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jerryking : privately_held_companies   46

Andrea Illy: adapting a family business to a multinational world
JULY 20, 2019 | | Financial Times | by Rachel Sanderson.

*The coffee group chairman argues his style of capitalism is good for business, workers and the consumer*

Andrea Illy, third generation heir of the Illycaffè dynasty, last year struck an alliance with investment group JAB Holdings to produce and distribute Illy coffee capsules...he makes it clear that he does not intend to sell the closely held family company..... “It is a very simple principle about preserving our freedom,” he says of his and his family’s decision, one....Freedom is a word that comes up frequently in conversation with Mr Illy.....who espouses a sort of pick-and-mix version of capitalism, resolutely refusing to focus only on sales and profits. Illy argues his style of capitalism is not charity but good business.......Illy has paid its growers on average 30% more over market value for decades in order to maintain its supply of top Arabica beans. “....The company is rooted in the border city of Trieste....which is also ingrained in the nature of the family......globalisation and increasing competition in the coffee sector has forced Illy to adapt. Staying closely held does not work any more. Co-opetition is his new mantra."“It is like the way to adapt in the savannah. If you do not want to be prey to the big lion, you live in a tree.”"

Part of that adaptation has been the deal with JAB, which allowed Illy coffee capsules to be produced and distributed in supermarkets globally, something that Illy could not do alone......The global coffee industry has become increasingly like the beer tie-ups of the 1990s, with big groups such as JAB and Nestlé snapping up smaller companies. Illy has risked being squeezed between these behemoths and the microroasters emerging as the hip caffeine hit for millennials and Gen Z.....Bigger groups have circled Illy for years. Mr Illy says the family chose JAB because it had the technology he wanted and accepted a licensing agreement rather than an equity one.....To build its global presence, Mr Illy is now looking for a retail partner in the US to help launch Illy coffee bars in the world’s largest coffee market. He says he could even sell a slice of equity. But he is very specific who it would be to: a private financial investor, not an industrial group.....there have been other adaptations. Three years ago, Illy hired an outside chief executive — Massimiliano Pogliani, a former executive at Nestlé’s Nespresso — for the first time since the company was founded in 1933 by Mr Illy’s grandfather, Francesco. Mr Illy has also built a board including executives from clothing group Moncler and Italian cosmetics group Kiko...... studies show that family businesses often fail in the third generation. The move to hire outside management and governance comes as studies also show that family-owned, professionally-run companies are among the best performing in the long term. ......Mr Illy sees these alliances as the only way for a family business model to thrive and to not have to cede control to a multinational when “complexity is becoming too big for a single person to manage”.
.....good stewardship is good business......The Illy family is a supporter of arts and culture, including Trieste’s annual sailing regatta, the Barcolana, where hundreds of boats race across the bay. Mr Illy says this creates a virtuous circle: the more attractive Trieste becomes, the more talented people Illy can attract to work for it and the more visitors come to the city and raise its brand profile........A portrait of his father Ernesto hangs opposite his desk. “I put the painting there to ask him to control what I do,” Mr Illy says.

What, then, has he learnt from his family? “Society is made by the private sector, mostly. And if you want to improve society then we need to be able to pursue long-term goals which are beyond profitability, and then you have to be free and accountable only to yourself,” he says.

Three questions for Andrea Illy
Who is your leadership hero? I have three: Muhtar Kent, former chairman of Coca-Cola; my father; Sebastião Salgado [the photojournalist].

If you were not a CEO/leader, what would you be? A neurosurgeon.

What was the first leadership lesson you learnt? My father asked me when I turned 14 years old where I wanted to go to school. Do you want to start a journey to be a leader or do you want to have fun? I chose the first option and as a result chose boarding school in Switzerland over a local school at home. There I learnt about discipline and hard work but also about the power of a charismatic leader from my headmaster.
alliances  boards_&_directors_&_governance  climate_change  coffee  coopetition  dynasties  family  family_business  family-owned_businesses  financial_buyers  heirs  high-quality  Illycaffè  investors  JAB  licensing  Nestlé  premium  private_equity  privately_held_companies  stewardship  sustainability  the_counsel_of_the_dead  virtuous_cycles 
july 2019 by jerryking
Investment fund makes $1-billion bet on owners who control their companies - The Globe and Mail
The Canadian Business Growth Fund

“Canadian entrepreneurs find it difficult to secure the funding they need to grow, while maintaining control of their business,” said Mr. Rossolatos, who started his own career as a private-equity investor at TorQuest Partners Inc., then ran tech company Avante Logixx Inc. for seven years. He said the new fund, created by the federal Liberal government but backed by the country’s largest financial institutions, will offer an alternative to traditional venture-capital and private-equity funds, which typically demand control of a company in exchange for their money.

“Our goal is to help entrepreneurs scale up their mid-market businesses as a patient, minority capital partner,” Mr. Rossolatos said. The growth fund formally opens its doors on Tuesday with a $545-million capital commitment from 13 Canadian banks and insurers, which have the option of increasing that backing to $1-billion if the concept proves to be a money maker. Mr. Rossolatos joined the fund in January and has spent the past five months setting up the business and hiring a team of a dozen investment professionals.

Backers expect the new fund will help solve what’s perceived to be a chronic problem for small to medium-sized Canadian companies: Owners sell control relatively early in the businesses’ development, and miss out on the opportunity to build regional or even global champions.
Andrew_Willis  owners  private_equity  privately_held_companies  mid-market  mid-sized  global_champions  CEOs 
june 2018 by jerryking
An unusual family approach to investing
May 30, 2018 | FT | John Gapper.

JAB’s acquisition of Pret A Manger resembles private equity but with a long-term twist.

Warren Buffett’s definition of Berkshire Hathaway’s ideal investment holding period as forever. ....Luxembourg-based JAB, owned by four heirs to a German chemical fortune, takes a family approach to investing. It is unusual in that this holding company seeks to retain its portfolio companies for at least a decade. These include Panera Bread, Krispy Kreme and Keurig Green Mountain coffee, which it merged with Dr Pepper Snapple in an $18.7bn deal in January 2018. This week JAB acquired the UK sandwich chain Pret A Manger for £1.5bn, continuing its buying spree of cafés and coffee, mounting a challenge to public companies such as Nestlé.

**These companies are acquired not to be traded but to be invested in and expanded.**

JAB is an innovative combination of ownership and investment in a world that needs challengers to stock market ownership and private equity. It is family controlled, but run by veteran professional executives. When it invests in companies such as Pret A Manger, it deploys not only the Reimann family’s wealth but that of other entrepreneurs and family investors.......Some of the equity for its recent deals, including Panera and Dr Pepper, came from funds raised by Byron Trott, the former Goldman Sachs investment banker best known for being trusted by the banker-averse Mr Buffett. Mr Trott’s BDT banking boutique specialises in advising founders and heirs to corporate fortunes, including the Waltons of Walmart, and the Mars and Pritzker families.

This is investment, but not as most of us know it. By definition, the world’s companies are mostly controlled by founders and their families — only a minority become big enough to be floated on stock markets and need to disclose much of their workings to outsiders. Family fortunes also tend to remain as private as possible: there is little incentive to advertise how much wealth one has inherited......As [families'] fortunes grow in size and sophistication, more of the cash is invested in other companies rather than in shares and bonds. That is where JAB and Mr Trott come in.

Entrepreneurs and their families tend to be fascinated by their own enterprises and bored by managing their wealth. But they want to preserve it, and they often like the idea of investing it in companies similar to their own — industrial and consumer groups that need more capital to expand. It is not only more interesting but a form of self-affirmation for the successful....Being acquired by JAB is appealing. The group turns up, says it will not take part in an auction but offers a good price (it bought Pret for more than its former owner Bridgepoint could get by floating it). It often keeps the existing executives, telling them they have to plough their own money into the company, and invests in long-term growth provided the business is efficiently run.

This is more congenial than heading a public company and contending with a huge variety of shareholders, including short-term and activist investors. It is also less risky than being bought by 3G Capital, the cost-cutting private equity group with which Mr Buffett teamed up to acquire Kraft Heinz. While 3G is expert at eliminating expenses it is less so at encouraging growth.
coffee  dynasties  high_net_worth  holding_periods  investing  investors  JAB  long-term  Nestlé  Pritzker  private_equity  privately_held_companies  Unilever  unusual  Warren_Buffett  family  cafés  Pret_A_Manger  3G_Capital  discretion  entrepreneur  boring  family_business  heirs 
may 2018 by jerryking
Trump, Kushner and the businessman fallacy
Simon Kuper MARCH 8, 2018
The “businessman fallacy” — the notion that a rich businessman (never a woman) can run government better than a mere politician — is Donald Trump’s basic promise. That’s why the combustion of his son-in-law, fellow real-estate heir and senior adviser Jared Kushner — whose business dealings in the White House scream conflict of interest — is so telling. Kushner incarnates the businessman fallacy.......The businessman-turned-politician is often blinded by hubris. This usually stems from the “money delusion”: the idea that life is a race to make money, and that rich people (“winners”) therefore possess special wisdom.

Many businessmen imagine they pulled themselves up by the bootstraps in a free market, something that more people could do if only there was “less government in business”. This self-image usually omits context: the fact, say, that the businessman’s father built the company (before being jailed on a ridiculous technicality) or that government enforced his contracts and schooled his employees.....Rich Americans tend to feel contempt for politicians because they have learnt to treat them as lowly service providers who will sit up and beg for donations.
self-imagery  Simon_Kuper  Donald_Trump  Jared_Kushner  nepotism  White_House  conflicts_of_interest  oversimplification  privately_held_companies  family-owned_businesses  hubris  generalists  businessman_fallacy  heirs 
march 2018 by jerryking
Digital endurance runner picks up pace with Penguin deal
July 15/16, 2017 | Financial Times | Guy Chazan

Bertelsmann's latest big investment, in Penguin Randon House (PRH), a traditional ink-on-paper publisher. .The German group, which already owns 53% of PRH, will pay $780m to buy an additional 22% from its partner, Pearson......The deal seems at odds with Bertelsmann's digital-first strategy. Rabe sees no contradiction....Bertelsmann must maintain a balance between high-growth investments and stable, cash-generative businesses like PRH....It margins are high,[and it] contributes to the cash flows Bertelsmann needs to invest in new businesses with higher growth potential than book publishing.....Mr. Rabe has responded by diversifying Bertelsmann out of Europe, investing in digital start-ups in China, India and Brazil and branching into online education in the US. The bright digital-first future is still far off. But Rabe , an endurance runner, relishes a long and winding road.
CEOs  digital_media  Bertelsmann  online_education  high-growth  Pearson  publishing  digital_first  cash-generative  cash_flows  privately_held_companies  Germany  German  cash_cows 
july 2017 by jerryking
All the companies in Jeff Bezos’s empire, in one (large) chart
June 30, 2017 |MarketWatch | SALLY FRENCH, SOCIAL MEDIA EDITOR & DRONE REPORTER
charts  Jeff_Bezos  privately_held_companies  investors  angels  Amazon 
july 2017 by jerryking
New partnership aims to create ‘a Bloomberg for private companies’ - The Globe and Mail
JACOB SEREBRIN
Special to The Globe and Mail
Published Thursday, Apr. 27, 2017

The lack of data on Canada’s startup ecosystem is a major problem, says Dan Breznitz, the co-director of the Innovation Policy Lab and the Munk Chair of Innovation Studies at the University of Toronto’s Munk School of Global Affairs. “On anything that has to do with innovation policy, and I would actually say a lot of other growth policies, we have horrible data in Canada,” Mr. Breznitz says.

Gathering more data on accelerators and incubators is a good step, he says......Hockeystick’s platform acts as a tool for private companies to store data and share it with investors and potential investors. That data ranges from investments and sales numbers, to the number of employees and the names of the company’s founders.

Over 10,000 companies are currently using the platform. The new partnership will help the company reach its goal of having data on the majority of private companies in Canada instead of just a fraction, according to Raymond Luk, Hockeystick’s founder and CEO.
partnerships  WLU  start_ups  Kitchener-Waterloo  financial_data  privately_held_companies  innovation_policies 
april 2017 by jerryking
M&M Meat Shops expands offerings, changes name in bid to lure customers - The Globe and Mail
MARINA STRAUSS - RETAILING REPORTER
The Globe and Mail
Published Tuesday, Mar. 15, 2016
Acquired about 18 months ago by private equity firm Searchlight Capital Partner LP,....
"In November, M&M upgraded its website and click-and-collect e-ordering, which it has been offering for eight years. Shoppers order online and pick up at the store of their choice. The site has enjoyed a 40-per-cent rise in e-orders since the relaunch, Mr. O'Brien said. E-commerce purchases, at $65-plus each on average, are usually more than twice the value of in-store purchases, he added."
Marina_Strauss  meat  retailers  frozen_foods  CEOs  rebranding  M&M_Food_Market  BOPIS  e-commerce  private_equity  privately_held_companies  in-store 
march 2016 by jerryking
Investors Find Ways to Indirectly Profit From Valuable Start-Ups - The New York Times
AUG. 9, 2015 | NYT | By KATIE BENNER.

Frank Timons and LeAnne Schweitzer, the co-founders of Pier 88, believe there is money to be made on this big gap between public and private company valuations. In their view, the public companies are such relative bargains that they will make great acquisitions for purchasers that want to better compete with upstarts like Airbnb. Then, when those publicly traded companies are snapped up — often for a premium of more than 50 percent — Pier 88 can profit from the bet.
investors  privately_held_companies  hedge_funds  start_ups  valuations  Airbnb 
august 2015 by jerryking
As More Tech Start-Ups Stay Private, So Does the Money - The New York Times
JULY 1, 2015
Photo

Credit Stuart Goldenberg
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Continue reading the main story

Farhad Manjoo
start_ups  privately_held_companies  Andreessen_Horowitz  Farhad_Manjoo 
july 2015 by jerryking
Former Xstrata boss Mick Davis a slimmer, trimmer predator - The Globe and Mail
Mar. 13 2015 | The Globe and Mail | by ERIC REGULY - EUROPEAN BUREAU CHIEF
LONDON.

Mick Davis runs X2 Resources, which has 10 employees and zero assets other than $4-billion of investor capital, some of it from Canadian pension funds, sitting idly in the bank.

X2 was launched a year ago and has been shopping for mining assets or operating companies, but has come up short....Mr. Davis is wealthy. He recently donated £1.1-million ($1.5-million) to David Cameron’s Conservative party to support its re-election bid in the May general election. He admits he doesn’t need to launch X2 to support his lifestyle, though he would like to donate more money to his charities. What’s really driving him is the urge to build once again....Xstrata began life in 2001 as a small lump of coal assets discarded by Glencore. Big Mick had emerged as the industry’s premier predator. “What motivates me is to be able to create and build,” he said back then. “If you’re going to be productive in your time in this world, you have to add to it. I have the capability of adding commercially.”....Commodities recovered shortly after the 2008 financial crisis, then went into a long slump that continues today – copper is down more than 15 per cent in the past year, iron ore by 50 per cent. The culprit was not waning demand, Mr. Davis explains; it’s still rising, albeit at a slower pace. Instead, it was epic miscalculation by the corporate captains and the investors who threw money at them. When prices were strong, the biggies invested fortunes in new mines and smelters and all the ports, ships and railways that went with them. These projects were vast, expensive and took many years to build.

All that new production is now hitting the market like a sledgehammer.
Xstrata  Mick_Davis  mining  Glencore  Eric_Reguly  miscalculations  Second_Acts  commodities  private_equity  mergers_&_acquisitions  natural_resources  X2  entrepreneur  privately_held_companies  overcapacity  overexpansion 
march 2015 by jerryking
The Risks of Mission-Driven Companies–Part 1 - Risk & Compliance - WSJ
October 9, 2014 | WSJ | Gregory J. Millman is a senior columnist with Risk & Compliance Journal He is the author of The Vandals’ Crown: How Rebel Currency Traders Overthrew the World’s Central Banks, and several other books.
AMERICAN HALAL, BEN & JERRY'S, COCA COLA CO., GREENMONT CAPITAL PARTNERS, MARY'S GONE CRACKERS, MISSION-DRIVEN, ODWALLA, UNILEVER PLC

The fact that the founder and the investors in Mary’s Gone Crackers disagree about such fundamental issues as how to grow, the role of capital, and the motivations of investors exemplifies the risk and governance challenges that mission-driven companies can pose.

Acquirers also face risk when buying such businesses. “It’s extraordinarily difficult for a large company to take over a company with a specific brand consciousness that has to be operated on an arms- length basis from a marketing standpoint. Very few companies can manage to do that,” said Lewis Paine, senior vice president for consulting at marketing research firm GfK.

At ice cream maker Ben & Jerry’s, acquired by Unilever PLC in 2000, “there have been a lot of bumps on the road,” said the unit’s chief executive, Jostein Solomon. An unusual sales contract, which we will discuss in more detail in the next article in this series, has helped keep the mission identity of the ice cream maker on track despite those bumps. Even so, said Brad Edmondson, author of the book Ice Cream Social: The Struggle for the Soul of Ben & Jerry’s, “It took Unilever a long time to really understand what it had agreed to, and there was a period of eight or nine years when Ben & Jerry’s and Unilever did not have a good working relationship.”

Adnan Durrani, founder of American Halal, said in a recent interview with Risk & Compliance Journal: “In a socially responsible business, the connection to the consumer is tied in with the brand value; one reason consumer packaged goods companies pay higher multiples for such businesses is that they want to grab those consumers. But once they do, they lose sight of the fact that there is authentic trust and transparency when the management team is close to that community.”

Business as usual may kill the goose that laid the golden egg.
books  Unilever  brands  privately_held_companies  Odwalla  mission_statements  Coca-Cola  motivations  values  large_companies  mission-driven  cultural_clash 
october 2014 by jerryking
'Big Mick' returns to mining - and he's hungry for acquisitions
October 1, 2013 | Globe & Mail | ERIC REGULY.

Mick Davis is back in the mining game....Mr. Davis, older, leaner but still hungry, along with a few former Xstrata executives, has launched X2 Resources, a private company that has raised $1-billion (U.S.) and plans to raise more. The goal is to give it the firepower to pounce on mining assets that the X2 executives consider undervalued in a market that has lost its love for commodities....Mr. Davis is bullish on commodities and thinks the selloff that sent mining company values plummeting is overdone, although he does not see a return to the "explosive" demand that turned mining companies such as Xstrata into some of the biggest wealth generators of the pre-2008 era. "We still have a lot of conviction about the resources industry," he said. "We're seeing ongoing demand in the developing world and the rise of consumer markets there."

Mr. Davis built his career on this "stronger-for-longer" theory that was centred on he belief that urbanization in China, India and some parts of sub-Saharan African would send the prices soaring for the copper used in everything from plumbing to the coal burned in electricity plants....In a statement, Jim Coulter, TPG's founding partner, said it invested because "the X2 team has an impressive track record of building metals and mining platforms around the world."
Eric_Reguly  Mick_Davis  Second_Acts  Glencore  staying_hungry  mining  commodities  private_equity  mergers_&_acquisitions  TPG  natural_resources  X2  Xstrata  entrepreneur  privately_held_companies  urbanization  China  India  sub-Saharan_Africa  investment_thesis  undervalued  developing_countries 
october 2013 by jerryking
Meet Bloomberg's data-driven Daniel Doctoroff
Aug. 09 2013 | The Globe and Mail |JOANNA SLATER.

Mr. Doctoroff’s job, as deputy mayor for economic development, would include rebuilding the site and pushing ahead with projects envisaged in the Olympic bid....Founded by Mr. Bloomberg in 1982, the firm grew into a global juggernaut that disrupted every field it touched, from market data to financial journalism....Mr. Doctoroff had a yen for precision and a belief in the power of data. To eliminate clutter on his desk, he never touches a piece of paper twice. “I either delegate something, I dump it, or I deal with it,”...Mr. Doctoroff’s mission at Bloomberg is twofold. The first is to sell more terminals – a subscription service that costs more than $20,000 (U.S.) a year per person and offers access to an expanding universe of data, analytical tools and news. Last year was a tough one for terminal sales; Wall Street firms continued to shed staff in what Mr. Doctoroff describes as “the fourth year of post-financial crisis adjustment.”

The second task is to lead the company into other areas and make those investments pay off. Bloomberg has launched what it hopes will become indispensable data products for fields like law and government and also for back-office personnel within finance. Then there’s the media business, which includes a news service, television, radio and magazines, among them Bloomberg Businessweek, which was purchased in 2009. Businessweek still isn’t profitable, but it’s losing much less money than it used to. The magazine, like the rest of the news operation, serves another objective in the Bloomberg ecosystem, Mr. Doctoroff said: heightening the firm’s profile so it can attract more market-moving scoops, which in turn helps to sell more terminals....On his career path: I believe we’re all endowed with a very small set of narrow skills that make us unique. You’ve got to find what that is. Most often what you truly understand makes you unique is something that you’re also going to build passion around. For me – and I didn’t really discover this until I was in my 40s, the line that connected the dots … [is] seeing patterns in numbers that enable me to tell a compelling story which helps to solve a problem. So whether it is helping a candidate get elected or doing a road show for a company, getting a project done in New York or hopefully setting a vision for a company, it’s that narrow skill.
New_York_City  Bloomberg  data_driven  precision  CEOs  organizational_culture  Wall_Street  private_equity  digital_media  disruption  privately_held_companies  Michael_Bloomberg  fin-tech  journalism  pattern_recognition  career_paths  gtd  mayoral  Daniel_Doctoroff  storytelling  product_launches  sense-making  leadership  insights  leaders  statistics  persuasion  ratios  analogies  back-office  connecting_the_dots  scoops  financial_journalism  financial_data  special_sauce  non-routine  skills 
august 2013 by jerryking
What are the first three questions you should ask before investing in a private company? - Institute for Individual Investors
February 22, 2008

1) What is the background of the key people in this business and what have they each accomplished in this type of business in the past? As part of that question, what is their best accomplishment and what is the worst mistake they have made in business?
2)What competitive advantages does the business have? The competitive advantages should be laid out in the business plan.
3)What could go wrong and prevent the start-up from achieving its goals? If the key people do not have a list of what could go wrong, you should not invest in the start-up, because they have not done a thorough job of planning to make the start-up successful.
angels  due_diligence  privately_held_companies  thinking_tragically  think_threes  team_risk  investing  investors  questions  competitive_advantage 
march 2013 by jerryking
Direct Investment in Emerging Companies -- A Different Game
Direct Investment in Emerging Companies -- A Different Game
Dawson, David CView Profile; Collons, Rodger DView Profile. Journal of the American Society of CLU & ChFC40. 6 (Nov 1986):

Successful venture-capital investing demands expertise in assessing business plans and especially the ability of the management team to execute them. To participate in quality deals, the investor must have a plan, a clear commitment, and a high level of credibility. A successful investment plan should focus on 3 or 4 broad investment areas. Prospective investors usually communicate their plans to the venture capital community by publishing their screening and investment criteria. Typical screening criteria relate to: 1. technical investment areas, 2. geography, 3. resource requirements, and 4. size of business. Investment criteria may relate to the total amount to commit, the timing of investments, and the amount to invest in each situation. Once the investment plan and program have been developed, investment selection, management, and monitoring begin. There must be procedures in place to perform the following functions on an ongoing basis: 1. investment evaluation, 2. assessment of co-investors, 3. follow up on investment, and 4. board representation.
ProQuest  start_ups  private_equity  privately_held_companies  quality  venture_capital  vc  investors  team_risk  co-investing  screening  criteria  boards_&_directors_&_governance 
october 2012 by jerryking
So you want to sell your business?
Sep 2004 | NZ Business | Richard O'Brien.

I include sections that outline the facts about your company's history, structure and operations, market, products, historical and projected financial statements, the asking price and basic terms you are looking for. List your employees and any physical assets, together with any other information that explains who you are and why your business is such a strong opportunity. Keep in mind who your audience is and don't divulge any information that you wouldn't want your competitors to see.
selling_a_business  privately_held_companies  exits 
august 2012 by jerryking
Build a Practice Niche by Assisting Clients with Business Planning
Dec 1991 | The Practical Accountant | by Mark Scally and Mark C. Smitt.
Smaller companies tend not to have any formal business plans, and those that do often fail to implement them properly. Accountants ran assist their clients wlth the business planning process. The process must be tallored for each company's unique characteristics, and every consultant uses a slightly different process. The following process has been adapted from the traditional model to fit the typical closely held business: 1. Analyze internal and external factors. 2. Develop a mlssion statement. 3. Set goals. 4. Develop a marketing and sales strategy. 5. Perform financial projections. 6. Draft action plans. 7. lmplement the plan. 8. Put the proper organizational structure and management team in place. 9. Implement the necessary information systems. The planning process gives closely held companies a comprehensive approach for responding to uncertain economic times.
business_planning  management_consulting  niches  small_business  privately_held_companies  JCK  uncertainty  action_plans  mission_statements  goal-setting  implementation  organizational_structure  formalization  professionalization 
august 2012 by jerryking
Exits and Family Offices
2006 | Tax Management Inc. a subsidiary of the Bureau of National Affairs |
family_office  exits  succession  tools  privately_held_companies 
august 2012 by jerryking
Germany's Smaller Firms Take Lead in Restructuring - WSJ.com
June 25, 2003 | WSJ | By MATTHEW KARNITSCHNIG | Staff Reporter of THE WALL STREET JOURNAL

Germany's Smaller Firms Take Lead in Restructuring
Adapting to the Economic Slump, The Mittelstand Changes Its Ways
Germany  small_business  glass  Mittelstand  entrepreneur  privately_held_companies 
may 2012 by jerryking
The Company Way - WSJ.com
April 9, 2003 | WSJ | By JOHN MICKLETHWAIT and ADRIAN WOOLDRIDGE
privately_held_companies  Iraq  Middle_East 
may 2012 by jerryking
Why Flush Financiers Court Unloved Businesses - WSJ.com
APRIL 9, 2007 | WSJ | By KAREN RICHARDSON and SERENA NG

Relatively Cheap Entries, Potential for Rich Exits Draw Bargain Hunters to the Turnaround Game.

Veteran financiers flush with cash are turning their sights on industries shunned by the stock market, tapping into tax benefits, newfangled loans and an ability to borrow far more money than public shareholders would tolerate.

...These deals offer a chance for successful restructuring of companies and industries struggling to meet the challenges of globalization, modern technology or economic cycles. As private enterprises, they can undertake union talks and financial restructuring outside the glare of public scrutiny and without worrying about the impact on small shareholders.
boring  Sam_Zell  turnarounds  Wilbur_Ross  restructurings  private_equity  privately_held_companies  financiers  vulture_investing  economic_cycles  unglamorous 
october 2011 by jerryking
Should You Buy Facebook at $30 per Share?
January 5, 2011 - SmartMoney.com by Sarah Morgan. With hot
tech companies like Twitter, LinkedIn and Facebook still officially
off-limits to retail investors, sites like SharesPost and SecondMarket,
which match buyers with sellers of fast-growing firms, have found a
niche...Both sites match qualified investors with employees or
early-stage investors who have shares in private companies -- and need
the cash. Investing is restricted to "accredited" investors...On the
secondary markets, shareholders get an exit, and interested investors an
opportunity. But there are significant drawbacks, including a lack of
disclosure of financial information and the fact that shares don't trade
often, which means it can be hard to cash out when you want to, says
the Financial Industry Regulatory Authority. Also, because many
early-stage companies fail, investment professionals consider pre-IPO
investing very risky.
secondary_markets  Goldman_Sachs  Facebook  Twitter  privately_held_companies  SharesPost  SecondMarket 
january 2011 by jerryking
Private Venture Investing: “Questions an Investor Should Ask”
1998 | written by Cam Crawford from Coakwell Moore Chartered
Accountants-Management Consultants of High River, Alberta, with the
assistance of Sue Bannerman from INT Associates Inc.-Management and
Training Consultants of Olds, Alberta.
angels  due_diligence  investing  questions  privately_held_companies  investors 
december 2010 by jerryking
Quid Emerges From YouNoodle, Delves Into Data on Private Firms - Bloomberg
By Ari Levy - Sep 14, 2010. Quid Inc. aims to shed light on
the insular world of technology innovators & investors while making
money itself. While public companies disclose financial results and
research plans quarterly, private-company information is less
transparent. That’s where Quid comes in, using its relationships &
research to fill in the gaps. The challenge will be getting enough
customers to pay for the data. “It’s in private companies where so much
of the world’s technology is being developed,” “To date, no one has
delved into what these companies are doing. That’s the data we care most
about.” To succeed, Quid will have to go beyond the kind of data that
more-established competitors have collected. Hoover’s, a unit of D &
B., has info. on 65 million companies, both public and private. It
sells the data via subscriptions. Quid’s likeliest customers are
companies that need to track technology trends, as well as govt. groups
involved with economic development &security.
Quid  Peter_Thiel  privately_held_companies  start_ups  scuttlebutt  opacity  data 
october 2010 by jerryking
Condé Nast Hopes to Wean Itself From Ad Revenue - NYTimes.com
July 23, 2010 | New York Times | By JEREMY W. PETERS. "”The
goal of the overhaul, is to transform Condé Nast into a business that
relies less on advertising revenue and more on the income it makes from
charging consumers to read its products on both digital and print
platforms." ..."Beyond succession, other questions remain about the
company’s future, namely whether it can wean itself from advertising
dollars as much as it would like. Its transition to a more
consumer-focused business model will be difficult for a company that now
earns about 70 percent of its net profit from advertising.
Condé Nast has been slower than other magazine publishers to embrace the
Internet, and some industry analysts have questioned whether its
lateness in developing a digital strategy would harm the company in the
long run. "
publishing  magazines  Condé_Nast  privately_held_companies  succession  digital_strategies 
july 2010 by jerryking
2008 Wealth Guide: The private payoff | Canadian Business Online
March 2008 | PROFIT magazine | By Kim Shiffman

It's not for the faint of heart, but investing in private companies can generate big returns and more.
investing  investors  angels  privately_held_companies  large_payoffs  personal_payoffs  upside 
march 2009 by jerryking

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