Blog

On Business Exits + Turnarounds

How much is your business worth?

Don’t be caught unprepared! In any negotiation you want to achieve a win-win, right! If you own a sizeable business, you’ve simply got to be prepared well BEFORE you sell or exit your business. You might get lucky and have a cashed-up buyer knock on your door with an offer that is too good to be true. That happened a couple of years ago for a client where I was leading their turnaround. An astonishing 7 times earnings! You might need to raise capital from private sources. Discussions will likely lead to either an equity or debt investment, from the…

Strategy to Power-Up your Quality of Earnings

Strategy to Power-Up your Quality of Earnings

Our clients want to serve as many customers as possible – and they want a “strategy” to help them sell to everyone! Trouble is, catch-all strategies rarely work. By trying to appeal to everyone, you won’t meet anyone’s needs particularly well. Instead, target only the customers who most matter to you. Then delight them –  especially the ones who generate quality earnings. Indecision is a common problem for many company owners and managers. In my business, our chosen client is a mid-to-large private business located in Australia that’s willing to pay for sound turnaround and transition expertise. A simple decision…

Customer Loyalty – it can make or break a business exit or transition

Customer Loyalty – it can make or break a business exit or transition

A savvy business investor or buyer will check out how loyal your customers are. The larger the transaction the more certain I am this will occur. Do your customers love you, do they talk negatively about you when you are out of earshot, or couldn’t they care less about you? The challenge for any business owner (especially if you have an exit or transition in mind) is to make absolutely sure you have a loyal following, well in advance of the investor or buyer doing their due diligence. A business recently fell well short on their customer loyalty test, which…

Fire Customers? Why not?

Fire Customers? Why not?

A career choice, I deliberately chose to work with privately held mid-size companies to avoid the politics that hampers good decision-making in larger companies. Trouble is that in these mid-size companies it is friendships not politics that is an obstacle when trying to do what I do for clients – grow sustainable business value, pre-transition. More specifically it is the abuse of friendships that is at the core. Now don’t get me wrong. Friendships and strong bonds are critical in business. At deConstantin we swear by the KLT rule when engaging with new staff or clients – Do they pass the…

What’s Your End-Game Equation?

What’s Your End-Game Equation?

Have you seriously considered your company’s end-game? No matter what the business, it demands an end-game. More specifically an end-game equation!

If you have no destination in mind and you just float around aimlessly, you could end up anywhere. Hardly a sensible (or fair) strategy when so many others depend on the business for their livelihood and future.

I ask my audience a simple question whenever I present at CEO forums. “Who in the room has a strong end-game?” Few of those present ever put up their hands. So, based on this less-than-exhaustive research, I suspect you too haven’t yet considered your end-game strategy.

Losing sleep over your business?

Losing sleep over your business?

Are you losing sleep over your business? Wide awake at 3am fraught with money worries? It is the single most common comment I hear on first meeting a CEO or the owners of a business where the business is in financial distress. Somewhere between swimming and drowning, the business is best described as being in the land of the living dead. In a career spanning 25 years, I have helped many business owners get their business unstuck from what is at best survival mode. I was asked recently by the director of a turnaround client, “How do you do what…

Vision Precedes Business Growth

Vision Precedes Business Growth

“Vision is what pulls at our emotions and creates desire to challenge the status quo” – Steven DuPuis, Founder of the DuPuis Group When you started your business, what kind of thoughts and emotions did you have about where you wanted it to go and how you would go about achieving your vision? Did you have these thoughts at all, or were you focused purely on the present and doing whatever needed to be done in the moment? Ultimately, if your business isn’t growing, it’s stagnating which, in this day of accelerating disruption, inevitably will lead to contraction and decline….

A ticking time bomb for business owners and shareholders

A ticking time bomb for business owners and shareholders

In our line of work, the very first port of call is the client’s financials. We need to confirm there is the financial strength in the business to underpin the aggressive growth plans we plan to execute. In the growth projects we have initiated with clients over the past 10 years, a staggering 70% of engagements have unearthed issues with the accounting function – from plain ineptitude to in one case clear fraud. Most projects have resulted in the replacement of the head of the accounting function, some who have been insitu for years. Then today I read that the Victorian…

Page 1of 3: 1 2 3