Companies grew by 12 per cent amidst challenging economic times
TORONTO, Feb. 21, 2012 /CNW/ - The 2011 winners of Canada's Best Managed
Companies didn't miss a beat. They stuck to what they do best:
improving efficiencies, looking for new opportunities, innovating and
These leading private organizations, demonstrate business excellence
through a rigorous and independent process that evaluates their
management capabilities and practices. Winners will be awarded with the
distinction of Canada's Best Managed Companies at the annual gala and
symposium on March 27, 2012 in Toronto.
"While Best Managed Companies recognize uncertainty on the economic
horizon their focus has been squarely on growing their businesses and
identifying new income streams," said John Hughes, Deloitte partner,
Private Company Services, and national leader of Canada's 50 Best
Managed Companies Program. "They grew through targeted spending in the
form of acquisitions, enhancing their infrastructure and on product and
Despite economic uncertainty, the 2011 Canada's 50 Best Managed
Companies grew by 12 per cent last year, generated over $5 billion in
combined revenue and employed over 20,000 Canadians.
"These companies have proved that, even in an uncertain economy, if you
are nimble enough, innovative enough and have a growth-oriented focus,
there are opportunities to be found." says Dino Medves, senior
vice-president, CIBC Commercial Banking. "These companies, their
executives and their employees serve as inspiring examples of what can
be accomplished with a well thought out business plan, a strong team
and a disciplined management approach."
With the backdrop of a stable Canadian economy, strong Canadian dollar,
solid banking and housing sectors, Canadian companies performed well
over last year. And here is how they did it.
Best Managed Companies search for good growth
Growth remained at the top of the C-suite agenda this year. While
mergers and acquisition activity softened over the last eight months
given the uncertainty in Europe and the US, there is still significant
cash reserves on the sidelines waiting to be put into the market and
many market insiders expect M&A activity to increase over the next 12
to 36 months.
As many Canadian businesses see flat or negative growth, margin
enhancement has been a significant strategy to maintaining income
levels. An off-shoot of this, evidenced in this year's Best Managed
Companies is increased instances of vertical integration as companies'
look, not only to increase margins, but to gain more control over their
Best Managed Companies invest significantly in product and service
While this might seem like an obvious strategy, it is not. This year's
winners have invested significantly in product and service innovation
to increase margins and to build attractive value propositions for
their customers. This is another way Canada's Best Managed Companies
have been able to drive additional margins in excess of revenue growth,
innovative and cost effective building materials to support
infrastructure spending, particularly in the architecture, engineering
and construction space. There were many examples of the implementation
of technologies that lowered cost of products or services or increased
the utilization or useful life of assets.
Best Managed Companies know that private equity has changed the game
A significant number of Best Managed Companies have joined with a
private equity partner in recent years. In many cases the private
equity partner's network, its management team, its insights on other
business, whether it is pricing or cost reduction strategies, can
ultimately help private companies become more successful. In addition,
private equity brings a disciplined governance approach to
entrepreneurial businesses and adds another management dimension that
will support future growth.
Best Managed Companies understand that succession planning is an ongoing
We know that a significant number of owners plan to exit their business
in the next five years. Best Managed Companies addressing this
challenge recognize that succession/transition planning is an ongoing
process and requires a holistic view of the business and their owners,
particularly where family enterprises are involved. Best Managed
Companies view this business transition as an opportunity to build a
foundation for a sustainable business by focusing on creating and
protecting the value of their business.
Best Managed Companies continue to assess their exposure to the U.S.
Many Canadian companies are seeking revenue streams globally and buying
US companies as the valuations are reasonable, but more importantly
they provide additional growth opportunities, not only in the US but
can become platforms to Mexico and South America.
2011 Best Managed Winners
About Canada's 50 Best Managed Companies
Canada's 50 Best Managed Companies continues to be the mark of
excellence for Canadian-owned and managed private companies with
revenues over $10 million. Every year, since the launch of the program
in 1993, hundreds of entrepreneurial companies have competed for this
designation in a rigorous and independent process that evaluates their
management skills and practices. The awards are granted on four levels:
1) Best Managed winner (one of the 50 new winners selected each year);
2) Requalified member (repeat winners retain the Best Managed
designation for two additional years, subject to annual operational and
financial review); 3) Gold Standard member (winners that retain the
Best Managed designation for 4-6 consecutive years); 4) Platinum Club
member (winners that maintain Best Managed status for a minimum of six
consecutive years). Program sponsors are Deloitte, CIBC, National Post
and Queen's School of Business.
Best Managed has launched an online community for private companies: a
new Best Managed channel on the Financial Post (FP) Executive site. A collaborative effort by Deloitte, CIBC and FP Executive, the
new micro-site is aimed at showcasing Best Managed insights and
celebrating the stars of Canada's private company stage. For further
information, visit www.canadas50best.com.
For further information: