- add to your entrepreneur watchlist Richard Uechtritz CEO of retailer JB Hi-Fi $JBH:ASX http://is.gd/2hmfr #
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I’m working on a “How To” series on Strategic Mergers and Acquisitions for Fast Growth Firms. It covers the tools, skills and processes needed by firms pursuing acquisitions as a tempting path to growth. This is an audio presentation accompanied by detailed notes, checklists and templates.
Strategic Mergers and Acquisitions for Fast Growth Firms, Series 1 – Buy Side, Capturing Value Beyond Price
Highlights from Series 1: Buy Side
Coming soon: Strategic Mergers and Acquisitions for Fast Growth Firms, Series 2 – Sell Side, Your Exit Strategy.
One of the world’s fastest-growing sports is making a comeback in the university gyms and school halls of inner-city Sydney. All-girl, flat-track roller derby revival is a punk, post-feminist, grrl power, contact sport with an emphasis on skill and safety. The competitors names reflect their on-track personalities like Miss Biff, Trippy Longstockings, Aprilla the Hun, Punky Chewster, and Surly Valentine.
I’ll be taking my daughters to watch the second bout of the new Sydney League (there are only 3 bouts in the inaugural league).
Bout 2: 28 JuneStarts 12.30pm, Doors open 12noon
Tickets from Sydney Roller Derby League
Tickets about $10.00/$5.00 concession
Sydney Boys’ High Stadium
Cleveland Street, Moore Park
Wanna come? The bout will last an hour.
Like Tank Girl on roller skates with edge.
The Sydney Roller Derby League is bringing the wicked world of all-girl flat-track roller derby to Sydney and looking forward to taking on the globe – on the track and off!
What is roller derby?
Sydney Roller Derby League
Photos from the SRDL
IF you believe mainstream media, Sol Trujillo is the most unpopular man in Australia and Telstra is the most unpopular company [full disclosure: I am the beneficiary of a Telstra shareholding]. I don’t think I’ve ever forgiven Telstra for its monopolistic behaviour back when it was Telecom and I didn’t have a choice of carriers.
When Telstra was booted out of the National Broadband Network tender process for submitting a non-compliant tender, pundits were eagerly predicting Telstra’s demise or other “dark and awful consequences”. Telstra had submitted a tender that suited their business model, aspirations and view of the future. They signaled the only way they’d consider lining up for the $4.7 Billion AUD the government was offering. I congratulate them for having the balls to stick to their guns.
Today the Federal Government announced none of the remaining tenders were “value for money” and instead would form a new company to build a fibre to the home network to 90% of Australians. Much ink will be spilled in the future on this deviation from the tender outcomes requested, namely 98% fibre to the node.
Here’s my quick take home analysis:
This seems like a brilliant use of game theory by Telstra. Sol and his team have been called arrogant and out-of-touch, I think they protected their shareholders interests well.
Just because a deal is on the table doesn’t mean it’s always wisest to take it.
How can companies still think what they do is top secret. Note I’m not talking about intelligence, research or military organizations here. I mean general competitive businesses in a competitive marketplace.
How many of the projects we’ve been sworn to keep secret really needed or benefited from that? How many top secret projects failed to launch? Again I’m not talking about early gestation with limited resources, there’s a time and place for keeping something under wraps until it’s time – however even then most people keep it too secret for too long.
Enthusiasm is the hardest attribute to sustain in any endeavor.
I’ve found many companies with a Culture of Secrecy are really staffed by people avoiding scrutiny or responsibility. If they don’t say what they are going to achieve, they can’t be held accountable when they miss.
Everybody misses from time to time. Me included. Looking at what went wrong often more valuable than succeeding by a fluke.
Fear is the other great cause of the secrecy cult. Every manager worthy of the title has had an employee leave to work for a competitor. Weak managers of weak businesses respond by limiting the flow of ideas and information to the team that drives the business. They hope a defection cannot harm them again, without reviewing if that harm was more than a bruised ego. This is overprotective thinking. When you fell over as a baby while learning to walk, you tried again until you mastered it. If a business is only as good as its secrets it has no better competitive advantage in the marketplace. Are there low barriers to entry for competitors?
Find your competitive advantange. That may be worth keeping close to the chest, but I doubt it. Your success flows from knowing what you do better than anyone else – what others cannot take from you.
Think of great global brands and great businesses like Coca-Cola, American Express, IBM, Toyota, McDonald’s. While some part of their operations are necessarily private they don’t have a culture of secrecy. Where do you want your company to be in 20 years?
For another perspective check out what Robin wrote a while ago at Snarkmarket on iPhone, Secrecy and Excellence
One criticism I forgot to make in yesterday’s NBL Beyond a joke post was the absolute lack of transparency by basketball businesses, administrators, marketers and promoters.
Fans of all types love talking about their favorite things. Basketball has been in crisis for a long time both in Australia and the USA. However the people at the top act as if Basketball is the dominant sports entertainment business and they try to manage the message to the fans. All this does is turn fans off and drive them to other more engaging areas.
As one of the highest participation and interest sports available, how would basketball look if it had an engaged fan base? The only way to get this is to stop trying to spin a message to that fan base. Three people can keep a secret if two of them are dead. Admit the problems, look for options to fix it and engage with the people who most care about the sport. That’s the fans.
I had lunch with a friend who likes basketball, but asked if it was still played professionally in Australia as he hadn’t seen anything about it in years. Those are the people Basketball needs to attract to fill venues at the professional level. In the nineties those people knew about their local team, were not die hard fans, but attended a couple of games per year to enjoy the spectacle. Normally they went because a fan invited them, not because they saw some advertising about a game.
Am I oversimplifying the problem? Do you agree, disagree or think I have no clue? Comment below.
Australia’s National Basketball League has become a joke. Now the Cairns Tiapans have gone into voluntary administration.
They join the Brisbane Bullets, Singapore Slingers and Sydney Kings in bowing out of the NBL this year alone. The Sydney Spirit (formerly the West Sydney Razorbacks) remain only because the NBL could not afford to allow the only Sydney team to stop playing mid season. To make this happen their players, coaches and staff reportedly took a 50% pay cut.
I have a complete set of 1995 limited edition NBL Car Collectibles (New in Box! – yes I’m that much of a geek). 10 of 14 clubs from 1995 are now defunct. Anybody remember: Canberra Cannons, Geelong Supercats, Gold Coast Rollers, Hobart Tassie Devils, South East Melbourne Magic, Newcastle Falcons or North Melbourne Giants? The Kings and Bullets were there too. Townsville were the Suns and not the Crocodiles (a pox on the Pheonix Suns for the trademark dispute). So only four of 14 clubs from 1995 are still around 13 years later, congratulations to Melbourne Tigers, Perth Wildcats, Adelaide 36ers and Illawarra Hawks – hat tip NLB stats.
The Taipans press release blames the international economic crisis for forcing Pacific Toyota to focus on core business and “no longer financially prop up the Cairns Tiapans”. Unfortunately Pacific Toyota’s executive chairman John O’Brien is also Cairns Taipans majority owner. So it sounds like another case of the sports team relying on the success or failure of the owners’ outside business to fund the team as a side venture. We’ve seen this happen with the Kings and the Bullets this year.
When a basketball club is run as a business in its own right, sponsorship deals are at arms length, cover the entire season, prepaid and enforceable. If the league cannot generate sufficient revenue to cover expenses the entire league is no better than an expensive exhibition tournament. Clubs then have sponsorship, merchandising and ticket sales targets to meet their projected expenses. Given the commercial changes occurring next year – possibly requiring a $1million bond for every team, it is not surprising that nobody is interested in keeping a team on life support in such an uncertain time. Why throw away money on a franchise that may not be around next year.
Lastly this season is a huge failure in sports marketing and sports administration. My initial reaction is the merger between Basketball Australia and the NBL is a bad idea. The elite professional game is about sports entertainment. BA’s concerns are sports development and grass roots. These two outcomes are complimentary but often in conflict.
I am currently reading the Australian Basketball Review Stage Two Report and will comment in more detail later. But I want to get this up now.
From today covered short selling of non-financial stocks is allowed again on Australian stock markets. Obviously if you are a short seller you’ve known this for a week. What does it mean to us?
The disclosure and reporting details are in this Market Advice. Australian Securities and Investments Commission – Requirements for disclosure and reporting of short sales from 19 November 2008.
So naked shorts are still banned. Naked shorts means the seller has not yet borrowed the shares before placing the sell order. The seller expects to borrow or buy the shares in order to deliver on the trade.
Covered shorts are allowed for non-financial stocks. Covered shorts means the seller must actually borrow the shares before placing the sell order.
The financial stocks that are still banned from covered short sales are listed at the end of this post. But of course there are some exemptions to that ban
From today all sell orders must be identified as either long sale, short sale (for non-financial stocks) or Covered short sale exempt (you knew there would be an exemption somewhere for financial stocks). Sellers are required to indicate which category their order matches.
|ABP||Abacus Property Group|
|ALZ||Australand Property Group|
|ANZ||Australia & New Zealand Banking Group Ltd|
|AUW||Australian Wealth Management Ltd|
|AXA||AXA Asia Pacific Holdings Ltd|
|BCM||Babcock & Brown Capital Ltd|
|BJT||Babcock & Brown Japan Property Trust|
|BNB||Babcock & Brown Ltd|
|BOQ||Bank of Queensland Ltd|
|BEN||Bendigo and Adelaide Bank Ltd|
|BWP||Bunnings Warehouse Property Trust|
|CER||Centro Retail Group|
|CFX||CFS Retail Property Trust|
|CGF||Challenger Financial Services Group Ltd|
|CBA||Commonwealth Bank of Australia|
|CPA||Commonwealth Property Office Fund|
|DXS||Dexus Property Group|
|FKP||FKP Property Group|
|HGG||Henderson Group PLC|
|HFA||HFA Holdings Ltd|
|IIF||ING Industrial Fund|
|IOF||ING Office Fund|
|IAG||Insurance Australia Group Ltd|
|IFL||IOOF Holdings Ltd|
|LLC||Lend Lease Corp Ltd|
|MCW||Macquarie CountryWide Trust|
|MDT||Macquarie DDR Trust|
|MQG||Macquarie Group Ltd|
|MOF||Macquarie Office Trust|
|NAB||National Australia Bank Ltd|
|PTM||Platinum Asset Management Ltd|
|QBE||QBE Insurance Group Ltd|
|SGB||St George Bank Ltd|
|SDG||Sunland Group Ltd|
|TSO||Tishman Speyer Office Fund|
|TAL||Tower Australia Group Ltd|
|VPG||Valad Property Group|
|WBC||Westpac Banking Corp|
|Five additional Securities (being APRA regulated businesses)|
|ROK||The Rock Building Society Limited|
|WBB||Wide Bay Australia Ltd|
|FCL||Futuris Corporation Limited|
|CIX||Calliden Group Limited|
As part of the Corporate Finance subject of my MBA we have to calculate the beta coefficient (aka Beta) of a company’s share price. The is applied economics and market mathematics, but it simply is a number which indicates how closely (or not) a company’s share price moves in relation to a broader market (or an index like the S&P ASX200 or the Dow Jones Industrial Average).
Anyway, part of the process is to create an excel format spreadsheet to aid with the calculation. I’ve done it and thought I share it with you. It will work with any spreadsheet program that can open .xls files
Update 1: 31 July 2009 the new version is available for testing by requesting it in a comment below. Once the testing is complete I’ll make it freely available to registered users.
Update 2: 7 July 2011 For a limited time you can get the Beta Coefficient Calculator without registering. Enter a valid email address in this form to receive a link to download the file. You’ll also get an email about new versions and bug fixes (with an opt-out link).
Update 3: 23 July 2011 If the form doesn’t work for you, please comment below and I’ll email it to you. The form is quicker but some people can’t get the download.
Version 0.9 beta_8
* Enabled automatic download via web form
* Added French and German to Translation tab (alpha code there)
Version 0.9 beta_7
* Fixed bug in date text description
* Updated sample data to 6 Jun 2011
* Changed sample data to BHP Billiton
* Made Instructions tab text translatable
* Cosmetic fixes
Version 0.9 beta_6
* Explained Translation tab in instructions and asked for volunteers
* Updated sample data to 2011
* Updated copyright date to 2011
Version 0.9 beta_5
* Added Change Log tab
* Moved text of index symbol & stock symbol to translation tab
Version 0.9 beta_4
* Added explanation of index and stock symbol fields on Beta Coefficient tab
* Updated copyright date to 2010
Version 0.9 beta_3
* Added email address to instructions tab
Version 0.9 beta_2
* Added logic to translate number of periods to a date range and show that range to users in Beta Coefficient tab at C11
* Swapped order of Security and Index tabs
* Fixed bug in coefficient calculation
* Introduced version numbering and control
Version 0.9 beta_1
* Updated instructions tab
Version 0.9 beta
* Initial public version
Support and feedback via the comments below.