1st Quarter 2024 Newsletter

Welcome to Growthink’s 1st Quarter 2024 Newsletter. Below we will share:

• My video thoughts on the “One Business Thing” that separates high performing businesses from the also-rans
• Chief Client Officer Anna Vitale’s on notable, recent Growthink Advisory Engagements
• Growthink Head of London Office Antonio Barzagli on mergers & acquisitions activity in the current environment
• Entrepreneurial Advisory Lead Bert Carder on what business owners should be thinking about as they plan for 2024

In 2024, we anticipate that Growthink clients will continue to seek ambitious and creative paths to unlocking growth capital and shareholder liquidity.

As such, owner and executive strategic advisory will remain at the core of what we do. This includes delivering objective, research – and numbers-backed perspectives; helping clients navigate complex business landscapes; and maintaining a balanced awareness of all stakeholders.

As always, we will focus on impactful engagements, extending beyond traditional business plans to include future-focused, mission-driven projects for both public and private organizations.

Some of these in Q1 2024 include:

• Finalizing the expansion plan and attending capital campaign for one of the largest food banks in the United States
• Developing an innovation plan for the diversification of services of an environmental consultancy and expanding its private sector client base
• Leading a capital raise for a tech-enabled home healthcare firm

In this coming year, our dedication to guiding clients towards ambitious growth and strategic success remains unwavering.

Our ongoing goal is to not only advise but to actively work alongside our clients to shape and execute on plans and strategies that align with their most mission-critical goals. We are excited for a great year for us all!

Growthink Head of London Office Antonio Barzagli on Growthink’s M&A Observatory

In our latest Mergers & Acquisitions research, the U.S. witnessed 729 closed transactions in December 2023 (that’s over 36 transactions per business day!), with notable activity in sectors like Commercial Services, Enterprise Software, and Healthcare Services. Manufacturing, SaaS, and Oil & Gas were the most popular verticals.

Valuations have substantially increased, with median multiples to buy a company of 3.5 times its revenue and 13.3 times its EBITDA, looking at disclosed figures across all sectors.

One highlight was Pfizer’s $43 billion acquisition of Seagen, empowering Pfizer’s position in cancer care, and complements its existing portfolio across both solid tumors and hematologic malignancies. Seagen’s revenue stood at $2.3 billion with an outstanding estimated revenue multiple of 18.7x.

The exciting Chobani-La Colombe deal, a $900 million leveraged buyout, signifies strategic expansion into the burgeoning Ready To Drink market while ensuring operational efficiencies and brand preservation.

It isn’t just pharma or billion dollar companies to benefit from acquisitions. For example, 1857-founded J.D. Johnson, a distributor of plumbing and HVAC supplies was acquired by F.W. Webb. Similarly, the rapid exit of Theia Labs, a tech startup acquired by Miri within six months of its inception shows that it is possible to achieve transformative transactions at any stage or in any industry.

If you want to stay updated on such market trends, we’ve just launched our monthly “M&A Observatory”, which will continue to be available on our blog.

Curious about exploring organic and inorganic growth strategies, or seeking an exit for your business?

Contact us by completing this form or calling us at 800-506-5728.

As Growthink’s Entrepreneurial Advisory Practice Lead, my team and I have the privilege everyday to help ambitious entrepreneurs and business leaders. Recent work includes:

• Rethinking and innovating the traditional home healthcare model
• Launching a new consumer healthcare product for virus protection
• Helping a food bank navigate how to double its capacity
• Advising a hall of fame rockstar on how to empower fellow creators to monetize their IP

As we do so, here are a few of the business themes we are seeing and highlighting:

1. Talent Shortages. With the unemployment rate hovering around 3.8%, good talent is in demand and of short supply. Competitive wages are one way to attract talent, as is having a dynamic culture and a mission-driven organization. Then once that new talent is onboarded, getting the best from folks involves more than ever (especially with virtual work!) providing clear objectives and expectations, consistent feedback, and clearly defined job responsibilities.
2. AI-Powered Customer Experiences. The best companies now are implementing (not considering!) how to to best utilize artificial intelligence technologies (AI) to anticipate and serve customer needs.  So for sure the question every business should ask is  how can AI be put to work in ways big and small to improve and enhance their customer experience.
3. Why Are Your Customers Buying from you? Asking this questions is always illuminating – is it because they are truly satisfied or have just not been offered a better deal yet? Getting honest customer feedback can help focus your product and service offerings on the areas and the values most important to your customers, which in turn drives your business growth.

Growthink has a team of business experts who can work alongside you to develop strategies and solutions to address these type of challenges and more. Contact us to schedule a complimentary discovery call.