September 2011 eLetter
- The BRIC group of countries plus Turkey = BRICT
- Global Co-operation with InterGest Outsourcing Business Administration
- The Mergers + Acquisitions logistics carousel is picking up speed rapidly!
- adi Consult continues to grow on all continents
- Shortages of executives could this be the next crisis?
We are delighted to present to you with the first issue of our redesigned eLetter.
In the future we want to keep you informed about local, regional, and global issues through contributions from our global organization. This also includes news about our global adi organization!
The topics of the latest eLetter included the BRIC countries and Turkey, M&A, the expansion of our global network, the worldwide cooperation with InterGest, and the increasingly dire situation in regards to the lack of executives.
We will publish our eLetters once every approx. 6 weeks which will allow us to address hot topics in a timely manner as well as provide you with other interesting information.
In our next issue we will provide an in-depth look at the lack of executives and the roles project managers and/or interim managers play. We will also introduce our Plus55 initiative to you.
It goes without saying that we would be delighted to receive any requests or suggestions for topics you would like us to address.
Klaus D. Geissler
Managing Director and Shareholder of the adi Consult Group
The BRIC group of countries plus Turkey = BRICTBRIC it's a magical-sounding acronym but there still are inherent risks in those countries. The Emerging Markets remain a challenge for all companies but they absolutely must be covered by all logistics enterprises seeking to offer competitive organizations.
At this time the, BRIC should really be extended by the letter T due to Turkey's boom and the enormous economic power that currently radiates from Turkey's pivotal position at the edge of Europe. While many companies already have their own subsidiaries in the BRICT countries, many more still shy away from the perceived risks involved.
The globalization and outsourcing of production locations as undertaken by many of the regular customers of transport and logistics companies is turning the BRICT countries into a great opportunity helping those enterprises to sustain their competitiveness in the mid-term in these major growth markets.
Everyone is focusing on China why not in the BRICT countries? While many are prepared to invest and even SMEs are represented there, the risks differ between the markets. Mistakes when forming an enterprise such as the choice of location, omissions when obtaining urgently required licenses or concessions, special requirements of the employment and taxation laws just to name a few. Also, if a Joint Venture partner is added when forming a company, situations may be created that depending upon the country concerned are irreversible. Attention has to be paid to trademark protection and local laws need to be considered.
adi Consult is represented in each of the BRICT countries by first-class experts. Its respective partners have decades of experience in their respective markets and are able to provide invaluable assistance. We work closely with InterGest, our global co-operation partner.
Starting off with a market study, continuing with the incorporation of a company and progressing right through to taking over the entire administration and taxation aspects as well as the recruitment of qualified personnel, our team can support you with sound advice, suggestions, and implementation right from the start. Our local expertise also enables us to back you up with advice and assistance in your search for suitable partners.
Global Co-operation with InterGest Outsourcing Business AdministrationThe InterGest and adi Consult enterprises have been co-operating all over the world since the end of 2010.
InterGest offers all the relevant advice and services needed to open up foreign markets with its representative offices in more than 50 locations across the world, including the BRICT countries. InterGest supports you with an all-encompassing array of services and comprehensive experience in international business, from the formation and domiciliation of a branch abroad, through the discretionary management of daily administrative operations (such as bookkeeping, cash collection, and payroll operation) to controlling and reporting on the whole operation. adi Consult undertakes searches for suitable personnel and provides onsite advice on logistical questions for industrial and trading companies.
The quality of their services is very high and the cost reductions achievable by using them can be significant.
Whatever your project may be focusing on just one country, a region, or on a global level we offer you a flexible and tailor-made solution for the optimum growth of your enterprise in your target markets.
As the son of the founder of the forwarding company, Anterist & Schneider in Saarbrόcken, Professor Peter Anterist is an expert in logistics. The company was founded forty years ago and offers a total "worry-free" service for parcels of all sizes. Appropriate customer references are available upon request.
The Mergers + Acquisitions logistics carousel is picking up speed rapidly!The cash registers seem to be overflowing!
The transport and logistics sector is on the move and characterized by a wide variety of consolidating operations.
Groups, medium-size enterprises, private equity and investment funds are searching keenly for interesting projects but attention must be paid to their focus and strategic goals.
Opportunities are sought after in all logistics sectors, especially in overland transport, sea and air freight, and project forwarding but also particularly in the area of contract logistics. The companies concerned and their prospective buyers have different reasons for their interest. These reasons might be geographical expansion, adding of know-how in specific industries and management functions, a joint venture or buying their way into countries new to them. Other motivating reasons are ramping up a company's growth via purchases, moving into a logistics arena, or taking over a global network by an investment fund. Obviously the acquisition amounts involved vary considerably from 1 million to the upper 3-digit million range.
Companies with sound business practices and a solid customer base are the most desired targets which is usually reflected in their purchase price. Although the pool of companies available for purchase is growing smaller, the basic approach for evaluating companies is not what it was prior to 2008; at this time many evaluations are based on the size, strategic value, and risks inherent in the company.
As a rule of thumb the "multiples" can be gauged as follows:
- Company size
- Turnover up to 100 million, up to 6 x EBIT
- Turnover up to 150 million, approx. 5 7 x EBIT
- Turnover up to 500 million, approx. 6 10 x EBIT
- Turnover figures above can generally achieve factors of 14 x and more
If you are interested in obtaining more information please contact our global team of experts via Acquisitions@adiConsult.com
adi Consult continues to grow on all continentsOver the past 11 years adi Consult's network has grown rapidly enabling them to support its important, globally-operating customers with appropriate expertise at all their locations. Its Executive Search function, which operates all over the world, plays an especially vital part in all this. adi is set up and completely ready to assist you in the ever more important BRICT countries.
We will continue to expand our network of partners during 2011. Discussions with potential partners in Poland, Hungary, Bulgaria, the Ukraine, and Mexico have already taken place and we are optimistic that these will be brought to successful fruition during the third quarter.
This will help cement adi Consult's position as the largest network of specialists in the fields of transport and logistics around the globe and we can offer you our services in more than 100 countries via our regional partners. Send your inquiries or questions to:
Shortages of executives could this be the next crisis?Order books are full, exports are booming, and domestic demand has increased considerably.
No sooner is there grounds for celebration a new danger looms - labor and senior staff shortages!
Specialist administrators, medium and upper management, directors, staff at all levels in distribution, even truck drivers are difficult to find at this time as the recruiting pool grows ever smaller. McKinsey thinks that by 2020 there will be a shortfall of 2 million workers and the Swiss firm PROGNOS is estimating that another 3 million jobs will have to be filled by 2015. At present, a "critical" shortage at senior staff levels is indicated in reports from the World Economic Forum.
We identify 3 main problem areas:
- Companies are not promoting their image
- Outdrawn and frustrating hiring practices; the larger the company the slower the process
- Unrealistic demands on both sides - companies and candidates
It is an employees' market - one that will probably last for quite a few years to come!Despite the urgent need to fill vacancies, the time many companies take for their hiring process seems to be ever expanding with the average now being 4 months. Often times this is due to a lack of focus and cohesive effort to "close the deal" and bring suitable candidates on board. Most potential future employees quickly pick up on and are thoroughly turned off by such bad practices which lead them to sign with companies that seem to have their act together and recruit faster and more efficiently.
Companies' attempts to unreasonably low ball remuneration packages and dissatisfaction with the recruitment process are frequent complaints voiced by younger candidates. In contrast to that, more senior candidates are more focused on evaluating the private and professional consequences of taking a particular job and pose more penetrating questions than ever about the company's future prospects. Companies, on the other hand, complain about the candidates' perceived lack of professional qualifications as well as the rather small pool of resources to choose from.
Building a successful and stable workforce is much better achieved by working closely and trustingly with specialists like adi Consult. Reciprocal confidence gives both sides the necessary certainty that they are making the right decisions.