- The Seed Stage: Starting a Company;
- The Growth Stage: Scaling the Business;
- Late Stage: Preparing for the next chapter;
- The Exit: Strategies and Options; and
- Corporate Governance and Other Considerations.
Three representatives from KPMG, Brian Hughes, National Partner in Charge of Private Markets Group & National Venture Capital Co-leader; Mark Barnes, Partner in Charge of International Corridors; and Phil Isom, Global Head of M&A, authored chapter 26, which focuses on going global in high growth markets. Entrepreneurs can look for opportunities to grow in “one of the many developing countries located in Africa, Asia, South and Central America, and parts of Europe with rapidly growing economies and potential high growth markets (HGMs). This article focuses on business opportunities in these HGM countries, the challenges you may encounter, and some examples of companies that have faced and overcome these challenges.” The article also takes a look at the following developing HGM countries a KPMG survey identified as having particular promise: China, India, Indonesia, Nigeria, Saudi Arabia, South Africa, and Vietnam.
- To create a liquid market in the stock;
- To enhance the profile of the company;
- To provide liquidity to early investors; and
- To discover the “real” valuation of the company as determined by third-party trading in the stock. Among other uses, this information is critical should a company want to use its stock as an acquisition currency.
- Risk. “When building a company with the mission of making innovative products, it is critical to know this fundamental truth—if you’re going to do something that’s never been done before, you’re going to fail along the way. As companies grow, they traditionally become more risk-averse. That change in risk profile pushes companies away from innovation”;
- Jargon. “Sometimes people in business settings speak in jargon. Unfortunately, no one responds emotionally to jargon. I don’t respond to it, so how would I expect anyone else to respond to those types of terms?”
- No tiptoeing. “It is common for people, particularly those at a senior level, to communicate about company issues in a scripted manner. This is a big mistake—employees can immediately tell and then lose faith in the mission. Tiptoeing around issues does not build a strong, trusting culture”; and
- Great ideas. “Another pillar of Penumbra’s culture is that great ideas can come from anywhere in the company. We have created a culture of openness that allows for great ideas to come to light. Everyone at the company has adopted an open-door policy in order to encourage people to share their amazing ideas. Instead of getting in the way for great ideas to surface, the hierarchy or chain of command encourages these ideas.”
The NYSE book contains a vault of valuable information for business owners and corporate executives. Is there a chapter that you find of particular interest?