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Revolution Institute successfully hosted the initial community design charrette in Englewood in collaboration with Teamwork Englewood and EG Woode. The event was well-attended and facilitated critical discussions on workforce development and cooperative conversion. However, coordinating schedules and commitments among partners led to initial delays. This month, we planned to host another community engagement charrette on June 22, but it has been rescheduled to August 3. The new session will focus on worker voice, the labor market, and advocacy for community members. We are now concentrating on recruiting trainees and cultivating partnerships in the neighborhoods we aim to serve. Our approach has shifted towards emphasizing cooperatives as community wealth-building strategies rather than focusing solely on establishing a manufacturing business in a particular neighborhood. To improve outreach and participation, we have set up an Eventbrite page and partnered with the Greater Englewood Chamber of Commerce, led by Felicia Slaton. This partnership is expected to enhance our community engagement efforts. The main barriers we faced this month included rescheduling the event and ensuring effective community outreach. However, these challenges have provided opportunities to refine our approach and expand our advisory committee, which now aims to include an additional six members.

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Last month, our efforts included initiating the broker interview process, reviewing business lists, and developing deal flow strategies. This month, we made progress by narrowing our pool of potential brokers from twelve to two. We have developed specific criteria to evaluate these brokers, ensuring they align with our mission and financial capabilities. Part of this evaluation involved reviewing the terms and conditions of their services, including the success fees and retainer structures they propose. In addition to broker evaluations, we are developing a strategy to approach potential acquisition targets. This includes creating a detailed Master Proposal aimed at securing the necessary funds to build the infrastructure required for acquisitions and to facilitate the actual purchases. One of the main challenges we face are the steep fees charged by brokers, which can range from 5% to 15% of the final sale price. For businesses valued between $2 million and $4 million, these fees could amount to $200,000 to $400,000. Although these fees are typically paid from the sale proceeds and budgeted into the loan amount, the initial sticker shock can be daunting. We are working to ensure that any businesses we acquire can handle these financial obligations.

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Last month, Revolution Institute focused on solidifying our conversion strategy by holding strategic meetings with Project Equity to discuss various conversion methodologies. We also engaged in regular consultations with Manufacturing Renaissance to gain deeper insights into effective cooperative structures. Additionally, our CEO participated in DAWI's cooperative development training, which enhanced our team's capabilities in structuring and managing cooperatives. This month, we have continued to build on these foundations by developing a detailed Tactical Acquisition and Conversion Strategy. This comprehensive document incorporates best practices and insights from leading cooperative organizations such as Evergreen Cooperative, Sustainable Economies Law Center (SELC), Obran Cooperative, Co-op Cincy, Industrial Commons, and Project Equity. The strategy outlines essential elements for successful conversions, including peer learning opportunities, financing strategies, pipeline development, assessment criteria, recruitment and training of key stakeholders, vendor and contractor alignment, and precise timelines for each phase of the conversion process. One of the primary barriers we faced this month was resource allocation. Securing the necessary funding and support for our conversion initiatives has been a significant challenge. To mitigate this, we have initiated conversations with Seed Commons about receiving loan funding. These discussions are promising and could provide the financial support needed to advance our conversion projects.

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We continue to face deal flow issues, partly due to the geographic and demographic constraints aligned with our mission. These constraints have narrowed our pipeline, making it challenging to identify potential acquisition targets. Despite these challenges, we are taking steps to address the deal flow issue by engaging with similarly situated organizations to gain insights and refine our strategies.

Last month, we leveraged several key opportunities, including strategic meetings with Project Equity and regular consultations with Manufacturing Renaissance. We also engaged with prospective funders and participated in DAWI's coop development training. This month, we continued to build on these opportunities by participating in DAWI training and a worker cooperative finance course. These activities have provided valuable insights into conversion strategies and cooperative finance.