Jeremy Harbour – There Are More Ways To Grow Your Business Than Just Sales And Marketing
Month: January 2017
Jeremy Harbour’s unique market proposition – the ‘agglomeration model’ – proves an outstanding success on NASDAQ First North, Stockholm with the listing of The Marketing Group PLC (TMG).
TMG listed on the 8th of June 2016 and quickly became the most successful IPO to list on the exchange in 2016. The stock was oversubscribed by 314%, with 333,000 shares traded on day one, and has since tripled in value. All, in less than a month.
What is the agglomeration model?
In short, an agglomeration involves several smaller companies coming together to collaboratively IPO in the form a much larger company while allowing the individual owners to maintain 100% control of their business. This results in a consolidated group with a greater diversity of products and specialisms.
Why TMG chose Marketing for Agglomeration?
Market control essentially sits in the hands of five big, multi-billion dollar market cap organisations. But, there are literally tens of thousands of smaller companies who work off subcontracts from the big five.
Jeremy Harbour noticed that a lot of the really valuable talent exists in these smaller companies, but their size often means they are unable to directly access capital and the bigger client contracts.
Consolidation through Diversification
Instead of trying to create a business that has one real specialism, the agglomeration model focuses on companies who bring diversified but complementary expertise and experience to the table across multiple markets. This reduces risk and drives shareholder value.
Who makes up TMG?
Today, The Marketing Group PLC is made up of 6 specialist agencies in 9 offices serving a global market. With a presence and client portfolio across the USA, Europe, Asia, and Australia, The Marketing Group PLC is strategically positioned as a global leader boasting a pool of top talent from every corner of the globe.
What’s in store for the future of TMG
As of June 27th 2016, the shareholders of TMG have given the Board the mandate to make strategic and tactical acquisitions within the group
For more about the agglomeration model and The Unity Group, please visit www.unity-group.com.
In this post, Jeremy Harbour breaks down a brilliant tried-and-tested strategy to building a large business in a few short weeks and then selling it – he calls it “the virtual merger”.
- Create an SPV (special purpose vehicle): this is a company which you will use as a holding company.
- Source similar targets: get a group of exit-minded companies in one industry together, either from your own network, or perhaps start with one and ask them to rally together their competitors.
- Structure a deal: you get these companies to agree to a deal where they all get together for the purpose of a sale. You sign Sale and Purchase agreements, saying as long as we achieve $x price within Y time frame, we sell.
- Claim your stake: you take a stake in the holding company for putting the deal together. 15-20% is quite achievable as long as you are taking care of the accounting consolidation and legalities, as well as finding the buyer.
- Do the sums: next, you produce consolidated accounts. This is simply a profit and loss and balance sheet for the holding company that combines those of all the subsidiaries.
- Set up borrowing to attract a buyer: I never advise borrowing money to buy businesses, especially leveraging the company you are buying. However, I totally advocate it when you sell, so the buyer can easily borrow the money to buy the group from you.
- Prepare to sell: now you just need to present the group as a coherent joint proposition, with an information memorandum and group website and start presenting it to potential buyers.
Yes, a virtual merger really is that simple. Follow Jeremy Harbour’s advice and make millions quickly, painlessly and virtually risk-free.
Building a business from scratch and growing it organically is painful – we all start businesses because we want time and money, and then your business takes away all your time and money. But I know a short cut to business success: buy existing businesses for no money down and then sell them for profit.
I am not going to be bold enough to say it’s a piece of cake, but here’s a quick overview of some of the key things to consider when buying a business for nothing:
- Find your target: Learn how to find motivated sellers before they are really in distress. The key to this is getting yourself out there and listening for opportunities at every turn. Avoid accountants or insolvency practitioners and find the owners looking to make a change.
- Sell yourself: Initiate the meeting and discussion with honesty, charm and strategic rouse. Find out the potential seller’s real pain points and align your capabilities or potential deal accordingly. Be bold, creative and likable.
- Protect yourself: You really can do this without legal or accountancy fees, or due diligence costs. Use simple contract law to draft plain English.
- Structure a win-win deal: This is truly where the entrepreneurial spirit should kick in. Tear up the standard business book templates and come up with a creative, compelling deal that gets you the business at no risk, and gives the seller the solution they didn’t know existed.
In summary, turn your focus to M&A, JVs and exit strategies, and reap the rewards you deserve. I, Jeremy Harbour, promise you that it’s a lot more fun than working for a living!
Jeremy Harbour has just launched a new trade association, The Business Recovery Forum (BRF), a not-for-profit association, built around an elite membership of experienced business turnaround specialists.
Calling in the BRF should not be a badge of shame. The BRF recognises that any well-established and efficiently run business can run into trouble.
When it does, the decline can be swift and painful. Many businesses fail every day and never realise their market potential. All because they had no access to the specialist expertise that could solve their problem. This is where the BRF comes in.
Harbour says the BRF can deliver one-on-one guidance and insight, in tandem with the skills and resources needed to get businesses back on track.
“When a BRF member agrees to help a business they are making a firm and lasting commitment,” Jeremy says.
More importantly, they won’t ask a business to pay any upfront fees.
Sometimes, sadly, the person who delivers the killer blow is the one who throws the life belt at you. Business consultants can sometimes work to one’s disadvantage.
Not this time, he promises.
In his 20-year career, Harbour has started many businesses and has grown his own organisation to 130 employees with £10m revenues.
Jeremy Harbour has completed over 40 company acquisitions, mostly distressed, and many exits. His knowledge of insolvency and company law and gift for creative deal structures also means he needs little or no funding and no bank leverage.