2014 marked an incredibly strong year for manufacturing M&A. The sector saw deal value more than double and a 40% jump in deal volume compared to the prior year. The number one destination for private equity investment, the sector inked two dozen mega-deals (those with value of +$1 billion) and activity remained robust into the end of the year even as concerns grew around the fall of energy prices.
Any time an activist investor goes after your company, it’s a crisis. When Paulson & Company went after The Hartford and pushed it to split the company in two, the CEO and board members were shocked. But they were able to turn the crisis into an opportunity by following a few key behaviors. Here, in his own words, is former CEO Liam McGee’s success story.
Attacks on CEOs of large public companies continue to make the news daily. There are lots of ways for CEOs to try to ward off such threats—and most of them have to do with just running a company the right way, with a clear strategy, optimizing opportunities, minding the bottom line, and being able to think like both shareholders and corporate raiders. But what if the wolf is already at the door, and is winning your loyal constituents over to their side? What can and should CEOs do once an activist shareholder has selected him, her, the board or the company as his prey?
A growing body of research has shown that 50% to 90% of acquisitions fail to pay off for acquirers. This means that traditional integration methods are not working. There are many reasons an acquisition might fail, but two recurring mistakes are the order and the depth at which the integration is tackled.
Roundtable: How can companies solve the integration challenge?
The world of investing can always be counted on to get roiled when Warren Buffett—the Oracle of Omaha—speaks, and he has done so again with his criticism of spin-offs. But he’s getting a lot of pushback from other investment professionals—and from the markets themselves as they tend to keep favoring major companies’ spin-off moves.
John Chambers and Myron Ullman, CEOs of Intel and JCPenney, raised eyebrows recently by co-writing a Wall Street Journal op-ed piece in which they called for Congress to approve legislation that would “break the business model” of “patent-assertion firms,” otherwise known as patent trolls, which collectively cost the two companies more than one-third of a billion dollars in legal expenses over the last five years.
Due to their high profiles, CEOs face heightened risk from credit card and other personal data and privacy breaches.
Value sharing attracts the best talent and magnifies results. Effectively designed value-sharing plans reinforce the company’s business model, protects against bad profits and promotes good profits. It also promotes an ownership mindset and builds trust while accelerating results.
President Obama and Congressional Republicans could come together around some version of the new plan in his budget bill for overhauling U.S. corporate taxes and linking it to boosting infrastructure spending. But CEOs and independent analysts see plenty of potential complications before any agreement that could significantly address both of these pressing national economic issues.
Chief Executive Group exists to improve the performance of U.S. CEOs, senior executives and public-company directors, helping you grow your companies, build your communities and strengthen society. Learn more at chiefexecutivegroup.com.
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1:00 - 5:00 pm
Over 70% of Executives Surveyed Agree: Many Strategic Planning Efforts Lack Systematic Approach Tips for Enhancing Your Strategic Planning Process
Executives expressed frustration with their current strategic planning process. Issues include:
Steve Rutan and Denise Harrison have put together an afternoon workshop that will provide the tools you need to address these concerns. They have worked with hundreds of executives to develop a systematic approach that will enable your team to make better decisions during strategic planning. Steve and Denise will walk you through exercises for prioritizing your lists and steps that will reset and reinvigorate your process. This will be a hands-on workshop that will enable you to think about your business as you use the tools that are being presented. If you are ready for a Strategic Planning tune-up, select this workshop in your registration form. The additional fee of $695 will be added to your total.
2:00 - 5:00 pm
Female leaders face the same issues all leaders do, but they often face additional challenges too. In this peer session, we will facilitate a discussion of best practices and how to overcome common barriers to help women leaders be more effective within and outside their organizations.
Limited space available.
10:30 - 5:00 pm
General’s Retreat at Hermitage Golf Course
Sponsored by UBS
General’s Retreat, built in 1986 with architect Gary Roger Baird, has been voted the “Best Golf Course in Nashville” and is a “must play” when visiting the Nashville, Tennessee area. With the beautiful setting along the Cumberland River, golfers of all capabilities will thoroughly enjoy the golf, scenery and hospitality.
The golf outing fee includes transportation to and from the hotel, greens/cart fees, use of practice facilities, and boxed lunch. The bus will leave the hotel at 10:30 am for a noon shotgun start and return to the hotel after the cocktail reception following the completion of the round.
