The do’s and absolutely-do-not’s of family business transitions

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Family Business Transitions & Exit Strategies

Do’s & Absolutely-Do-Not’s (how to plan for low risk transition)

Seven Dollars donated to the Hill Library gets you free parking for 2 hours.

 

James J Hill Library
80 W 4th St
St Paul, MN 55102

Mike Tikkanen, Packard Group
Tuesday, October 27
11:30am – 12:30pm

Register Here

 

 

Packard Group Presentation Hill Library St Paul 11.18.14

November 18th 11:30 AM – 12:30 PM at the James J. Hill Center; Mike Tikkanen Presenter

Click Here For Free Tickets

Partnering Pitfalls
Whether it’s sharing technology, talent, geography (distribution),

or a dozen other business features,partnering is a much under-appreciated option to grow or save a business.

When it is considered, it’s often too late and falls to bottom feeders not picked from a well-constructed

pool of qualified candidates.

With the right approach and execution, finding the right partner can give a company

regional, national or international distribution in a fraction of the time it might take to organically get there –

and get there before competitors can.

Partnering can also be a disastrous mess when done for the wrong reasons or in the wrong way.

Packard Group presents a roadmap with tools and process for avoiding the pitfalls and

finding better answers.

Suggested donation $7. If you donate $7 or more, we will validate two hours of parking

at the Victory Ramp on 4th and Wabasha.

Another Inconvenient Truth

graphics failed acquisitionsOur two Foreign Exchange students (sisters – 1 year each) came from Culiacan Mexico.  Their father Humberto, was a Sinaloa legislator with a sweet demeanor and sharp mind.  He liked to argue.

My most memorable discussions with Humberto put me on the wrong side of  arguments over American Exceptionalism.  10 years later, I must agree that a core problem impacting everything from schools to public health is how we are giving away the very heart and soul of our nation each time a Bain Capital buys another outgrown American Family business.

Humberto’s argument was that American Capitalism had shifted from businesses founded by real people, delivering real products and important services, to large capital organizations that absolutely do not care about the people, products, or services being delivered by the entities that are acquired.

I argued with Humberto that the Warren Buffets of our world really did care about these things.  Humberto challenged me to name names.  How many Warren Buffets can you give me?  His position was that Mitt Romney, junk bonds, and Bain Capital were the driving force in American Capitalism today and not Warren Buffet.

The article that follows is concise and powerful and has clarified the tortured thoughts that man has visited upon me. Continue reading “Another Inconvenient Truth”

About A Man & His Idea

Roses on Wall25 years ago I met Phil Crowley when his struggling public company, Southern Kitchens, was introduced to me by two of the initial investors (they thought I might be able to help save the company).

Phil started out as a man with a vision of making money and doing good, and he pushed harder and harder until it became reality.  He wanted to employ people that had strikes against them and found it difficult to find good jobs.  He knew that men without meaningful work had a hard time showing their families what a good life would look like.

The Company manufactured packaged food products for the vending industry and went from just an idea and zero sales to about five million in sales, about fifty ex-offenders working at the plant, and a few hundred investor/shareholders over ten years because of Phil’s persistence and passion.

Most of Phil’s workers never had a good job before.  Those men taught me lessons in respect and how good work is valued.

Phil was not a dreamer, he handled theft and the problems common to the people he worked with.  For six months I watched Phil run a difficult business and observed the pride and dedication of a work force of men (mostly) that had never had a good job before.

Phil did not get a chance to see his vision become the new national model of capitalism and not because his vision was flawed or that it could not have worked.

He paid a good wage, the work was clean, and the hope of workers owning publicly traded stock would build wealth beyond just the weekly paycheck.

The essence of his vision could revolutionize jobs in the inner city and make life better for so many people, workers and their families and revitalize hundreds of American communities.

What happened to Southern Kitchens we read about today all too often; events outside of Phil’s control put the company into a stressful situation that demanded a partnership or buyout.

The Southern Kitchens French Accent partnership was very poorly chosen (think Bernie Madoff) and the company was soon run into the ground by the French Accent management (who went to jail) and all the people that so needed their jobs lost their jobs and the company collapsed.  Phil’s right hand man killed himself – he had built his life around this company as had Phil.  Phil died a few years ago, I think of a broken heart.

It would not hurt us to revisit Phil Crowley’s new model of capitalism.

Why Deals Don’t Close

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Directors have it doubly hard when it comes to acquisitions.

They have to hire someone that knows how to find appropriate candidates and execute transactions successfully (this person needs a combination of very specific talents – often misrepresented in resumes) and the board must be clear about the criteria necessary in the search (the difference between needs and wants).

Talking with M & A lawyers, you will find that about 50% of deals don’t make it to closing. There are just so many things that can go wrong and it is so costly when it happens. Continue reading “Why Deals Don’t Close”

The Lion’s Way or The Right Way?

tigerAuthor Seth Godin has a book in his creative inventory called “Survival is not Enough”. In it, he writes about corporate DNA (he calls it mDNA) which includes everything that makes a company what it is….products, brands, people, IP, et al.

In it, he writes about acquisitions of other companies and that one of the primary reasons for an acquisition is to add new DNA to the acquirer’s corporate DNA to make it stronger. Continue reading “The Lion’s Way or The Right Way?”

Risk Management Discussion Thread

african art 2The following are the astute observations of Carl Hagberg, pulled from an online acquisition Risk Management conversation about M & A, shareholder value, and strategic issues. My comments (that Carl refers to) follow in the More section.

Carl is Editor and Publisher at The Shareholder Service Optimizer
Greater New York City Area http://www.optimizeronline.com/

& he is Chairman & CEO at Carl T. Hagberg and Associates

As an investor, I am extremely concerned by the perfectly awful returns on investment – overwhelmingly terrible ones as the above-cited numbers point out – that have been booked year after year as a result of bad acquisitions by public companies. Continue reading “Risk Management Discussion Thread”

ACQUISITION / JOINT VENTURE BRIEFINGS

SunsetFinding more & better target candidates

& reducing transaction risk


Database Building & Contact •  Measurable Criteria  •  Risk Management  • Integration
 

Individually Tailored to your company strategy and acquisition team

Two half day briefings

Summer and Fall dates available

 

For more information contact: 

Mike@PackardAcquisitions.com 952-542-9318

CAllen@PackardAcquisitions.com 651-226-2853

www.packardacquisitions.com

 

Better Tools for Finding Better Prospects
Better Prospects = Better Transactions
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