American Chamber of Commerce (AMCHAM) Shanghai China

Interviews GCS's President & CEO, John A. Caslione

'Challenges of the Middle Market'

November 2007

        by Nicholas Consonery

Article excerpts...

...John Caslione of GCS is quick to emphasize the importance of effective business operations.  "For our firm it includes not just making investments, but building up the [acquired] businesses themselves.  You have to look at it from business-building fundamentals, not just financial fundamentals, and be prepared to change your models without compromising your company's core business strategy."  The process of building up a firm "takes a lot more time and money than some private equity firms realize," he says.

...Caslione advises building relationships to overcome the hesitancy of sellers.  "The establishment of friendships and relationships has a "halo effect" that transfers credibility onto other deals."  Viewing deals as an "ongoing relationship rather than as a single investment" is key.  Such an outlook often helps alleviate the hesitancy of entrepreneurs in target companies. '

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