Every generation needs a revolution - an entrepreneurial revolution
Rizal Philippines
March 8, 2017
One of the companies which we oversee a memorial park in the north, is being wooed by a leading memorial park. The first offer was rejected by my joint venture partners because it was single digit million arrived at using present value.
The next offer which we discussed yesterday, made the offer 5x the original offer, to be paid levedl payment, over a period of 72 months. If we do a PV of that payment, there would be about P12 million discount. Our JV partners were salivating and wanted to grab the offer, except that they wanted to have at least 20% dp and the term reduced to 48 months
We have over 5,200 items worth over P40,000 each. When they take over, they would sell our lots to pay us off.
Looking back analyzing the deal:
1. We would lose about P96 million GP over the next say 20 years. (that is after the op ex)
2. We could do the same; Discount our products down to 30T and they would sell fast, and generate over y amount of cash, flow, which would be 50% more than the payments to be made to us of x amount. In other words the deal is guisado with our own fat. That is why they are balking on cash payment.
Brilliant. Whoever can think of such a deal? One of the veterans of the trade, the former head of a chem company was thinking along that line all the time: OPM and using 0 of their own money to get a business deal
However our marketing staff there is not that capable to sell the inventories fast
Wednesday, March 8, 2017
Monday, February 13, 2017
Managing Family owned business/corporation
Every generation needs a revolution - an entrepreneurial revolution
Rizal Philippines
February 13, 2017
From IFC - Family Business Governance Handdbook
Corporate Governance in Family Business
This coming Wednesday, I will be meeting a Board regarding questions on propriety correct way of investment by family members. I and a lawyer will be consulted on the fairness on investment and dividends of family members on the business.
The laws of the land, the civil code, the family code, the Corporation code cant answer the query; even management and MBA stuff cant answer that.
Managing a family owned business is a challenge; managing family relations and managing the business
They say that the first generation builds and grows the business, the 2nd generation enjoys it, the third generation, the nephews and grand children ruins it.
A/ There should be three governing bodies of a family owned business each with varying compositions:
1. Family council - to create and enforce Family constitution which contains
1. Family constitution - enlarging perpetuating the vision mission
1. family members employment
2. share holding
2. Family corporation institution
1. family assembly
2. family council
3. family office
2. The statutory board - to do the regular board meeting responsibility
3 The strategic board plan the future or the company to keep up with the times, and fend off competition
B. FAT principle and corporate governance
Fairness
Accountability
Transparency
C. Succession Planning
Lawyers, judges cant solve the problems of family owned corporation although they are so many may be up to 80% of the total business in the country. Many of them fall by the wayseide because solutions to their problems, mostly about family relations can be solved by the family members themselves. That is why Nene Soriano, Ricky Mercado (under the new Dept at Loyola on Family business) are having a great day consulting family owned business. So too Dr. Ed Morato who bills $2,000 per day
Rizal Philippines
February 13, 2017
From IFC - Family Business Governance Handdbook
Corporate Governance in Family Business
This coming Wednesday, I will be meeting a Board regarding questions on propriety correct way of investment by family members. I and a lawyer will be consulted on the fairness on investment and dividends of family members on the business.
The laws of the land, the civil code, the family code, the Corporation code cant answer the query; even management and MBA stuff cant answer that.
Managing a family owned business is a challenge; managing family relations and managing the business
They say that the first generation builds and grows the business, the 2nd generation enjoys it, the third generation, the nephews and grand children ruins it.
A/ There should be three governing bodies of a family owned business each with varying compositions:
1. Family council - to create and enforce Family constitution which contains
1. Family constitution - enlarging perpetuating the vision mission
1. family members employment
2. share holding
2. Family corporation institution
1. family assembly
2. family council
3. family office
2. The statutory board - to do the regular board meeting responsibility
3 The strategic board plan the future or the company to keep up with the times, and fend off competition
B. FAT principle and corporate governance
Fairness
Accountability
Transparency
C. Succession Planning
Lawyers, judges cant solve the problems of family owned corporation although they are so many may be up to 80% of the total business in the country. Many of them fall by the wayseide because solutions to their problems, mostly about family relations can be solved by the family members themselves. That is why Nene Soriano, Ricky Mercado (under the new Dept at Loyola on Family business) are having a great day consulting family owned business. So too Dr. Ed Morato who bills $2,000 per day
Sunday, January 29, 2017
Innovation at Omron
Every generation needs a revolution - an entrepreneurial revolution
Rizal Philippines
January 29, 2017
The President of Omron Yoshihito Yamada spoke at NHK on the two things that propelled Omron, the maker of sensors and other innovative devices that changed the world we live in like cash counters, cash dispensers, ATM machine, portable BP devices automated ticket machine and many many more.
Yoshihito Yamada CEO of Omron at NHK at Direct Talk
They are innovation, and commercialization of those innovation
What do you think of this game changing ideas in a business?
The President used to be in sales and his project was the BP measurement devices. They made a campaign to get people to use the device: people should measure their BP to avoid heart attacks and strokes. And their sales of portable aneroid sphygmo shot up. Innovation is risky, and they had many failures too
Rizal Philippines
January 29, 2017
The President of Omron Yoshihito Yamada spoke at NHK on the two things that propelled Omron, the maker of sensors and other innovative devices that changed the world we live in like cash counters, cash dispensers, ATM machine, portable BP devices automated ticket machine and many many more.
Yoshihito Yamada CEO of Omron at NHK at Direct Talk
They are innovation, and commercialization of those innovation
What do you think of this game changing ideas in a business?
The President used to be in sales and his project was the BP measurement devices. They made a campaign to get people to use the device: people should measure their BP to avoid heart attacks and strokes. And their sales of portable aneroid sphygmo shot up. Innovation is risky, and they had many failures too
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