Those of us involved in the daily management of a business know that every investment must be measured by the return produced for all stakeholders. Too often managers view the acquisition of staff as a simple process of expansion. But the acquisition of key players is an investment like any other, one which should have a demonstrative ROI which clearly justifies the effort and cost involved.
Here at Perry-Martel, we’ve been able to show incredible returns to our clients’ shareholders after we characterize, identify, and hire the right individual together.
A very clear example of this was a client which tripled its market valuation in 14 months once the appropriate leadership was in place. Their original management team, while strong, simply didn’t have all the skills and experience required to successfully achieve an exit through acquisition. Perry-Martel recruited the talent the business needed to grow partnerships, launch new products, and re-position the company.
A Strong Return on Investment
For talent acquisition costs of less than $250,000 (multiple hires), the investors saw a return of over $45 million in divestiture proceeds. That’s a 180:1 ratio of return to investment. — Steve Panyko, CML Emergency Services
With our help, other businesses across North America have increased annual sales by factors of anywhere between three and five times. The resulting profit increases were even larger on a percentage basis and in several examples, swung dramatically from loss to a respectable profit. In all these cases, the key was the addition of vital sales talent and leadership.
Other example outcomes from executives recruited include:
✯ Ignited 700% growth and ever increasing earnings, drove stock from $3.90 to a peak of $68
✯ Grew sales from $8M to $77M in six years with 29%+ EBITDA, exited with 3x multiple
✯ Took last-place company to first place in its vertical and an exit in less than 10 months
✯ Sales jump of 497% in first 15 months, delivered >30% CAGR year over year for five years
✯ Resuscitated company with a share price of $0.69 to a high of $7.10, and repositioned it for successful acquisition
To achieve these kind of results you need to work with a search firm who understands your organizational structure and your business, and is willing to work with you not just until the position is filled, but until you’re successful.
At Perry-Martel, we don’t just fill in a box on your organization chart — we create ‘value chains’ between you and your senior staff, which will positively impact both your line growth and your bottom-line profit.
That’s how you get a Return On Investment for your executive search.