Palazzo On Creating Value - Page 2
In 2009, Bloomberg BusinessWeek referred to the M&A industry as looking grim. M&A specialists at law firms called that period “a horror show.” During that time, more than ever came “Mergers of Necessity.”
Someone had to step up to the plate and hit the ball in a different direction – a direction those in the outfield wouldn’t expect.
Phil knew that his different approach was in order.
“We talked about enhancing and creating value and as a result we have a pretty robust consulting practice. Not every company we talk to and work with is ready for or wants to consider a sale.” Phil said.
“Traditionally, investment banks want to be there to do a transaction. When an owner of an ad agency is ready to sell, the investment banker wants to be there to assist on the transaction. What we’ve attempted to do is to talk to a lot of the owners in advance of a transaction. We let them know that we can create and enhance value well before they consider a sale.”
“Rather than a banker pushing a transaction, we’re actually more charged on building value for the owners of ad agencies and marketing companies – as a result, that attitude has resonated.”
Pushy investment bankers weren’t going to be closing deals at a time when people and businesses didn’t know what their next move was going to be – or if they had one to make. They needed advice.
“A good example would be a transaction that we completed at the beginning of this year with a firm called TargetCast. They’re a pretty large deal in the media space. They were acquired by MDC Partners. We began working with TargetCast back in 2009. They had no interest in selling at that point. When they were ready, we were the trusted and valued advisor and part of the team. We were there to lead the sale.” Phil said.
MDC owns all or part of 50 agencies and is known its large number of deals since 2009 to now. The advice that PALAZZO provided to TargetCast made this deal work in the best interests of everyone involved.
“That’s the vision that we’ve had from day one which was to really work with clients in any capacity and in any which way they needed us too. It’s really about building trust and relationships.”
Phil is recognized as an expert in developing practical strategies for creating and driving business. He is also known for helping owners formulate succession and exit strategies.