M & A Advisory – Acquisitions and Divestitures – Noon Advisory Group

Revenues

Shane — Sun, 12 Jan 2020 18:07:51 +0000

Revenues, as the starting point for delivering the business’ profit, is a major potential source of margin enhancements. This can be achieved through revenue, volume and mix productivity planning and optimization over a company’s customer categories, its asset base, and capacity to produce and serve customers in its markets

Capacity

Shane — Sun, 12 Jan 2020 14:37:00 +0000

Capacity should be a central theme in how a company designs, builds and operates its business strategy and productive capacity. This is critical, not only in terms of its output productivity, but also, the amount of revenues, customer mix, volumes and ultimately margins generated.

Cost Structure

Shane — Sat, 11 Jan 2020 14:42:00 +0000

A company’s cost structure is critical to its margin performance especially as the company’s business grows more complex, over the years, in terms of volume, mix and service, over allocated assets. Disciplined cost management is imperative for all businesses, as it is a source of cash preservation also.

Capital Expenditures (Capex)

Shane — Fri, 10 Jan 2020 14:45:00 +0000

Capital expenditures are required to maintain asset reliability, thereby, at a minimum, sustaining profitability levels from prior periods. Capex is also required for capacity expansion, to organically grow the business within the same site or at alternate site with same or new customers.

Cash or EBITDA

Shane — Thu, 09 Jan 2020 14:46:00 +0000

The discipline and productivity of cash generation & preservation starts with product/service pricing and is impacted by the productivity of the company’s cost structure and capital deployment processes. Greater cash can help feed future growth and reduce new debt or equity issuance.

Culture

Shane — Wed, 08 Jan 2020 14:49:00 +0000

In the words of the legendary Management Consultant and Author, Peter Drucker, “Culture eats strategy for breakfast.”

Renewal

Shane — Tue, 07 Jan 2020 14:51:00 +0000

A successful company grows rapidly, expanding its technological and asset base, adding customers, suppliers and employees of various experiences and talents. It becomes challenging to grow without sacrificing some decisions related to some dimensions of business performance. After years of success, taking time to evaluate where the business is and what future success will look like and what it will take to deliver it, is invaluable. It becomes an imperative.