Dan mcguire and Graham Palfery-Smith at UK Recruiter Recruitment Conference 2013
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Transcript of Dan mcguire and Graham Palfery-Smith at UK Recruiter Recruitment Conference 2013
Building a Business for Exit the prequel…
GRAHAM’S BACKGROUND
• 50+ M&A deals
• Former CEO/MD of Faro, FiveTen, Greythorn, Robert Walters, TMP, HW Group, Badenoch & Clark
• Sits on a number of boards including Brightsparks, Coppergate, CXC, cube19, Ebsta, Evolution, Executives in Africa, IMS, JCW, Profiles and Ventura
@grahampa
DAN’S BACKGROUND
• Sold Broadbean to DMGT in 2008
• Founder of cube19, raised c£2m to date
• NXD at Ebsta & previously Chairman at Recruitment Juice, involved in fund-raises for both
• Investor and M&A advisor for several technology businesses
@dan_mcg
WHAT WE AREN’T COVERING
• Most of what we covered last year
WHAT WE’RE COVERING
• Operational/tactical advice to build an outstanding business• Key success factors• Real life examples to improve profitability• How to get a shot at an extra £20k in fees per recruiter by doing less work
LAST YEAR’S TAKEAWAYS
• Getting ready to sell• Choosing the right advisors• Practical tips• Managing the roller-coaster• Avoiding potholes• Have a plan – be realistic not idealistic• Earnouts & succession planning• Warranties, Indemnities and Disclosures• Deal breakers• Prepare your due diligence• What a ‘successful’ exit looks like
What’s at Stake? Fast 50 2009: Where are they now
Continued Growth 48%
Successful M&A Event 16%
Distressed M&A Event 4%
Declining Performance 26% Administration 6%
ANALYSIS OF HOW FAST 50 2009 ENTRANTS ARE PERFORMING IN 2013
The Goal of a Scalable & Replicable Model
4 Key Success Factors
Be clear on what you are & what you aren’t
Have a model that delivers consistent
recurring profit
Hire good people & keep them
Understand & measure what really drives
your business
• What type of business do you want (and what do you have)? Be realistic not idealistic
• What markets do you specialise in? Be specific
• Do you & the rest of the management team have clearly defined roles and responsibilities? Make the tough decisions now
• If you have partners do you always share decision making? It could be holding you back
• Does your decision making relate to your company strategy & end goal? Are you aligned & will it make…
Be clear on what you are & what you aren’t
• Do you believe you devote enough time to recruiting and retaining your own staff?
• Do you know your cost of replacing staff? Lost revenue, fees, training etc
• How are your staff motivated and incentivised? Is it in line with the company strategy & objectives?
• How do you know your staff are happy? When did you last check?
• NXD’s? Set the bar high
Hire good people & keep them
• Create a culture of fact-based decision making
• Use your data to create a model which isn’t dependent on you
• Use data to gain a competitive edge (examples coming up…)
• Model your star performers (the outlier myth)
• Create the Playbook
Understand & measure what really drives
your business
The #1 Vanity Metric Harming Your Business Example 1
Amount left on the table:
£546,000
F***!
The #1 Vanity Metric Harming Your Business Example 2
Amount left on the table:
£651,000
The #1 Vanity Metric Harming Your Business Example 3
Amount left on the table:
£1,075,000
• What type of business do you have? (Contract v. Perm, International etc.)
• Are you in control of cash? For existing AND growing?
• Are you keeping your best staff?
• Business Development strategy?
• Tax & compliance?
Have a model that delivers consistent
recurring profit
Don’t forget your due diligence
bundle
Scalable & Replicable
Be clear on what you are & what you aren’t
Have a model that delivers consistent
recurring profit
Hire good people & keep them
Understand & measure what really drives
your business
QUESTIONS?