northwood university 2015
TRANSCRIPT
SURVIVING&THRIVINGINACONSOLIDATINGWORLD
TOMMARXJULY14,2015
TOMMARX• 30+yearsina,ermarket
– Marke1ngCommunica1ons– Mergers&Acquisi1ons
• Mostsegments,channelsandproducts
• Industryengagement
INTRODUCTION
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DrivingSmarterMergers&Acquisi4onsExperience.Knowledge.ExperKse.
• Automo1ve• Performance• SpecialtyProducts• Motorsports
• CommercialVehicleandHeavyDuty
• Tier1,Tier2andA,ermarket
MARXGROUPADVISORS
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OURSERVICES
Buy-Sell-Merge
MarketResearch
DueDiligence
AdvisortoPrivateEquity
Consul1ngServices
Equity&DebtFinancing
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6©2015MarxGroupAdvisors,LLCForacompletelistofclients,casestudies,andpor<oliosvisit:www.themarxgrp.com
WEDELIVERRESULTS
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Foracompletelistofclients,casestudies,andpor<oliosvisit:www.themarxgrp.com
WEDELIVERRESULTS
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WEAREINVOLVED
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HowToSurvive...andThrive
WhatToExpect
M&AScenarios
M&ASURVIVALOVERVIEW
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TodayandTomorrow• Consolida1onsdriveHDsector• Dealskeephappening• FleetPrideandTruckPro• Distributors• Suppliers• OES• Independentservicedealers
HeavyDutyIndustryConsolidating
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M&ASCENARIOS
Sell/Divest
Acquire
Merge OwnershipEvents
PrivateEquity(PE)
READY—AIM—FIRE
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• Exitstrategy:planned--ornot• Re1rementandnobullpen• Accident,illnessorworse• Financialchallenges• Disagreementsbetweenpartnersorfamilymembers• Anapproachtocorporaterestructuring• Getridofanunderperformingasset• Capitalizeonbe^erperformingassets• Anofferthatcannotberefused• Freedom–Itisn’tfunanymore!
SELLORDIVEST
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• Groworfadeaway• Strategicacquisi1ons
• Territory• Marketshare• Economiesofscale• Gainnewcustomers,
suppliers,management,technology
• Takeoutthelowpriceleader
ACQUIRE
A B
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A B
A B
MergersarepropelledbymanyofthesamereasonsasacquisiKons• Sharedownership/equity
ratherthanstraightbuy-out• Powerandvalueofthe
en11esallowforcontrolofequity,jointpowertomakedecisions,andsharedresponsibili1es
MERGE
A
BC
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StrengthsorweaknessesofthepartiesdeJinesifit’samergeroracquisition
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SuccessionplanninggoneRIGHT• Nextgenera1onmoves
intoleadership• Seamless• Allonthesamepage• Plansuccessfullyexecuted
withminimumofdrama
OWNERSHIPEVENTS
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SuccessionplanninggoneWRONG• Currentgenera1onwon’tletgo• Illnessorworse• Fric1onbuilds,frustra1ongrows
andfinallyoutsidetherapycomestorescue
• Dramacreatesri,s,slowsgrowth,createsrisk
• Planisn’texecuted
OWNERSHIPEVENTS
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PEfirmsdriveconsolidaKon• Providefunds/exper1seneededto
growthebusiness• Highermul1plesmo1vatesale• Supportssuccessionplanning• Buysoutcertainfamilymembers• Someacquisi1onsare100%andsomecanbe
par1alcash-outorasmo1va1ontostay• Theul1mateexitstrategy• Result:Younowareaccountabletosomeoneelse
ROLEOFPRIVATEEQUITY
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• Sell• Acquire• Merge• Privateequity• Ownershipevent
CHANGE–RELEVANCETOYOU
Haveyouexperiencedthesescenarios?
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Whattoexpect• Survival• Organiza1onalconsolida1on
andadjustments• Yourvaluetosurvivingen1ty• Leadership
CHANGE–RELEVANCETOYOU
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Theinnersanctum• Whatdoesthismean?• HowdoIgetthere?• HowwillIknow?• HowdoIreactwhen
surpriseshappen?
CHANGE–RELEVANCETOYOU
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WillIthrive?• Stayposi1ve• Findwaystodrive
collabora1on• Showobjec1vity• Befocused• Knowwhentohold‘em
vs.whentofold‘em• Andthroughallthis--get
yourdayjobdone
CHANGE–RELEVANCETOYOU
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SINCERITY
• Beme1culouswithpreparingcompanyfortransi1on
• Keepingitquiet—thetruemeaningofanNDA
• WheredoIgotoreleasethetension?
• Theul1matesignofmaturity• DoIjumpship?
YOURCOMPANYISSELLING
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TRUST
• Devilisinthedetails• Integra1ono,enisthe
differencebetweensuccessorfailure
• Planningisimportant–execu1oniseverything
• Buildadiverseteam• Opportunityknocks
YOURCOMPANYISBUYING
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• Crea1ngfinancialgain• Efficiencyiskey• Keepingcustomershappy• Opportunityknocks• DoIjumpship?
YOU’RESELLING/MERGING
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• Thefounda1onforsuccessfulM&A• Makesurethatthewholeismore
valuablethanthesumoftheparts• Noroomforduplicateexpenses• Expectmanychanges• Keepfocusonthemetricsrequired
byboard,bankorPEfirm
YOU’RESELLING/MERGING
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• Teambuilder• Accountable• Decisionmaker• Redesignorrefinethe
company’sculture
ALWAYSBEYOURBEST
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• Retainthebestpeople• Keepyourteaminformed• Maintain/increase
produc1vity• Handleissuesbefore
panicsetsin
MANAGEYOURPEOPLE
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SUCCESSISOFTENUPTOYOU
Demonstrateleadership
Listentopointsofview
FindSoluKons
Buildtheteam
Noroomforegos
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• Growthebusiness• Buildthebrand• Clarifyvalueproposi1on• Focusonsales• Targetmarke1ng• Streamlineopera1ons• Understandthefinances
SHAPETHEFUTURE
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QUESTIONS?
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Whereareyouintheprocess?
Whatelseareyoucuriousabout?
Whatareyourconcerns?
Whatstopsyou?
TomMarx|[email protected],resourcesandtosignuptooure-newsle^erTheAdvantage,pleasevisitwww.marxgroupadvisors.com
THANKYOU!
ContactmeifyouwouldlikeacopyofthispresentaKonorfurtherinformaKononbuyingorselling.
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