Private equity and Jon Huntsman

There is the mistaken belief that the USA president candidate Jon Huntsman is the same Jon Huntsman who co-founded a $1.1 billion private equity firm called Huntsman Gay Global Capital. But he isn't.

The Jon Huntsman running for president is the former governor of Utah and U.S. Ambassador to China. The private equity Jon Huntsman is his father, who previously founded specialty chemicals company Huntsman Corp. and who isn't nearly as involved with the firm as is co-founder Bob Gay (a former colleague of Romney's, as it so happens). The firm also happens to employ Jon Jr.'s brother Paul as a vice president.

Huntsman Jr. does not have any financial interest in his father's firm, according to a source familiar with the matter. He would have a good understanding of the use of many private equity firms who have taken their financial power to re-energize businesses that might otherwise go bankrupt.

Who Will Win the Private Equity Cage Battle between The Bay and J.Crew

Since The Bay's renewal, the males in my family have bought all of their casual clothing there over the past year, and  I had no intention of even window shopping, yet ended up buying business suits too. I would personally say The Bay is back to being a go-to-shopping spot again. 
The Bay has achieved their relaunch thanks to private equity backing with financial depth, and the gutsy CEO, Bonnie Brooks, is probably still in the midst of the final transformation. It is with alarm that I hear the rumours that the preppy and likeable J. Crew is looking to open in Canada. 
Is there room? 
Lands End had to leave with its tail between is legs. How will J. Crew be different?
Well, first, J. Crew will also have the deep pocket, private equity backing that The Bay enjoys. Here is an article detailing the private equity story:

Now we find out that the American retail chain BJ's Wholesale Club, Inc. announced Wednesday that it has agreed to be bought by private equity firms Leonard Green Partners (LGP) and CVC Capital Partners in a $2.8 billion cash deal.

Taking lead advisory roles on the deal are lawyers from Latham Watkins, Simpson Thacher, Bartlett, Wilmer Cutler Pickering Hale Dorr and Potter Anderson Corroon.

Under the terms of the transaction, BJ's shareholders are to receive $51.25 per share, a premium of nearly 7 percent premium over the stock's closing price on June 28, according to the BJ's statement. A proxy statement with additional information on the agreement has yet to be released to shareholders and the SEC, the companies said.

BJ's board of directors has unanimously approved the deal and has recommended it for shareholder approval. The company expects to close the acquisition in the fourth quarter.

BJ's, which operates 190 warehouse outlets in 15 states, is one of the top warehouse chains in the country and the latest in a string of retail pick-ups for LGP this year. The investment house acquired preppy clothier J.Crew, last November and added the craft-and-hobby chain Jo-Ann Stores in December.

Clients and Consultants: Venus and Mars?

Who knew? The key tasks or touch points that clients think are important for their advisers to do and what advisers think make their clients happy are very, very different. Worlds apart, in fact.

I was surprised by the results of the survey done by Jenny Sutton and The RFP Company. Jenny wrote a terrific book called "Extract Value from Your Consultants" - which sounds like a bad trip to the dentist, but if you are an adviser, this is the one book for your summer vacation - it has been a must-read in my office. Here's Jenny:

Earlier this year we conducted two surveys on the drivers of satisfaction when it comes to using consultants. One collected information from the users of consulting services, and the other from consultants themselves.

We were surprised at the massive difference between average client satisfaction and satisfaction as it is perceived by consultants. In addition, consultants and clients seem to have very different ideas about what the important factors are in creating a satisfactory outcome.
You can download a full copy of the report here.

Economist Article

In a recent article on the state of the consulting industry, The Economist  contacted Jenny for her thoughts!

“But increasingly, says Jenny Sutton of the Hong Kong-based RFP Company, clients are refusing to pay for junior staff’s on-the-job training. Instead, they are asking for fewer and better consultants and setting them to work alongside their own staff.”

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How to build a business team for private equity - add an older woman

Start ups are like an intense marriage and choosing a woman 50+ to be a founding member, particularly if you are all males under 30, could be a savvy choice. “Get over the stereotype of mum with the cookie tray nagging about a messy room. At age 53, Arianna Huffington did a start up bloggers’ forum website called The Huffington Post which went on to get sold 6 years later to AOL for US$315 million.”

 “On BNN, The Pitch, we had a team of impressive young men, MBAs, pitching their online furniture business. I turned them down as the passion for profit was apparent, but for furniture, not so much. I had spent the weekend with a woman 50+ who had decorated her home using Kijiji. Now, if she had been part of the team with her online knowledge of competitors and experience shopping online, they would have got the thumbs up. She would have supplied that Tony Hsieh passion – the fellow who founded Zappos, the online shoe website. Investors bang their heads on the table saying repeatedly that the reason they invest is the founding team. If person fills a set of core skills, choosing an older woman would bring a slew of additional soft factors to comfort investors and get them to write a check. ”

If you are in your fourth or fifth decade (or even just thinking ahead), and still planning to make your millions, we have some inspiration for you. These fearless, foxy and over-40 women used their wisdom and savoir-faire to carve out their own places in the world — and were handsomely rewarded for their efforts.

1) Ursula Burns (Born 1958)

Early life: Joined Xerox in 1980 as a summer intern. She took time off to pursue her Master's Degree, but continued to work at Xerox's corporate office in various roles throughout her 20s.

The turning point: In 1990, a male senior executive at Xerox offered her a job as his executive assistant. No doubt, anyone might have thought of this as a dead end for career aspirations. However, Ursula took the job and then went on to climb the ladder of executive assistant-dom, working for the Chairman and CEO within a year. Finally, at the age of 41, she was appointed vice-president and then senior vice-president.

The breakthrough: Ursula worked closely with Xerox's first female CEO, Anne Mulcahy, and went on to succeed her as CEO in 2009. Ursula was 50 years old at the time.

Why we love her: The first woman to succeed another woman as CEO of a Fortune 500 company and become the first female African-American CEO of a Fortune 500 company. Mostly, though, we admire Ursula's confidence in taking a job she probably felt was beneath her, while recognizing that she would use the opportunity to her great advantage.

2) Arianna Huffington (born 1950) 

Early life: Born in Greece and educated in England, Arianna wrote several books, magazine articles and was often a commentator on news talk shows. For many years however, her biggest claim to fame was as "wife-of" politician Michael Huffington, whom she divorced in 1997 at the age of 47.

The turning point: In 2003, she ran for the office of governor of California and lost to Arnold Schwarzenegger (insert your own joke here!). She needed a new focus and realized the future was the internet, so the 53-year-old launched Arianna On Line and became a pioneer among female internet bloggers. At the time, most internet bloggers were introverted males, but this did not deter her vision.

The breakthrough: In 2005, Arianna re-launched her site to become The Huffington Post. Known as HuffPost among its fans, the site rapidly became a forum for discussion on current events as well as a gathering place for bloggers. It grew to become one of the biggest media brands on the Internet. In February 2011, AOL acquired the site for US$315 million.

Why we love her: Arianna never shies away from an opinion or a debate and she encourages the same in others. At a TED Talk, Arianna gave her top advice for women who want to succeed - get more sleep!

3) Carolina Herrera (born 1939)

Early life: She grew up in Colombia, in a privileged family where she was not expected to work, and was married off at the age of 18. Though she had two daughters, the marriage did not last. She was the first person in her family to divorce and humbly moved back in with her parents. She married again, to the love of her life, a few years later and had another two daughters.

The turning point: While she had always loved fashion, Carolina had only worked briefly in the industry as a publicist for Emilio Pucci in the mid-1960s. At the age of 40, she decided to get serious about her passion. She thought about designing a line of fabrics, but was encouraged by a good friend to think bigger.

The breakthrough: Despite her family's skepticism, Carolina sketched 20 gowns and had a dressmaker in Caracas sew them. She carted them to New York and started showing them around. She was shocked when the orders started flying in. Unfortunately, she only had the samples and no plan for production. She returned to Caracas, found an investor and then in 1981 set up an atelier and showroom in New York under the brand Carolina Herrera Ltd.  She was 42 years old.

Why we love her: Carolina came from a traditional world where it was not looked upon favourably for a woman to have a job. She defied traditions and believed in herself, despite the shaking heads around her, and become an international success. Yet she retains her poise, grace and values. She never works late or on weekends and does not expect her staff to either. She says, "If it can't be done between 9 and 5, something is wrong."

4) Liz Claiborne (1929 - 2007)

Early life: On a family trip to New York City in 1951, Liz declared she was staying. The Belgian-born 21-year-old got out of the car and, with $50 from her father, went to stay with her grandmother. She found work with a clothing designer and for the next 20 years apprenticed with the New York fashion scene's finest.

The turning point: When her son reached the age of 18, Liz felt that if anything happened to her, he was now of an age where he could support himself. She decided the time was right to take a risk. She gathered up $50,000 of her own savings, plus $200,000 invested by friends, family and business associates.
The breakthrough: Liz launched her eponymous fashion line at the age of 47.  In the first year, she experienced sales of $2 million. Within two years, her profits were $23 million and she went public in 1981, making the Fortune 500 in 1986. Not only was this sweet recognition for the company's 10th anniversary, it was the first time that a company founded by a woman made the Fortune 500 list.

Why we love her: As a working mother, Liz was dialed in to the growing number of women in the workforce who needed practical yet stylish corporate clothes. She trusted her instincts and bided her time. Her rule of thumb was that she would never price her items higher than what she would be willing to pay and was known to pose as a sales clerk in order to get objective opinions from the women buying (or not buying!) her clothes.

Do you think innovation can be increased?

Revealed in Connected is that our social networks drive and shape our lives. You are impacted daily by the people around you.
Nick Christakis writes about how much money you make and even if you vote is all determined by your social network.
We are like flocks of birds or schools of fish making subtle changes from those around us. Unconsciously, we are led by those around us which is why you do want to join that expensive business club, or get the best university degree and go to the alumni events as much as possible or set up a meeting with someone who is far ahead of you.
I wrote in my book, The Power of Strategy, that if you hang around with the same golf buddies only, that you will not move beyond them. This book is a good read that confirmed to me the power of business clubs, university alumni events and conferences. Pick your networks and those with whom you share social networks. Make sure at least 20% of those people scare the heck out of you. Do one monthly event where you are uncomfortable. Change up your social group to get different life results.
Thank you to Rick Belcastro of EFG Canada. Rick is a wealth management specialist and is one of those people who knows how to network and socialize very well.