graeme read - 3r resourcing

BuildingScalingSelling

Graeme Read

Building

Build for purpose• Lifestyle OR Capital Value

• Who shares your vision?

• Unify the team, the goal & purpose

Plan• Why, Where, What, Where, How

• Plan High, Medium & Worst Case

• Get a buddy, a critical friend

Building

Don’t be Unique!•Be different, relevant, distinctive

•Me Too & Generalists struggle for growth

•Specialists, Niche or Micro niche - nimble

•799 firms started in 2014 - 86% niche

Manic or measured?•Ideas come in at 100mph

•Mania costs money, people & time

•Corral your Ideas – take 6 then pick 2

Building

Develop your talent•Are you a Driver, Leader, Coach or Manager

•Nurture & Mentor Leadership skills

•Culture Shock - Experienced & Apprentices

•Hire often, hire fast, hire more than 1

•Follow Jim doesn’t work – Jim’s fees dip

•Performance: Capability v History v Attitude

•Do you develop your Top Performers?

Scaling Your Business

ScalingInternational OR National?• Deep Dive the opportunity & competitors• Bandwidth in Team, Managers & You• Outsource non-essential functions eg payroll• Get current, deep domain knowledge

Plan and plan again• Where, When and Why• Define goals, objectives, and success metrics• Best, Average, Worst• Time to pay back?

ScalingFinances & Legals•Cashflow & Credit - don’t run short

•Set up tax & finance plans early

•HR rules, Salaries, Rewards DO differ

•Profit repatriation plan?

•Subsidiary or Stand Alone

•Licences, Regulations

•Local support and partners

Scaling

Physical or Virtual?• Incubate first, get a Beachhead Team

• Localise early

• Travel often, stay long

• Actively drive Referrals

• Countries, Clients, Disciplines

• Strategic Alliances, JVs or Acquisitions?

Selling Your Business

Selling

Prepare early• Who will buy it ?

• How sale-able is the business?

• Tax and Finance Readiness

• Leadership Readiness

• Capacity - You, Your team, Back office

• M&A Impact on stakeholders

Selling

Options – What suits you?•MBI / MBO

•Trade sale

•Private Equity

•IPO / Public to Private

•Strategic Merger

Where’s the buyers2014 investors in the UK sector:

•UK, Americas, Wider Asia, CEE & Europe

Selling

Timing?•Deal activity rose 9% in Q4 2014 •BDO report shows

• 46% considering an acquisition in next 3 years

• 41% expect to exit / sell in next 5 years

•When?• Too early

• Too few buyers depressing prices

• Too late

•Plan B if it doesn’t happen

Sources: Internal, BDO Recruitment 2015 report

SellingUncertainty abounds•Oil prices

•Elections

•Black swans & unknown known’s

•Macro dynamics

• Greece Exit, China bubble?, EU risks

•Instability

• Mid East & Putin effect

Selling

Valuation• Ranges from 3.5X to 6X+ EBITDA (depending)

• Perm & Contract

• Leadership team

• Synergies

• Compliance

• Concentrations - RPO, Clients

• PAYE / Umbrella legislation

Selling

Other factors:•Bank debt / factoring affect

•Your involvement

•Don’t be greedy

•Equity: Over-reward V Under Reward

•Orphan divisions, half built offices

•Taking your eye off the ball

SellingWHAT’S HOT•Healthcare – Consolidation

•Big Data, Analytics

•Digital & Marketing

•Engineering

•RPO, Training & Allied staffing

•Online Platforms

•Finance & Accounting

•Executive Search

Sources: Internal, APSCo, Staffing Industry Analysts

SellingHow long?• 2014: Highest M&A volume in 5 years

• Organic growth is harder to get

• 7 year cycle ?

• 2.5 years into a recovery

• Next dip within 4.5 years?? who knows

• Buyers began in 2013-14

• Market remains active in 2015, 2016..

• Reducing values as more seller arrive

Your Partners in Business

Mentoring Board Support Non ExecGraphic Design Marketing Social Media

Corporate Communications Web Design

Interim CFO/FD Financing MBO MBI

Mergers & Acquisitions Due Diligence

Strategic Consulting Deal Management Training Leadership Development

ADVISE, ASSIST, ADVANCE32 Countries

100 years of experience125 businesses launched & grown£150m in deal values completed

www.3Rinside.comGRead@3RPartnership.com

GRead@3RPartnership.comwww.3Rinside.com