Peak Performance Business Blog

Optimal Time for a Buyout

Monday, May 09, 2011
Acquisition Advisors has a great article on their blog today discussing the opportune time many businesses have to sell their business.  The key takeaway I had from the article was how high performing businesses are paid a premium for their performance (regardless of when they decide to sell).  Take a quick read below:

If your company’s earnings have not suffered greatly during the recession, now might be the very best of all times to execute a management buyout. Buyers are out in mass and paying premiums for companies that have performed well during the recession.

We did not see this coming but Premiums are being paid for companies that are selling today. Companies that would have topped out at five or six times EBITDA three years ago are going for seven, even eight today.


The logic is simple -- an imbalance of supply and demand.


On the supply side there are very few companies in play today. Most businesses have performed poorly during the recession and their owners are not proud of the financial performance. They know the time to sell is when profits are high.

On the demand side, the number of buyers has not declined from where it was three and four years ago. The numbers of individual buyers has held steady, maybe even increased. The number of industry (“corporate”) buyers has declined only slightly. The number of private equity groups has held steady and they’re more aggressive than ever.


YOUR NEXT ACTION
:

Top performing companies are not accidents!  Their results are the product of very conscious decisions and investments made over a period of time.  Sure there is some luck involved, but hard work often creates good luck.  Organizations that have created a clear vision and mission, have effectively communicated that vision to the organization to capture their focus reach a level of productivity that other business just can reach or each understand how it's accomplished.  That's what we do; we connect purpose with action and let the results speak for themselves. 

If this has caught your interest, call us (419-348-8046), email us or contact us through our site.

Five Important Questions

Friday, April 29, 2011
In his book The Five Most Important Questions You Will Ever Ask About Your Organization, Peter Drucker, one of the leading management practitioners of our time, offers a tool for self-assessment and transformation.

Answering these five questions will fundamentally change the way you work, helping you lead your organization to an exceptional level of performance.
 
The five questions are:
  1. What is our Mission?
  2. Who is our Customer?
  3. What does the Customer Value?
  4. What are our Results?
  5. What is our Plan?
The questions lead to action. By asking these questions, you can focus on why you are doing what you are doing, and how to do it better.

Answering the five questions will stimulate spirited discussions and action within any organization, inspiring positive change and a new level of performance.

YOUR NEXT ACTION:
Contact us to discuss how we help organizations engage on these five questions and put the answers into action.

Six Steps To Peak Performance

Friday, April 29, 2011
Athletes must achieve peak performance, and maintain it, to succeed.  The same is true in business.  Compare your organization to an athlete, who would you compare to? 

  • Peyton Manning - good athlete, great student of the game, excellent work ethic 
  • Michael Jordan - excellent athlete, good student of the game, great work ethic
  • Albert Pujos - very good athlete, great student of the game, excellent work ethic
  • Weekend Warrior - average athlete, fair student of the "game", good work ethic
Most businesses fall into the weekend warrior group.  Performance average with moments of excellence.  The problem is the inability to sustain those moments.  If you want a top performance organization, you need top performing teams.  The way to accomplish this is simple:

1. Clear vision, mission and strategy to motivate.
2. Plans that detail the steps needed to achieve the vision and desired results.
3. Alignment throughout the organization which creates a oneness.
4. Measuring results through accountable execution.
5. Channeling the innovative talents of every employee to the purpose of the organization.
6. Celebrating wins and learning from setbacks.

The rewards are fantastic...financially and emotionally to achieve and sustain peak performance.

YOUR NEXT ACTION:
Assess the performance level of your organization by taking our free business health assessment.  It will be first step in understanding where you are and using it as a baseline of where you want to be.