Why We Love Turbulence (And You Should, Too!)

Why We Love Turbulence (And You Should, Too!)

As a middle-market business owner or executive, you know how difficult it can be to react to changes in the marketplace. Often, the hard part is knowing where to start and how to prioritize your time in terms of new business opportunities, existing sales and corrective actions. There’s a lot of advice floating around — and more business self-help books than is reasonable — so how do you cut through the noise? Our firm, Quadrillion Partners, invests in businesses in complex situations where we can add real value to a company’s strategy, operations and financial management. We don’t focus on companies that are operating at the top of their industry and appear to have all of their issues solved. Rather, we focus methodically on one simple thing: making companies stronger and more viable than when we bought them. We believe that improving performance sustainability is hard. Unlike other private equity investors, we work with middle-market business owners and their management teams, partnering side-by-side, to improve profitability and assist in making smarter and better decisions. As former operators and advisors, we know the difference between a “check-in” during a board meeting and working on an initiative day in and day out. Embracing economic turbulence In fact, we engage with business owners every day to discuss their plans for their businesses, their personal goals, and their fears about the economy, increased regulation, new healthcare laws, the Euro crisis, and a host of others concerns. What we’ve learned over time is that navigating economic turbulence is more about focusing on the fundamentals of your business and knowing what your company excels at...
The Eurozone Currency Crisis: 4 Key Considerations for Business Owners

The Eurozone Currency Crisis: 4 Key Considerations for Business Owners

In our discussions with midmarket companies, we’ve noticed that most executives shrug their shoulders when the topic of the eurozone comes up. In fact, one CEO recently scolded us for our question: “Why should I care? I have no sales in Europe and it won’t impact me or my business.” Yet we believe, despite the EU recently delaying the issue around the fate of Greek debt, the outcome of the euro will have profound and long-lasting consequences for world markets, the global economy and U.S. business interests. Foreign policy considerations aside, the collapse of the euro or the partial unraveling of the eurozone will mark a turning point for American businesses of all shapes and sizes. It will usher in a period of economic turbulence, the likes of which U.S. businesses have not seen since the 1970s, when the Bretton Woods exchange-rate system crumbled. The ‘quantitative easing’ quandary For sure, the eurozone has been lurching from one debt crisis to another since 2008. The credibility of the European Central Bank (ECB) and its current quantitative easing program is suspect in terms of both its timeliness and its ability to resolve the underlying issues that are causing massive imbalances in Europe. In January 2015, the ECB said it would purchase sovereign debt starting in March 2015 until the end of September 2016, by which time more than 1 trillion euros would have been created under a formal quantitative easing program. Skeptics around the purchasing program abound. To promote economic stability, the EU pushed member countries to adopt various austerity programs post 2008. Typically, these austerity programs focused on cutting governmental...
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