Acquisitive Growth – Workshop 10: Cultivation (Organized Process)

The Appleton Greene Corporate Training Program (CTP) for Cultivation (Organized Process) is provided by Mr Chicles Certified Learning Provider (CLP). Program Specifications: Monthly cost USD$2,500.00; Monthly Workshops 6 hours; Monthly Support 4 hours; Program Duration 24 months; Program orders subject to ongoing availability.

If you would like to view the Client Information Hub (CIH) for this program, please Click Here

Learning Provider Profile

Mr Chicles is an approved Certified Learning Provider (CLP) at Appleton Greene who is a business leader and strategist with broad experience in the global multi-industrial, aerospace and defense sectors. He is a seasoned operational leader of global industrial businesses, leading transformational strategies in highly competitive markets.

As a senior, C-suite strategist for multiple major industrial corporations he has led multiple mergers, acquisitions, divestitures and restructurings, as well as corporate break-ups and spin-offs. He has a distinguished track record of successful transformations of complex organizations in dynamic and uncertain market conditions while engendering the trust and buy-in of employees, customers, vendors, owners, corporate leadership and boards of directors.

A highly engaged leader at the personal and team level he has demonstrated the ability to engender effective senior teams and boards. He’s also an active mentor, teacher and community leader.

Mr Chicles is an active board member with AES Seals, global leader in sustainable reliability engineering, and Micro Technologies Inc, an electronics and advanced manufacturing company. He is a principal partner with ProOrbis Enterprises®, a management science consultancy with premier clients such as the US Navy and PwC, as well as the principal of Xiphos Associates™, a management and M&A advisory. Recently, he served as Board Director and Chairman of Global Business Development with Hydro Inc. the largest independent pump and flow systems engineering services provider in the world.

He was President of ITT’s Industrial Process / Goulds Pumps business segment a global manufacturer of industrial pumps, valves, monitoring and control systems, and aftermarket services for numerous industries with $1.2 billion in revenue, 3,500 employees and 34 facilities in 17 countries. Preceding this role he served as Executive Vice President of ITT Corporation overseeing the creation of a newly conceived ITT Inc. following the break-up of the former ITT Corporation to establish its strategy and corporate functions such as HR, communications, IT and M&A, building the capabilities, policies and organizations for each.

He joined ITT Corporation’s executive committee as its strategy chief in 2006 and instituted disciplined strategic planning processes and developed robust acquisition pipelines to respond to rapidly changing markets. Created successful spin-offs of 2 new public corporations Exelis Inc. and Xylem Inc. ITT Corporation was named one of “America’s Most Respected Corporations” by Forbes for exemplary management and performance during his tenure there.

Before joining ITT, Mr Chicles served as Vice President of Corporate Business Development and head of mergers and acquisitions for American Standard / Trane Companies, where he initiated and closed numerous transactions and equity restructurings globally.

Additionally, he created and led the corporate real estate function which entailed more than 275 real estate transactions around the world.

He began his career at Owens Corning rising through the ranks in various operational roles to Vice President of Corporate Development.

Recently, he taught advanced enterprise strategy at Stevens Institute of Technology as an adjunct professor and still supports start-ups through the Stevens Venture Center. He continues to be active as the Founding Board Member with several successful start-up technology businesses and non-profit organizations. A community leader, Mr Chicles has held the role of President of the Greek Orthodox Cathedral in Tenafly, N.J., He also led trips abroad to Cambodia and Costa Rica to build sustainable clean-water solutions and affordable housing.

His formal education includes earning a Masters of Business Administration from The Wharton School at the University of Pennsylvania, and a Bachelors in Finance from Miami University.

Appleton Greene Global

MOST Analysis

Appleton Greene

Mission Statement

This workshop primarily centers on private businesses, distinct from public companies that demand formalized, market-tested processes and disclosure requirements incompatible with negotiated deals. As elucidated in WDP8’s “Deal Approach,” there exists a compelling rationale for sellers to enlist bankers and advisors in executing a structured auction process. It serves as an unparalleled method to ascertain a business’s value by subjecting it to a level-set auction among motivated, qualified buyers. Despite its advantages, covered in WDP8 are reasons to eschew this path, including cost considerations, confidentiality concerns due to shared information, labor-intensive processes risking management burnout, and potential dilution of productivity. Notwithstanding these challenges, the benefits of control, risk mitigation, and heightened competition among buyers in an auction scenario make it a formidable barrier for those seeking a negotiated deal. This organized cultivation entails a systematic endeavor to identify, evaluate, and integrate potential targets into the existing business structure.

Appleton Greene

Objectives

01. Research Target Details: departmental SWOT analysis; strategy research & development. Time Allocated: 1 Month
02. Tactics Planning: departmental SWOT analysis; strategy research & development. Time Allocated: 1 Month
03. Pre-Firm Offer: departmental SWOT analysis; strategy research & development. Time Allocated: 1 Month
04. Management Presentation: departmental SWOT analysis; strategy research & development. Time Allocated: 1 Month
05. Operational Visits: departmental SWOT analysis; strategy research & development. Time Allocated: 1 Month
06. Functional Calls: departmental SWOT analysis; strategy research & development. Time Allocated: 1 Month
07. Advisor Management (Bankers): departmental SWOT analysis; strategy research & development. 1 Month
08. Advisor Management (Other): departmental SWOT analysis; strategy research & development. Time Allocated: 1 Month
09. Firm Offer: departmental SWOT analysis; strategy research & development. Time Allocated: 1 Month
10. Next Steps: departmental SWOT analysis; strategy research & development. Time Allocated: 1 Month
11. Pre-Final Negotiations: departmental SWOT analysis; strategy research & development. Time Allocated: 1 Month

Appleton Greene

Strategies

01. Research Target Details: Each individual department head to undertake departmental SWOT analysis; strategy research & development.
02. Tactics Planning: Each individual department head to undertake departmental SWOT analysis; strategy research & development.
03. Pre-Firm Offer: Each individual department head to undertake departmental SWOT analysis; strategy research & development.
04. Management Presentation: Each individual department head to undertake departmental SWOT analysis; strategy research & development.
05. Operational Visits: Each individual department head to undertake departmental SWOT analysis; strategy research & development.
06. Functional Calls: Each individual department head to undertake departmental SWOT analysis; strategy research & development.
07. Advisor Management (Bankers): Each individual department head to undertake departmental SWOT analysis; strategy research & development.
08. Advisor Management (Other): Each individual department head to undertake departmental SWOT analysis; strategy research & development.
09. Firm Offer: Each individual department head to undertake departmental SWOT analysis; strategy research & development.
10. Next Steps: Each individual department head to undertake departmental SWOT analysis; strategy research & development.
11. Pre-Final Negotiations: Each individual department head to undertake departmental SWOT analysis; strategy research & development.

Appleton Greene

Tasks

01. Create a task on your calendar, to be completed within the next month, to analyze Research Target Details.
02. Create a task on your calendar, to be completed within the next month, to analyze Tactics Planning.
03. Create a task on your calendar, to be completed within the next month, to analyze Pre-Firm Offer.
04. Create a task on your calendar, to be completed within the next month, to analyze Management Presentation.
05. Create a task on your calendar, to be completed within the next month, to analyze Operational Visits.
06. Create a task on your calendar, to be completed within the next month, to analyze Functional Calls.
07. Create a task on your calendar, to be completed within the next month, to analyze Advisor Management (Bankers).
08. Create a task on your calendar, to be completed within the next month, to analyze Advisor Management (Other).
09. Create a task on your calendar, to be completed within the next month, to analyze Firm Offer.
10. Create a task on your calendar, to be completed within the next month, to analyze Next Steps.
11. Create a task on your calendar, to be completed within the next month, to analyze Pre-Final Negotiations.

Appleton Greene Global

Introduction

Appleton Greene

Cultivation- Organized Process

In the previous workshop, we explored Cultivation in the terms of Non-Auction. In this workshop, we will discuss Cultivation as an organized process. Lets recap before we delve further:

The phrases “cultivation (non-auction)” and “cultivation (organized process)” refer to different aspects of relationship-building in the context of business, particularly in the realm of mergers and acquisitions. Let’s explore the distinctions:

1. Cultivation (Non-Auction):

• This term suggests the process of developing and nurturing relationships in a situation where there is no auction or competitive bidding process. In other words, the acquisition or business relationship is not subject to a formalized competitive environment where multiple buyers are vying for the same target.

• In a non-auction scenario, the focus is likely on building a relationship with a specific target company without the urgency or competitive pressure associated with an auction. The acquirer may have more time and flexibility to engage in a more tailored and personalized approach to relationship-building.

2. Cultivation (Organized Process):

• In contrast, “cultivation (organized process)” implies that the relationship-building activities are part of a structured and systematic process. This process is likely part of a formalized framework for mergers and acquisitions where there are defined steps, rules, and timelines.

• The organization of the process could involve strategic planning, clear communication channels, and a methodical approach to engage with the target company. This approach is often essential in situations where there is an auction or competitive bidding, as the process needs to be managed efficiently and transparently.

In summary, the main difference lies in the context within which the relationship-building is taking place:

• Cultivation (Non-Auction): This implies a more bespoke and potentially less time-constrained approach to building a relationship with a target company when there is no competitive bidding process involved.

• Cultivation (Organized Process): This suggests that relationship-building is integrated into a formal and structured process, often associated with a competitive environment such as an auction. The emphasis is on conducting relationship-building activities in a methodical and organized manner within the parameters of the overall acquisition process.

In the context of acquisitive growth, particularly in business or organizational development, “cultivation” as an organized process generally refers to the deliberate and strategic effort to nurture and develop relationships with potential acquisition targets, partners, or stakeholders. This process involves actively building connections, fostering collaboration, and engaging in activities that contribute to the long-term growth and success of the organization.

Cultivation as an organized process in the realm of acquisitive growth can encompass various activities, such as:

1. Relationship Building: Actively establishing and maintaining relationships with potential acquisition targets, key industry players, or strategic partners.

2. Strategic Networking: Engaging in industry events, conferences, and other networking opportunities to connect with potential acquisition targets or partners.

3. Market Research: Conducting thorough research to identify potential opportunities for growth, including potential companies or assets that align with the organization’s strategic objectives.

4. Due Diligence: Systematically evaluating and analyzing potential acquisition targets to ensure compatibility with the acquiring company’s goals, values, and overall strategy.

5. Communication and Outreach: Effectively communicating the organization’s goals and intentions to potential targets or partners, demonstrating the value of collaboration or acquisition.

6. Strategic Planning: Developing a roadmap for growth that includes a clear plan for how acquisitions or partnerships fit into the overall business strategy.

7. Risk Assessment: Evaluating the risks and challenges associated with potential acquisitions and developing strategies to mitigate these risks.

8. Legal and Regulatory Compliance: Ensuring that all activities related to cultivation comply with relevant laws and regulations, especially in the context of mergers and acquisitions.

In essence, cultivation as an organized process is about systematically and purposefully preparing the ground for growth opportunities. It involves building the necessary relationships, conducting thorough research, and strategically positioning the organization for successful acquisitions or partnerships. This organized approach helps minimize risks and ensures that growth initiatives align with the overall strategic direction