Breaking: Must-see presentation for business owners added to program
Agglomeration: How to unlock the real value in your business
DiG 2016 has just announced an exciting late addition to the program with Adam Rockett of Strike Capital demonstrating an innovative new business model that answers many of the biggest issues faced by business owners and entrepreneurs and helps them unlock the true value in their company.
DiG co-founder Craig Wilson recently saw this presentation in Brisbane and knew it was essential information to share at this year’s event.
It’s call “Agglomeration” and was created by Callum Laing and Jeremy Harbour of the Singapore-based Unity Group. A variation on the traditional merger & acquisition ‘Roll-Up’ model, agglomeration allows the business owner to benefit from all of the shareholder value drivers associated with a Public Listing, yet still maintain full control over their business.
Unity created their first Agglomeration earlier this year, listing The Marketing Group on the European Nasdaq, helping the founding businesses to realise outstanding valuations that they would never dream of in the private market.
Adam Rockett and his team at Strike Capital in Brisbane have been working with Unity Group to introduce Australian companies to this exciting new way of looking at business.
In fact, if you operate in Marketing, Technology / Software, Property Services, Business Process Outsourcing, Logistics or Human Resource / Training you cannot afford to miss this. It could truly change the way you view your business and how much value you can unlock from it.
Start-up land is fun and exciting, but at some stage economic reality determines that a business must ‘grow up’. It is at this point a lot of the thrill gets sucked out for a lot of entrepreneurs, they often fail, move on to the shiny new thing, or remain in a mediocre businesses for years. Adam will look at how a new business model called Agglomeration can help solve these problems.
Scale. This is well known to most entrepreneurs: companies need to be big, to get big. Landing big contracts requires businesses that are big enough to handle them. Scale not only affects growth, but also valuation; big businesses are simply worth more than small businesses.
Succession. Entrepreneurs are often integral to the daily operations of the business and when it comes to an exit they often get tied up in legalities that retain them, meaning they can’t get their hands on the exit money for years. When entrepreneurs leave, most of the drive and passion leaves with them and ultimately, people hate change. So how do you safely transition in future?
Liquidity. The ability to buy and sell shares. Public listed shares historically carry a premium for their liquidity and for most entrepreneurs the exit is a ‘binary’ choice, they sell or they don’t sell.
Wealth and value creation. How does a business owner create the best value and wealth from their business? One of the biggest problems with generating wealth in business is that only a small percentage of businesses actually create any form of wealth for their owners and once you take out the amount of resource and energy put into the business, the returns are not great.
Global expansion. Having an international presence is a great way to reduce risk and in turn, improve the valuation of the company. Conversely, opening up in a foreign country is difficult and can be an expensive exercise.
Access to capital. Raising money for smaller business is reasonably difficult. There is a huge sea of capital waiting to be deployed into businesses, but small businesses just are not big enough or de-risked enough to attract attention. When small businesses actually do get investment, they often lose control of the company to the investor and the dream of owning and operating their own business is stifled.
Ego/pride. Entrepreneurs don’t want to feel like they sold out on their original dream, or worse, gave up. They want to see their efforts rewarded with growth and success in their own name.
Talent retention. When companies sell or merge often it is to the detriment of the business as key talent leaves the business. Talent, particularly in SMEs is absolutely everything.
All DiG 2016 attendees will also receive a copy of the book “Agglomeration” by Jeremy Harbour and Callum Laing.
About Adam and Strike
Adam Rockett is Co-Founder & Managing Director of Strike Group Australia and has been in business for the best part of 20 years. He’s made plenty of mistakes and has been through all the normal ups and downs associated with founding and running businesses. Adam knows what it takes to grow, to survive, to persist and when it’s time to quit.
Strike Capital, a Brisbane based subsidiary of Strike Group, helps SME’s explode profits, unlock wealth in private companies & assist in business succession. Strike Capital is involved with turnaround projects, investments and listings and is behind a successful recent listing of marketing businesses in Europe. Adam will speak about their Agglomeration model and how small businesses in the marketing vertical can benefit.