northwood university 2014
TRANSCRIPT
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SurvivingAndThrivingInaConsolida+ngWorld
PresentedbyTomMarx
August6,2014
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TomMarx
• 30+yearsinthea6ermarket• 12+yearsinM&A• Segments,channelsandproducts• AcAveindustrymember
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GetEngaged!
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M&ASurvivalSummary
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M&Ascenarios
Whattoexpect
Howtosurvive…andthrive
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M&AScenarios
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SellCompanyDivesta
BusinessUnitAcquire Merge
OwnershipEvents
TheroleofPrivateEquity
(PE)
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SellorDivest• Exitstrategy:plannedornot• ReArementandnobullpen• Accident,illnessorworse• Financialchallenges• Disagreementsbetweenpartnersorfamilymembers• Anapproachtocorporaterestructuring• Getridofanunderperformingasset• CapitalizeonbeRerperformingassets• Anofferthatcannotberefused• Freedom–Itisn’tfunanymore!
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AcquireGroworfadeaway• StrategicacquisiAons– Territory– Marketshare– Economiesofscale– Gainnewcustomers,suppliers,management,technology
– Takeoutthelowpriceleader
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MergeMergersarepropelledbymanyofthesamereasonsasacquisi+ons• Sharedownership/equityratherthan
straightbuy-out• PowerandvalueoftheenAAesallow
forcontrolledequity,jointpowertomakedecisionsandsharingofresponsibiliAes
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Strengthsorweaknessesofthepar+esdefinesifmergeroracquisi+on
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OwnershipEventsSuccessionplanninggoneright• NextgeneraAonmovesintoleadership• Seamless• Allonthesamepage• Plansuccessfullyexecutedwithminimumofdrama
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OwnershipEventsSuccessionplanninggonewrong• CurrentgeneraAonwon’tletgo• Illnessorunexpecteddeath• FricAonbuilds,frustraAongrowsandfinallyoutsidetherapy
comestorescue• Dramacreatesri6s,slowsgrowth,createsrisk• Planisn’texecuted
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RoleofPrivateEquityPEfirmsdriveconsolida+on• Providefunds/experAseneededtogrowthebusiness• LargermulAplesmoAvatesale• Supportsuccessionplanning• Buyoutcertainfamilymembers• SomeacquisiAonsare100%andsomecanbeparAalcash-out
andasmoAvaAontostay• TheulAmateexitstrategy• Result:Younowareaccountabletosomeoneelse
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YouandTheChangeHaveyouexperiencedthesescenarios?• Sell• Acquire• Merge• Privateequity• Ownershipevent
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YouandTheChangeWhattoexpect• Survival• OrganizaAonalconsolidaAonandadjustments• YourvaluetosurvivingenAty• Leadership
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YouandTheChangeTheinnersanctum• Whatdoesthismean?• HowdoIgetthere?• HowwillIknow?• HowdoIreactwhensurpriseshappen?
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YouandTheChangeWillIthrive?• StayposiAve• FindwaystodrivecollaboraAon• ShowobjecAvity• Befocused• Knowwhentohold‘emandwhentofold‘em• Andthroughallthis,getyourdayjobdone
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YourCompanyisSelling• BemeAculouswithpreparingcompanyfortransiAon• Keepingitquiet—thetruemeaningofanNDA• WheredoIgotoreleasethetension?• TheulAmatesignofmaturity• DoIjumpship?
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SINCERITY
TRUST
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YourCompanyisBuying• Devilisinthedetails• IntegraAonspellssuccessvs.failure• Planningisimportant–execuAoniseverything• Buildadiverseteam• Opportunityknocks
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You’reSelling/Merging• CreaAngfinancialgain• Efficiencyiskey• Keepingdifferentcustomershappy• Opportunityknocks• DoIjumpship?
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You’reSelling/Merging• ThefoundaAonforsuccessfulM&A• Makesurethatthewholeismorevaluablethanthesumof
theparts• Noroomforduplicateexpenses• Expectmanychanges• Keepfocusonthemetricsrequiredbyboard,
bankorPEfirm
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AlwaysBeYourBest• Teambuilder• Accountable• Decisionmaker• Redesignorrefinethecompany’sculture
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ManageYourPeople• Retainthebestpeople• Keepyourteaminformed• Maintain/increaseproducAvity• Handleissuesbeforepanicsetsin
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SuccessisOUenUptoYou• Demonstrateleadership• Listentopointsofview• FindsoluAons• Noroomforegos• Buildtheteam
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ShapetheFuture• Growthebusiness• Buildthebrand• ClarifyValueProposiAon• Focusonsales• TargetmarkeAng• StreamlineoperaAons• Understandthefinances
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Q&A?• Whereareyouintheprocess?• Whatelseareyoucuriousabout?• Whatareyouafraidabout?• Whatholdsyouback?
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THANKYOU!
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ContactmeifyouwouldlikeacopyofthispresentaAonorfurtherinformaAononbuyingorselling.
TOMMARX415.453.0844ext.106