When a business doesn’t perform well or make enough profits to survive longer, it stands on the edge of falling apart. Not taking the right step before things get worse means not only leading the business to utter failure but also leaving its employees stranded in the middle of nowhere.
Most often, when an acquisition occurs, employees start immediately worrying about what will happen to their jobs. Many acquirers let go of old employees; however, with well-thought strategies, employees can be retained. One great example of humane acquisition is Leonard M. Levie.
What makes Leonard M. Levie a better acquirer than others?
Leonard M. Levie is the famous name in the United States as an esteemed founder of the AIAC Group, American Industrial Acquisition Company, and Its Subsidiaries and Affiliates. AIAC is a privately held, global industrial group with holdings in 24 countries across North America, Europe, and Asia. He is not just a smart acquirer but also a guest lecturer and a member of a plethora of educational, management, and various different types of private clubs, associations, and societies.
Since the inception of AIAC, Leonard M. Levie is known to build an impressive portfolio that consists of 78 manufacturing and distribution sites. He focuses on acquiring underperforming and non-core manufacturing and distribution businesses from both public and private corporations. Though Mr. Levie is heavily invested in acquiring industrial manufacturing companies, he never focuses on just transforming a failing business into a profiting business. What he also focuses on is boosting the economy of the region where those businesses are located by retaining employees, improving revenue, and bolstering the operations and quality.
We aren’t just saying this but there is also data to back this up. Let’s look at the case study of Canadian Kraft.
As soon as Leonard M. Levie heard about the announcement of Tolko Industries regarding the closure of its unprofitable paper and pulp mill - Canadian Kraft - in The Pas, Northern Manitoba, he made the move to keep the mill running and prevent the economy from crashing down.
Soon after the announcement of shut down of Canadian Kraft, the mill’s 330 union employees were seemed to be preparing for their own unemployment during unforgiving conditions of a long, lean winter. Three hundred woodland contractors had already lost their jobs, residential real estate values dropped 25 percent in only a few months, and the 12 First Nations (indigenous people) of the area prohibited access to the fiber and locked up the forests.
Despite this severe crisis, an AIAC affiliated company purchased the mill just three weeks before the scheduled shutdown and started working to reverse the situation of the mill.
After weeks of negotiation and constructive discussions, Leonard M. Levie was able to bring together three labor unions. He helped them understand that the mill can still flourish with their support, convinced the twelve First Nations to allow access to their lands, and got a 5-year property tax reprieve from the Town of The Pas.
After 4 months of intense hard work of employees, well-planned investments, and better management, the mill returned to full health, and by 2018, the mill’s supply items again started having huge demand as the new management interacted with each customer personally and assured them with long-term commitment.
It is a great example of what a compassionate and intelligent person Leonard M. Levie is and how he works hard in ensuring that everybody right from the shareholders, employees, and customers benefit from their acquisition and not just them.
No comments:
Post a Comment