Visions of sugar plums...
There are numbers that just seem to get our attention. And one billion is one of those numbers… especially if it is one billion dollars. That’s the purported amount the Reyes’s will pay to acquire Gold Coast distributing down in Florida.
First a tip of the hat to the brothers. They have been executing an opportunity-driven strategy for a couple decades now and the results are impressive. As I have noted time and time again, all success begins with good strategy. They actually walk the walk… far too many wholesalers over the years liked to talk the talk but when it came down to getting a deal done, they fell short.
Other than a hefty checking account, the Reyes’s don’t bring any magic to the table… they know what they are trying to do, are staffed with high-quality professionals, and simply go out there and get deals done. Win – win works.
This magic billion dollar payout now has a lot of folks in the industry AGAIN thinking… is now the time to get out? Heck if I know… what is your STRATEGY? What do you want to accomplish? Is this goal obtainable? With acceptable risk? And what is Plan B (and C and D)? Can you live with all of the various possible futures?
Spur of the moment decisions heavily influenced by what the brothers paid for a rather unique distributor that fits into their unique Florida strategy is not the way to do this. Thinking and planning is the way to do it… whether you plan to run for the exits or batten the hatches in a plan to be around forever.
For many of you the first step is a market valuation. How can you decide whether to stay or go if you don’t know what your asset is worth? This could be combined with a few day strategic planning session where we analyze your business from the top-down, including detailed analysis of all M&A possibilities.
Included in this must be a discussion of the threats and opportunities you and your organization face. I personally don’t care what decision you make; I just want you to make it with your eyes wide open and with full understanding of what may or may not come your way.
As I’ve noted in past posts… a “good” decision or a “bad” decision are generally determined by what future happens to come down the pike. The exact same decision might be great under one future, and terrible under another. So do what you can do… think, analyze, measure, talk, plan, execute… adjust as data/results come back. Just keep driving towards that strategic goal.
Steve Cook and I do the best valuations and planning in this industry – just saying ;-) Actually Cook does most of the real work. I’m more of a soap-box guy ;-)
So if that $1,000,000,000 has got you thinking… stop dreaming of sugar plums and give us a call. I’m all for sugar plums, let’s just make certain you’ve completely thought the thing through to better ensure you end up actually eating those sugar plums rather than just dreaming about them.