Next to the consulting, advising clients on both sides of the M&A game we are the party who will build a deal. Pro-Actively.
Capitalising on all opportunities we know how to bring companies on capitalising their mutual values; fitting in mutual growth objectives or the strategic growth into another marketplace while bringing top-synergy on the cost and profit side...
“hit the business ground running”
A conglomerate startup uses the most high level business skills to start new companies who will or must “hit the ground running”.
It will combine many years of knowledge needed, readily rolled out distribution channels, personnel, etc. into at least 1 new subsidiary and the rest separate companies.
Conglomerates are mostly described as a group of companies held by a central company, the holding, and where these group of companies mostly have no direct relations with each other, not necessarily have to be even in the same line of business.
The conglomerates holding rules these companies also separately, all separate companies having their own management, P&L and responsibilities.
Mostly the holding management will only be interested in the separate companies for their opportunities, profitability and sometimes the most simple of strategic intertwining.
The role of the holding for the conglomerate is strictly strategic. They will supply on the different strategic companies tools. And only in the strategic way; overall financing based on leverage, high level legal support, introducing a higher level of management skills than possible for these separate companies, entry levels for internationalisation, the possibilities to connect companies on higher strategic level.
The Holding needs high end management, with lots of business experience. They also need to be able to only keep focus on the strategics and able to trust on the separate companies management and capabilities,
The term “startup” is a confusing term; and many times explained as small and in desperate need of money. With a great story and often employing almost only almost teenagers.…
But this is not correct; a “startup” is merely no more than a company in the fase of not being established. In need of a lot of things not available (yet). Amongst which money but very often also knowledge and experience.
Most startups die within 5 years; for many reasons but most commonly the lack of business skills, or market. Nothing wrong with that; better trying than not achieving something.
Some startups will survive. And grow steadily into established companies; if you look around you see thousands of those; locally the most, over 85% of all companies serve a local need.
Starting a company needs at least all business skills; lack of any of these skills (management, financial, legal, technical, IT and much more) will make the chances of survival smaller unto a point that no survival can be expected.
Starting a company;
Many books and visions are written on this subject. It even seems to be a business case in itself; writing on all kinds of systems up to even ideologies achieving the best results.
There is no real recipe for starting a successful company; however there are certain areas that need to be covered as best as possible. And still leaves uncertain things like luck or correct timing…
These area’s will be, as agreed by everybody, at least thorough knowledge (and application of) finances, market understandings, legal basics, management and organisational insights, product and tech if needed.
And yes, if one sells services; that is a product too.
And also yes, if you are into the non-profit business you still need financial knowledge. And if you like all employees to have as much saying as the managing director, it is an insight one had considered.
The combination; conglomerate start-up;
When a conglomerate holding will startup a company there has to be a reason; the conglomerate is basically into holding companies, not starting them.
Therefor it is better to say that a startup conglomerate stacker is started for the reason of being a start-up.
Not for reasons of starting a holding, more for being a startup itself…
The basics for a conglomerate startup stacker; A Stacker© needs 2 things: a reason and great management
There has to be a reason to start this way and there must also a reason why all C-level management skills should be available right away.
To start with the latter; it seems a full-filling prophecy that a conglomerate startup needs C-level management. If a conglomerate is formed, and is set into motion, it needs in itself high level management to control the holding as such; next to the reason of actually forming the conglomerate in the first place.
Without the best experienced management a conglomerate startup can’t be successful.
Therefor this is a simple demand; a fact to be full-filled when starting a conglomerate startup successful.
Why a conglomerate startup
As said, choosing for the conglomerate startup form, has to have a reason.
There are many but all will boil down to only a few things; knowledge, time to market and market size. Sometimes one of them is forte of the holding company but one of the others is lacking.
A CS is about 3 things: knowledge, market size and speed.
A very good reason to build a stacker© ; knowledge; the lack of specific knowledge can be a reason to acquire this. This is a speedy way of getting what is needed knowledge wise and also have the access to its history and experience.
Also a very good reason to build a stacker© is the time-to-market. If a market is about to explode; there is simply no time the build extensive distribution channels, find the right sales people and be ahead of possible competition. Well, this is the meaning; be ahead of the competition.
And also a good reason is the fact that the market size is only handled in the largest scale. It often makes no sense starting locally; the reason for what one is trying to do is just the fact that the market is massive in itself and cannot be seen in local or even continent sizes because the reason for its existence will seize with making it smaller.
A Conglomerate Start-Up Stacker (CS)
is: a start-up in special form
needs: a reason and great holding management
these reasons will be about: knowledge, market (size) and/or speed (Time-to-market)
to: “ necessarily hit the ground running”
So, how does it looks like; this Conglomerate Startup (CS)
As said there must be a reason for starting a CS. With this the rest is combined to into a CS.
For a CS one needs a holding company which will hold all shares of the CS separate companies or partnerships. This Holding Company will also be the provider for all strategic services and will therefor also be the holder of all CS Management and staff.
This Holding Company is NOT exclusive to 1 CS!
The CSS is the combination of all shares/partnerships needed to form a startup which is in need of the knowledge, speed or market access. Most of the time all of them will apply.
The Holding Company will be the CS constructor.
The holding company will build the CSS by determining the needs for the CSS and acquire all company needed.
What is the difference with normal mergers and/or acquisitions?
The reason for a normal M&A case is the opposite; mostly this is about enlarging the own market, adding products in the same product line or similar.
The normal M&A practices are NOT about merging non-related companies.
A CS practice is about merging seemingly non-related companies and making completely new ones out of them…