Maynard Akkerman's Presentation
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Maynard Akkerman President Company Overview / Increasing Your Business Value
Transcript of Maynard Akkerman's Presentation
Maynard Akkerman
President
Company Overview / Increasing Your Business Value
Who we are• Akkerman is a recognized worldwide competitor, manufactures a full range
of pipe jacking and tunneling equipment.
• Akkerman offers sales and service domestically and internationally through strategically located dealers and sales organizations.
• Akkerman was founded in 1973 by Don and Marlys Akkerman.
• Akkerman is a second generation privately held, family-owned and operated company currently transitioning into third generation.
• Akkerman equipment is engineered and manufactured at its corporate headquarters in Minnesota in a 65,000 sq. ft. facility.
What we are aboutVision Statement:
Goal Driven For Customer Success!
Mission Statement:
We develop, manufacture, market and support quality equipment that accurately installs a variety of underground infrastructure.
Core Values:
We provide high quality engineered products to our customers at competitive prices.
We provide a safe and secure workplace for our employees.
We honor our warranty.
We solicit input from our employees, customers and suppliers.
What we make
• In 2001, we began manufacturing Guided Boring Machine (GBM) systems, also known as Pilot Tube Microtunneling. These machines install 4-48” (102 - 1,219 mm) OD pipe with grade and alignment precision.
• Akkerman began manufacturing tunnel boring and excavator shield systems in 1973, the TBM diameters are from 48-168” OD (1.2-4.3 m). They direct install pipe from 48-114” (1,219 – 2,896 mm) OD.
• Began manufacturing slurry Microtunneling systems for the domestic market in 1995, MTBMs direct install pipe from 30-94.5”. (760 – 2,400 mm) OD.
• Akkerman began manufacturing Earth Pressure Balance equipment in 2005 for Diameters from 102+” OD (2,591 mm.) Each machine configuration is custom ordered to specification.
Don and Maynard AkkermanNUCA in San Antonio, TX - 1985
Maynard and Robin AkkermanNo-Dig Live in England - 2004
Detroit Airport - Lowe ConstructionMay 1999
TBM Series II
TBM - Conveyor unloading spoils
GBM jobsite in Waikiki, Hawaii
Installing 16’ clay sewer pipe on ECI jobsite at Mall of America
EPBM 108Indianapolis International Airport
June 2006
EPBM 108Indianapolis International Airport
June 2006
Justin, Derek, Andrew and Maynard Akkerman - 2008
EPBM 116
MTBM Control Container
MTBM
MTBM Breakthrough
Plant Facilities
Akkerman Corporate Office
Increasing Your Business Value
• Debt
• Equity investments
• Margins
• Innovation/Rivers of Cash
• Acquisitions
• Board of Directors/PBA group
• Utilizing Enterprise Minnesota Services
Debt• Debt has never been so affordable as now.
• Debt when managed properly can allow you to grow your business.
• Businesses have needs to grow, inventory, plant and equipment, etc.
• Debt can also hide poor business practices such as bad receivables, bad inventory, bloated overhead, etc., so be careful.
Equity
• Most businesses will never do an IPO.
• If possible seek out and utilize “friendly” equity partners if available.
• Make sure terms are clear and understood.
• In the 1990s Akkerman had 3 equity partners. Today we are 100 % whole.
Margins
• Know your true costs.
• Price yourself to what the Market will bear.
• Sales numbers are just numbers, margin dollars are what count.
• Keep your company well balanced between direct labor and indirect labor costs.
Innovations/Rivers of Cash
• We must always be thinking of what is the next best thing.
• If we are not updating our products or adding new products we will decline.
• Selling to established customers is always easier, less expensive.
• At Akkerman since 1987 we have gone from one product line to 4 and updated all product lines several times.
Acquisitions
• Purchasing another company can offer opportunities to maximize underutilized capacity and people resources.
• In some cases you may be eliminating a competitor.
• Be careful to research prospective purchases and make sure they fit with your business model/strategy.
Outsider Board of Directors/ PBA Group
• Akkerman’s first Board formed in 1995
• Boards can offer great advice and guidance
• Having a Board gives Lenders/Equity partners more peace of mind.
• In 1998 Akkerman was struggling and brought on a Board member to be the interim CEO
• PBA groups can be utilized as an Advisory Board
Utilizing Enterprise Minnesota’s Services
• Leadership Training/Employee Development
• Transitioning/Succession Planning
• Marketing
• Streamlining New Product Development
• Financial Analysis/Performance Benchmarking
• Strategic Planning
Questions?
