Middle-market companies often operate as small fiefdoms under the control of the king, or to use a business term, the CEO. Very few mid-sized companies have a formal board of directors and for those that do have boards, CEOs tend to populate them with family, friends, and internal management.
For many years companies have financed significant portions of their operations by leasing buildings, machinery, manufacturing equipment, trucks, railcars, office space, office equipment – desks, chairs, computers, copiers, etc.
Newport Board Group partner Art Medici was recently interviewed on two business radio shows about leadership lessons he has learned in the course of his career as an executive and entrepreneur.
CEO’s and Boards are usually inclined to think that changes in accounting rules are matters that only their CFO needs to worry about. Not true at all in the case of the new revenue recognition standards recently promulgated under the converged authority of the (U.S.) Financial Accounting Standards Board and the International Accounting Standards Board.
Mergers and sales of companies are accelerating at a significant pace, and it is not just at the mega-merger level. Small and mid-sized companies are being swallowed up by larger companies flush with cash and ready to take advantage of the growing economy.
In reflecting on many years of experience on boards, as a Chair and board member of companies and non-profit organizations and as a CEO, I believe that the roles of a company board can be boiled down to five:
Owning a small business is a little like having your first child.There is no instruction manual on what to do, much of the success comes from one's own instincts and there is no shortage of people who will give advice – some good and some bad
When middle market private equity (PE) firms acquire a controlling interest in a company, their agenda for the new portfolio company is typically aggressive.
Although middle market companies account for over half of U.S. jobs and a third of tax receipts, their issues are often underrepresented in governmental policy-making.The Small Business Administration represents the interests of small companies, at least those looking for the various kinds of SBA financing.
In my last article I discussed employee alignment and the importance of promptly identifying internal or external factors that can cause employee or market misalignment.
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