CEO Think: Blog
Use of Advisors in Acquisitions
Nobody can wear all the hats in an acquisition. Most CEOs need and want advisors to help them in their M&A efforts. How well you can work with those advisors may determine the outcome. READ MORE >
Grabbing More of the Value Chain
When a customer has it easier because of your innovation, they’ll either pay more for your product or will choose you over your competition. Loren Kimura, CEO of Basic American Foods, shows us how committing to innovation can make your customer’s life simpler and grow your bottom line.
All About Earn-Outs
A purchase agreement in which the seller receives more if certain benchmarks are met by the buyer in the years following the sale is called an “earn-out”. Such devices hold the promise of giving the seller more from their sale over time, or setting performance standards for the buyer. But they’re tricky, unpredictable, and may poison the relationship.
Five Reasons to Extend Your Hand
There are major benefits in getting to know your competitors on a personal level. Leave your preconceptions at the door and engage with them as people. You have little to lose and a great deal to gain.
The Roving CEO
As time passes and your business grows, challenges hit departments unevenly, and the laggards will need help. Your job as CEO is to keep an eye on each department in your company, sense which one is struggling the most, then dive into that department to pull it forward.
The Path between Entrepreneuritis and Myopia
If you set no boundaries around your business, you fail to focus your resources and energy. If you’re too narrow-minded, opportunities can pass you by. Defining your business correctly helps you avoid these two extremes.
Avoid the Slide to the Dark Side
Many of us feel the pull to the dark side. The urge to make a few extra bucks or the need to keep the business afloat may push us to contemplate behaviors we would not normally consider. But this slide to the dark side exacts a terrible cost.
Inherently Wasteful
Trying new things in business is a must. But not all new ventures succeed, so the process involves some inevitable waste of resources and time. Don’t let that discourage you: the amount of waste can be managed.
Good Reasons vs. Bad Reasons
One of the most important things to understand about sellers is why they want to sell. Don’t expect that they’ll just tell you the true reason they are selling if they think it will hurt the price or likelihood of the sale. Here are two lists: good reasons to sell and the reasons that should set off alarm bells.
Give First, Then Ask
Giving creates a special bond. Start relationships with others by giving them something of value first. Quality people will give back, creating a cycle of generosity.
Robert Sher is founding principal of CEO to CEO, a consulting firm of former chief executives that improves the leadership infrastructure of midsized companies seeking to accelerate their performance. He was chief executive of Bentley Publishing Group from 1984 to 2006 and steered the firm to become a leading player in its industry (decorative art publishing).