The Grinch Thank Stole Business

iceberg picAfter years of growing a profitable business in the northern suburbs, Marvin woke up one morning and knew that it was time to get out. Now, it just might’ve had something to do with a very cold temperature and continued frozen forecast. But for whatever reason, Marvin’s brain flipped a switch and retiring and moving south were all he thought about.

Well, as luck would have it, a fellow Rotary member named Alan, expressed an interest. They sketched out an agreement then had Al’s lawyer put it in legalese. Inside of thirty days, Marvin had put his house on the market and moved to Florida.

It was everything Marvin had dreamed about: moderate temperatures, relaxed schedule, and the beginnings of a social life.

Three months into retirement all was going well. His Minnesota house had sold. Alan’s business purchase payments were coming in steadily.

Six months into retirement he couldn’t believe he hadn’t done this sooner. But Alan’s payments were starting to be late…

Continue reading “The Grinch Thank Stole Business”

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

10b352ac-ad16-4f51-bcd6-6e1dea5cb405

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.

Fifty Years Of Great Leadership (what’s so special about Warren Buffet?)

The man (boy) bought his first farm when he was 14.  I was still a paperboy at 14 and certain that my savings would buy the V8 Chevrolet that I had been dreaming of.  

Warren is really smart & genuine and he empowers people (24 people run Berkshire Hathaway).  

His sense of community is incredible. Giving away 85% of his wealth and begging legislators to raise taxes on the rich to make a more fair economy.

On top of all that, I hear that the BH shareholder meeting in Nebraska tomorrow will be more fun than a barrel of monkeys.

A toast to great leadership.

 

 

 

 

 

 

 

 

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.

Don’t Bring This to a Closing

solar eclipseBefore I tell you the one thing you should never ever bring to an acquisition closing, I need to give you the background….

Company X was a successful company. Especially when you consider that on $3MM in revenue it spun off 30% in pre-tax profit. For over twenty years the owner, (we’ll call him Harold) ran and grew his business with savvy planning and shrewd decision-making. 

Harold’s only son, (we’ll call him Donald) worked in the business and had spent time in each discipline as he was being groomed to take over when Harold was ready to pass the baton.

Best laid plans and all that.

Harold was hospitalized after being diagnosed with advanced cancer and 24 yr old Donald was put in charge.

Fast-forward five weeks and Harold is back in the office part-time while working through his radiation and chemo regimen.

(It is important to know that company x is a small, 10-person niche manufacturing business with long-standing employees)

 Harold is in his office when five of his employees come in and shut the door. They say that they speak for rest and tell Harold that they will not work for Donald.  Donald has been derogatory and denigrating to the ‘peons’ for years. They had laughed Junior off as they were treated wonderfully by Harold, generously paid, and received abundant benefits for their good work.

However, during Harold’s hospitalization, Donald’s attitude had sharply worsened and more importantly, was observed doing cocaine at work.

************************ Continue reading “Don’t Bring This to a Closing”

Why Deals Don’t Close

shipwreck

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”

Blog at WordPress.com.

Up ↑

INVISIBLE CHILDREN

Acquisition, the inside story

Pacquisitions's Blog

Acquisition, the inside story

Dan Stewart Media

Promote. Express. Create.

WordPress.com

WordPress.com is the best place for your personal blog or business site.

The Changing World of Employment

The blog presence of Vallon, LLC and our friends!

The WordPress.com Blog

The latest news on WordPress.com and the WordPress community.