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Northwood University 2015
- 2. TOM MARX • 30+ years in a,ermarket – Marke1ng Communica1ons – Mergers & Acquisi1ons • Most segments, channels and products • Industry engagement INTRODUCTION © 2015 Marx Group Advisors, LLC 2
- 4. Driving Smarter Mergers & Acquisi4ons Experience. Knowledge. ExperKse. • Automo1ve • Performance • Specialty Products • Motorsports • Commercial Vehicle and Heavy Duty • Tier 1, Tier 2 and A,ermarket MARX GROUP ADVISORS © 2015 Marx Group Advisors, LLC 4
- 12. • Exit strategy: planned -- or not • Re1rement and no bullpen • Accident, illness or worse • Financial challenges • Disagreements between partners or family members • An approach to corporate restructuring • Get rid of an underperforming asset • Capitalize on be^er performing assets • An offer that cannot be refused • Freedom – It isn’t fun anymore! SELL OR DIVEST © 2015 Marx Group Advisors, LLC 12
- 13. • Grow or fade away • Strategic acquisi1ons • Territory • Market share • Economies of scale • Gain new customers, suppliers, management, technology • Take out the low price leader ACQUIRE A B © 2015 Marx Group Advisors, LLC 13 A B A B
- 16. Succession planning gone RIGHT • Next genera1on moves into leadership • Seamless • All on the same page • Plan successfully executed with minimum of drama OWNERSHIP EVENTS © 2015 Marx Group Advisors, LLC 16
- 17. Succession planning gone WRONG • Current genera1on won’t let go • Illness or worse • Fric1on builds, frustra1on grows and finally outside therapy comes to rescue • Drama creates ri,s, slows growth, creates risk • Plan isn’t executed OWNERSHIP EVENTS © 2015 Marx Group Advisors, LLC 17
- 18. PE firms drive consolidaKon • Provide funds/exper1se needed to grow the business • Higher mul1ples mo1vate sale • Supports succession planning • Buys out certain family members • Some acquisi1ons are 100% and some can be par1al cash-out or as mo1va1on to stay • The ul1mate exit strategy • Result: You now are accountable to someone else ROLE OF PRIVATE EQUITY © 2015 Marx Group Advisors, LLC 18
- 19. • Sell • Acquire • Merge • Private equity • Ownership event CHANGE – RELEVANCE TO YOU Have you experienced these scenarios? © 2015 Marx Group Advisors, LLC 19
- 20. What to expect • Survival • Organiza1onal consolida1on and adjustments • Your value to surviving en1ty • Leadership CHANGE – RELEVANCE TO YOU © 2015 Marx Group Advisors, LLC 20
- 21. The inner sanctum • What does this mean? • How do I get there? • How will I know? • How do I react when surprises happen? CHANGE – RELEVANCE TO YOU © 2015 Marx Group Advisors, LLC 21
- 22. Will I thrive? • Stay posi1ve • Find ways to drive collabora1on • Show objec1vity • Be focused • Know when to hold ‘em vs. when to fold ‘em • And through all this -- get your day job done CHANGE – RELEVANCE TO YOU © 2015 Marx Group Advisors, LLC 22
- 23. SINCERITY • Be me1culous with preparing company for transi1on • Keeping it quiet—the true meaning of an NDA • Where do I go to release the tension? • The ul1mate sign of maturity • Do I jump ship? YOUR COMPANY IS SELLING © 2015 Marx Group Advisors, LLC 23 TRUST
- 24. • Devil is in the details • Integra1on o,en is the difference between success or failure • Planning is important – execu1on is everything • Build a diverse team • Opportunity knocks YOUR COMPANY IS BUYING © 2015 Marx Group Advisors, LLC 24
- 25. • Crea1ng financial gain • Efficiency is key • Keeping customers happy • Opportunity knocks • Do I jump ship? YOU’RE SELLING/MERGING © 2015 Marx Group Advisors, LLC 25
- 26. • The founda1on for successful M&A • Make sure that the whole is more valuable than the sum of the parts • No room for duplicate expenses • Expect many changes • Keep focus on the metrics required by board, bank or PE firm YOU’RE SELLING/MERGING © 2015 Marx Group Advisors, LLC 26
- 27. • Team builder • Accountable • Decision maker • Redesign or refine the company’s culture ALWAYS BE YOUR BEST © 2015 Marx Group Advisors, LLC 27
- 28. • Retain the best people • Keep your team informed • Maintain/increase produc1vity • Handle issues before panic sets in MANAGE YOUR PEOPLE © 2015 Marx Group Advisors, LLC 28
- 30. • Grow the business • Build the brand • Clarify value proposi1on • Focus on sales • Target marke1ng • Streamline opera1ons • Understand the finances SHAPE THE FUTURE © 2015 Marx Group Advisors, LLC 30
- 31. QUESTIONS? 1 2 3 4 Where are you in the process? What else are you curious about? What are your concerns? What stops you?