Canada M&A deals drop 15 pct in Q3 as sellers wait

What is happening to businesses in Canada? It seems that the sellers are waiting for uncertainty to pass. When BNN asked Ed Giacomelli, Partner at Crosbie & Company, for his views on where we were, he said that the Q3 deal volume down 15 pct from Q2, 25 pct on year. BNN asked Mr. Giacomelli for his opinion on these lower rates of M&A, he said he believed it was due to the uncertainty but that by next year, sellers will be more confident again.
In addition:

* Deal value of C$40.5 bln was up 18 pct from Q2

* Big CNOOC/Nexen deal skews data

TORONTO, Nov 14 (Reuters) - The volume of merger and
acquisition activity in Canada slowed 15 percent in the third
quarter from the second as market uncertainty held back
prospective deals, though a blockbuster bid by China's CNOOC Ltd
for oil producer Nexen Inc helped boost the overall value of
transactions, a report showed on Wednesday.

Worried that a new project may ruin your image?

Even though a new project or tool is going to make the CFO look good, there is always that other side...that 'why didn't he/she come up with the solution earlier since it was out there before?
The CFO needs to remember that since they have the opportunity to do something about it, now is the time to do it.
Don't worry about anything else except that it makes sense for the business or the practice. 
It makes sense to get it done, now.

Have you heard of Insight Selling?

Implementing any consulting service involves focusing more on the potential for the prospective client to change and less on clients with potential to buy. 

This involves "insight selling" as opposed to old school "solution selling". The difference is insight selling involves looking for agile organizations who have not identified the potential problem you can help them solve while "coaching" them into the buying decision through producing disruptive information that uncovers unmet needs vs. asking a lot of questions hoping to . 

This is typically easier to accomplish when you target people within the organization who fall into the category of go-getters, teachers, and skeptics. Avoid people who fall into the category of guides, friends, climbers, and blockers who while friendly can't build consensus within the organization to change providers or take actions that would lead to saving money.

Jacoline Loewen, The Pitch on Business News Network, BNN

Jacoline Loewen   See Jacoline on BNN, The Pitch  Author of Money Magnet Director, Crosbie Co.

Crosbie & Co.

150 King Street West

Toronto, ON

M5H 1J9

416 362 7726

How does an outside advisor get the CFO to buy?

A CFO's reluctance to try something new, even something that would save the company significant dollars, can be attributed to the initial lack of trust in the advisor that brings the idea to the table. 
It takes time to foster a relationship of trust with an individual who has much at stake in a company – whether it’s just a job, equity, leadership position, or just plain reputation. 
So if the idea is presented by an outside advisor, that advisor should invest into the relationship and over time gain the trust that is necessary to execute the idea presented. 
Additionally, new ideas typically require a lot of work above and beyond the normal day to day responsibilities of the status-quo. So it is imperative to obtain buy-in from every individual that will be involved in the process. 
You know how the saying goes, a chain is only as strong as its weakest link. That, I believe is one of the biggest hurdles companies need to overcome when considering new ideas. Everyone has to be on board so that it is properly implemented and successfully launched. 
My 1.5 cents.

Jacoline Loewen, BNN The Pitch 

Jacoline Loewen   See Jacoline on BNN, The Pitch  Author of Money Magnet Director, Crosbie Co.
Crosbie & Co.
150 King Street West
Toronto, ON
M5H 1J9
416 362 7726

Does your business have lumpy payments?

If your business doesn’t have enough cash, you will be under stress. That is something I experienced first-hand. When you don’t have enough cash, you feel pressure to take any client who shows interest. This is usually a mistake. Trying to be all things to all people is a downward strategy.

Most owners understand this. When you are under pressure to pay your bills, it’s hard to say no — even if the customer is outside of your target market. You need money, you take the business, and you often end up spending too much time serving the customer. And if you stay in this cycle, you put your business at risk. When you own a microbusiness, burning time is just like burning money.

Several years ago, I did some work with a graphic design firm, Gray Cat Studio. Michelle Bisceglia, the owner, had built a knowledge base working with specialty food manufacturers. She knew a great deal about the businesses and what made them successful.

When I first started working with her, she would take work from anyone. She often lost money when she went outside her knowledge area, but like many microbusiness owners, she was often short on cash.

We worked on developing her niche and I coached her in using a new word: No. Over time, two things happened. She was able to charge higher fees because of her expertise, and it took her much less time to complete projects. This allowed her to create a cash cushion, which made it even easier to say no to customers who didn’t fit her profile.

Two Paths for Microbusinesses

Ultimately, microbusiness owners have two choices. They can choose to remain a microbusiness, like Ms. Bisceglia, or they can do what I did in my previous business and move into the next level, the traditional SME. In both cases, understanding the drivers that create cash for living and saving is crucial. If you want to grow, you will not only need to finance your own living needs and retirement savings, but you also need to create cash for growth.

There is no good or bad about this decision. It’s truly about an owner’s preferences. Some people decide they want a bigger business, and some are happy just doing what they want without having to worry about managing other people.

If you choose to stay at the micro level, you need to understand that lumpy sales exist and you must have a strategy for dealing with them. You should have a plan in place in case you become disabled. You should have a strategy for saving for retirement, because you will not be able to sell your business.

What do you think? If you’re a microbusiness, what are your challenges? Have you decided to stay at this level?

Jacoline Loewen   See Jacoline on BNN, The Pitch  Author of Money Magnet Director, Crosbie Co.

Crosbie & Co.

150 King Street West

Toronto, ON

M5H 1J9

416 362 7726