Middle Market Strategies: How Private Companies Use the Markets to Create Value
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Middle Market Strategies How Private Companies Use the Markets to Create Value

By Richard M. Trottier
John Wiley & Sons May 2009

Specifications

ISBN-13
9780470464571
Publisher
John Wiley & Sons
Publication
May 2009
Format
Hardback , 288 pages
Jurisdiction
International ? Countri(es) for reference only

Details

Break down the walls that stand in the way of business growth with the effective middle market strategies found in Middle Market Strategies

The middle market represents about 1% of all U.S. businesses but produces about 40% of the gross domestic product. Winning the middle market is critical to business owners, and vital to the U.S. economy. Providing a comprehensive framework for understanding the market for private mid-sized businesses, Middle Market Strategies helps owners avoid unnecessary risks and enjoy some well-deserved returns by sharing the lessons learned from hundreds of featured business owners.

Using ninety real-world case studies, Middle Market Strategies helps inform better business decisions by providing answers to the most pressing questions, including:

  • How do the markets work?
  • How can they be used to improve business value?
  • Which strategies work best?
  • What are the rules and how do you work with them?
  • How are middle market businesses different from larger and smaller businesses?
  • What separates successful businesses from others?

Author Richard Trottier's reader-friendly anecdotes depict owners caught in the daily struggle to survive and the choices they made to break down the walls that stood in the way of their growth. Their stories, and the market rules that grew out of them, help to provide CEOs and presidents of mid-market companies, business appraisers, and capital providers with a solid understanding of the market to help them make better business decisions.

Table of Contents

Preface.

Acknowledgments.

CHAPTER 1 Market Overview.

Confluent Trends.

Overcoming Walls.

Winning the Middle Market.

Why Is Winning Important?

PART I MARKET WINDOWS.

CHAPTER 2 Rise of the Middle Market.

Evolution of Small Companies.

Restructuring of Large Companies.

The Globalization Paradox.

Winning the Middle Market.

CHAPTER 3 Market Segmentation Matters.

Investor Return Expectations.

Capital Access and Costs.

Market Works and Institutions.

Behavior of Players.

Capital Market Theories.

Diverse Players Provide Capital Needs.

Capital Providers' View of Risk and Return.

Owners and Managers' View of Risk and Return.

Capital Market Segmentation Matters.

Winning the Middle Market.

Notes.

CHAPTER 4 Middle Market Structure.

What This Market Needs.

Using the Theory.

Valuation.

Capitalization.

Transfer.

Triangulating Vince's Position.

Note.

CHAPTER 5 Middle Market by Industry.

Changing Definition of Industries.

Service Sector.

Wholesale Distribution Sector.

Retail Sector.

Manufacturing Sector.

Construction Sector.

PART II MARKET WORKS.

What Went Wrong?

CHAPTER 6 Monetizing the Middle Market.

Private Equity.

Individual Shareholder Equity.

Mezzanine Capital.

Impact of Monetization.

CHAPTER 7 The Information Imperative.

Financial Statements as a Base.

Owners, Managers, and Industry Specialists.

Business Valuation Professionals.

Intermediaries or Infomediaries.

Data-Gathering Institutions.

Impact of Information on the Market.

Information Attracts Capital.

The Information Insurgency.

CHAPTER 8 Traffic Cops, Regulators, and Rule Makers.

Governmental Regulation.

Regulation by Capital Market Authorities.

Regulation by Mutual Adjustment and Cooperation.

Regulation by Competition.

CHAPTER 9 Who Gets What, When, Where, and How.

Assigning Resources within a Firm.

Allotting Resources within Industries.

Distributing Resources among Market Segments.

Allocation by Society.

Winning the Middle Market.

Note.

CHAPTER 10 Transfer Trends.

More Deals.

More Sellers.

More Buyers.

More Transfer Methods.

Transfer Complexity.

Transfers among Those within the Company.

Transfers to Those Outside the Company.

More Complexity.

Impact of Transfer Trends.

CHAPTER 11 Market Makers and Matchmakers.

A Historical Precedent.

Purveyors of Debt and Equity.

Market Makers, Matchmakers.

Turnaround Artists.

Winning the Middle Market.

CHAPTER 12 Market Cycles.

Business and Transfer Cycles.

Recession.

Recovery.

Growth.

Decline.

Winning the Middle Market.

CHAPTER 13 New Rules of the Game.

Motivational Rule Changes.

Capital Rule Changes.

Informational Rule Changes.

Operational Rule Changes.

Market Rule Changes.

Transfer Rule Changes.

PART III WALLS.

The Devil in the Demographic Details.

CHAPTER 14 Motivational Walls.

The Will to Win.

The Risk Barrier.

The Priority Wall.

The Timing Wall.

Overcoming Motivational Walls.

CHAPTER 15 Capital Walls.

Sales and Earnings Walls.

Access to Capital Walls.

The Cost of Capital Wall.

The Only Wall That Matters.

CHAPTER 16 Operational Walls.

Management Team Walls.

The Productivity Wall.

That Vision Thing.

Strategic Planning Wall.

The Only Wall That Matters.

CHAPTER 17 Market Walls.

Limited Ability to Make Markets.

Supply Chain Walls.

Path-to-Market Walls.

The Only Wall That Matters.

CHAPTER 18 Transfer Walls.

The Wall of Complexity.

The War of the Worlds Wall.

Transfer Segment Walls.

The Timing Wall.

The Only Wall That Matters.

Note.

CHAPTER 19 Winning the Middle Market.

Living in a Market.

Walls.

Winning the Middle Market for Owners.

Winning the Middle Market for the United States.

APPENDIX Demographic Study.

Index.

About the Author

Richard M. Trottier is President of Sundial Partners. He has over twenty years of experience in advising clients in acquisition, divestiture, mergers, business valuation, strategic planning, and turnaround planning. He has written numerous articles that have appeared in such publications as Business Appraisal Practice, The Tampa Bay Economy, and Mergers & Acquisitions.

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