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Add You - Strategic Acquisition Strategies for Small Businesses
Telemarketing sales lists play a vital role in making a business successful and profitable. But the lists must consist of handy leads. You have to make sure that the telemarketing sales lists are updated regularly. In needed, you will have to do away with your existing telemarketing company to opt for another one. Business houses require telemarketing sales lists to kick off any direct mail campaign. Companies undertake such campaigns to develop their business. So, the information mentioned in the telemarketing sales leads have to be up to date.You can’t afford take chances with telemarketing sales lists. The lists should include all the verified names and addresses. The authenticity of the lists will have a significant bearing on your business prospect. The content in the telemarketing sales list must be relevant to your business. If you find it’s too difficult for you to maintain an up to date telemarketing sales lists, you can hire any telemarketing database administrator to do the job for you. However before appointing any telemarketing company, you have to ensure that it has got the experience and expertise to take care of your needs and requirements. The telemarketing companies usually offer reliable and affordable sales lists phenomenal in making all the difference in your business. If you opt for a proficient telemarketing company, you will definitely get some great sales leads. The business thrives on the quality of the sales leads it can generate.That’s why telemarketing sales lists assume greater significance among the business entrepreneurs. If you want to give your business a favorable climate to prosper, there is no option left but to go for a great tele
Strategy #2 - Reduce expenses through economies of scale
The picture gets even better if eliminating duplications and other economies of scale will reduce company SMALLER's expenses. Every dollar reduction in expenses translates into $15 of value (P/E Ratio of 15 X $1). Increases in Value Calculation -- Company BIG is able to eliminate 1 million dollars of r
Button badges are arguably one of the most classic promotional items. Events as diverse as concerts, hen nights, political campaigns and charity fund raising have all seen the benefits of using button badges as small merchandise items. Funky and with an enduring appeal, button badges can be manufactured in a choice of shapes and in a range of different sizes, enabling companies to be as creative as they want. Small quantities are unusually economic, whilst very large runs can also be produced within the tightest of budgets.The humble tin button badges has timeless appeal - collectible, trendy and extremely economical. The growth in demand for these items continues with avid collectors always on the look out for new badges to add to their collections.As with any promotional products, a few key points should be taken into account when deciding on the right button badge for a campaign. First, establish the budget and timings. Also check if there are any extras not included in the quotation, like artwork, origination and delivery costs. Identify the marketing objective and consider the brand image. Although button badges are primarily used as promotional giveaways to raise awareness, remember that a quality brand can easily be devalued by poor quality products. Understand the target market as this will help in deciding which design will have the best impact on them. Finally, be innovative and creative. In order to stand out from the crowd in a competitive market, button badges need to be original and eye-catching in every way.
Timing is Right - Two elements have combined making growth through acquisition an attractive option for small and middle market companies.
Demographics - The maturing of the Baby Boom generation, many of whom own their own businesses, will increase the number of owners willing to consider selling to an historic high.
Financing - Money is available to finance small and middle market acquisitions. Banks and non-traditional lenders are aggressively pursuing acquisition lending at a level we have not seen in twenty years. Cash required to do a deal is at an all time low.
Profit Pays the Bills Profit and Value are two main financial components of every business. Profits are essential and therefore on every businessperson's front burner. Value, on the other hand, is an elusive and intangible issue. Unlike Public company presidents, whose effectiveness is measured daily in their firm's share price, private and family business presidents need not be concerned with their company's value as their shareholders, if any, typically focus upon profit only.
Value Measures the Size of Your Pile
Shareholders of Public Companies measure their wealth (or the size of their pile) using share value not earnings per share. Successful CEOs, therefore, develop strategic plans for growth and profit that maximize shareholder's value. Mergers and Acquisitions is a fundamental element of most strategic plans to grow profits and value simultaneously. What follows is an overview of Public Company strategies to grow profits and value through acquisitions and how to adapt these strategies to private and family businesses. Although the topic may seem technical and complex it is really quite basic and straightforward.
An Overview Adding earnings or profits is self-explanatory. We will, therefore, focus primarily on the value component of growth through acquisitions.
We know a Public Company's Price/Earnings Ratio measures the amount investors are willing to pay for $1 of company earnings and that a P/E ratio of 15 for a well-run company is not unusual. Consequently, company BIG with 100 million dollars of earnings and a P/E Ratio of 15 has a value of 1.5 billion dollars. We also know private company P/E Ratios are much lower than those of Public Companies.
Strategy #1 - Acquire companies with a smaller P/E ratio than yours
Example: The Transaction -- Company BIG with a P/E Ratio of 15 acquires company SMALLER and pays 10 times earnings (P/E ratio = 10). Company SMALLER's 10 million dollar of earnings are added to those of company BIG. Increases in Value Calculation -- SMALLER's earnings are now worth 15X instead of 10 times earnings resulting in an immediate increase in value of 5X earnings or $50,000,000 (5 times $10,000,000) over and above the value paid by company BIG.
Strategy #2 - Reduce expenses through economies of scale
The picture gets even better if eliminating duplications and other economies of scale will reduce company SMALLER's expenses. Every dollar reduction in expenses translates into $15 of value (P/E Ratio of 15 X $1). Increases in Value Calculation -- Company BIG is able to eliminate 1 million dollars of re
Service contracts are key for the busy computer consultant. They will help you to manage your time when you have many clients all needing service at once. By setting up computer service contracts you will be able to maximize your utilization rate while still having enough time to deal with client emergencies when they crop up.When you have a bunch of clients who all have an emergency of some sort you can't be everywhere at once. To deal with this you need to narrow down the list of who you are obligated to respond to emergencies for. You do this by creating computer service contracts.A service contract business model is so important because what you are doing is forcing the people you service to make a decision. Are you in or are you out? Your service contract model weeds out those who are just testing the waters. Without a computer service contract it is you who decides if you can handle their emergency or not.By using computer service contracts you can manage everyone's expectations effectively. Those who have a service contract know they are top priority. Those who don't, know that you have clients with service contracts and that they are the ones who are dealt with first.The Bottom Line on Service ContractsService contracts keep expectations in a nice neat package. You don't have to stress about trying to be everything to everyone. You can concentrate on providing top quality service to those clients you have a service contract with. The rest will simply have to wait in line.Copyright MMI-MMVI, Computer Consultants Secrets. All Worldwide Rights Reserved. {Attention Publishers: Live hyperlink in author resource box required fo
Profit Pays the Bills Profit and Value are two main financial components of every business. Profits are essential and therefore on every businessperson's front burner. Value, on the other hand, is an elusive and intangible issue. Unlike Public company presidents, whose effectiveness is measured daily in their firm's share price, private and family business presidents need not be concerned with their company's value as their shareholders, if any, typically focus upon profit only.
Value Measures the Size of Your Pile
Shareholders of Public Companies measure their wealth (or the size of their pile) using share value not earnings per share. Successful CEOs, therefore, develop strategic plans for growth and profit that maximize shareholder's value. Mergers and Acquisitions is a fundamental element of most strategic plans to grow profits and value simultaneously. What follows is an overview of Public Company strategies to grow profits and value through acquisitions and how to adapt these strategies to private and family businesses. Although the topic may seem technical and complex it is really quite basic and straightforward.
An Overview Adding earnings or profits is self-explanatory. We will, therefore, focus primarily on the value component of growth through acquisitions.
We know a Public Company's Price/Earnings Ratio measures the amount investors are willing to pay for $1 of company earnings and that a P/E ratio of 15 for a well-run company is not unusual. Consequently, company BIG with 100 million dollars of earnings and a P/E Ratio of 15 has a value of 1.5 billion dollars. We also know private company P/E Ratios are much lower than those of Public Companies.
Strategy #1 - Acquire companies with a smaller P/E ratio than yours
Example: The Transaction -- Company BIG with a P/E Ratio of 15 acquires company SMALLER and pays 10 times earnings (P/E ratio = 10). Company SMALLER's 10 million dollar of earnings are added to those of company BIG. Increases in Value Calculation -- SMALLER's earnings are now worth 15X instead of 10 times earnings resulting in an immediate increase in value of 5X earnings or $50,000,000 (5 times $10,000,000) over and above the value paid by company BIG.
Strategy #2 - Reduce expenses through economies of scale
The picture gets even better if eliminating duplications and other economies of scale will reduce company SMALLER's expenses. Every dollar reduction in expenses translates into $15 of value (P/E Ratio of 15 X $1). Increases in Value Calculation -- Company BIG is able to eliminate 1 million dollars of r
Have you ever asked yourself this question at work? If you have, it’s more than likely you were being sarcastic – stuck in the office late because a superior tossed a short-deadline project on your desk, or while you’re bemoaning a lack of job satisfaction.You need to ask yourself this question...FOR REAL.Life is short – you SHOULD be having fun.What brings passion into your life? What would you do even if you weren’t being paid? If your career path doesn’t fall within the answers to those questions, you might want to consider embracing some personal change.Choosing your career path isn’t something done during college and never revisited. Your working life needs to be reassessed regularly to evaluate whether your life is in balance. For example, if you chose a career path strictly because of the income it offered, it’s a better than even bet you’re now feeling stressed by work pressures at the cost of the rest of your life.What did you dream of being when you were young? I dreamed of writing, and of acting. I went to college for theatre, then moved to New York and became a television engineer. It might sound like I followed my dream, but the television work was ridiculously well-paid, and not really something I “loved”. I loved being a witness to the first draft of history by covering world events, but I found myself looking at the reporters and producers and thinking I’d rather be doing their jobs.Predictably, by the time I left the news network where I had been working for over twenty years, I was utterly burnt out. My move to Richmond helped me regain the life balance that had been missing for so long. Now I’m looking for op
Shareholders of Public Companies measure their wealth (or the size of their pile) using share value not earnings per share. Successful CEOs, therefore, develop strategic plans for growth and profit that maximize shareholder's value. Mergers and Acquisitions is a fundamental element of most strategic plans to grow profits and value simultaneously. What follows is an overview of Public Company strategies to grow profits and value through acquisitions and how to adapt these strategies to private and family businesses. Although the topic may seem technical and complex it is really quite basic and straightforward.
An Overview Adding earnings or profits is self-explanatory. We will, therefore, focus primarily on the value component of growth through acquisitions.
We know a Public Company's Price/Earnings Ratio measures the amount investors are willing to pay for $1 of company earnings and that a P/E ratio of 15 for a well-run company is not unusual. Consequently, company BIG with 100 million dollars of earnings and a P/E Ratio of 15 has a value of 1.5 billion dollars. We also know private company P/E Ratios are much lower than those of Public Companies.
Strategy #1 - Acquire companies with a smaller P/E ratio than yours
Example: The Transaction -- Company BIG with a P/E Ratio of 15 acquires company SMALLER and pays 10 times earnings (P/E ratio = 10). Company SMALLER's 10 million dollar of earnings are added to those of company BIG. Increases in Value Calculation -- SMALLER's earnings are now worth 15X instead of 10 times earnings resulting in an immediate increase in value of 5X earnings or $50,000,000 (5 times $10,000,000) over and above the value paid by company BIG.
Strategy #2 - Reduce expenses through economies of scale
The picture gets even better if eliminating duplications and other economies of scale will reduce company SMALLER's expenses. Every dollar reduction in expenses translates into $15 of value (P/E Ratio of 15 X $1). Increases in Value Calculation -- Company BIG is able to eliminate 1 million dollars of r
Are there secrets to gaining media coverage or is it pure luck? It's a question that I am asked often while meeting with small-business owners who are seeking press attention for their companies or products. While luck certainly plays a part, the short answer to this question is "maybe." However with a little practice and skill, a small-business owner can significantly increase the chances of garnering coverage by following some basic journalistic rules.I started my career in public relations the way many college students do - as an intern. While working for a PR agency one summer, I learned the greatest lessons from a crusty, old newspaper editor with whom I had to have constant contact.Each time that I called him to follow up on a story idea, I would learn something new - by the time he stopped yelling at me. At summer's end that editor had become a mentor for me and the rules introduced by him have served me well in placing news stories over the years. You see the greatest gift that he gave me was not a hypothetical example found in my college textbook. Rather, it was practical experience in pitching story ideas to "real" journalists.What I learned from him about approaching journalists with story ideas can be summed up in one word - relevancy and its multiple meanings. Allow me to share with you what I learned that summer. ·Relevance to Beat Assignments: Only approach a journalist with story ideas that are relevant to his or her news beat assignment.Relevance to Newsworthiness: Keep in mind that stories must be new, unusual or important, and informative.Relevance to Time: Take stock in what's happening in your world and in the lives of
We know a Public Company's Price/Earnings Ratio measures the amount investors are willing to pay for $1 of company earnings and that a P/E ratio of 15 for a well-run company is not unusual. Consequently, company BIG with 100 million dollars of earnings and a P/E Ratio of 15 has a value of 1.5 billion dollars. We also know private company P/E Ratios are much lower than those of Public Companies.
Strategy #1 - Acquire companies with a smaller P/E ratio than yours
Example: The Transaction -- Company BIG with a P/E Ratio of 15 acquires company SMALLER and pays 10 times earnings (P/E ratio = 10). Company SMALLER's 10 million dollar of earnings are added to those of company BIG. Increases in Value Calculation -- SMALLER's earnings are now worth 15X instead of 10 times earnings resulting in an immediate increase in value of 5X earnings or $50,000,000 (5 times $10,000,000) over and above the value paid by company BIG.
Strategy #2 - Reduce expenses through economies of scale
The picture gets even better if eliminating duplications and other economies of scale will reduce company SMALLER's expenses. Every dollar reduction in expenses translates into $15 of value (P/E Ratio of 15 X $1). Increases in Value Calculation -- Company BIG is able to eliminate 1 million dollars of r
If you are considering a car wash fundraiser for your nonprofit group then you know you need to get people to help to wash the cars. This also means that you need to have lots of people who are willing to volunteer a sunny Saturday and work like dogs to clean people's cars. Car wash fundraisers are not easy and as Americans get more obese some people are unable to perform at carwash fundraisers.It helps to have carwash fundraisers with nonprofit groups that have kids in them like church youth groups or soccer teams. However, since carwash fundraising is a very good fundraiser to have other types of groups are also interested in having carwash fundraisers. But to do so they need to remember that day also need good labor to be able to handle the workload.Often nonprofit groups that are mostly adults will need to recruit some of the kids of the adults to help of the carwash fundraiser. If your group does not have enough able-bodied people to do the carwash fundraiser perhaps you might reconsider a different kind of fundraiser or figure out how you are going to recruit volunteers to help wash the cars on that sunny Saturday when you have scheduled your fundraiser. Please consider all this in 2006.
Strategy #2 - Reduce expenses through economies of scale
The picture gets even better if eliminating duplications and other economies of scale will reduce company SMALLER's expenses. Every dollar reduction in expenses translates into $15 of value (P/E Ratio of 15 X $1). Increases in Value Calculation -- Company BIG is able to eliminate 1 million dollars of redundant expense - $1,000,000 X 15 = $15 million dollar increase in value.
Strategy #3 - Acquire according to a strategic plan
BIGs acquisition of a company in order to gain specific benefits such as: proprietary products, technology, channels of distribution or talent base for example, can result in an improved outlook for company BIG. Whereas the P/E ratio usually reflects expectations of future profits, a strategic acquisition often produces a P/E ratio increase. In this example company BIG's P/E ratio increases by a dollar from 15X to 16 times earnings after the acquisition was announced.
Increases in Value Calculation -- Every point increase in company BIG's P/E ratio equates to 111 million dollars of added value (original $100 million in earnings plus addition of SMALLER's $10 million plus $1 million in reduced expenses times 1).
Calculation of Increased Value to Shareholders: In the above example, company BIG's acquisition of company SMALLER not only has increased earnings by $10 million but has increase company BIG's value as follows.
Increased value of $10 million in earnings $ 50,000,000
Reduced SMALLER's expenses by $1 million 15,000,000
Increase of BIG's P/E Ratio from 15 to 16 111,000,000
Total Increase in SIZE of PILE (VALUE) $176,000,000 This CEO has made the kind of a deal that makes shareholders happy. No wonder there is so much M&A activity in the marketplace. A well conceived acquisition should produce wondrous results. These dynamics are not reserved exclusively for Public Companies. Private and family businesses can and should take advantage of the opportunities presented by growth through acquisitions. We will now apply these principles to smaller businesses and analyze the results. Value Building Strategies for Small and Middle Market Businesses Private companies can employ the same three strategies used in the above Public Company example given an understanding of a few basic principles. General Principles: Financial Small companies generally have small P/E ratios. P/E ratios increase as companies grow and develop structure. P/E ratios increase as dependency upon owner decrease. Valuation Principles Two major value determiners are:
Perception of risk and
Expectation of future profit Businesses with essentially identical earnings, therefore, can have widely diverse values "Round Ball" Principle - Non Financial None of us are equally talented in all directions. We are not round balls, footballs or Frisbees perhaps, but no one can "do it all" well. Company strengths and weaknesses will therefore generally mirror those of its owner. Armed with a basic understanding of the ground rules we can begin to formulate a strategic plan to grow and build wealth thro
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