2 Episode results for "Element Bay"

MMMA001: Pre-Marketing - The First of the Four Phases of Selling Your Company

Middle Market - Mergers and Acquisitions by Colonnade Advisors

31:09 min | 5 months ago

MMMA001: Pre-Marketing - The First of the Four Phases of Selling Your Company

"Well to the middle market, mergers and acquisitions podcast by colonnade advisors, colonnade is middle market investment make, and we have completed over eight billion dollars in transactions. We are here to dissect the process discussing the technical aspects and tactics used in middle market, mergers and acquisitions. Selling a middle market company takes at least four months today we will be discussing the process timeline. PRISCILA accompany later in the podcast we will speak with Elizabeth Davies the president of stone to hear the insights. She developed after leading the CEO of her company I. M Gina Cocking and I'm here with my partner Jeff Guy. When we sell a company, it does not happen overnight. Not like the movies as they say, it does take some time. And a lot of work and We! Are almost like consultants in that we have timelines and process timelines that we are using to manage zeal and so today. Let's talk about the process timeline absolute these processes take a long time, and our job is to set expectations for clients and really manage them throughout the process and so. The first thing we do is sit down with per charter timeline. And we lay out what the transactions going to look like from start to finish. Typically we look sort of a sixteen week. Process Timeline. It's chunked into four phases and we'll talk through those over this episode in a couple of others. The four phases that we go through in a typical transaction once we get engaged I one is the premarketing vase, and this is the section which we go through and really understand the company and dive deep. Make sure that we know where all the skeletons are hidden, and what are going to be the potential issues that we're going to have to address them as a Cetera really sort of teeing up everything so that we're ready to go, and they're no surprises. That's the big thing we work towards in this phase the second phase. Says the marketing face? This is when we go to market, so we actually pick up the phone and start calling investors or buyers of the company, our lenders. which you lose a little bit control in the transaction you go from being completely internally focused and having a hundred percent control over the sale, process or capital rates process to all of a sudden involving dozens or even one hundred outside parties in what you're up to, so we'll talk about that face market-based. The third phase is once. You've this sort of funnel of discussions or investors where you've qualified them and shared some materials. Had folk sign in DA's and ask initial questions we usually solicit the first indication of interest in that says will who's really serious of this two dozen or so firms that we've contacted as potential buyers. WHO's really interested? Who's really going to commit the time and effort? We did that in a written indication of interest yet which really narrows the pack and from there we move into phase three which. Generally. Think of as sort of the investor management leading segments so phase three involves manager meetings. Lots of follow up with civic questions. Detail data room. And just lots of Q. and A. With a small limited number of very interested in all participants. After phase three generally get a final bids from this group presuming running an auction sorts, and then you move into face four, which is documentation documentation is really everything that you need to solidify the deal. As were, the attorneys really start to take the lead, the IR or investor will come in and do final due diligence will have all the management agreements warranty insurance. If that's applicable, all this documentation around consummating the transaction happens in base for them. Those are the four phases that we go through away again. That can typically run about sixteen weeks to get to definitive documentation types longer sometimes shorter, but that's what we try to lay out. To our clients to help guide them and give them perspective on sort of where we're headed. I would say the win thinking about these phases the. Phase one period is the vase that can take the longest and really will drive. How long the entire transactional take! We always start off with colonnades, due diligence process, and during due diligence, we'd like to say that we'll do the primary due diligence in three or four weeks. That can often take much longer and should also note that as an investment banker are due diligence, process actually never ends throughout the transaction. We'll be continually asking questions and collecting information. But during that first four week time period, we are requesting a lot of information to not only get to know the company better, but to understand how the business. And to really help us figure out how to position the business. Jeff WanNa talk a little bit about some of the types of documents in requests. We make in diligence. Shore in Judea ride. The first phase is. Really Critic Olin? What we're trying to do is to step into the shoes of the owners of the management team and have a I like to say or an eighty five or ninety percent understanding of the business from investors perspective. Obviously, we're not operators. We don't know how to actually businesses with I. Don't Genus Experience. But most gates were really trying to be able to answer ninety percent of the questions that are gonNA. Come up from investors at least phase two three when we're talking to folks, maybe not in the final. Quality of earnings reports and things like that. I totally agree. It's during that time period. We are trying to gather enough information where we are completely eloquent in what the business does in order to do that. It's very intense time period it. We are almost doing a crash, course or studying the business from soup to nuts mean absolutely everything about the business. We will ask a question in. Importantly. Owners of businesses. She keep in mind it again. We're not processed consultants. We're not trying to tell them how to better manage your business. We're really coming at this process from an investor's perspective, so if someone is going to be ambassador, company or an owner of this company, what do they need to know to understand how the business operates in tearfully gene? You know whether the drivers. What are the principles? Really make this business. And fortunately we accommodate a be focused in the clients we work with, and so we can anticipate a lot of questions are gonNA come up having gone through this a number of times with a number of similar clients. You and I. Both have a similar conversation in an early stage with all of our clients and that is. Treat us like your confessor. We need to know everything. We need to be prepared for any question that can come at us. We aren't here to judge. We're here to help you work through it and. If companies have personal expenses running through the income statement. Dues affair highlighted from the get-go. That's fine. Shooting, right? It's common in privately owned businesses. Buyers of privately owned businesses accept it. What we need to do those. What those expenses are where they are, and then we can use that information and added back to the sellers benefit. We need to know if there have been any threatened losses. If their employees issues in the diligence time we need to know. Everything so that way we are never surprised by question. We always have a ready answer in that goes back to your question. About what do we for? One of the documents were looking or an edits. Spark DOT nation, but it's also the discussion over that so example of a documentation we could ask for anything from most boring articles of incorporation and tax returns and. Financial audits and things like that to what are the potential excellent personal chances are running through the business. How many family members on the payroll and why? Many questions like that, so the documentation list is long. You cited number of several thousand documents. I think sometimes. But, we use a hand out of a four or five page. Due Diligence request list in a separate sort of agenda that mirrors that. Folks our discussion we get on the phone with clients, and have one or more due diligence meetings now the point of collecting all this diligence as not only to be able to talk about the business with buyers. But to be able to. Tell the story in two ways one in written form through a confidential information memorandum, but also to develop a detailed financial forecast now some companies may already have that, and that's fantastic. We will review the forecast stress tested. Run it through scenarios and work with the financial leadership team on the forecast. Often we do work with companies that don't have a detailed finance forecast that is driven by multiple variables. They can do scenario analysis on, and that's one of the value, an investment bank. We have a great team of people that are focused on building. Building financial models and we worked build those models, and we don't do it in a vacuum, because we build it based on the information given to us, but then we sit down with our clients, and through several sessions go through the financial model in the forecast thing. Are we thinking about Your Business correctly? Are we highlighting the right drivers, which by the way picking up with the drivers are for business is not as easy as it sounds and really understanding what are the factors that are influencing profitability for business. It's not just enough to know. Who the clients are who the customers are of a company? Or what the revenues are for the customers, but really what is the profitability by customer behind getting back to the very basic variable and cost accounting? Each customer. What is the Prophet for each product? What is the product on a per product per customer basis and going down to that level, and then building up from that is the best way to build a financial forecast for the purposes of selling the company in that sort of tales due to. The topic of data and we're going to have a whole separate episode on outside quality earnings, but The data collection effort. We just touch on here. The data collection efforts we undertake with our clients. All of our clients are data driven. They've all got a wealth of data. In everybody thinks it's in pretty good shape from us. Part of it usually is. But when we get the data and again we apply earn Bester perspective to it. Sometimes things about that maybe need to be either Jigger reformatted or they're a bunch. Look as there's almost data cleansing exercise that goes on in this first phase but Jim. Maybe you can talk about the just very briefly. This outside Cutie versus a financial audit, and we look for versus require. You would like to have with particularly December smaller clients sure so a financial audit. Most everyone's familiar with is when a public accounting firm comes into a company and reviews the internal financials and make sure the financials are in accordance with gap. Then they will help finalize the statements and then issue report on the financials. In gap now what we have found in some of the industries we cover that gap is not necessarily the best accounting method or the most insightful accounting method for demonstrating the profitability of companies. We often work with companies that we use what we call special purpose accounting, and I'm doing air quotes here, meaning it's something that is not gap. For example, there's a contract that is a five year contract under gap. You would recognize revenues over five years under special purpose accounting. You could recognize revenues today. Well, a public audit will not do none yet financials. So that's where one of the Times that a sell side, quality of earnings comes in, so this is sometimes referred to as a sell side Kyo. which by the way I don't know about you, Jeff, but for the longest time I thought people were saying you. and. I was totally confused, but rolls off the tongue. qe qe sounds acuity, but is quality of earnings, so equality of earnings is. used either to supplement the audit or in place of an audit. And it's done by an accounting firm, and it goes through a very rigorous process in my mind, it is much more detailed than a standard audit and the report that is issued is far more informative to a raider than a financial audit ever is because it does a deep dive into the business it will lay out the revenues, the drivers of revenues information about customers, customer, concentration, and go through expenses in highlight where there are anomalies in the expenses and explain them a sell side quality of earnings, meaning the seller of the company has hired the accounting firm him hugely advantageous because the accountants. Are working for you. It's not like an audit where they're evaluating company with. They're doing on a cell. Cy Quality earnings as they're helping you along with Colin Age it will put the company in its best light, putting its best foot forward, so they will help identify all those bags that we were just talking about personal expenses. The boats the houses, the cars that run through the financials and. and. They will work to add that all back. They will say Oh, you know. In twenty eighteen. There was an under reserve and twenty nineteen. There was over reserve, so we will adjust the financials to to straighten it all out, and that process takes a couple of weeks for accountants to work through, but can hugely beneficial and the other reason why sell cy quality of earnings is important. Is because the buyers will typically. Bring in an accounting firm in the diligence process when they're buying the company, and they will do a buy side quality of earnings, and they'll be going through very similar steps so if you had a cell cy quality of earnings done already that information will be leveraged by the buy side quality of earnings, accounting firm, and then you have. Tube similar types of professionals, talking to each other about the issues, and it seems to when we see sell cy quality rings when we have our clients get those in place deals go much more smoothly and generally faster right having an accountant in your corner to support the financial presentation we help you put together is really important. Really Grease the skids for forgetting in deals on. Because inevitably the buyer's going to dig in with either their financial team. They're a strategic fire. Or with outside accounting firm if Arthur financial sponsor so all this data collection in all this financial analysis in. Recasting and extracting value drivers and things like that all goes towards positioning so what we do, we start gathering all this data and having all these conversations with management teams owners is to start the process of putting the other confidential information memorandum in this document is really heart disclosure in part marketing, and I wouldn't sign percentages to it, but it's really an opportunity to tell the story best life possible, but also in our view in our experience getting everything out there. We don't want to have any surprises later on as we talked about in this is a place to clearly and coherently lay off the story, the good bad, the ugly. In the best light possible and have it in written form so that when comes up late in the game, we can always point backwards eight listen. We told you we disclosed. It's right here on page forty seven. Just like we told and here's how the math works. We showed you. It's really an important document in that document can take. About a month on average, I would say to craft and again there's gotta be a marketing spin to it. It's not just A. Boring as one or something or proxy statement, it has a fair amount of marketing component to it, but in a capsule it's. All the work of all the advisers leveraging the attorneys at the initial phase accountants are financial modeling team. Our experience across different industries, and obviously the management in owners story putting together is really the crux of this first phase, and is the output also usually seventy five page book as we like to say, it's now. A powerpoint used to actually written prose day. Old We're old school, but now no one has attention span to read that so. So. That's sort of a combination of all this effort is. We. Dig deep to understand that business. We dig deep to understand what the financial drivers are and help develop what the financial forecast is GonNa look like. We think about what the positioning elements are of the company. In the industry in the Trans, we're going to wrap that altogether into this book that we're GONNA share with folks under disclosure agreement in phases to and beyond it takes about four or five weeks to get that book done. And We say that as long as the data is really as good as you say it is, we can do it in this timeframe, but oftentimes come up, and the data's not quite as good or a financial audit isn't really done. So, this first phase can take longer, and that's okay, because his first phase is all in our control. We haven't talked to any outside parties yet. It is completely box in the four corners of all the internal advisors. There's little to no of a market leach. Usually, the deal team at the company is quite small this time, so you know we advise our clients who say listen. We want to get to market as soon as we can. Because we're all about I made. Say in timing. And if we collectively including the owners have decided announcer, I tend to go, we should go shouldn't dilly dally. A death said we balance that with saying we have to get it right first time. You don't WanNa. Get into the market and find hoops. Uncover this item and. And Diligence and it's going to be a dealbreaker, and it's going to change the financial forecast. Whatever it is, that destroys value. Yeah, destroys value destroys momentum. All of a sudden you gotta bus in deal, and so you gotta get this package correct first time, and so we advised clients to take as much time we need in phase one to get everything complete and accurate in really be comfortable with the story. GonNa have to inveighs three. They're gonNA have to sit on the other side of the table from these essential buyers, potential investors, and tell the story and better damn well be consistent with the book. Put together. Well in phase one I often hear feedback from management teams where they're like. Oh, my God, that was so painful. And how it's going to be painful, it's going to be hard. The sale process is is not for the faint of heart. All process is like going through a performance review nonstop for sixteen to twenty weeks and the first phase where we ask all the questions and we are poking holes may seem very difficult, but far better for us to do it in that way when the next the buyers asked that same question. The seller is not only has the answer at their fingertips, but they're resilient in answering those questions. In practice something to talk to my mind, you know you mentioned. This is a grueling process which it is and for the deal team at the company. were. Selling is sort of like having a second job. They got a day job. Big actually have to manage to business were selling, and we urge them highly not to miss their numbers during the process because that can be a deal killer. have an impact on value. Clearly, that's the keeps me up at night. Among other things, but when element that often gets overlooked is depending on the ownership structure of the management team. Sometimes it's important that the owners if they're different than the manager's well in advance at of some sort of retention, package or transaction bonus, it can motivate these folks who are going to be doing a second fulltime job, basically over the next sixteen to twenty weeks. Really gets them excited about. But in the extra hours, so we encourage our folks to the owners of the company to think wisely about spending a little money here, and there on their team is already working double triple time to get this transaction the best off, not only that, but there's a lot of uncertainty for that team. There is a chance that the company is going to be sold to a strategic, and there can be redundancy in positions and position limitation. It's important to make sure for example. The CFO's office is incentivized to really drive the process. With the possibility out there as they're doing this, they know that wow. I could be working myself out of my job right here so good to get this place earlier because it's really uncomfortable for owners to have those conversations with their employees later in the process, exactly two others were points. I WANNA touch on before we wrap this up today. The last couple of points in phase one relays or the home stretch, but what we've done all this positioning extra saizen thought through what the best story is. We revisit a couple of topics that I is the investor wireless Monaco back through. We've talked about this all along. In probably the pitch process and we have a pretty good idea of the buyers are investors might? At this point we had gone aid. Understand the business all up better right and so we can go back through with a fine tooth comb and say okay. Here's a revised list Beijing. We know in all the. Stuff, we uncover and. The and the ugly. And here's the list of folks we propose that we would approach in this process and again it can be anywhere from one party to one hundred plus parties and got through name I mean with the owners of the company. The owners have the final say on who we're GONNA contact in not gonNA contact, and how we're going to contact them and. All sorts of nuances around vacation, front. But I think that's important element bay in a lot of owners. Are Scared or uncomfortable that we're just GONNA kinda rifle. Start shot gunning rounded. Calling whoever we want to, but it's important that our clients know that they have full control over this process that second piece of it is right before we go to market. Will Allow up, take a deep breath and say. Let's revisit the valuation expectations make sure we're on the same page here because we talked about valuation probably before we got hired as a gay folks, our best thoughts on how these businesses transact in general and what we knew about the company before we got hired. By. Now we spent probably the better part of a month. Really digging deep on the financials in the story, and the history and Ticha lead litigation and. Has Happened in history of the company. We got into no man's routine, and in some cases gotten to know the industry's better, we sit down, update our valuation analysis and say here's what we think is going to happen still Donau of Sikhism markets as the price. Here's what we think's GonNa. Happen based on what we know now and the question is. Do you still WANNA go ahead? Because we still got three more vases ahead of us and a lot work to do, and if this valuation level, it's changed down, isn't. Isn't acceptable. The then should go to market. 'CAUSE IT'S GONNA be a waste of everybody's time in these processes especially on the financial side. Sometimes things come up that bring down the earnings sale reserve wasn't taken properly for example, and the owner may decide at that point while you know what I really liked it. When we were going to market at a ten million dollar EBA at eight million dollars. I'm not as excited so why don't we pause and go to market next year? We've seen that happen. That's fine, were ready to go and as easier to. Begin once ready, but to genus point it's critical that everybody really understands what the revised numbers are in what the issues are there for evaluation and structure to. We find something that we think is going to lend itself Gordon out or something else. That all comes up and diligence, or at least gets unearthed the diligence. It's important to talk through that have. Really honest conversation about whether this is the right time to go to mark after all right, thank you. We wanted to get the perspective of a president of a company who has gone through a sale process, so he reached out to Elizabeth Davies Stone Mark, one of our former clients Elizabeth guided her company through a five year period, five hundred percent growth, and successfully led her company on its sale to boil premium a subsidiary of H W Kaufman Group. She now leads the combined organization's I was. Listen Hi Gina. Thank you for joining. This is very to catch up with you now. We went through a process a couple of years ago with us, and we kicked it off where you and your team spent a lot of time with US getting ready for sale. What did you find was the most difficult aspect of the colony due diligence process now is getting the data ready was at tracking down. Documents was kind of getting in the mentally in the right place. What do you think? Challenge you thinking about getting ready? well I think that making sure that we were organized and prior to contacting Connie making sure that we have the right type of corporation to minimize taxes that is something that we had done some sufficient planning before then, but making sure we had the right corporations minimize was taxes, but colonnade made it very easy to help us. Size and cost. You held us. Through the process, it's like baking a cake Leigh Regatta cake and you guys just were put the icing on to make us look as pretty as possible. Going to market, so I would say getting documents together. Yes, that was not the easiest thing, but you guys. Documents around him made us look at that terrifies could. Thank you. It's great, so you brought up an interesting point there and getting the right tax structure in place and I think you guys were a great about being proactive about that. We often encounter clients that we need to pause for quite a while while the company figures out. What is the right tax structure? Other than that? Is there anything else that you would give as advice to another CEO on how to get prepared for the diligence process and writing the confidential information memorandum? Yes decides contacting a tax attorney higher I would. Make sure that you have realistic idea what your company is worth. And make sure you work to continue to build your business. Just in case there's another opportunity at arises during the process. We were very focused on our company. We weren't just focusing on the sale of the company I. Believe we even grew thirty percent during the process. Of the merger, so I would say, stay focused on your business, but don't get too caught up in the process of sailing at this again. That's fantastic advice well, thank you so much for joining me today I really appreciate it. Thank you for having Gina. I appreciate you. As investment bankers, we're constantly thinking about and working process timelines. We divide the sale process into four phases. The first phase is internal. Getting the company to go to market involves diligence data, collection, model, building, writing the sin and identifying potential buyers. We have a link in the show notes to a typical time when we use their middle market, sell side deals in the next episode, we will discuss the next three faces of sale process. Thank you for joining us and a special thanks to Elizabeth. Davies of Jomar contact information can be found in the show news talk more about collinet the deals we've done and our thoughts on other related topics. WHO's go to our website at C. O.? L. ADP DOT COM four. Join US on linked in.

the Times Gina Cocking Elizabeth Davies accountant CEO investment banker president Elizabeth Jeff Guy partner Jeff Wan Leigh Regatta Judea Olin WanNa Beijing Bester
The Greatest F1 Team - Team Principal

The Autosport Podcast

25:58 min | 6 months ago

The Greatest F1 Team - Team Principal

"The greatest one team. Hello and welcome to the final part of what is being a very special seven We've attempted to answer the question. What with the lineup of the greatest F. One team look like from Race Engineer. Team principal lead to lead drive at chief designer and even the ready coveted number. Two driver's fault we've set out to build an F one team made of the best that has ever been. Iron House panel made up all of our F. One experts from across the globe have all pick individuals throughout history. That they believe are the greatest of all time and in this series. We've been discussing the careers under winus of the individuals that have made it into the top three for each joke role. I'm jess highest. And today I am joined by James Allen John Noble then Anderson and Rebecca could so I reckon everyone but want to be a team principal given the past anelle disposal but what does the ideal candidate need to be good at? What makes a great team? Principal STANDOUT OVER. The key thing is just being all areas. You can't just be strong in one area. Econ speak to get in the sponsors in. Just be good at managing the drivers. You conscious be good at dealing with the politics you need to be there across all areas and keep things under control And I think all our a top three team principles all delivered this their most accessible peaks of their careers They've will lead from the front stood out in the crowds and they've all proved to be moss strike in winning championships. It's unbelievably difficult to win in formula needing to win World Championship. It's been when multiple world championships is. All three of our finalists of dom is odd. Takes an awful lot of them because it's like it's like a bar soap. It's always on the move. He's just keeping hold things in an someone wants to lead. This wants more money in that drive to keep a winning team together is really hard and then to motivate them to win again and again and again even though it might look easy for me. Outsca IDAHO YOU know. These teams winning multiple Welsh Car Course Are But just having the best just having the best drive of getting to that? Point is unbelievably difficult. So I think that's why it's been good that you've signed this to the last of the series early. Because this is the ultimate row because Ev Fountain at everything comes from the team principal younger I team principal. Younger right designer. The right drivers in anybody people don't want the team with the right team principally they on the the team so it's it's fundamentally important massively difficult to do. Well let's look at the passing. We find in third place as voted by our panel of experts from around the world. And it's going to be one of the most iconic names in Formula One. That still carries his name to this day. That's of course Steph. Frank Williams who founded the team his own team in nineteen seventy seven and was celebrating the first win two years later at remarkably US drivers and constructors well championship in nineteen eighty. And they want to be the last of his winds. He really is emerges sport legend. Isn't he yeah he's He's lost of the MOHICANS. The among our our shortlist echoes. If Chapman far came before oversee he competed against a guy who's founded a team from nothing. I started by entering customer. 'cause then decided to strike as a constructor. He was much derided early on in his team cooling wanker Williams but he pressed on forced amazing partnership with Patrick Head. That team to the very a. You could argue that you know as time has gone on. Williams's obviously declined incredible success Through the nineties recapture the glory as with BMW in the two thousands maybe some strategic decisions when against them. I should frank given up more control to allow seem to modernize but you have to hand. It in. His team is still going and night. Chapman's tain latest STA- declined in his later years Ferrari. Before his death they went going through the best of times. It's very hard to stay on top as change saying earlier even to get to. The top is extraordinarily difficult site. You have to hand Frank Williams. He's probably not the guy you'd you would want running on modern great steph form team considering that Williams has been in decline for a while now and they have won a race in two twenty twelve. And we've only won one since two thousand and four but nevertheless the legend Formula One. Somebody that we should definitely acknowledge that Frank Williams is not only a fantastic principle. Listen example of the termination because Rennie stocked to follow his dream. E was not a very good condition. E E bill this team from the ground so it was not easy to start so yes to do a lot of problems because was not easy especially the first couple of years but the way you build the so big company into mortal sports fighting with the big factor because of course they time also providing wasn't while the doctor will feature was is an example of patient. When you when you're really believe in something and you spend all your entire life to follow your dream. Sometimes you sacrifice everything our new also there that the human relationship because you out totally folk who said when your target for me. This is an example for a lot of people and I think now is more difficult to find the person that every time is ready to risk himself everything just because he want to to to see his dream realized in the sporting the target that the achieve was absolute Testing I think the number of people might be a little surprised. That is not wrong. Dennis rather than Frank Williams. I think it's seems class finding the balanced decision of this wide level. Our F when experts from across the world. But I think for me what makes Frank Stand up a Ron? Dennis is one of the points That which is he used. Determination outside apples that resilience solvency coming back from his nineteen ninety-six road accident to then. How will the success to be had but I think it also speaks about the way that he built a team. In how empowered the team around it mentioned actors fundamentally Off of the success of Williams. I always used to say Ron. Dennis was the best and worst thing about McLaren because we such a big personality. Sat Dad. You couldn't really get away from that wears with Frank Williams. It's I think the fact that he was sort of Sorrento had multiple phases of success which which is difficult every extended period of time but those are the fact that people have bathroom empowered and he's organizations than they were in Rome. Dennis is in my is why he made the two thousand three and runs Frank won't be running on pavement. Fortunately and nor will the current FAA president. John Todd now. Obviously Ferrari has always been a high pressure environment and that hasn't always lead to success and before taught became team. Principal Ferrari had gone eleven years without a constructors title and fifteen. Without a driver's he built the team that would go wants dominate the early two thousands. Just how did he turn that around? These friars ruled viewed as united. The Shoemaker Gloria's and brilliant job Michael Jordan but actually it was all the results of what Jonathan to turn for around scared of the old. Furry mentality come into this. New reactive racing team wasn't straight straightaway didn't come easily difficult early years trying to turn things around and get them going but once he hit his stride once they got but Dream Team's cover of Schumacher Ross brawn. Rory Byrne John Todd you know they pushed on and paradorn an a brilliant brilliant era Formula One and three John was a brilliant team principal roofless times unpopular times but three all is number one focus winning And the end of the day is your drop as team principal. The number one responsibility is victory. The rebuild challenge that John Leads to. Diaries is not to be underestimated when he went that they didn't have a gearbox departments in. Marinella informant while it was in Surrey so I mean there was so much work to do. I'm in bed. I was watching biography. Michael Schumacher. John gave me a lot of a lot of times and he was sort shining around it that before. He got that if you like. And he said it was like kind of creaking old building that has some wonderful architectural features but basically ahead interiors just needed to be completely refurbished and essentially what he did Starting just after his his run of success. Excuse me with pleasure and building the team up for MEG. And then putting the right pieces in place obviously Michael Schumacher was a fundamental Came along in nineteen ninety six and then Ross Brune in nineteen ninety seven alert. They added some extra personalities. That was Kinda cool about team. The way they operate it was on a Fair so the principal figures. Todd ruin the shoe Mecca Montanelli but none of the wanted to let the other one down and it was just this e credibly intense so to grew a leadership group. The top of which Schumacher was definitely off the meant that they will always always always striving for that extra few percent occasionally them across the line carries neither. Do some things that were not particularly popular. Whether it's t motors decisions. Some strange stuff. Lighten Black Flags and so to get out in the steward's removed was kind of thing but they will absolutely bang up against the limit of what was what was permissible de. Never wanted to let each other down. I think that's what made that team. So so unbeatable. I think that quarry that are two points that might be of the coupons for the success of jumped out the first one that he was able to choose the right people and When each as you said the sproul cash market Audebert that that was very top-class in slow the second one is that e the responsibility over everything in Maranello that was a big risk because in case of bad result of course he was the first one that still be fired but he said I am the team principal. I am the boss and the everybody must follow Meyer. That is not easy. Ferrari because there are a lot of politics in the history and it's a very crucial I think that the is the only way to run properly for if you want to run property you bus heads. The complete control of the debt was John. Paul was able to have it to able to establish a new culture a long established team which is extraordinarily difficult to do especially when that team has gone through a long period of failure in an underachievement. I think he can make a really really strong case for being the number one choice for fifteen principles ferry very close. Run thing A great hit rate was almost a hundred wins. I think in fourteen seasons there you know he set the template radio think for being a modern team principal in charge of a monolithic organisation hundreds of people disparate departments. Trying to bring together while dating with politics an issue in the final reckoning. Hold against him the fact that he's in charge of Ferrari to have special standing within the school had a veto with the rose. Will these kinds of things and of course when route changes did come up to threaten Ferrari's again? The the two thousand point they did they did struggle and didn't quite recapture their their former glory. So he couldn't. He couldn't renew the team really having established that dominant runways she mecca at Towel. But nevertheless you make radio strong case for I think if you WANNA join analyze what is specialty was Roberto saying. I think it's that commitment Incentive was was sort of the ultimate example of commitment is a racing driver things. The same is true with talk to whoever is working for whatever badges got on his shirt whether or whether it's Ferrari whether it cepheid today would go through a brick wall so that organization. He wasn't the owner Frank. Williams was the name of the. He was always an employee but he was employee listening. Would go through a brick wall to achieve what he wanted to achieve him. That's what made specialist team principal. But that's not quite enough to lead our team because our team principal is actually betted towards run of five consecutive drivers and constructors titles. And of course we're talking about a satin. Mr Toto Wolff Mercedes is now one the past six championship doubles anti-thai Wolf has been the man seeing all and a k. the team took advantage of the new power unit. Regulation twenty fourteen but through all the rule changes since then nobody can seemingly managed to end the run. So what makes wolf just so don good? I think it's the way the way the championships have on from each other. New Challenges overcome all the time when when the titles one in two thousand fourteen People put it down. Oh the best engineers by far the best. This is why they wanNA talk little bit. As the years went on as the rules were changed. Is the challenges. Came up of drivers of new era rules as just got better and better and better organization No complacency Taito management style has allow people to flourish Kept the team very very consistent and the best people And I think those those qualities ability to harness people. He's got much in the right way. get a very unified team. Is I think just put some above the rest right now. What surprised me a lot. Is that Mercedes? Looks like a magic box. I mean game sale is on was fired by Ratty Andy Mercedes is doing from dusty job. The same had been sweet out. Costar was the Cincinnati fighting by fanatic. And then he must see does he. Different dusty jump. What surprised me. A lot is the relationship incitement. Cdc's disease from Iran lease ward where people is constantly and oppression. But I think don't talk. Create the system that the for me. It's difficult for space difficult to understand. But he create a system where the people is the condition to give this one hundred percent. We doubt politics and without stress. That is something that consent you to reduce New People into the place people but we know effect in the result is not one main show e create. The system that for me is the best quality at the best part of the job. That thought did the last ten years. He's got this line. I don't know how to design Surface but I know everything about the guy who does. I think that's exactly right. He goes back to what Ben was saying on about culture of see told had to come into Ferrari adapt a longstanding coach to be what he wanted it to be sort of an iron fist whereas with toto obviously Ross Perot lovely establishing work building up that team from bridging from home. A broom into early diocese. But what hotel did and when you get a chance to cover these service. Cd's and talked to him about it. He's April combination about modern psychology German military tactics and all sorts of other things together into this management style. Whether is a no fare coach? You know they don't blame the person. They blamed the problem that the nonsense that everything an everything that they do. They just do it better than everybody else. Now if you look at times in how he's aged how he's gone over the last six or seven years it's taken a lot out to them and that's why it's interesting at the moment to see what he's going to do next and how much longer he'll carry on doing this full. Because he's obviously ultra high achiever. But what else does he got left. What else do ambitions contain an? I'm fascinated to see that I think it was very close between him and solve this crisis referencing principle but just the creation the shit depths of of culture. I think he think the only criticism you could probably level types of is that this thing that James Lead to that. He kind of inherited the team in a way that taught didn't up that sent. He also supercharged. Mercedes through the hybrid arena. He's made much more of what is there. He's created this culture as we said of FEHB also have accountability so every employee there is is able to express how they feel about how things are going without fear or favor and they can attack legs. Problems unimproved the fact. They've been able to sustain they rom. Three to significant rule changes over the last few years may not that some precedents is far as we can see and his hit rate of success beyond the fact that he's got the stakes and six compared to five and five. Mercedes one something like ninety two races in seven years with taught at the helm you know. That's that compares to talk winning a ninety nine fourteen years so incredibly efficient in terms of winning and he'll say manages it with the other things you know he's he's good on the politics He's a good front man for the tape. He manages the commercial side. He started that team in a way that makes it not too depending on the parent company. Daimler I it. Sustainability and another key thing is that he's been able to get the most out of historic driver Lewis. Hamilton Lewis is better bathroom better with Taito at the Hellman. Lewis speaks really highly of title. As does James Allison him as the best boss. They've had in foam and that speaks volumes. The other thing about wolf is that he doesn't have a background. As a manager he was an investor many was sheldon Williams. He got the opportunity to become a manager Obviously he's had to his management style in the job from the get-go winning world championships where we'll see John had many many years Managing Persia teams etc etc. Before that and I think that's the most remarkable thing about about such a wolf is he. He told himself to become manager literally whilst winning his also had varied experiences dealing with different types of Dr Relationships. You know you've had the the equal number ones of Rosberg and Louis where you're trying to control to drive coming through championship. Who are totally loggerheads? We each other dealt with the controversies. The Monaco Escape Road Instagram Nikko. The Spanish Grand Prix in two thousand sixteen when the Pack Alighted Subsequent Collisions. He's dealt with a lot but he's also managed to utilize the arrival of protests. The facts made Lewis a bit more comfortable and rather than allowing Louis to back off against your comfort zone and not be a strong. He's actually used it in a way of getting more of Louis had that long winter chat entitles kitchen where they went through their relationship while they fought each other is lifted. Lewis to a new high. And I don't think we've seen Louis better than he is right now if we could put it down to one thing or is it simply a the fact that he seems to hold many skills. But I'm really interested to know if you have to pick one aspect of titleist pass or management style that puts him head and shoulders above the rest. What would that one element Bay is apply colleges? He knows perfectly out to approach the people in a different way and that is a very good quality especially run would have to to what a lot of people every people is different than Eat knows how to approach everything. The best where everybody in the best way and a the same time and other big quality. I think he's able to predict the future so he I think at the moment is the best team brings Because E is able to know before all the rest of the field what is GonNa Happen? This is not a very good quality. For increase to human psychology side. It comes to most of having significant intellectual. He's very very bright like any. He's never satisfied with anything. He's always trying to learn some more senior situations where he's drilling able for information about how they manage this situation. You know the people from op spend time with him. Brian for the event ones the boss of the cycling this one older Toda Francis and he was drilling in for information about how keeps the team on the bubble in always ready to go again so the next year? So the phones. So it's just that relentlessness I think is wall marks out any great in our sport whether you're a driver or MSCI mechanic aura. A Race Engineer. You have to always be seeking mall. They have to always be relented to see looking to improve yourself and everybody around you and I think that's that's that's what it is within. Yeah he says that same trait with Lewis. Hamilton is easy. Well it can happen when you on top you can get complacent Could back-off Jomo talking about this earlier. As well with Ross wig out with the team suddenly off to twenty sixteen Louis could have Perhaps but Louis stays on it. He keeps trying to get better chases as he describes it ghost 'cause when he's out on track and I think Taito is of a similar stock you know he's he's never satisfied even when they winning. He's always looking to improve looking to stay on top and cross the opposition. Is that relentlessness? James said stands in my car and it seems all winners up pretty pleased that they've been placed in the positions on our greatest f one team because once again. We have a message from the winner. Let's take it across to missed a tie wolf. Hi everybody trusted afford. I would like to say thank you to the Motorsport Network. Journalists that have participated in the voting and I must say very Hambo to have been elected the best team principal. When when? I'm looking at all those names Giant and particularly Frank Williams they role models for me shrinks Stamina Andrews. Zillions is incredible and I was able to blog and watch from him was at Williams at the end of the day. We old just figureheads for the team. Every single individual in the team deserves that credit. And this is why I would like to pass on this award. This prize to everybody within Macedo. Swiss had to make races and titles. I'm also very happy to see. Many of my teammates haven't been elected in the top three on medals and bundle to guys who Trends WITH RUSSIA. Very very strong bond as well as royals who have been the Johnny and and of course Lewis who has won the type based tribal as you know Lewis and I are very very close and seeing income out on top so we won the team principal. We've on the driver is great. So thank you very much and again you know the strength of the pack so this is a price for all of US federal budget. Thank you again for the. But I think it's safe to say that our team is in rather good hands and he completes our lineup so we now have paid Bonington. As Race Engineer Adrian newly as chief Designer Stefan Melancholy as sporting director Ross brawn as technical director Sustaining Moss as number two driver Lewis Hamilton. Taking the lead as on the one driver and of course we've talked it all off today with title Wolf as team principal. Good look stopping that lot. I think is safe to say but do you think you could put together a better team than our panel of Global F one experts. That is know your lineup in the comments. Thanks ever so much for joining us on this special series Lookout for more special series coming your way across the motorsport network channels at thank you for joining us. And we'll see next time. Thanks so much for back.

principal Frank Williams Ferrari Hamilton Lewis John Louis Mercedes Schumacher Ross brawn Dream Team US IDAHO World Championship Principal Ferrari Lewis Hamilton James Michael Schumacher Race Engineer Iron House chief designer