Tag Archive: presentation

Case in Point – Should You Speed Up Your M&A Plans?

February 25th, 2018

I lead a group of top notch trusted advisors (ProVisors) in the Inland Empire, and so I am immersed in what CPAs, attorneys, commercial real estate experts and other advisors see in the marketplace.  Last month, we had a fascinating and insightful presentation by Mark O’Keefe , Managing Director of Ambrose Advisors (a leading Independent Investment Bank) on the state of the M&A markets.

This presentation got me thinking about you. I see my job as providing trending topics, fresh ideas and contrarian advice as it makes sense.  And this is one of those times.  Typically speaking, every trusted advisor is singing from the same song sheet when it comes to preparing for the sale of a business: Don’t rush to sell because you miss out on a huge opportunity to increase the value of your business and sell at a much higher multiple.  

For example, one of my group members runs CEO groups, and his CEOs have a dramatically higher multiple than the average.  Thus, it is “excellent advice” typically.  However, we might be in a unique time frame where accelerating the sale could drive a higher exit value.     

As Mark said, interest rates are low, flexible terms and structures are available, and there is high competition among lenders; thus, it is a strong market for borrowers.  Additionally, U.S. stocks keep posting record highs, notching milestones not seen in more than 20 years.  And middle-market business owners are reporting strong growth and a favorable business outlook.  How long do you think this highly favorable situation might last?  And, last but not least, M&A activity has slowed down due to the political, economic and tax uncertainty.  

Might it be the opportune time to take the contrarian view and sell quickly to maximize value?  The strong market is pushing values UP which might outweigh a few percentage points of improvement in operating performance.  

If you are thinking about it anyway, perhaps it is worth-while taking a look….

 



Harvey Mudd Student Projects & Innovations Related to Cancer

February 22nd, 2018

Earlier this week, I attended some clinic presentations at Harvey Mudd (student projects with companies / partners), and the value of innovation hit home!  

For example, there are students working on innovations to improve on the success rate of breast cancer surgeries – talk about relevant!  There are many tangible and impactful projects the students work on throughout the year in a wide variety of industries.  Marrying up practical experience with book knowledge can go far in preparing students to be successful in careers after college.  Do you provide well-rounded education and experiences?

One tip to implement this week:
What type of education and experiences do you provide for your employees and team members?  I see a distinctive difference between training and education whereas education is a much broader concept so that your employees will be able to interpret and carry forward.  Do you explain the whys?  Do you provide practical examples?  Do you allow your team members to try new things?  Even if they fail?

Although education can be quite valuable, it might not be enough.  Do you find a way to provide an experience?  A kaizen might do the trick …or at least get the process started.  Or, have you put together a cross-training program?  Shouldn’t a planner or logistics resource understand the trials and tribulations of talking with customers on a daily basis?  Dealing with an angry customer can do wonders for opening your eyes.  And how about vice-versa?  Are your customer service resources committing to whatever the customer requests regardless of whether you can deliver it?  Why not give a more comprehensive experience approach a go?

Regardless, continuous education is critical today as everything seems to change in a nanosecond!