Tag Archives: Transaction

How Do You Quantify Niche Market Potential? Five Suggestions

Situation: A CEO’s company focuses on a specialized niche market. One of his challenges is that there is little public or chamber of commerce information available on the size and characteristics of their market. How do you quantify niche market potential?

Advice from the CEOs:

  • Define the product / service very specifically. To narrow and refine estimates of market size look for the low hanging fruit.
    • What are the high growth segments of the target market?
    • What are the high growth industries of the target market?
  • To determine whether the market opportunity is $100M or $500M:
    • Define the company’s market more clearly – particularly the initial beachhead market where there is the potential to gain the most traction.
    • Recognize that there may be two markets: a high end market – relatively low gross sales dollars but high margins, and a low end mass market – relatively high gross sales but low margins.
  • Contact the originators of available market data to get their assumptions, comparative data and any other findings that may not be published but are beneficial.
  • Work closely with customers to build category / industry revenue estimates.
    • Segment the most active customers and increase the company’s share of their purchases.
    • Develop web site transaction capabilities to offer the company’s line as an adjunct to customers’ web sales.
    • Establish a Customer Council or Round Table to better understand the market dynamics and to differentiate the company within the market.
  • Sell the product and services’ features and benefits to the C-level, not just to engineers.
    • Sell to the CEO / CFO focusing on increasing shareholder wealth.
    • Determine a return rate for conversion to the company’s technology.
    • Reach out to professional segments that will naturally see value in the company’s process.
    • Seek an exclusive relationship with an industry leader to quickly launch new products.

[like]

How Do You Position Yourself as the New Leader? Five Points

Situation: A medium-sized company has just been acquired. A long-term employee has been named CEO of the entity. During his tenure with the company, he has established solid relationships within the company and is well-respected. He understands that he is no longer a co-worker but is now CEO. How does he best position himself to both employees and to the acquirer? How do you position yourself as the new leader?

Advice from the CEOs:

  • Proactively engage the team in a dialogue about the direction and potential of the company. Focus comments on the positive and the potential of the firm and the combined entity. The acquirer is bringing a new sense of excitement and energy to the firm. They will be looking for key leaders who share their excitement.
  • Market yourself to the new owners.
    • Develop a list of hopes, desires, and needs.
    • Dialogue with the acquirers and learn their hopes and dreams for the combined entity.
    • Look for synergies between your and their hopes and desires. Create your own marketing campaign around these synergies.
    • Position yourself an essential member of their transition team.
  • Select a mentor from the acquirer. Actively seek out their advice and guidance. Use them as a sounding board as you develop your campaign as new CEO.
    • The new organization is now just a plan and may be very flexible.
    • Ask acquirers about the model that they see. What are their key objectives for the first year? What niche do they wish to fill buy acquiring the company? As the key liaison between the company and acquirer bring value to the transaction.
    • When speaking to them, listen for their questions of how they see you fitting into the organization. This will present an opportunity to define your role by addressing their key needs during and after the transition.
  • The same suggestions apply to an individual receiving a promotion within the same company.

[like]