The Boutique

Highlights

• A client pays a boutique a membership fee if they want to belong to a group. The annual dues grant a client access to a group of like-minded peers. Some boutiques include access to their clients as part of their value proposition.
  • Tags: [[consulting]] [[strategy]]
• A subscription is paid by a client to a boutique to gain access to an asset. For example, many boutiques have proprietary data. Clients want access to this data and pay a subscription to a database.
  • Tags: [[consulting]] [[subscriptions]]
• Clients turn to boutiques for specialization. These clients have moved away from generalists. They are willing to pay more for specialists. Here are the forms of specialization that drive up yield: Industry Function Segment Problem Geography
• The best way to scale a culture is a mix of nature and nurture. Nature, in this sense, is to let the culture scale organically. Nurture, in this sense, is trying to define the culture as part of strategy. Too much nature, and the risk is great; the culture will erode as you scale. Too much nurture, and the culture will become rigid and inflexible. In scaling boutiques, maintaining
• An investor starts by listing all the reasons not to do a deal. The boutique owner starts with a list of all the reasons to do a deal.
• Another way that acquirers measure a boutique’s market position is call point. Call point refers to the title of the person buying the boutique’s service.
• Cycle resiliency refers to having a boutique perform in periods of recession. Recessionary periods cause clients to cut all nonessential budgets. Unfortunately, this can include discretionary budgets that many boutiques rely on. Boutiques that see steep declines in financial performance during recessions have poor market positions.
  • Tags: [[consulting]] [[strategy]]
• The lesson to learn here is to hire an investment banker. Be sure to hire the right one. You get what you pay for. You might not be taken seriously without proper representation.
  • Tags: [[m&a]]