Gary Owen Simpson - Employment History (Detail)
GLOBAL EQUITY PARTNERS (GEP)
(1999 – Present)
international trading | consulting
INTERNATIONAL TRADING
Global Equity Partners (GEP) is a close corporation of which I am the Sole Member. GEP has been active in the procurement and export of (predominantly) building materials for various export markets. GEP has active agents in Lusaka , Nairobi , Lagos , Port Louis , Accra and Dubai . Aspects of international trade include:
- Agents / Distributors : Identify, appoint, train and maintain industry specific agents in the various regions/countries ;
- Methods of payment : Cash transfers, irrevocable and confirmed letters of credit, cash against documents, the process of assignment, etc. After 5 years of trading GEP has a 100% clean debtors record (I am in the business of trading, not gambling!);
- Documentation: Familiar with all necessary documentation including F178's, Bills of entry/exit (DA550,s etc.), Bills of lading, Packing Lists, SGS Certification, Marine Insurance, Form E's, CCA1's, and others which are country specific as required for the flow of goods and services;
- Advertising & Marketing: Both locally and with the international agent. Brochures, trade shows / fairs, etc.
- Transport / Shippers (Logistics): Worked with road hauliers, clearing & shipping companies in the negotiation of rates, logistical movement of the goods, etc. I have always used one clearing & forwarding agent for the preparation of all documents (Rohlig-Grindrod);
- Travel: Extensive travel cross-border. I love travelling ;
- Pricing: I am responsible for the full pricing structure of all product. From a shipping perspective most consignments have been on either the FOB of CIF Incoterm, with most road deliveries being either ex works or CIF destination. Pricing was dependant on the strategy of the day (skimming vs penetration), and largely influenced by the exchange rate. I priced in the currency choice and Incoterm choice of the client, but always covered my risk forward – as mentioned earlier I am not in the business of gambling;
- Retail. Applying of retail principles in global markets;
- Other? Anything as associated with International Trade.
GLOBAL EQUITY PARTNERS (GEP)
(1999 – Present)
international trading | consulting
I have consulted in varying capacities as highlighted below:
BLACK ECONOMIC EMPOWERMENT (BEE) (Broad Based)
I have consulted with numerous South African companies relative to their BEE standing, and forward strategy to improve same if required. My doctorate has a substantial BEE component;
MARKET RESEARCH (International)
I have been used to research particular international markets ( Africa ) with regard to industry specific demand. This report was used by my client(s) to determine aspects of their international growth strategies. Aspects researched include:
- Country Profile: Description; Political & Legal System; Economy (Sectoral Description); Infrastructure; Energy; Telecommunications, etc.;
- Investment Climate: Reasons for investing in the country; Investment incentives; Legal framework for protection of investment;
- Tax holidays. All benefits provided by the host country;
- Import & Export Consideration: Procedures; Regional Agreements (SADC; FTA; COMESA, etc.);
- Taxation: Tax system; Corporate tax; Personal income tax; VAT; Double taxation agreements, etc.;
- Registration, Licences and Permits : Company formation & registration; the Investment certificate; Sector licences; Permits; Other licences, etc.;
- Labour considerations: Labour availability; labour laws & regulations; working conditions, etc.;
- Land: Availability, acquisition and transfers;
- Growth sectors for investment: Manufacturing; agriculture; mining; energy; others?
- Living in that country: Climate; Housing; Travel & Vehicles; Health; Education; Clothing; Shopping; Leisure activities; Money & Banks; Re-entry requirements; General;
- General: Selected economic indicators; GDP by Kind of Economic Activity; Useful contact addresses; etc.
VALUING A BUSINESS (Due Diligence Procedures) The following aspects of business are investigated:
- Company Structure: Shareholders / Owners; Directors; Senior Management; Auditors; Bankers; Attorneys; and all as associated with the structure of the company.
- Nature of Company: Products; Brands; Sales by category and contribution margin of each category; Distribution Channels – Sales, Franchises, Agents, Distributors, etc.
- Financial
- Price Earnings Ratio
- Earnings & Dividend Yield
- Market to Book Ratio.
- Return on Investment.
- Industry Norms – GP & NPBIT, Turnover, etc.
- Company Sales - Reputation; Forecasts; Sales Structure; Sales Force (how remunerated – basic, commissions, etc.); Sales Training; Pricing Policies; Sales by Category & Contribution by Category to GP; etc.
- Full analysis of Income Statement, Cash Flow Forecasts & Balance Sheets.
- Projected Evaluation Methods including the Payback Method, the Average Rate of Return Method and the Net Present Value Method.
- Capital Employed.
- Cost of Capital.
- Owners Equity & Liabilities (Long & short).
- Current, Quick & Cash Ratios;
- Net Working Capital to Total Asset Ratio.
- Dept Structure; Accounting Policies; Costing System;
- Total Debt Ratio.
- Debt to Equity Ratio.
- Equity Multiplier.
- Long Term Debt Ratio.
- Times Earned Interest.
- Cash Coverage Ratio.
- Stock. Turnover (times); Minimum Levels; How & When Counted?; Costing – average, LIFO, etc. Slow moving stock policy (mark-down), etc.
- Day's Sales in Stock.
- Creditors Turnover.
- Debtors Age Analysis. When printed, how followed up?, permanent position?, Bad Debts.
- Day's Sales in Creditors.
- Net Working Capital Turnover.
- Fixed Property. Full description; Market Value; Book Value; Lease Agreements; Rental & Escalation Agreements; Insurance policies on property.
- Fixed Assets; purchase vs lease; Depreciation Rates – details; Market Value.
- Fixed Assets Turnover.
- Total Asset Turnover.
- Profit Margin.
- Return on Assets (ROA).
- Return on Equity (ROE).
- Full Du Pont Analysis.
- Analysis of management accounts. This includes the adoption of the Four Level Analysis. Level 1 is the initial analysis in one particular category as it appears (for example, turnover to profits). Examine the trends and note how the category has changed from year to year. This includes comparing each year to a common base. Then, compare actual results against budgets for all categories. Level 2 is to work out the percentage difference from year to year within the Level 1 category. Assess this trend within a trend. Level 3 is to do a ratio of one category to another. Analyse the significance of this ratio. Level 4 is to analyse the results of the two or more level 3 analysis ratios, comparing them.
- Working Capital.
- Capital Budgeting.
- Credit Policy and Current Asset Management.
- Sources of Financing – Capital Structure.
- Tax. Latest Assessment. Deferred Tax Liabilities; Assessed Losses, etc.
- Plus ….
- Non-Financial
What makes a good acquisition is PEOPLE & OPPORTUNITY . Important factors to be considered include: -- Flexibility & Innovation.
- Growth Markets (Strategy).
- The External Environment.
- Full SWOT Analysis. (Strengths, Weaknesses, Threats, Opportunities).
- Porters 5 Forces (Competitors, Substitute Products, Suppliers, Industry Competition, Barriers to Entry).
- Marketing. Strategies; Forecasts; Advertising; Pricing; Promotion; Medium of Advertising; Agency or In-House?, etc.
- Environmental Forecasting.
- Manufacturing & Production. Plant – full details. Depreciation rates and status; Capacity of Plant (full, 80%, etc); Expansion possibilities; SWOT Analysis; Quality Control (TQM), etc.
- Labour. Labour Intensive (Y/N); Grades (Patterson?); Staff Turnover; Levels of specialisation; Union activity; Industrial Disputes; Recognition Agreements; Remuneration; Profit Share, Pension Scheme; Bonus; Salaries & Wages; Benefits; Stock Options, etc.
- Internal Analysis of the Company.
- Term Objectives and Grand Strategies (Concentric & Conglomerate Diversification; Forward & Backward Vertical (& Horizontal) Integration, etc).
- Boston Consulting Group (BCG Matrix). This measures the Industry Growth, and the relative position in that growth – Dog, Star, Cash Cow & Question Mark.
- Quality of Management.
- International Orientation. Exports; What countries?; Barriers; percentage export to local sales; Forward Orders; Export Policy – Insurance and Cover (options); Overseas Companies/Interests, Gross Profit Margins compared to Local; Partnerships, Agents, Distributors, etc.
- Human Resource Priorities. Training & Development.
- Structure, Leadership, Culture and Rewards.
- Information Technology.
- Intellectual Property. Trademarks; Trade names; Copyright Logos; Patents
- Other – Economic Environment; Political, Government; Technology; Resources;
- Socio-Cultural & Environmental.
