Tag Archives: Strategic thinking

Building the acquisition team

drjohn11aDr. John Psarouthakis, Executive Editor, www.BusinessThinker.com. Founder and former CEO, JP Industries, Inc, a Fortune 500 industrial corporation. Adjunct professor, Strategy and Acquisitions, Ross School of Management, University of Michigan

This is the 5th of short articles of my thoughts about Acquisition of a business.

Building a good team is important right at the outset of your search. You will need an attorney almost immediately, to review any confidentiality agreements or letters of interest that must be signed. However, you should also begin to think about the other team members you will need early on in the search process. A good accountant is essential to the adequate review of the seller’s books, and possibly in addition, an independent auditor. Other consultants you need may depend upon your own skill levels and the nature of the business. If you will need outside funding, a financial consultant may be needed. Depending upon your own background in the functional business areas of sales and marketing, operations, engineering and manufacturing, you may or may not require outside help. An environmental consultant is increasingly needed whenever real property is involved in the transaction, to assure that no hidden problems exist.

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Analysis Framework: Operations

Dr. John Psarouthakis, Executive Editor.

This is the 4 rth of short articles of my thoughts about Leading and Managing winning companies.

A combination of actions and strategies should be analyzed and would need to be conducted looking at several key elements of the business, listed below, in order to begin developing the competitive strategic direction best suited to the business / company. Analysis need to be directed in at least three dimensions: 1) Strategic Direction, 2) Operational and Financial Improvement, 3) Conflict Resolution. Some of these elements are listed below:

Divest Subsidiaries
Re-structure(?) Debt
Working Capital Management
Sufficient Financing
Reengineer Processes
Total Quality Program
Product / Service Aging
Product / Service Renewal
Right-size the work Force
Full Product Costs
Re-price Products
Wage and Benefits Levels
Resize (up / down) of Operations
Working Capital Management
Sufficient Financing
Other

The implementation and the results there of depend entirely on the ability to make and implement good decisions. Myself as a practitioner and academic on strategy formulation and implementation, can attest to the fact that absent of the above abilities no strategy developed can be successful.

A New Economic Growth Corporation, the EGC

Instead of soaking the rich, create some riches

drjohn11aDr. John Psarouthakis, Executive Editor, The Business Thinker, llc(www.BusinessThinker.com)
CV in Linkedin: http://linkd.in/1AF7El7

This article is abstracted from the book 

“The Technology Imperative: What Jobs, Jobs, Jobs, Really Means in the 21st Century”. See reference at end of article.

Imagine a social event in which the cocktail hour races off into a sort of rhetorical overdrive. Each conversational cluster splits 50/50 on nearly every topic. Guests circle the room, beverages in hand and politics in mind. Every chat group becomes an ideological scrum. Half the room chants: “Wealthy people rake in an obscene percentage of this country’s personal income! Call in the IRS! Soak ’em!” The other half chants: “Are you crazy? This is America! If you make it, you shouldn’t have to give it up! Otherwise, why bother achieving success?”

That imaginary back-and-forth can be heard in the real world every day, from co-workers sharing lunch to bellowing broadcasters with listeners coast to coast. Interesting as the debate may be, it is irrelevant because it is the wrong debate. What matters most is not how we should define the word “fair.” The meaningful question is: Which share-the-wealth mechanism and what formula will yield the best outcome for all of us, now and as far into the future as the mind’s-eye can see.

The fairness debate does interest me a great deal but it also frustrates me. When a demagogue gets into a strident harangue about “the One Percent” it angers me. Not because I have quite a different idea about what is fair (I do), but because unchecked demagoguery on this subject will, in my opinion, destroy our economy on its way to destroying our society. If my opinion is correct we are in very deep trouble, because demagoguery about “the One Percent” is an extremely popular commodity these days.

Let me share a plan—or rather an idea, the outline of a plan—I believe would leap beyond the fairness debate, a scrum on which neither side will win many converts anytime soon. I think such a plan if set in motion would reinforce—to everyone’s satisfaction—some basic truths about the source of our nation’s wealth. It would do so quickly. It would not be a mere demonstration program. It would create new wealth It would directly address the perceived “One Percent problem” and would be widely viewed as . . . fair. I believe a strong majority of Americans would support this plan. And just one year following the first April 15 after the plan became law, I think public approval would be even stronger.

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