferred from the results and supplemented by his current focus areas:

Intrapreneurship Operating System (IOS)

Grimshaw is recognized as a leading authority on this concept, which likely informed his approach to fostering innovation within the established bank structure. This approach allows for entrepreneurial thinking and innovation within the constraints of a larger organization.

"The Person of Interest" Philosophy

His certification to teach this philosophy suggests an emphasis on personal development and leadership cultivation. This approach focuses on developing individuals who stand out through their expertise, character, and contributions.

ABLE Leadership

As the author of a book with this title and now the founder of a company called "Able Leadership," this appears to be a core element of his leadership approach. The ABLE framework likely encompasses the principles that guided his successful leadership at UniFi.

Strategic Focus

The data shows a clear strategic evolution from volume to value, with deliberate shifts in business approach to maximize profitability while managing risk. This strategic focus on quality over quantity became a hallmark of Grimshaw's leadership approach.

Conclusion

The story presented in "Scaling Profitability through Strategic Evolution" is one of remarkable transformation under RJ Grimshaw's leadership. From 2013 to 2023, UniFi Equipment Finance evolved from a small subsidiary into a significant player in the equipment finance industry, with impressive growth in assets, profitability, and portfolio quality.

Grimshaw's strategic vision focused on:

  1. Superior credit quality management
  2. Strategic shift toward higher-value contracts
  3. Selective approval processes
  4. Effective margin management
  5. Consistent portfolio growth

This approach resulted in UniFi outperforming industry benchmarks in several key metrics, particularly in maintaining lower charge-off rates while growing the portfolio substantially. The success story demonstrates how strategic evolution in business approach can drive significant profitability scaling, even within the context of a community bank subsidiary.

In December 2023, Grimshaw departed from UniFi Equipment Finance after a decade of successful leadership, leaving behind a transformed organization with a strong market position and impressive financial performance. He has since founded Able Leadership, where he likely continues to apply and teach the principles that drove UniFi's success.

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