The Mañana Man Gets Serious--DeWese
L. The ownership and management of valuable companies actively shares company information and shares the wealth. There is no "employee paranoia."
M. Valuable companies always have well-organized sample rooms containing an adequate inventory of hand-picked samples.
N. The CEO's office is always smaller than the space allocated for the sales department.
O. The owners' luxury automobiles are never parked just outside the front door.
4--How do you measure value?
There are a variety of methods for measuring value. In the end, the ultimate measure of value is the price a willing buyer will pay for a company in terms of Total Enterprise Value (TEV). The written equation is TEV less funded debt (interest bearing debt) equals equity. On the other hand, some measure value by book value, adjusted book value, return on investment, return on sales, return on assets, return on equity, Economic Value Added, or Earnings Before Interest, Taxes Depreciation and Amortization (EBITDA) and the application of some multiple.
Ultimately, however, value is measured by the amount an owner can extract, through the sale of the company, from his ownership to reinvest elsewhere.
5--How do you protect value and continue to build value in a weakened economy?
Our experience has shown that printing companies that possess the characteristics listed above usually sail through economic downturns with little or no impact on profits or sales growth. This happens because these strong companies are capitalizing on the weakness of their less fortunate competitors. In bad times, the strength of good companies is enhanced and the weakness of substandard companies is exacerbated.
Depending on your perspective, it is unfortunate that the printing industry has too many substandard companies. You might say that during poor economic times, good companies get somewhat better and weak companies get dramatically worse. Of course, if your company is totally dependent on the automakers and the automobile industry goes in the tank, your company clearly will suffer.