Month: September 2016

Private equity management firms have often faced criticism and disapproval from industry theorists. The primary reason being most equity management firms thrive on business acquisition or mergers. However, mergers and acquisitions can prove to be beneficial for the industry itself.

On the surface of it, the entire business activity seems to be driven by the notion of profit. Theorists often argue that private equity firms often prey on weaker and financially underfunded companies. They acquire these companies with stakeholder investment and then sell these firms at a profit. However, what one overlooks is the effort put in by the equity management firm to restructure, rebuild and reorganize the acquired firm to ensure that it becomes a thriving success.

Anthony Munk, Senior Managing Director, ONEX Corporation have been closely associated with equity management. Munk opines that a large part of equity management depends on strategizing excellent asset supervision methodologies. Munk an alumnus of the prestigious Queen’s University has been closely associated with various aspects of business management as the. He began his career as a Research Analyst for ‘Guardian Capital’ and then worked his way up the corporate ladder. According to Munk some of the aspects of asset management are as follows:

• After acquisition the equity management firm must view the acquired company as an asset. Hence, to ensure that the company’s performance is enhanced, the equity management firm must play an active role in restructuring, funding and if need be reorganizing the hierarchy of the acquired firm.
• ONEX Corporation has successfully completed many mergers under the aegis of Munk. He was instrumental in initiating the merger process. According to Munk it is essential to develop a strong relationship with the companies that the equity management firm wishes to merge. Only then can the merger become a success and increase the productivity.
• According to Munk all investment management firms are answerable to the stakeholders. Hence it is essential to ensure that the money of the stakeholders are invested successfully to ensure the expected dividends.
• An important part of asset management is reinvestment. Munk opines that depending solely on increased productivity to ensure greater profit margin is not logical. The capital invested by stakeholders can be reinvested in various sectors to ensure higher returns. This too can boost the profit margin.

Thus, Munk believes that an equity management firm has to ensure that the capital invested is well managed to produce high revenue.

Anthony Munk has been born and brought up in a business family. His father Peter Munk is the founder of Barrick Gold Corporation. Hence, Munk has developed a shrewd business sense since childhood. Additionally, he has works as a board member or associated board member of various companies like Cineplex, SIG Combibloc and many more such firms. Thus, Munk is well positioned to give business solutions and advice to corporates. Munk strongly believes that the work of a private equity management firms begins with an acquisition or a merger and the venture’s success depends on proper asset management.

A proper plan for business is not only about developing a good basis for the operation and structure of a new firm, or even building a concrete foundation for it to be successful. It is also an instrument to use when making projects and presentations to investors and financial institutions. It is considered to be a vital tool in acquiring capital investment for your business. This is a critical factor in helping you to understand the startup of your business. If you have no idea or experience about how to write a proper business strategy, then you may want to get all of the help and assistance that you can. While thousands of new ideas and products are daily patented, only a few make them past the initial planning stage. Even fewer get enough funding to help them make it past growth and development and on to marketing and sales.

As the titleholder of Pybrum and Company, Steve Pybrum is a business advisor and provides valuable business services. He argues that a successful business enterprise, is best built on a solid business plan, one that is able to allure and retain investors.

A business plan, as defined by the Small Business Administration, has the following features:

• Summary of Executive- It can be best described as a summary of the nature of the company, its business atmosphere, and other factors. A detailed executive summary tells about the market position of the company and its owners’ goals and aims for the business, and should always highlight the strengths of the company.
• Description of the Company. A company’s detailed description informs the individual about one’s business line, the market it intends to serve and its industry differentiators.
• Analysis of the Market- This will help clients or investors figure out the actual position of the company as a market analysis looks into the present state of the business environment.
• Structure of the Management- Buyers and investors would like to know how decisions are taken within a company so that they will recover their investments faster.
• Service or Product Line- A service line will list not just services or products, but also what the investor will get out of them. Including a cycle of product development in the business plan will also convince clients to buy in.
• Sales and Marketing Plan- Product development is just the partial side of business, promotions and marketing make the other half. A good business strategy includes sales plans, company marketing and promotions.
• Request for Funding- For companies that do not have enough capital to start production and carry out business plans, request for funding. A funding request comprises of a company’s present financial status, plus projected requirements for the next six years, a breakdown of the planned expenditures and plans for exit.
• Appendix- Although optional, an appendix can include several documents such as lease agreements, employee and owner resumes and operating permits.

Thus it is much easier to focus on your methods of profitability and financial needs and operating your business when you have a business coach like Steve Pybrum who cares about you and your enactment.