Are there any particular types of businesses that MAG7 prefer to acquire in regards to industry and size?
Generally, we look for businesses in the $100 million-plus range, but not in any specific industry. Additionally, we will consider businesses that we feel have a strong potential for value that are less than $100 million. These businesses can be in “Chapter 11” or considered “troubled” or “distressed” in nature.
How does MAG7 identify potential acquisition companies?
We look to acquire companies that can be molded to fit the rapid-growth strategies of other companies. Once a need is identified we work with banks, trade associations, industry groups, and other sources to identify potential acquisition targets that need the compliments or supplements that our company provides.
How do we determine if a business fits MAG7 acquisition requirements?
MAG7 performs in-depth evaluations on all potential acquisitions. This includes financial, operational, and our determination of the company’s potential.
How does MAG7 evaluate potential acquisitions?
MAG7 acquires companies that fit some strategic need. We will review each potential acquisition through a consistent and systematic method. The potential we see in the possible acquisition company is a key determinant in our decision.
Why is “Process Improvement Engineering" important to my business?
In today's global, competitive environment, it very difficult to establish and maintain a distinct and real business advantage. Businesses that are based on processes that are quantatively managed, proactively optimized and continuously improving can maintain a clear advantage over their competitors. Having a product or service that is of more value to the customer than its competition, gives a business that advantage. "Process Improvement Engineering" is a disciplined approach to increasing the value of your product or service to your customer, using a collection of methods and techniques. It includes proven methods such as "Lean", "Six Sigma", "Process Modeling", value stream mapping and analysis, mistake proofing, analysis of variance, design of experiments, and many other qualitative and quantitative techniques. These techniques not only establish, but also can be used to maintain that global advantage.
How can "Lean" increase the value of my product(s) or service(s)?
"Leaning" is a method of increasing the value of your product or service to your customers. It starts by identifying customer value with respect to your product or service, capturing your current state process, and determining whether each task adds customer value. Tasks that add no customer value are eliminated, unless there are required by current technology or by law. The elimination of the unnecessary tasks lowers product or service costs and encourages the refocus of resources on those tasks that can add more value to the customer. This "lean" future state results in lower costs with a corresponding increase in value to the customer.
How can "Six Sigma" increase the value of my product(s) or service(s)?
"Six Sigma" is a method of increasing the value of your product or service to your customers by identifying source(s) of variance and reducing their impact. Variance is directly related to the quality of the product or service. The greater the variance of the product or service, the more likely it will fail prematurely or not meet the expectations of your customer. This methodology applies quantitative techniques to reduce the variance, resulting in greater value to the customer.
How can "Process Modeling" increase the value of my product(s) or service(s)?
"Process modeling" is a method of examining how product is produced or customer service is provided. This methodology is based on developing a means to emulate all relevant characteristics of the process. It is used to analyze, diagnose, and optimize. Additionally, it can be used to assess impact of changes, estimate costs, estimate material, labor, equipment and facility resource requirements, and to produce predictions of how the process will perform without incurring the cost of setting up and experimenting with the actual process.
My company has experienced some significant personnel issues concerning overseas assignments. Is there anything that your group can do to reduce our financial risk?
Studies indicate that a company loses between $100K and $300K when an expatriate employee fails to complete their overseas tour. Our firm would develop a comprehensive plan that would help minimize your financial risk. The expatriate employee would be trained prior to their departure in culture sensitivity, politics, along with tips on effectively blending into the local environment. Additionally, each employee would be provided sustainment training during their tour, which would include frequent updates relevant to their assignment.
How do you charge for your services?
We use a variety of methods to charge for our services. Depending on such factors as the complexity of the assignment and the structure of the contract, we will negotiate to charge Hourly, Daily, Weekly, on a Fixed Fee or Lump Sum Basis or a combination of an Hourly and fixed Fee Basis. We also charge on Retainer, which guarantees the availability of our services.
How long does a typical assignment last for your firm?
This really depends on the complexity of our client’s problem. A smaller company in the $50 to $100 million revenue category may have similar issues to that of a company with revenues in the $500 million to a billion-plus category. Our goal is to ensure that each assignment is successfully completed.
What makes your firm different from other consulting firms that provide similar services?
Our firm provides more than just advice. We provide assistance in executing our recommended solutions by building a consensus and commitment around each of our client’s problems that require corrective action. It is our belief that our methods provide the best chance at permanently improving organizational effectiveness.
Do your services always have to be face-to-face encounters?
No. Although we may initially want to meet face-to-face, we also work via telephone, email to exchange files and review documents, and video teleconferencing.
We believe that this approach reduces your costs without diminishing the quality of our services.
