Publishing Company

Challenges

Two owners of this rapidly growing company were anxious about its dependence on them and its ability to survive if they were suddenly unable to continue or perform their duties.

Solutions

  • Repositioned the core business from a book publisher to a distributor of technical information. This increased the valuation and allowed the owners to change the cost structure dramatically.
  • Extricated the new owners from daily sales and line management responsibilities. This freed their time to work on strategy and eliminated a leading concern of potential buyers – that the value of the business is vested in the owners themselves.
  • Restructured compensation for all employees and distributors to align with company’s value creation strategy. Everyone would be compensated for results that helped the company create value.
  • Told the story. We hosted a series of technical discussions with leading companies in and around the industry about the direction of technology, the opportunities and threats embedded with the expansion of the internet, and possibilities to marry content providers with information carriers.

Outcome

We generated interest and formed relationships with several industry giants. Plans for an ambitious joint venture evolved into acquisition talks, and the company was sold to a large technology company. The owners got an all-cash buyout and were retained to lead an ambitious initiative financed entirely by the new owner.

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