graeme read - 3r resourcing
TRANSCRIPT
BuildingScalingSelling
Graeme Read
Building
Build for purpose• Lifestyle OR Capital Value
• Who shares your vision?
• Unify the team, the goal & purpose
Plan• Why, Where, What, Where, How
• Plan High, Medium & Worst Case
• Get a buddy, a critical friend
Building
Don’t be Unique!•Be different, relevant, distinctive
•Me Too & Generalists struggle for growth
•Specialists, Niche or Micro niche - nimble
•799 firms started in 2014 - 86% niche
Manic or measured?•Ideas come in at 100mph
•Mania costs money, people & time
•Corral your Ideas – take 6 then pick 2
Building
Develop your talent•Are you a Driver, Leader, Coach or Manager
•Nurture & Mentor Leadership skills
•Culture Shock - Experienced & Apprentices
•Hire often, hire fast, hire more than 1
•Follow Jim doesn’t work – Jim’s fees dip
•Performance: Capability v History v Attitude
•Do you develop your Top Performers?
Scaling Your Business
ScalingInternational OR National?• Deep Dive the opportunity & competitors• Bandwidth in Team, Managers & You• Outsource non-essential functions eg payroll• Get current, deep domain knowledge
Plan and plan again• Where, When and Why• Define goals, objectives, and success metrics• Best, Average, Worst• Time to pay back?
ScalingFinances & Legals•Cashflow & Credit - don’t run short
•Set up tax & finance plans early
•HR rules, Salaries, Rewards DO differ
•Profit repatriation plan?
•Subsidiary or Stand Alone
•Licences, Regulations
•Local support and partners
Scaling
Physical or Virtual?• Incubate first, get a Beachhead Team
• Localise early
• Travel often, stay long
• Actively drive Referrals
• Countries, Clients, Disciplines
• Strategic Alliances, JVs or Acquisitions?
Selling Your Business
Selling
Prepare early• Who will buy it ?
• How sale-able is the business?
• Tax and Finance Readiness
• Leadership Readiness
• Capacity - You, Your team, Back office
• M&A Impact on stakeholders
Selling
Options – What suits you?•MBI / MBO
•Trade sale
•Private Equity
•IPO / Public to Private
•Strategic Merger
Where’s the buyers2014 investors in the UK sector:
•UK, Americas, Wider Asia, CEE & Europe
Selling
Timing?•Deal activity rose 9% in Q4 2014 •BDO report shows
• 46% considering an acquisition in next 3 years
• 41% expect to exit / sell in next 5 years
•When?• Too early
• Too few buyers depressing prices
• Too late
•Plan B if it doesn’t happen
Sources: Internal, BDO Recruitment 2015 report
SellingUncertainty abounds•Oil prices
•Elections
•Black swans & unknown known’s
•Macro dynamics
• Greece Exit, China bubble?, EU risks
•Instability
• Mid East & Putin effect
Selling
Valuation• Ranges from 3.5X to 6X+ EBITDA (depending)
• Perm & Contract
• Leadership team
• Synergies
• Compliance
• Concentrations - RPO, Clients
• PAYE / Umbrella legislation
Selling
Other factors:•Bank debt / factoring affect
•Your involvement
•Don’t be greedy
•Equity: Over-reward V Under Reward
•Orphan divisions, half built offices
•Taking your eye off the ball
SellingWHAT’S HOT•Healthcare – Consolidation
•Big Data, Analytics
•Digital & Marketing
•Engineering
•RPO, Training & Allied staffing
•Online Platforms
•Finance & Accounting
•Executive Search
Sources: Internal, APSCo, Staffing Industry Analysts
SellingHow long?• 2014: Highest M&A volume in 5 years
• Organic growth is harder to get
• 7 year cycle ?
• 2.5 years into a recovery
• Next dip within 4.5 years?? who knows
• Buyers began in 2013-14
• Market remains active in 2015, 2016..
• Reducing values as more seller arrive
Your Partners in Business
Mentoring Board Support Non ExecGraphic Design Marketing Social Media
Corporate Communications Web Design
Interim CFO/FD Financing MBO MBI
Mergers & Acquisitions Due Diligence
Strategic Consulting Deal Management Training Leadership Development
ADVISE, ASSIST, ADVANCE32 Countries
100 years of experience125 businesses launched & grown£150m in deal values completed