Middle-market companies tread a treacherous path. Improvement is imperative to growth and success, but how do you improve? A Newport Board Group partner recently quipped:
It’s hard to review any news report today and not find references to “disruption” or “new age of…” or “transformation”. Reports of those who were on the wrong side of change are all too common, while those seemingly few on the right side of change gather fortunes in no time at all. It’s enough to make you wonder if the concept of “business as usual” is a relic of the past. Perhaps it is. Many business owners and leaders struggle with this question every day. While these issues are real for all types of business, middle-market businesses are especially vulnerable to rapid changes in the business environment. The good news is that help is available – regardless of the size of your business. Today we will take a look at how your business can prepare for the future, and not be trapped by business as usual, through a 5-point review of your business. These five points are the result of the experience that I, and others at Newport Board Group, have gained in our efforts to help middle-market businesses adapt to, and thrive in, an ever-changing environment.
Only ONE in TEN companies grow beyond “No Man's Land”. To improve your chances, you must first understand if your company is in No Man's Land. Learn more in this guide! Subscribe and get your copy now.
You’ve closed the acquisition deal. Now what? Many companies sign on the dotted line and immediately begin overhauling systems, operations, HR, customer relationship functions, etc.. But, if you want to secure a high return on your investment in this new company, you would likely benefit from a more patient, strategic approach when it comes to the early days of post-acquisition integration.
Change is hard. If you’ve been through a merger or acquisition, you know how many challenges can arise when you’re going through a transition. And, while it’s imperative that you conduct comprehensive due diligence before you invest in a new company, today’s competitive landscape often requires the completion of due diligence faster than ever before.
These days there is much talk about the low growth rates in the US and other developed economies. Measures proposed to enhance GDP growth include fiscal policy, border adjusted tax, tax code simplification, corporate rate reduction, repatriation, regulatory relief, trade, workforce training and enhanced capital access.
A financial model should analyze the complex relationships between costs, volumes and revenues that lead a company to be profitable. It should provide an early warning that profitability is deteriorating so that management can take action. What are some early warning indicators that a company is becoming less profitable as its grows its top line—and might even risk growing itself out of business?