acquisition

June 13, 2016 by Marc Hausman

CNET Gets It Right – Score One for Context

The foundation of an effective content marketing strategy is about providing readers with access to insight (or individuals) they cannot find anywhere else on the Web.

Here’s an example. In its reporting of Microsoft’s acquisition of LinkedIn, CNET quotes two financial analysts who put the rationale for the deal in a broader context.

“We think LinkedIn’s data set is one of four unique data sets on the web: Google (intent), Facebook (demographics), Amazon (purchase history) and LinkedIn (B2B),” said Evan Wilson and Tyler Parker of Pacific Crest Securities

July 31, 2015 by Marc Hausman

Market Shifts Take a $7.5B Bite Out of this Global Leader

There is an interesting read in the New York Times about Microsoft’s dramatic $7.5B right-off of the value of its Nokia acquisition.

Was this simply a failed corporate strategy? Or are there broader market dynamics in play?

Here is my favorite quote from the article:

It’s easy to say Microsoft was foolish and blame the chief executive. But when it happens to everyone, it’s an extinction event. A bunch of companies were disrupted. And it happened in the blink of an eye.

Understanding market trends and context is the foundation of a timely and effective editorial content strategy.

Microsoft CEO Satya Nadella takes a $7.5B hit on the company’s Nokia acquisition. (Photo source: CNET)

March 5, 2014 by Marc Hausman

Washington Post’s Weymouth Talks the Business of News

Washington Post’s Weymouth expects a patient Bezos. (Photo source: MediaBistro)

When Amazon founder and billionaire Jeff Bezos consummated the deal to acquire the Washington Post last August there should have been a cascade of cheers from the newsroom.

No longer bound by the shackles of shareholder expectations thrust upon a public company, the newspaper’s executive management will have more flexibility to invest in the journalists who produce the content. Bezos bought the Post to continue its mission, rather than score a dramatic financial return.

Of course, I find it ironic the source of Bezos’ wealth (online commerce) played a lead role in the slow and painful demise of the traditional publishing business model, which was based on the frothy profits of classified advertising.

So, what can we expect from the Washington Post under Bezos’ ownership?

That was one of the questions posed to publisher Katharine Weymouth in this exclusive Q&A published by the Association for Corporate Growth (ACG). Here is a comment from Weymouth I found particularly telling:

Jeff Bezos has a track record of great patience, has proven himself to have a long-term vision and an obsessive focus on the consumer. With his vision and ideas, we will build The Washington Post for generations to come.

June 5, 2013 by Marc Hausman

Shedding Light on the Entrepreneur/Private Equity Relationship

The ingredients for a healthy and sustained economy are rather straightforward.

Entrepreneurs who have a vision and a commitment to hard work align with sources of experienced capital to address the needs of customers in a stable and growth oriented market.

Two out of the three drivers of growth took the stage last month for a panel discussion hosted by ACG National Capital at the McLean Hilton in Tysons Corner, Virginia. Entitled “Spotlight on Private Equity,” the top line speakers included:

Phil Nolan, Chairman, CEO and Co-Founder, Galeos Group: This type of organization is often referred to as a platform company. Nolan has recruited an experienced leadership team and has $300M in private equity backing to create and grow a government contractor through M&A.

Prior to Galeos, Nolan shepherded government services provider Stanley, Inc. through a dramatic growth phase, ultimately taking the company public on the NYSE. Stanley was acquired by CGI Group in August 2010 for $1B in cash.

Peter LaMontagne, CEO, Novetta Solutions: Formed through a merger of four government contractors, Novetta is a private equity backed security, data analytics and cloud services company working for customers in the defense and intelligence community.

LaMontagne has worked in the government IT market for two decades, having held leadership positions at Mantech and Paradigm Solutions.

Walter Florence, Managing Director, Frontenac Company: A Chicago-based private equity firm founded in 1971 that invests in privately held companies in the services industries. The firm’s portfolio companies in the government contractor space include Salient Federal Solutions and SI International.

Chris Cathcart, Principal, The Halifax Group: a mid-market private equity group that typically invests between $10M and $40M in technology, healthcare and consumer-oriented industries.

Each panelist shared a set of introductory remarks about their role in devising, executing and/or funding a corporate growth strategy. Then, a fascinating dialogue ensued about the general misconceptions about private equity, and the relationship that exists between financiers and entrepreneurs.

Here are a couple of choice quotes:

“For a professional executive team, the sense of empowerment from private equity is incredibly attractive. Novetta has grown from 100 to more than 500 employees in a relatively short period of time. We’ve done well with private equity ownership. A financial partner can help keep a company rationale and focused in the right direction.”

Peter LaMontagne

“There are many different business strategies with private equity. Our approach is ‘back to basics’ to create value. We focus on management teams, sustainable businesses and profitable growth. It’s actually quite simple – great results come from great leadership and great execution.”

Walter Florence

“We partner with entrepreneurs and provide an appropriate level of operational guidance through our participation on a company’s board. (New investment) deal flow during Q1 was anemic. Yet, there are rays of hope and signs that point to it being a strong year for M&A.”

Chris Cathcart

“A private equity partner has given us the ability to look at and build a strong starting point for our business. We have the resources to attract a management team and the necessary time to make smart decisions when it comes to M&A.”

Phil Nolan

SAMSUNG — ACG National Capital brought together entrepreneurs and private equity financiers for a spirited discussion.

March 17, 2012 by Marc Hausman

Ganesan’s 3 Pronged Strategy Produces a $144M Gem

In January 2007, business process outsourcing provider Aptara was on the IPO fast track.

The company had the financial backing of a pristine investor in American Capital Strategies. Management had pulled off what they believed to be an M&A coup in the purchase of Whitmont Legal Technologies. And an overhaul of the brand had been successfully completed.

All that remained was for the corporate lawyers to file the S1 registration and for the bankers to organize the road show. Times were good and I was basking in the glow as the company’s public relations representative.

It still pains me to recall how rapidly that glow became clouded.

Whitmont turned out to be an albatross as it lacked much of the technical capabilities, customer relationships and financial footing that motivated the transaction. Management lost its focus on delivery of service and employee retention, creating a caustic environment.

Rather than realizing its IPO dreams, Aptara’s Board of Directors recognized the need to re-boot the business. In walked Dev Ganesan, a member of the Board and the company’s new CEO.

I recall in my initial meeting with Dev wondering why he would possibly take on this high-risk assignment. His career was defined by a series of accomplishments, from fast-growth companies like TRADOS and start-ups such as Intelliworks.

Although Strategic Communications Group’s (Strategic) contract with Aptara concluded, I remained in fairly regular communication with Dev. I watched in amazement as Aptara shed its lost ways and re-established a growth path.

That path culminated last month in the company’s acquisition by UK-based iEnergizer for $144M. When combined, the companies will have more than 11,000 employees working from locations across the globe.

On March 7, I made the five minute drive from Strategic’s Tysons Corner location to Ernst & Young’s office to hear Dev talk about Aptara’s success and acquisition at an event sponsored by TiE Washington, DC chapter.

Here is the three-pronged approach he employed at Aptara:

1. Win in the medium term. There is rarely a master stroke a company can employ to ensure its viability, health and success. Dev did the basics with an eye towards hitting quarterly benchmarks. He talked to customers. He studied the market. He inspired employees around a shared vision to help “digitize the world.”

2. Secure long-term funding for the business. Although American Capital Strategies remained supportive, Dev moved to slash unnecessary expenses and overhead. He got the business profitable and then wisely put resources to work to fund development of higher margin services.

“Customers will pay you a premium if you invest in innovation,” he told the audience at the TiE event.

3. Put in place the team. Dev opened his rolodex and called on executives who he knew could perform at a high level. He sold them on the vision, collaboratively developed a plan and expectations, and then allowed each member of management to execute.

“If you have to motivate your management team on an ongoing basis, then you have the wrong team,” he said.

CNET Gets It Right – Score One for Context

Market Shifts Take a $7.5B Bite Out of this Global Leader

Washington Post’s Weymouth Talks the Business of News

Shedding Light on the Entrepreneur/Private Equity Relationship

Ganesan’s 3 Pronged Strategy Produces a $144M Gem

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