Throwing his usual curve ball while on live TV, Andrew Bell asked me if business in Canada was being buried by government regulation.
Since I am on the board of the Exempt Market Dealers which seeks to regulate Loewen and Partners role as corporate finance adviser to business owners, I do accept some government regulation from the Securities Commission.
What is the role of government though in helping our industries outside of the oil and mining circles?
The cost of government is nearly getting to where tax payhttp://www.bnn.ca/Shows/The-Pitch.aspxers must work until August. It is a great deal to tax in order to pay to keep our regulations and government systems running. That is where I question the removal of money from the people creating jobs and money for the communities around their business. What is the opportunity cost of that transfer of money?
What can government do to help business in Canada get stronger?
That will be my question for the year 2012.
December 28, 2011
The Pitch gives marketplace for businesses wanting growth
The marketplace of ideas is what gets our engines running, or my engine gets a rev from others. This year, for sheer engine power, my favourite TV show is BNN The Pitch. Andrew Bell is the wonderfully curious host and for the past year I have been part of the pane that interviews the two company owners seeking capital.
Here are the details from today's The Pitch show.
Here are the details from today's The Pitch show.
Stephanie McLarty, President & CEO, REfficient
Stephanie McLarty, President & CEO, REfficient, has a way for businesses to sell surplus technology equipment to others. Her large clients generate between $50,000-$200,000 net proceeds from the process and divert 30-50 tonnes from landfills.
Christopher Serrie, CEO & Managing Partner, Building Water Solutions
Christopher Serrie, CEO & Managing Partner, Building Water Solutions, has already signed a deal with Canada's largest home builder to provide a special water filtration system for high rise condo buildings and is looking to expand.
Panelists:
Rick McGraw – President and CEO of Greenrock Asset Management
Sarah Prevette – Founder, Sprouter.com
Jacoline Loewen - Loewen Partners, Private Equity, author of Money Magnet.
December 26, 2011
Larger goals work The Running Room gave me a gift
Campbell Soup had a great leader, Doug Conant, who pushed his team to create a higher purpose in the business than just financial results.
I was fortunate enough to work with Doug Flynn at Flynn roofing who made the business of the outside covering of a building enormously fun.
Getting your staff to jump out of bed in the morning to work at what they believe to be worthwhile work is possible. By showing the bigger purpose of the company, employees realize they are contributing to their community more than just with dollar amount of units sold.
My seasonal shopping experience opened my eyes to the difference enthusiastic sales people can make. This year, The Running Room sales people amazed me with their interest in helping me select surprising gift ideas. My brother is an avid runner with lots of kit, yet The Running Room put together a gift basket with little products quite alien to me - like gloves that heat up with perspiration and little plastic pouches of energy goo. Thanks Running Room!
Read more at Harvard Business Review about how Doug Conant used positive feedback to reinforce the right behaviour.
I was fortunate enough to work with Doug Flynn at Flynn roofing who made the business of the outside covering of a building enormously fun.
Getting your staff to jump out of bed in the morning to work at what they believe to be worthwhile work is possible. By showing the bigger purpose of the company, employees realize they are contributing to their community more than just with dollar amount of units sold.
My seasonal shopping experience opened my eyes to the difference enthusiastic sales people can make. This year, The Running Room sales people amazed me with their interest in helping me select surprising gift ideas. My brother is an avid runner with lots of kit, yet The Running Room put together a gift basket with little products quite alien to me - like gloves that heat up with perspiration and little plastic pouches of energy goo. Thanks Running Room!
Read more at Harvard Business Review about how Doug Conant used positive feedback to reinforce the right behaviour.
Every family business should know this story
'A significant investment' in Ontario manufacturing - here is the quick story about how a Canadian 4th generation business grew beyond the family's wildest dreams.
Hamilton, Ont.-based Bermingham Foundation Solutions Ltd. has secured "a significant investment" says chairman and fourth-generation owner Patrick Bermingham.
Its new strategic partner, Soletanche Freyssinet, is part of the VINCI group, a Paris-based, publicly traded company that employs 180,000 people in about 100 countries.
Bermingham, founded in 1897, is Canada’s oldest foundation and marine specialty contractor, with a focus on the transportation, energy and mining markets. It also manufactures specialty foundation equipment and provides engineering services under the trade name Berminghammer. It currently exports equipment and services to more than 40 countries. Bermingham’s senior management will continue to run the business and remain shareholders.
How did a company with about 150 employees attract such a large foreign investor?
Five years ago, Bermingham met Loewen and Partners who taught them about the benefits of private equity for companies under $100M. As a family business, Bermingham had slowed down its growth by relying purely on the banks. As a client for 110 years, Bermingham's bank gave good loans but not enough to grow the company at a quicker pace. Higher growth is tricky and much higher risk which puts it outside the bank's comfort zone. Private equity may have a poor reputation but so do banks. Yet, smart family business owners who have achieved considerable wealth educate themselves about why these different types of finance do have a good achievement rate. Staples, Facebook, Google and Caterpillar have all achieved their success with private equity underpinning.
Putting aside their fears, Bermingham used Loewen and Partners to build up their valuation case and brought in a private equity investor that allowed the company to recapitalize its balance sheet and build out its strategy. Bermingham subsequently repurchased 100 per cent of the business, returning the company to the family and employee ownership. Toronto-based investment banking firm Loewen & Partners, which advised the company in the private equity transaction and the VINCI one, says strong processes and reporting structure subsequently made it easy for a large firm to do its due diligence.
Backed by Soletanche Freyssinet, Bermingham now has a mandate to grow. It intends to expand its overseas operations with increased equipment sales and rentals, and enter into joint-ventures on large scale projects at home and around the world.
Bermingham's long history of innovation over multiple generations of family ownership, and the fact it has achieved continued success in manufacturing - an industry long considered on the wane in Ontario - makes this announcement significant on a number of fronts.
Read the full story at The Globe and Mail by one of my favourite business reporters, Sean Stanleigh
December 22, 2011
Quick question for a CEO - what is your company's identity?
As a CEO, here is a quick question for you.
What is your firm's identity?
Is it about the core capabilities. Is it about what you actually achieve - like West Jet that serves its employees first and then its customers. Looking after the social capital in the company will yield results.
It is about your passion.
One of my client firms is an engineering business with awkward geeks selling high level skills.
What was interesting is that they know they are sophisticated engineers passionate about using other people's technologies in new ways to create dazzling machine parts.
Even though their website did not give their capabilities a fair shake, their advisory board could all articulate within seconds the company's purpose.
Passion wins through but passion must be articulated and described.
Funny how once that is done, the strategy unfolds within each division.
What is your firm's identity?
Is it about the core capabilities. Is it about what you actually achieve - like West Jet that serves its employees first and then its customers. Looking after the social capital in the company will yield results.
It is about your passion.
One of my client firms is an engineering business with awkward geeks selling high level skills.
What was interesting is that they know they are sophisticated engineers passionate about using other people's technologies in new ways to create dazzling machine parts.
Even though their website did not give their capabilities a fair shake, their advisory board could all articulate within seconds the company's purpose.
Passion wins through but passion must be articulated and described.
Funny how once that is done, the strategy unfolds within each division.
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