JULY BULLETIN

Ben Marsh's long climb to the top of his game, business briefs & more

CEO's Report

As I communicated last month, a total of 41 applications have been received in this year's funding round, and I'm pleased to report that most have proceeded to the second stage. As the bulletin circulates, the stage two applications are being considered by the selection committee ahead of a mid-July meeting where interview candidates will be selected. Please spare a thought for those sweating on the outcome!

Aside from the 2022 grants process, much of my time has been devoted to supporting the Scholars' Network committee and its efforts to host a memorable showcase night on 28 July. In case you missed last month's bulletin or this LinkedIn post, the event aims to profile and promote some of SA's best businesses, and the people behind them. Importantly, it's the first-ever purely social event for Scholars and their guests. I encourage you to support Tania Jolley, David Hart and Dave Evans, and more recent volunteers Vito Rinaldi, Kelly Keates and Michael Waite, by buying a ticket for yourself and your guests.

I'm also thrilled to report that our fundraising efforts have produced some great results this past month:

• an anonymous donor banked $10,000 into the Foundation bank account; and
• Andrew Reed of Hender Consulting committed to sponsor a training session in the first half of 2023. Thanks Andrew and your team. You join a range of top-quality visionary organisations who generously support the training and networking activities of the ILF.     

Out and about
June is an internally-focused month at the ILF as we process applications and seek budget and business plan endorsements from the board. As a result, it's been rather quiet on the networking front. One of the events I did get to attend was a lunch featuring Oscar Fiorinotto, Founder and CEO of shock absorber innovator Supashock. From one Datsun 1600 that could beat Falcon and Monaro muscle machines on the track, Oscar has built Supashock into a global business that employs more than 100 specialists making shock absorbers and associated equipment for Supercars, F1 race cars, military and mining vehicles, and even autonomous wheelchairs. A 2017 Scholar, Oscar revealed the secret to his early success was about alternative ways of thinking; later complemented by hard work, sacrifice, determination and the odd stroke of luck.

Beyond business
A June highlight was watching my granddaughter Jill play as a goalie in a Sapsasa soccer match. It was her first match and, unfortunately, her team got thrashed. In the second game she followed her mother’s advice to dive at the ball and eat grass, which she did. That really constrained the opposition which won, but not by much!

I also attended:

• a strategy session as a Director of KeyInvest, a friendly society offering finance support to residential property developers
• a board meeting of the Brownhill Keswick Creek Stormwater Authority, which built the new wetland and detention pond in Victoria Park; and
• a board meeting of UHY Sothertons, a 25-person accounting firm based in Flinders Street. 

I really enjoy the variety these interests provide and the feeling that I am making a valuable contribution. You can read this Advertiser article article about the Victoria Park Wetland doing its work during the heavy downpours at the start of June (image credit: Colin James).

As always, I hope you enjoy reading this edition.

Geoff Vogt

Scholar in the Spotlight

Ben Marsh
General Manager, Aftermarket Sales Australia and NZ
REDARC Electronics
Master of Business Administration, University of Adelaide, 2013

Former AFL footballer Ben Marsh is accustomed to climbing hills to get ahead. Growing up “down south”, the 20km ride from Aberfoyle Park to footy training at Richmond oval equipped him with much more than physical strength; it instilled a spirit of hard work, determination and perseverance that has proven instrumental in his post-AFL career.

Hill climbs and footy
Growing up in the Adelaide Hills, I attended Aberfoyle Park High School and enrolled in night school so that I could get my grades up high enough to get into uni to study design. At the same time, I was playing local football and attracting interest from elite clubs. I wasn’t the fittest player on the field so I started riding to training to build a better fitness base – this meant riding from Aberfoyle Park to West Adelaide’s Richmond home ground and back again two nights a week, including a hard slog up Flagstaff Road! I challenged myself to ride it all the way up every time. My hard work soon started to pay dividends on and off the field. Not only did I gain enough marks to begin a Bachelor of Industrial Design; in the same year I was also selected in the rookie draft by the Adelaide Crows. After another year of hard work on the track at the elite level I was selected to play my first game in 1998 against Sydney. I played nine games that year, including the ultimate honour of playing in the 1998 Premiership side. It was an unbelievable year that made all those rides up Flagstaff Road worth it.

A career in AFL football is a fickle thing and the following year I lasted eight minutes into the first quarter before I ruptured my ACL in my left knee. It was a devastating blow but one that taught me that you can never take anything for granted and you must always have a back-up plan. At that stage AFL football was still part-time and I was able to make the most of my time juggling study and rehabilitation. My degree was a three-year course but it took me four years to complete, working around my growing football commitments. As the AFL opens doors to connections, I was able to undertake work experience as an industrial designer at Clipsal after asking Rob Gerard at a function one night. After graduating, my football journey took me to Melbourne where I played for Richmond. Although it was a brief stint, it was a fantastic living in the heartland of the AFL and playing for one of football’s biggest clubs.

The next goal
With my sporting career coming to an end, I started to look at the next stage of my career.

Upcoming events

Inaugural showcase networking night

Enjoy a fabulous night of networking over fine food and wine while learning more about the diverse Scholar companies within our network. You'll walk away with new connections, a better understanding of who we can support, and the chance to win some fabulous prizes. You'll also be able to view Mitsubishi’s new Australian mechanics training and product development facility, and their cars.

What to expect:

• excellent food and wine, most of which has been gifted from Scholar businesses
• great prizes (if you’re lucky) and the chance to bid in a live auction to win amazing experiences, from weekend getaways and fast laps around The Bend Motorsport Park to a box at the footy!
• the opportunity to meet some of the state's most influential and successful CEOs and entrepreneurs.

Where: Mitsubishi Motors, 1 Sir Richard Williams Ave, Adelaide Airport
When: 28 July from 6pm to 8pm
Cost: $25 per person, tickets available here

Mind the Gap: Managing contract risks

We all sign contracts, but do we really know what they mean? How do you know if your insurance covers all the risks adopted in the contract you sign? When the other side of a deal (you really need) will not agree to requirements your lawyer says are non-negotiable, what do you do? If you do insure, how confident are you that the policy will respond if things go pear-shaped?

This breakfast seminar, sponsored by Cowell Clark and Insurance Advisernet, will answer these questions and more. Our speakers include:

• Jamie Watts, Director at commercial law firm Cowell Clarke. Jamie specialises in building and construction, advising private and government clients on drafting and negotiating complex contracts. His expertise has been recognised in the Best Lawyers Australia guide since 2017 for construction/infrastructure and litigation law. He is also ranked by peers in the 2022 SA Doyle's Guide as a leading lawyer in construction and infrastructure litigation.
• Simon Landrigan, Senior Adviser, Insurance Advisernet. Simon's insurance career spans more than 25 years, with experience at international insurance brokerages and a specialist medical indemnity insurer. He has worked most of his career from Adelaide with a three-year period in Perth managing the financial lines division of an international broker. Simon specialises in insurance products such as professional indemnity, medical indemnity, directors’ and officers’, management liability, construction and cyber.
• Emilio De Stefano (ILF2014), Director and Principal, De Stefano and Co. Emilio has more than a decade of experience across sectors including defence, oil and gas, water and infrastructure. Having practiced in organisations ranging from start-ups to large, multinational corporates, in both technical and executive leadership roles, Emilio has an innate knowledge and understanding of people, culture, leadership, business and what it takes to succeed. With a Master of Engineering, he has undertaken the SA Defence Industry Leadership Program and an executive program with the prestigious Stanford Graduate School of Business.

More about our sponsors:

• Founded in 1996, Insurance Advisernet is one of the largest and most respected general insurance businesses in Australia and New Zealand with an ever-growing network of more than 220 authorised insurance advice practices. Insurance Advisernet is also part of the ASX-listed AUB Group, with more than 450,000 clients and $3 billion in gross written premiums. This brings buying power for clients, spanning every major insurer in Australasia as well as access to major overseas insurers including Lloyd’s of London.
• Cowell Clarke was founded more than 30 years ago with the goal of disrupting the standard reactive offerings from commercial law firms by providing outstanding personal service with a proactive, global perspective. The firm's point of difference is to proactively find ways to help clients capture opportunities and manage risk.

Where: Cowell Clarke, Level 9, 63 Pirie Street, Adelaide
When: 24 August from 7.15am to 9am

Invitations will be sent soon.

Lessons from the edge

Presented by the (AUCBG) exclusively for ILF Scholars, this breakfast seminar features real-life stories from CEOs that provide rare insights into keeping a company healthy and growing. They describe their mistakes in business and the lessons they learnt. Each CEO has completed one of the Centre’s programs and are ILF Scholars. They include:

• Dr Jana Matthews, ANZ Chair in Business Growth and Director at AUCBG, part of UniSA Business
• Kelly Keates, Managing Director, Zonge
• Matthew Stead, Chair, Resonate and CEO, Ping Services
• Calvin Stead, CEO, Kelly Engineering
• Wayne Duffy, Business Proprietor, Dulwich Bakery

Where: Australian Centre for Business Growth, Level 1, Yungondi Building, UniSA City West Campus, 70 North Tce, Adelaide
When: 8 September from 7am to 9am
Cost: FREE and exclusively for ILF Scholars

Invitations will be sent soon.

In case you missed it: M&A recap

Written by Michael Waite, 2019 Scholar

Braving the cold winter weather, a significant turnout of Scholars made their way to the ILF breakfast seminar on Mergers and Acquisitions (M&A) on 17 June. Hosted by leading M&A advisors William Buck in their Victoria Square offices, Scholars were given the opportunity to catch-up over breakfast and learn from the M&A experiences of top leaders in this area. The event was opened by MC Samantha Nicholls (Director, Corporate Advisory at William Buck), who introduced Amanda Baldwin (Chief Investment Officer at G'day Group) and Tony Stewart (Group CEO at Thomas Foods International).

Amanda Baldwin took us on a journey through the growth of the holiday parks business, which started with three properties in 2004 and has grown to nearly 300 properties today. Much of its early acquisitions were made in an environment where the industry hadn’t been consolidated. With a significant growth strategy, and many “mum and dad operations” in the market, Amanda commented that “any deal was a good deal” in the early days. But as its footprint expanded, G’day Group continued to evolve its M&A strategy to suit the changing position in the market and its exposure to risk. During the journey the company was not afraid to sell non-core and under-performing assets. A key element of the strategy was to continue to diversify its acquisitions, not only in geographies (to help mitigate weather events around the country), but also in customers (such as mining camps). In recent years, G’day Group's M&A strategy has changed from growing scale to driving key strategic investments in adjacent assets to add value to its portfolio. 

Tony Stewart from Thomas Foods International (TFI) gave us an insight into the growth of the business, which grows, supplies and distributes fresh food around the world. Over the past 10 years its M&A strategy has also evolved, moving from processing to increasing its footprint through the food chain, including distribution. This has seen the business grow from red-meat processing into a fully integrated fresh food business where it deals with major retailers such as Walmart and Costco. The growth of the US business took eight years to ensure the staged acquisitions in the US were done in a way to successfully align (strategically and culturally) the consolidated businesses and to prepare TFI for a full takeover. The result of its M&A strategy has seen TFI grow significantly, with 75 per cent of food processed in Australia now heading overseas.

Samantha Nicholls from William Buck wrapped up the presentations to give her observations, summarised in a presentation which has been circulated to those who attended,  from working with many businesses going on an M&A journey. Samantha discussed the need to understand the motivation behind the transaction and reminded us that while the ILF is keen to see Scholars grow their business through acquisition, selling doesn’t always have a negative connotation. There are many reasons why a business is put up for an acquisition, but it’s critical as a buyer to understand those motivations.  For all parties involved, it’s key to be transparent, as discovering inconsistencies in financial results, risks, or business plans down the track undermines the confidence in the parties and could jeopardise a purchase or sale. Samantha also reinforced the need to have the right advisors involved, hopefully ones who know the business well and can avoid adding additional overhead.

David Hart from Dematec Automation facilitated the Q&A session with a number of thought-provoking questions from the group. One of the observations from Tony during this session was, while getting constant offers every week, it is risky to move outside your core business for an “opportunistic deal” and often best to stick with what you know.

M&A has long been a strategy to enable companies to rapidly grow their business, or fend off competition, leading to fantastic opportunities, but can be fraught with many risks. With rising inflation rates and interstate and international interest, M&A will be a critical element of economic growth in SA over the coming years. The opportunity to hear from high-calibre business leaders' experiences is such a valuable learning opportunity and we are grateful for the lessons provided by Samantha, Amanda and Tony.

Business in Brief

All you need to know about .au domains

Shorter and simpler .au domain names are set to supplement or replace .com.au and net.au domain names. You can claim your .au domain name until 20 September, after which time anyone can register it. This article from Business Victoria outlines the opportunities and risks for your business.

Read the Business Victoria article.

Developing your ESG strategy

Are you thinking about a new sustainability strategy? If so, you might be wondering how fast to implement it. Go too fast and you could go broke, but if you don’t go at all, you could lose your social licence to operate or contracts with customers (government and corporations) who wish to ensure their ESG credentials are enhanced by their supply chains. This long read from I by IMD explains how to balance these conflicting objectives and offers suggestions about how the journey can be fast-tracked.

Read the I by IMD article.

IMD World Competitiveness Yearbook

Results of the 2022 IMD world competitiveness survey have been released. Of particular interest to the ILF, management practices are not considered a strength in Australia (Page 1) but are improving (Page 3). The factors deemed to add most to the economy were effective legal environment, high educational level and skilled workforce. Meanwhile, cost competitiveness, competitiveness of the tax regime and competency of government were least attractive.

View the results.

Maccas Moscow and the power of brand

Earlier this year the Russian Government announced that Russian companies didn't have to pay to use patents, designs and other such assets originating from “unfriendly” nations. It was an unprecedented decision with massive implications for the protection of intangible assets. This article from EverEdge explains the story and some lessons for the future.

Read the EverEdge article.

More on The Great Resignation

Although the darkest days of the pandemic are over, the Great Resign is not. According to this InDaily article, more than 337,500 Australians resigned from jobs in February alone. The article provides some new thoughts on the dilemma and insights that could help you retain staff.

Read the InDaily article.

Scholars in the Media