What a great time to be in Chicago! The weather is absolutely ideal, the streets eerily quiet, and the whole world now watching the arriving national leaders for some very important decisions about our future. I am delighted to announce that after many years of market research, we too are making some decisions of our own. To help to a much better job of telling “our story”, we have now retained much needed professional help.
As you will see with the following overview notes, although this is so very extremely important for our future, it is really is not that complicated. But you must know this so you can share it with others. Please carefully review the following so that you, as our Alliance spokesperson to the world, clearly understand and can effectively communicate this essential message as a key representative of “The Alliance”.
“Our Story” is about how, for the 1st time ever, we, as a new Alliance of professional organizations, are joining the market facts of today, forming new solutions….together. We’re organizing a whole new way to maximize business value at a time when America, and the whole world, desperately need it most!
“From 1995 - 2009, private capital-backed companies grew jobs by 81.5%, while all other companies in the U.S. economy grew jobs by 11.7%.”
Think of everything we are now doing in the private middle market as a timely and critical “new movement” to restore growth and prosperity in America and the world! Concerned professionals of all types seeking a bigger and better future are invited to join us here in Chicago in just a few weeks to “learn and earn more together”! Here is our grand secret: it is not me, or you, AM&AA, or any other single person or organization on earth. The simple but all powerful solution to our big problem is the collective WE. We, as in a whole new way: a.k.a. “collective intelligence”, “wisdom of the crowd”, “crowd sourcing”, “open education”, cloud computing, multi-disciplinary collaboration, openly and freely sharing proven “best practices” , etc. etc. Understand these essential points to tell others what our Alliance is all about:
A. New Research on the Global Importance of the overlooked and underserved middle market
The middle marketplace for private companies is highly fragmented and often fails to capture any substantial efficiency in scale, particularly in the lower end of the middle market for companies valued at less than $150 million. Consider:
• Over 90% of all business enterprises in North America and the majority of businesses internationally are privately-owned.
• Private businesses account for 78% of all new job creation, 60% of the nation's employment and 50% of the GDP
• If the U.S. Middle Market were a country, its GDP would rank it as the fourth-largest economy in the world, just behind Japan’s
(From GE Capital 2011 National Middle Market Summit, The Market that Moves America Insights, Perspectives, and Opportunities from Middle Market Companies GE Capital and The Ohio State University’s Fisher College of Business)
B. Current near staggering M&A market imbalance at mid-year 2012 (with too much money from PE over $400 billion and Corp. cash of $1.8 trillion all chasing too few deals)
C. Big reason that companies are not market ready: they are failing to create “market value” (generate returns in excess of cost of capital; breakthrough Slee research at Pepperdine)
D. New research on this market identifies ways to learn from the best to become a “growth champion” (OSU research funded by GE capital $10 million study)
E. Washington has just responded with massive new “JOBS Act” featuring “crowd-funding” and new market solutions for emerging growth companies with sales up to $1 billion
F. And now, in this year of elections, you too must respond: Help yourself and others thrive in this new world of enormous uncertainty. Connect and Learn what works from the world’s best by coming to Chicago this July. (As previously noted, not only is this large Mid Market the world’s 4th largest economy, coincidently, Chicago has just been listed as the 4th most powerful center business in the world!)
Think about it all this beautiful spring day….What do you choose to add to this emerging new story?
Michael R. Nall, CPA, CM&AA, CGMA
Founder, Alliance of M&A Advisors
200 East Randolph St., 24th Floor
Chicago, IL. 60601