Category Archives: How To… articles

A variety of articles describing processes on “How To Do” and accomplish somethuing of value.

To Solve a Problem, First Define It

drjohn11a

Dr. John Psarouthakis, Executive Editor of www.BusinessThinker.com, and Founder and former CEO, JP Industries, Inc., a Fortune 500 industrial corporation

 

       This simple concept might be the most important thing I learned while earning an MIT engineering degree. Engineers understand this concept in depth, but policymakers and politicians have a lot of trouble comprehending it. In my lifetime America has burned billions—trillions—of dollars in treasure by leaping to solve problems without first doing a proper job of nailing down exactly what the problem is and then doing a proper job of constructing a solution. The “then” part of the equation is important, too. Government has a decent history with engineering projects. It has a dismal history with social engineering projects. Not paying attention to that history portends, of course, constructing still more dismal history.

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Actions Immediately after Closing the Acquisition Deal

drjohn11aBy Dr. John Psarouthakis, Executive Editor of www.BusinessThinker.com,  Founder and former CEO, JP Industries, Inc., a Fortune 500 industrial corporation

This is the 16th and last of a Series of  short articles on “HOW TO BUY THE RIGHT COMPANY”  that have been posted herein.

Once you close the deal, you need to be prepared to go in the very next morning to meet with your management team as well as your entire staff.

What you do in the first days and weeks will set the tone for your relationship with your employees for some time to come, possibly even the duration of your ownership.

Remember that the chief concerns of your employees and managers may be somewhat different than your own agenda. Employees will be concerned, first and foremost about their own job security and future with the company now that it is under new ownership.

Management shares this concern, and may also have more narrow issues facing them in their own departments, that nevertheless they may feel requires immediate attention.

An easy model to follow includes a short initial introductory meeting with management, an all-employee meeting to include all management and non-management staff, and then a third more formal meeting with management.

These meetings will set in motion the planning to carry out the three objectives of the transition: addressing your key constituencies (employees, customers, suppliers and bankers), revision of the action plan, and implementation of significant changes outlined in the plan.

Other meetings will follow in the first days and weeks, but it is essential to try to fit these first three meetings into the first day if at all possible.

As a new owner, you must be careful to listen carefully, building trust and goodwill with your new employees.

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Briefly Reviewing the Closing of the Acquisition Deal

JP Bio PhotoBy Dr. John Psarouthakis, Executive Editor of www.BusinessThinker.com,  Founder and former CEO, JP Industries, Inc., a Fortune 500 industrial corporation

This is the 15th of a Series of  short articles on “HOW TO BUY THE RIGHT COMPANY” They will be posted at one a week

Here we briefly review the closing of the Acquisition deal. The key aspect of this step is the preparation and signing of the purchase agreement and other documents needed for closing.

Beyond the legal requirements of having a purchase agreement, the preparation of the document itself is an important aspect of the due diligence process. Because of the representations and warranties a seller is obligated to vouch for, frequently, problems surface during this period that you may not otherwise uncover. For this reason, it is very important to begin work on the purchase agreement as soon as the letter of intent is signed and you begin formal due diligence.

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