Latest news with #EYParthenon
Zawya
5 days ago
- Business
- Zawya
UAE leads MENA M&A boom with 63 deals in Q1-25
DUBAI - The MENA region witnessed 225 mergers and acquisitions (M&A) activity deals in Q1 2025, up from the 172 deals recorded in Q1 2024, reflecting a 31% increase in deal volume when compared year-on-year, according to the latest EY MENA M&A Insights 2024 report. Total deal value rose by 66% to US$46 billion in Q1 2025, when compared to US$27.6 billion in Q1 2024. The United Arab Emirates remained the top target country with 63 deals totalling US$20.3 billion in Q1-2025. Kuwait ranked second in terms of deal proceeds, reaching US$2.3 billion, driven by two major transactions in the diversified industrial products, and power and utilities sectors. Cross-border deals were the primary driver of M&A activity in the MENA region, contributing 52% of total deal volume with 117 deals and 81% of total deal value at US$37.3b. Q1 2025 recorded the highest cross-border deal activity both in volume and value when compared to the same period in the past five years, as companies increasingly pursued growth and diversification beyond domestic markets. Brad Watson, MENA EY-Parthenon Leader, said: 'In 2024 we saw a steady flow of M&A deals and the MENA region continues to exhibit a robust influx of M&A transactions in 2025. This is supported by regulatory reforms, policy shifts and a favourable macroeconomic outlook, including easing interest rates and improved investor sentiment.' 'This growth is also reflected in the steady increase of domestic M&A activity, which contributed 48% of total deal volume in Q1 2025. The rise in domestic M&A transactions aligns with the International Monetary Fund (IMF) projection that MENA GDP will grow by 3.6% this year and is further supported by the strong global M&A momentum. Companies are realigning their strategies to better accommodate the need for diversification, digital transformation and the integration of emerging technologies.' During the first three months of 2025, Canada attracted the highest outbound deal value from MENA investors at US$6.4b, while the USA remained the preferred target destination in terms of deal volume. In Q1 2025, M&A activity in the MENA region witnessed a 20% increase in deal volume while deal value rose significantly reaching US$8.7b as compared to US$1.69b recorded in Q1 2024. The technology sector led domestic M&A activity in MENA in Q1 2025, contributing 37% of total domestic deal value and 27% of total domestic deal volume. The largest domestic deal during Q1 2025 was a US$2.2b acquisition where Group 42, an Abu Dhabi based AI and cloud computing firm, agreed to acquire a 40% stake in Khazna Data Centres, a digital infrastructure provider. Intraregional deals involving the UAE, Kuwait and the Kingdom of Saudi Arabia accounted for 83% of total domestic deal value and 56% of total domestic deal volume, highlighting strong intraregional M&A activity, particularly in the technology, industrials and real estate sectors. The MENA region continues to emerge as one of the most attractive destinations for foreign direct investment (FDI) during the first few months of 2025, with inbound deal volume surging by 21% and deal value reaching US$17.6b, when compared to US$2.5b in Q1 2024. The UAE remains the leading destination for FDI in the MENA region in Q1 2025, capturing 53% of total inbound deal volume and 99% of the total inbound deal value. Austria was the top investor country, accounting for 94% of total inbound deal value, largely driven by a major transaction in the chemicals sector. During the first three months of 2025, outbound deal volume increased by 63% when compared to Q1 2024, with a total deal value of US$19.7b, contributing 43% of overall deal value. The UAE and KSA led the outbound investment from the MENA region, accounting for 77% of total deal volume and 94% of total outbound value. Though chemicals and oil and gas dominated outbound deal value, outbound deal volume was primarily focused on technology, diversified industrial products and professional services. This trend reflects the region's broader diversification strategy into high-growth global sectors. Anil Menon, MENA EY-Parthenon Head of M&A and Equity Capital Markets Leader, said: 'The MENA deal markets remained resilient despite lack of clarity on two fronts: the impact of monetary policy on cost of capital and the ongoing tariff and trade discussions. The MENA deal book for the remainder of 2025 is promising and we can expect to see increased activity in consumer, technology, and energy sectors. In addition, with AI expected to drive material shifts in fundamental value, we can expect to see significant capital allocation in technology.'
Fast Company
23-05-2025
- Business
- Fast Company
The new era of M&A: Bridging transactions and transformation with AI
As our latest EY-Parthenon CEO Outlook says: 'Disruption never sleeps—and neither does the need to transform and create value.' In that context, making strategic choices is becoming far more difficult than ever before. Take AI: a huge opportunity—but also a significant challenge. Although AI has been part of the toolkit for some time, generative AI opens up a new world of possibilities for businesses across all sectors. One such opportunity is how AI can transform the mergers and acquisitions (M&A) landscape. It is bringing unprecedented speed, accuracy, and strategic insights to every aspect of the transaction lifecycle. Deals can be supercharged with new capabilities, giving M&A teams the potential to unlock significantly more value. As AI continues to evolve, there will be three essential levers for AI-enabled M&A: 1. FASTER IDENTIFICATION OF INVESTMENT OPPORTUNITIES THAT ARE TAILORED TO THE INVESTMENT THESIS With advancements in AI, large language models (LLMs) and specialized language models are enabling companies to quickly scan large amounts of structured and unstructured data to identify potential acquisition targets aligned with their strategic goals. AI agents powered by the LLMs can now analyze financial health, growth patterns, competitive positioning, and even cultural compatibility with remarkable accuracy. For example, EY Competitive Edge is the proprietary platform used by EY-Parthenon to leverage the latest LLMs from Microsoft. It enables clients to screen for assets at pace, along with deep insights on competitive positioning to aid investment thesis and decision-making for M&A teams. EY-Parthenon helped a leading life science company create its strategy, which enabled it to innovate its business model and enter a new market in the chronic care segment. The platform's deep sector data brought in relevant insights on the landscape of companies within the category, competitor activities, and potential buy-versus-partnership opportunities to execute their growth ambitions. The team used its extensive sector experience to provide valuable recommendations that informed the company's strategic planning. 2. DEEP DUE DILIGENCE, FASTER AND MORE FOCUSED AI is transforming due diligence by enabling teams to dive deeper into analysis and extract more value from data. With AI-powered tools that analyze financials, flag risks, and identify synergies or redundancies, teams can uncover insights with greater precision. This shift allows teams to move beyond routine tasks and focus on providing high-value insights that drive better decision-making. Proprietary solutions like Diligence Edge enable us to see the forest for the trees. EY-Parthenon, which handles thousands of diligence deals each year, is already on the change management journey, with teams actively using its proprietary solutions on deals today. Featuring tools such as the Digital Diligence Assistant, the latest AI-enabled platform, embedded with EY Parthenon's deep diligence expertise, accelerates data analysis, empowering teams to deliver richer, data-driven insights that uncover deeper value. 3. BRIDGING TRANSACTION EXECUTION TO TRANSFORMATION Traditionally, M&A has been viewed as a two-step process: transaction, then transformation. But AI is bridging this gap, offering a continuous thread that connects transaction objectives with transformative post-deal value. It allows teams to have a more nuanced view of the synergies beyond traditional cost-cutting. AI-powered insights can highlight revenue growth opportunities, by identifying complementary capabilities and customer bases. EY Capital Edge is another tool that helps accelerate delivery and value realization by using more than 30 purpose-built apps in an integrated platform to streamline transaction and transformation execution. This AI-driven platform gives EY-Parthenon teams advising clients access to the latest leading practices, methodologies, and engagement accelerators to drive global collaboration. This brings significant value to clients to help organize the process and accelerate the deal process. THE OPPORTUNITY: LEVERAGING AI FOR SUSTAINABLE COMPETITIVE ADVANTAGE As AI continues to evolve, its role in M&A will only deepen. The companies that gain most will be those that view AI not as a mere efficiency tool, but as a strategic enabler for long-term value creation. Leveraging AI to streamline transactions while setting the stage for transformative growth offers companies a sustainable competitive advantage in a world where agility and adaptability are key. For dealmakers, this means a mindset shift: the ability to recognize AI as a bridge that seamlessly connects the transactional rigor of M&A with the strategic foresight needed for transformation. This holistic approach, where AI is embedded across all aspects of the M&A lifecycle, will be the differentiator in creating lasting value in an increasingly competitive landscape. In the near future, we can expect M&A processes powered by AI to be faster, smarter, and more strategically aligned than ever before. The companies that embrace this technology today are not just setting themselves up for successful transactions—they are laying the groundwork for sustained growth and innovation, and transforming the way we think about mergers and acquisitions in a digital-first world.
Yahoo
22-05-2025
- Business
- Yahoo
U.S. output grows following tariff détente with China: S&P Global survey
This story was originally published on CFO Dive. To receive daily news and insights, subscribe to our free daily CFO Dive newsletter. U.S. output grew this month following an agreement with China for a 90-day reprieve on tariffs exceeding 100%, S&P Global found in a survey, while noting that remaining import levies triggered a surge in prices. Although improving, both business activity and expectations for output remained subdued because of concern that tariffs will slow demand, disrupt supply chains and further push up prices, S&P Global said Thursday, describing results of the May 12 to May 21 survey. Prices for goods and services rose more than in any month since August 2022. 'Business confidence has improved in May from the worrying slump seen in April, with gloom about prospects for the year ahead lifting somewhat thanks largely to the pause on higher rate tariffs,' Chris Williamson, chief business economist at S&P Global, said in a statement. Yet 'at least some of the upturn in May can be linked to companies and their customers seeking to front-run further possible tariff-related issues.' Any recovery in U.S. output this month may prove short lived given that 10% baseline tariffs still stand and there is no guarantee that the U.S. and China will forgo an intensified trade war when the reprieve on high tariffs expires on Aug. 12, according to economists. 'The near-term outlook is more constructive, but risks remain tilted to the downside,' EY-Parthenon Chief Economist Gregory Daco said Thursday in a client report. 'The economy is set to grow below trend this year as higher tariffs, weaker labor market momentum and lingering policy uncertainty lead to a wait-and-see approach,' he said. The economy will probably slow to 'stall speed' by the fourth quarter, Daco said. He forecasts 1.3% gross domestic product growth in both 2025 and 2026 and puts the risk of recession in the next 12 months at 35%, down from his prior estimate of 45%. The labor market will likely weaken this year, with unemployment rising to 5% from 4.2% in April and average monthly job growth falling to 70,000 on average from 160,000 last year, Daco said. 'A trifecta of headwinds — rising tariffs and policy uncertainty, federal job cuts and tighter immigration — poses a downside risk to the labor market,' he said. Initial claims for unemployment insurance edged down to 227,000 during the week ending May 17 from 229,000 the prior week, the Labor Department said Thursday, in a sign that employers are holding payrolls steady following the U.S.-China tariff reprieve. Employment has fallen slightly this month after gains in April and March, 'primarily reflecting concerns over future demand prospects but also in response to worries over rising costs and labor shortages,' S&P Global said, reporting on its Flash US PMI Composite Output Index.
Skift
14-05-2025
- Business
- Skift
How Coldplay Concerts Turned Ahmedabad Into A Live Tourism Hub
That Indians are keen on experiencing live events is now well-established. But their growing affinity to combine these events with extended stays and local exploration is becoming a major economic driver. Over 222,000 people attended British rock band Coldplay's Ahmedabad concerts earlier this year. Fans from over 500 cities across India traveled to attend the shows held across two nights, according to a new report by live entertainment platform BookMyShow Live and EY's strategic consulting arm EY-Parthenon. It added that the concert generated an estimated economic impact of INR 6.41 billion ($75 million) for Ahmedabad, including significant spending on accommodation, transport, dining and retail. For the three days that the concert was held, Ahmedabad airport handled 138,000 travelers. BookMyShow Live also partnered with Indian Railways' Western Railways division to run special superfast trains between Mumbai and Ahmedabad to cater to the heavy flow of passengers, the report added. The inflow of tourists for the concert also pushed up room rates as hotel bookings increased 1047% during January 26-28. 'Room rates that typically hover around INR 15,000 ($175) even during peak season soared to INR 50,000-90,000 ($586-1,055), within just 48 hours of the concert announcement,' the report added. 'The concert served as a major catalyst for demand, with bookings rising by nearly 69% across all modes of transportation on our platform compared to two weeks earlier,' said online travel agency MakeMyTrip's chief marketing and business officer Raj Rishi Singh. 'Flight bookings increased by 55%. Average selling prices across all modes of transportation also saw an upward trend. While the percentage increase varied across these modes, the overall average was close to 50% year-on-year,' he added. Ahmedabad's Image Boost: Beyond the shows, the concert also helped boost Ahmedabad's image. The report noted that over 80% of the attendees said that they had a positive experience at the concert. Nearly 30% of attendees said that they would like to attend more such concerts in Ahmedabad. 'The shift in perception was striking - 78% of surveyed attendees now view Ahmedabad as a major concert city, and two-thirds expressed strong willingness to return,' it added. The report noted that for every INR 100 spent on concert tickets, attendees contributed an additional INR 585 towards services such as hospitality, travel, local shopping and dining. Over 35% of the concert attendees also explored local attractions and engaged in local shopping. Nearly 80% of all attendees were under the age of 35, it added. Half of the attendees surveyed by BookMyShow Live extended their visit in Ahmedabad beyond the concert, staying for more than one night. Music Tourism Frenzy: Skift reported last September that for Coldplay's three concerts in Mumbai in January this year drove hotel prices near the DY Patil Stadium to surge to INR 640,000 ($7,600) for three nights. All major branded hotels, including Taj The Trees, JW Marriott in Sahar and Juhu, The Westin in Garden City and Powai Lake, Four Seasons Hotel, The St. Regis Mumbai, and The Oberoi Mumbai were listed at over INR 150,000 ($1,800) for three nights during the concert, when typically, these hotels charge between INR 7,000 to INR 30,000 ($84 to $360) per night. For Indian singer Diljit Dosanjh's concert in Chandigarh in December, online travel platform Ixigo reported a 300% surge in flight bookings. "The passion for live performances is driving fans to travel, and this surge in bookings across flights, trains, and buses shows how music tourism is becoming a major force in the country," said Aloke Bajpai, group CEO, Ixigo. Guwahati to Get 11 New 5-Star Hotels The city of Guwahati in Assam is set to get 11 new five-star hotels, state chief minister Himanta Biswa Sarma said on Monday. He was speaking at an event to mark the construction of two of these 11 hotels. The two hotels will be developed under Marriott and will be located near the Lokpriya Gopinath Bordoloi International (LGBI) Airport. Among the 11 luxury hotels slated to come up in the city, two will be Marriott and two will be Taj-branded properties, he said. The city will also get a Lemon Tree hotel on the national highway. The Radisson Blu hotel in the city will also be expanded with an additional inventory of 100 rooms. Apart from this, Vivanta Guwahati at Khanapara will also be replaced by a new Taj hotel. According to Sarma, the growing trend of destination weddings along with leisure tourism will drive business for these hotels. In February this year, Indian business magnate and Reliance Industries chairperson Mukesh Ambani pledged the development of a seven-star Oberoi Hotel in the state, adding that his company's priority is to boost the high-end hotel and hospitality economy in Assam. Air India, IndiGo Postpone Resuming Flights Amid Safety Concerns A day after 32 Indian airports were reopened for civil operations, Indian carriers Air India and IndiGo announced their plans to cancel flights to and from a total of nine border airports amid safety concerns. On Tuesday afternoon, IndiGo said that it was canceling flights to and from Jammu, Amritsar, Chandigarh, Leh, Srinagar, and Rajkot for the day. Air India also issued a statement saying, 'In view of the latest developments and keeping your safety in mind, flights to and from Jammu, Leh, Jodhpur, Amritsar, Bhuj, Jamnagar, Chandigarh and Rajkot are cancelled for Tuesday.' Neither airline gave any specific reason for cancelling the flights beyond safety concerns. Meanwhile, budget airline SpiceJet announced resumption of its scheduled flight operations to Srinagar starting Tuesday. The airline added that it would also restart flights for Haj 2025 from Srinagar starting Wednesday. Indore to Get a Grand Hyatt Hyatt has signed an agreement to develop a Grand Hyatt-branded property in Madhya Pradesh's Indore. The 250-key hotel will also feature 5,000 square meter space for events and meetings. At present, Hyatt operates four Grand Hyatt properties across India - Mumbai, Gurugram, Kochi, and Goa. Last October, the company announced plans to double its portfolio in India from 50 properties to 100 over the next five to six years. It is also looking at opportunities to bring more brands into the country, which is home to Hyatt's third-largest portfolio outside the Americas and China. For the company, Hyatt Regency brand is a key growth driver for expansion in India. It is also set to launch its Unbound Collection brand in India this year. Vietnam Airlines Launches Direct Flight to Hyderabad Vietnam Airlines has launched new direct flights between Hyderabad and Hanoi. This is the airline's fourth destination in India after Delhi, Mumbai, and Bengaluru. The carrier is operating on the route three times a week. 'India continues to be a key growth region for Vietnam Airlines,' said Nguyen Trung Hieu, country manager - India, Vietnam Airlines. 'Hyderabad serves as an important gateway to southern India. Following our growing presence in Delhi, Mumbai, and Bengaluru, this launch further reinforces our network expansion across the country.' India is a key source market for Vietnam. Last year, over 500,000 Indian tourists visited the country, marking an increase of 26% from 2023. The country is expecting this figure to surge to 1 million soon. Chalet Hotels' Revenue Surges Over 20% Hotel owner and developer Chalet Hotels recorded a 21.3% increase in its revenue for the 2024-25 financial year. However, despite this increase, the company's profit after tax declined by nearly 50%. The decline has been attributed to an increase in employee benefit expenses, higher power and fuel costs, and greater consumption of operating supplies. However, Chalet Hotels CEO Sanjay Sethi said he is not worried. He said that the company's entry into Goa and Rishikesh shows its strategy of strengthening its portfolio and diversifying its customer mix. It is now going to focus on deepening its operational efficiencies, while continuing to execute its expansion pipeline.
Forbes
12-05-2025
- Business
- Forbes
CEOs Still Plan On M&A, Despite Economic Uncertainty
When it comes to tariffs, 98% of businesses are concerned about their impact, according to the most recent EY-Parthenon CEO Outlook Survey, conducted in March and April. Indeed, geopolitical, macroeconomic and trade uncertainty was ranked by 42% of businesses across the globe as the top stumbling block to achieve their growth targets in the next 12 months. Business leaders are moving quickly to reduce impacts—44% are looking to adjust supply chains, 42% are looking at product design innovations to minimize reliance on items that will be subject to tariffs, 42% are looking at new cost management strategies, and 39% are relocating their operational assets to different areas. On top of the tariff threats, 71% of CEOs said that inflation continues to challenge their business. However, CEOs are still planning on M&A as a path to growth. Deals were long predicted to boom this year, but many have stalled in the face of uncertainty. More than half—57%—said they are planning on M&A in the next 12 months. However, what is planned and what happens can be two very different things. More than one in five companies stopped a planned investment in response to the economic uncertainty, while 54% delayed one. And 71% of companies said that problems in determining fair valuations could get in the way of dealmaking until the economy solidifies. It's unclear when that might happen, considering trade deals and tariff rates seem to be constantly moving targets. EY-Parthenon recommends that CEOs develop their flexibility, scenario planning, financial discipline and good sense. The report points out that crisis-period acquisitions can generate better returns than those made during more robust economic times, usually because the acquiring company is ready to accelerate its new capabilities once the economy becomes stronger. But how to move forward will continue to be a challenge. 'Beyond efforts to mitigate the current instability, we may see CEOs being bolder in their transformation and transaction strategies in the face of challenge,' said Andrea Guerzoni, global vice chair of EY-Parthenon. 'The response to recent crises shows clearly that acting now, rather than hunkering down to wait until the storm has passed, will create greater chances of creating long-term value for all their stakeholders.' About four decades ago, a shrewd business investment from an accidental florist led to the creation of delivery behemoth 1-800-Flowers, which is still a household name. Founder Jim McCann served as CEO most of that time, but he's officially handing over the reins to Adolfo Villagomez today. I talked to McCann a few weeks ago about how business has continued to bloom. An excerpt from our conversation is later in this newsletter. Until next time. Treasury Secretary Scott Bessent (R) and U.S. Trade Representative Jamieson Greer announce ... More "substantial progress" following a two-day closed-door meeting between U.S. and China top officials aimed at ending a tariff war. After weekend negotiations with China, there is a trade deal—or at least elements of a potential deal. A joint statement from the U.S. and China says that tariffs are decreasing on both sides—10% for China to the U.S. and 30% for Chinese goods imported into the country—for the next 90 days, allowing for more negotiations between the two countries. This is a significant rollback of the 145% tariff the U.S. imposed on China and the 125% China put on U.S. imports, which Treasury Secretary Scott Bessent said was equivalent to a trade embargo. Bessent said both sides agreed that 'we have a shared interest' and 'neither side wanted a decoupling' of trade. Trump announced another trade deal last week with the U.K., reducing tariffs on a quota of imported cars from 27.5% to 10%, and steel and aluminum tariffs from 25% to zero. Stocks soared on both deals, with the markets on Monday surging on the reduction and pause on Chinese tariffs. The rally started on Thursday when Trump said from the Oval Office, 'You better go out and buy stock now.' But how long will the rally last? While the agreement with China is significant, it's not permanent and subject to further negotiations—meaning things are still uncertain, especially for businesses that deal with imports from China. Consumer prices also may rise based on the former sky-high tariffs, since they were in full effect for a month. Deals will only go so far. White House Press Secretary Karoline Leavitt said Friday that the 10% baseline tariff on all imports will stay in effect no matter what. Several companies have already lowered their outlooks or estimated steep losses in profit because of tariffs—including Toyota, which said that it lost an estimated $1.25 billion in profits in March and April alone. A new report from Democratic members of Congress said that the tariffs represent a nail in the coffin for small businesses, showing that costs are rising, hiring is slowing and firms are already laying off workers, writes Forbes' Brandon Kochkodin. Federal Reserve Chairman Jerome Powell delivers remarks last week following the Federal Open Market ... More Committee meeting. Last week was another Federal Reserve meeting, and once again, interest rates held steady at the 4.25% to 4.5% they've been at since December. 'The risks of higher unemployment and higher inflation have risen,' the committee said in a statement. As tariffs continue to shake the economy, the committee said, 'uncertainty about the economic outlook has increased further.' Considering the uncertain situation, very few predicted any shift in rates—CME's Group's FedWatch tool predicted a 98% chance of a hold, while economists at JP Morgan Chase, Goldman Sachs and Bank of America all forecast no change. The only person who seemed to think a change should come was President Donald Trump, who once again started attacking Federal Reserve Chairman Jerome Powell on social media after the meeting. ''Too Late' Jerome Powell is a FOOL, who doesn't have a clue,' Trump posted to his Truth Social platform Thursday morning. He added that speaking to Powell is like 'talking to a wall.' Unlike Trump's social media attacks on Powell earlier this month, these didn't crash markets because he didn't threaten to fire Powell, and his U.K. trade deal was announced on the same day. Even before Trump began his second term, the face of corporate DEI has been shifting. While many companies voluntarily rolled back their policies, others left anti-DEI proposals to be voted on by shareholders. And while zero shareholder resolutions to restrict or examine DEI measures have been successful in 2025, Forbes' Maria Gracia Santillana Linares writes that some companies are quietly responding to the anti-DEI movement. For example, she writes, while Goldman Sachs urged shareholders to vote down two anti-DEI measures, it internally removed the entire diversity and inclusion section from its annual report and purged mentions of race from its 'Black in Business' program, suggesting 'black' now meant profit in a business sense. Some of these changes could be more related to legal rulings in the last few years against using race as a factor in college admission and decision-making. And others find it to be important but want to stay out of trouble. Natalie Norfus, a DEI consultant with her own firm, said, 'A lot of companies, and some of our clients, are just focusing on how they rename it so that they're not caught up in the fire of the villainization of the acronym.' 1-800-Flowers founder and Executive Chairman Jim McCann. About 40 years ago, when 800 phone numbers that spelled something were all the rage, Jim McCann transformed his chain of New York flower shops into what became the national chain 1-800-Flowers. It's stayed relevant through the years by adopting new technology, making acquisitions in the gift-giving and delivery space, and staying true to an always-desired product. Today, the day after one of the busiest in the flower delivery business, Adolfo Villagomez takes over as new CEO. McCann will remain the company's executive chairman. I talked to McCann last month about his time in the flower business, the risks he's taken and the reasons business has persevered. This interview has been edited for length, clarity and continuity. A longer version is available here. How did you go from flower shops in New York City to the nationwide company 1-800-Flowers? McCann: I had 40 or so flower shops, and I decided to buy the company that had the telephone number that became 1-800 Flowers. Then I changed how we went to market. I changed the name of the shops to 1-800-Flowers. Everyone thought that was crazy: To buy the telephone number, to change the name of the retail stores to a telephone number. But so far it's worked. I sold those shops because I needed money to build this idea, to market it. I didn't know anything about venture capital or private equity. I didn't have any of those skills or knowledge. So I became a franchisor because I needed to sell the shops to get money to build this brand. The good news is, five years later, we were a national brand, and because we didn't have any money, we couldn't make any big financial mistakes. We caught the wave of interest in people using 800 numbers. We got a lot of free press and promotional opportunities that really helped us become a brand. At that point, my younger brother, 10 years my junior, joined us in business. We said, 'If we could become a national brand with no money and no knowledge, what's going to replace us?' So we were always on the lookout for what's next. What happened next? What's next was the internet. We were early to it. That was our third wave. The fourth wave was just at the beginning of the 2008 financial crisis. We were impacted by it and we said, 'Geez, we can't afford to do all these development ideas we had in mind.' We went from 16 to three that we continue to fund. One was our technology platform and the other two were social and mobile. And boy oh boy, they were the right guesses because social and mobile changed everything for us. How have you decided which business gambles to bet on? You've done well with all of them. Not really. When we got on the internet, we were tracking how many other things we tried, and there were over 50 other tech changes. We put our catalogs on a CD-ROM when that was in vogue back in the early '90s. It was a bomb. There were 50 of those bombs. The one we kept coming back to and iterating on was this online world, which was dominated at that time by CompuServe, Prodigy and this little outfit called AOL. My brother and I are very curious and we're not afraid to ask a lot of people what's going on. In my case, you don't have to be the smartest person in the world, but you have to ask a lot of questions and you have to get to the right people to get their insights so you can make your judgment about what's coming through the pipe. What advice do you have for other CEOs? The advice I give myself is don't think that you have all the answers, and develop a support system of people that you can turn to get a different point of view. Get people who tell you things that you should hear which you're not going to hear from the people who work for you. I turned to a friend this week and said, 'Bob, these are the three things that I'm wrestling with.' He gave me very unvarnished advice about where I should be spending my time and my energy, and he was very candid with me. So it's good to have people you can turn to who you trust and who will give you the unvarnished truth. Send us C-suite transition news at forbescsuite@ President Trump is not exactly reserved when it comes to calling out anyone he disagrees with, specific businesses and executives included. What should you do if he attacks you, your company or your industry? Here are some tips to arrive at an appropriate response. While investors care about a company's DEI policies, they are important to employees in a completely different way. And for any company, retaining good employees—regardless of their race or gender—is often a challenge. Recent research examined how well common equity policies for women and racial groups promoted retention, and found a combination tends to work best. Which billionaire announced last week that by 2045, they would wind down their foundation and donate 99% of their fortune? A. Bill Gates B. George Soros C. MacKenzie Scott D. Larry Page See if you got it right here.
