Highlights from the

Strategic Growth Forum®

2017

Strategic Growth Forum® 2017

Highlights from the

You have more options worth evaluatingCompanies today can raise capital through not only traditional routes, such as IPOs and strategic sales, but also special purpose acquisition companies (SPACs) and a much larger pool of private investors, including family offices, corporate venture capital, private equity and institutional investors. Are you well-positioned to determine the pros and cons of each?

Key takeawaysAsk tough questions and build a playbook“We know the questions that we would ask as smart people in the room. Let’s prepare for that,” said Joe Delaney, Executive Chairman of Affordable Care Inc. Interrogate yourself and have outside advisors do the same, and plan your way forward accordingly.

After a strong 2017 and with optimism abounding for 2018, a special session drilled deep into how executives should prepare their companies for a market full of financing options — and scrutiny from potential stakeholders.

Preparing for the public stage

A CEO’s guide to strategic transactions

Priya HuskinsWoodruff-Sawyer & Co.

“Corporate governance is the fire sprinkler for D&O liability.”

John BartlingInnovation Homes

“Invest in something that’s larger than just the moment.”

Don’t lose sight of the fundamentals“Getting a nice, splashy IPO is great, but it’s all about execution and running the company,” said Zvi Glasman of Fox Factory Holdings Corp. Capital gets you to the next step of your journey, not to the end of it. For that, you need solid management, a strong brand, internal controls — and revenue.

David LudwigGoldman Sachs

“There’s never really a market-timing element for an IPO. It’s better to do the right thing for the business for the long term.”

Carolyn

WenteChief Executive OfficerWente Family Estates

On family“Never ask anyone else to do something you wouldn’t want to do.” That’s what Carolyn Wente and her brothers learned while growing up on the family vineyard. Today, Wente is the fourth-generation Chief Executive Officer of Wente Family Estates, the oldest, continuously operated family-owned winery in the US.

and flexibility

Seek perspectives outside the familySeeking outside help to resolve inside issues can be the catalyst for growth your business needs. For example, an external board of advisors can offer the guidance and different perspectives needed to help see new opportunities, make hard decisions and keep pace in an ever-changing market.

Prepare for the future, today In a rapidly changing world, there is no more “business as usual.” Diversifying your skill sets, attracting top outside talent and having a strong but pliable strategy are key — not only to survive but thrive.

Be open to changing rolesEven when succession plans are written out, they may not ultimately indicate the best direction for the business. Keeping the focus on the goal, not the role, is instrumental for sustainability and growth.

Family enterprise leadership summit

“I like to invest in things that are going to change people’s lives.”Member, NBA Hall of Fame, and 15-time NBA All Star Player

Shaquille O’Neal

Around the ForumStrategic Growth Forum attendees spent their days at events infused with lively discussions, keynotes and high-impact sessions touching on everything from disruption and transformation to value creation and innovation.

Of peopleRobert F. Smith, Founder, Chairman and CEO of Vista Equity Partners, harnessed his background in chemical engineering to build and scale an investment portfolio of 50 companies that is valued at more than $30 billion. “Culture truly is what makes us profitable,” he said to Strategic Growth Forum attendees when discussing Vista Equity’s success.

and culture

Be ready for the Fourth Industrial RevolutionDigitization of everything is real, and it is happening now. As new technology helps companies more efficiently deliver products and services, every industry has to think about ways to adapt to this change or face disruption from competitors.

Invest in the future Recounting his own start as an intern for Bell Labs, Smith encouraged companies to triple the number of summer interns they hire each year. He also touched on his philanthropic support for programs like LinkUp, which encourages cognitive development in inner-city schoolchildren.

Encourage individualitySmith urged entrepreneurs not to make the mistake of trying to replicate themselves. A sound company creates platforms for people to bring their best selves in terms of creativity, relationships and experiences. He added that this should be treated as part of the company’s cultural fabric.

SmithFounder, Chairman and CEO

Vista Equity Partners

Robert F.

KingFounderBillie Jean King Leadership Initiative

Billie Jean

The right side“Wow, you guys are great — we’re going to have fun!” exclaimed Billie Jean King as she took the stage to rapturous applause. That proved to be true as the sports icon and social-justice advocate offered a historical perspective on issues that are just as relevant today.

of history

Keep your life in perspectiveKing’s parents wanted her to be happy, healthy and educated. After matches, they never asked if she had won — they asked how it went. Similarly, when a parent asked her for advice about finding a good coach, she said to find someone who understands the human being, not just tennis.

Do what’s rightKing stressed that her equality efforts were intended to establish parity, even when some insisted that people wouldn’t pay 10 cents to watch women’s tennis. When you look in the mirror, she said, ask yourself: do you want to be on the right side of history or not?

You never get anywhere on your ownTo get to Wimbledon for the first time, in 1961, citizens in King’s hometown raised money to pay for the trip. Her victory there was the first of a record 20 career titles at the competition.

Taking theA willingness to take risks helped Robert K. Kraft launch International Forest Products and buy the New England Patriots. Both moves have paid off handsomely for the entrepreneur, who shared some key observations on how to run a successful company and NFL franchise.

right risks

Hire people who will do the right thingThe most important thing is to find people who have integrity, character and loyalty. While hiring people with great intellect can be exciting, Kraft cautioned that entrepreneurs need to choose people for the tough times when things don’t go right.

Make sure deals benefit both partiesKraft turned down a chance to accept public funding for a stadium in Connecticut because he believed it was too good of a deal and might have eventually created resentment. Instead, he used his own funding to build Gillette Stadium near the old stadium site, keeping the team near its fan base and setting the stage for its long run of success.

Follow your passionsAs a season ticket holder for the Patriots, Kraft often dreamed about owning the team. When the opportunity arose in the late 1980s to buy the land surrounding Foxboro Stadium, where the New England Patriots played from 1971 to 2001, he took a risk and bought the property. This arrangement eventually helped him buy the team in 1994.

Robert K.

KraftFounder, Chairman and CEO

The Kraft Group

From why to next

Market leaders define what’s next

Purpose and profit are closely linked, and purpose-driven organizations often deliver significantly greater returns than traditional businesses. But companies that want to adopt a purpose-led culture need to be aware that it takes more than just a slogan or catchphrase to drive purpose throughout the organization.

During an exploration of future business trends, leaders of four established companies showed that disruption isn’t an abstract concept limited to certain sectors.

“People move the ball forward with discretionary effort but are driven by purpose, inspiration and clarity.”

Start With WhyKim Harrison

“We’re always looking to promote a culture of risk-taking. Failure is not fatal.”

SAPDJ Paoni

TysonChairman and CEO

Kaiser Permanente

Bernard J.

Equality andWhen Bernard J. Tyson needed plaque cleaned from an artery in his heart, he went to the hospital on a Friday, left Saturday and was back at work Monday. Later, his doctor showed him footage from the procedure via the internet. There’s truly a new world for health care, and the Chairman and CEO of Kaiser Permanente discussed what’s next and how diversity will play a role.

equal access

Race and gender matterTyson recalled being paired with an older doctor, and they clashed. Later, the other physician revealed that he had never worked with a black man before. Tyson said the problem was not racism, per se, but the lack of a road map for understanding each other as individuals.

Put your principles into practiceThrough Kaiser Permanente, Tyson is involved with the Executive Leadership Council, which aims to develop and promote black leaders, and the Billion Dollar Roundtable, which challenges companies to spend at least $1 billion through minority and woman-owned suppliers.

Follow your passionAs a child, Tyson spent lots of time around doctors because his mother was often sick. Seeing health care in action, and later seeing disparities in care among the broader population, shaped his worldview and his career.

“Pressure is something you feel if you don’t know what you’re doing.”Two-time Super Bowl-winning Quarterback and Five-time NFL MVP

Peyton Manning

Purpose and For Murad Al-Katib, AGT Food and Ingredients Inc. is more than a business. It’s an opportunity to contribute to food security. The EY World Entrepreneur Of The Year™ 2017 Award winner shared why social purpose is not an option, it’s a business imperative. And while passion is important, so is clear-headed thinking.

pragmatism

Public policy is also your businessSteering the direction of public policy is one of your responsibilities as a successful business leader. If we don’t provide input, “we don’t have the right to complain.”

The “head vs. heart” debate never endsEntrepreneurs are often destroyed when they become too emotional about their business. “I follow my heart, but I don’t forget about my head.”

“Social entrepreneurship” is a mythThere is only entrepreneurship, Al-Katib said. Organizations that don’t embed social purpose within their business strategy won’t survive. “An ability to go and actually help the world doesn’t mean that we can’t … actually make a profit while we’re doing it.”

Al-KatibMurad

President and CEOAGT Food and Ingredients Inc.

and the EY World Entrepreneur Of The Year™ 2017

“You have to have a passion for what you do and a passion to do it. The artistry is not in the result; the artistry is in the process.”

Award-winning ActressViola Davis

Fun at the ForumAfter full-day sessions, Forum attendees were treated to special events, including trips through time and around the globe to a spirited ’80s party and a Havana Nights celebration, a private dinner concert with rock legend Steven Tyler & the Loving Mary Band, and a black-tie gala honoring Entrepreneur Of The Year® 2017 winners.

The winnersEntrepreneur Of The Year® 2017 National Awards

Overall Award; Life Sciences Award

Mary Lynne Hedley, PhD, and Lonnie Moulder

Chalkboards filled with cancer patients’ stories line the walls of TESARO’s headquarters to remind associates about why they come to work.

“We are inspired and motivated by our patients’ stories,” said Lonnie Moulder, CEO & Co-founder. “The stories really bring home our mission.”

They also serve as a powerful incentive for Moulder and Mary Lynne Hedley, President, COO and Co-founder. In seven years, TESARO has already commercialized two drugs and started clinical trials on several others.

Soon after meeting, Hedley and Moulder realized they shared a passion for making “a real difference on behalf of cancer patients.”

In 2010, they co-founded and self-funded TESARO. The company focuses on the licensing and development of oncology therapeutics and supportive care products.

“We recognize the cancer patient as a whole person and want to give them a therapy that not only makes them better” but lets them enjoy their life, said Hedley, citing a survey in which many cancer patients said they dread the side effects of chemotherapy almost as much as dying.

“We are very focused on patient outreach and advocacy,” Hedley said, pointing to Our Way Forward, a TESARO program that addresses unmet educational needs of women living with ovarian cancer, gives them a voice and makes a difference in their lives.

Lonnie Moulder and Mary Lynne Hedley lead TESARO, Inc. with an unrelenting focus on developing new oncology therapies for cancer patients.

Neal Schuman

Family Business

Loretta F. RosenmayerINTREN L.L.C.

Schuman Cheese

Energy, Cleantech and Natural Resources

Kendra ScottKendra Scott, LLC

Ilene S. GordonIngredion Incorporated

Consumer Products and Retail

Distribution and Manufacturing

Dan Flaherty Jason McCannVARIDESK

EmergingNational Award winners

Asif RamjiPaymetric

Financial Services

Joe Fluet

Phyllis Winchester Newhouse

MAG Aerospace

Xtreme Solutions, Inc.

Dave Pickles Jeff GreenThe Trade Desk

Media, Entertainment and Communications

Services

Technology

Bill Bayless

Real Estate, Hospitality and Construction

American Campus Communities

#trending

Jim Keane@jimkeane1

I’ve been consistently impressed and energized by the creative insight demonstrated by panelists and participants at #SGFUS. Time well spent.8:39 a.m. — 18 Nov 2017

Darryl Keeton II@DarrylKeetonII

EY’s NFTE program taught Carlton Baker, CEO of FixYoKicks, how to hustle, innovate and adapt. This young man is only a freshman in college & blew my mind with his story. Congrats Carlton, wishing you the best. EY, thank you for supporting this young man through his journey! #SGFUS11:56 a.m. — 18 Nov 2017

Kathy Cheng@kathykwcheng

John Hall@johnhall

Totally gnarly @EY_Growth #SGFUS w/ @TomboyExchange! Congrats Fran — welcome to the Class of 2017 @EY_WFF #WinningWomen cc: @EYCanada

“Strength and growth come only through continuous effort and struggle.” Looking forward to #SGFUS today! @EY_US @EY_Growth

9:57 p.m. — 16 Nov 2017

9:06 a.m. — 15 Nov 2017

Amy Grubb@AmyGrubb91

Lyndsey Harper@Lharp08

Kicking off Strategic Growth Forum w dinner under the stars. You know it’s going to be a good week when they hand u champagne 4 steps from your car! #SGFUS

The most inspiring moment for me at EY #SGFUS this week was the #winningwomen lunch. These women will never search for a “why” for their companies, they were born out of purpose and passion.

6:21 p.m. — 17 Nov 20179:06 p.m. — 19 Nov 2017

#trending

Steve Strauss@SteveStrauss

@EY_Growth throws a great party. #entrepreneurs rock! #SGFUS9:06 P.m. — 18 Nov 2017

Scott Harper@harpscott

Great lunch with EY Global Chief Innovation Officer @Jeff__Wong talking #AI at #SGFUS. Thanks for putting on an awesome show @EY_Growth — and still so much more to come!5:29 p.m. — 17 Nov 2017

Philip Gaskin@Phil_Gaskin

@BillieJeanKing thank you for a lifetime moment for me. And for all you’ve done and continue to do! #Leadership #EqualityForAll #SGFUS11:42 a.m. — 18 Nov 2017

Kevin R. O’Neill@kevinroneill

Brilliant concert with the amazing @IamStevenT last night at #SGFUS. One thing all entrepreneurs have in common reflected in Steven’s song is we “don’t want to miss a thing.” @EY_Growth @acertitude10:44 a.m. — 18 Nov 2017

Catch up on the latest content from the Strategic Growth Forum by following @EY_Growth and exploring #SGFUS on Twitter.

We hope to see you at the Strategic Growth Forum next year, November 7–11, 2018.

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About EY’s Growth Markets Network EY’s worldwide Growth Markets Network is dedicated to serving the changing needs of high-growth companies. For more than 30 years, we’ve helped many of the world’s most dynamic and ambitious companies grow into market leaders. Whether working with international mid-cap companies or early-stage venture-backed businesses, our professionals draw upon their extensive experience, insight and global resources to help your business succeed.

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