McKinsey’s Tim Koller joins us to share about how to manage the value of companies during a pandemic.
Who funded the Abdul Latif Jameel Institute? https://www.mckinsey.com/business-functions/sustainability/our-insights/how-alj-a-75-year-old-start-up-leads-with-purpose
“Both Ford and Amazon announced in 2019 that they were investing hundreds of millions of dollars in the ALJ-backed electric-vehicle manufacturer Rivian, with Amazon planning an initial purchase of 100,000 of its vehicles.”
Why would Amazon fund the Abdul Latif Jameel Institute?
Amazon stock hits a new all-time high as it sees unprecedented demand https://www.cnbc.com/2020/04/14/amazon-stock-hits-a-new-all-time-high.html
- Yes, yes, yes and yes! Thrivetime Nation on today’s show we are interviewing McKinsey’s Tim Koller, the author of Valuation: Measuring and Managing the Value of Companies, the 7th Edition. Tim, welcome onto today’s show. How are you sir?!
- I know that you’ve had a ton of success at this point in your career, but I would love to start off at the bottom and the very beginning of your career. What was your life like growing up and where did you grow up?
- Tim Koller When did you first figure out what you wanted to do professionally?
- When did you first feel like you were truly beginning to gain traction with your career?
- Tim Koller I know you’ve had a ton of success in your career, but thus far…what has been the low point?
- So what exactly is your role at McKinsey?
- I am a partner of McKinsey’s Hartford, Connecticut office
- I work with clients on corporate strategy
- What does McKinsey do?
- We help our clients improve their performance over the long term
- Our objective is to help them improve their strategies, buy better innovations, improve their efficiency, etc.
- What was your first job working at McKinsey?
- My first job was looking for some acquisitions opportunities
- So what inspired you to the most recent version of: Valuation: Measuring and Managing the Value of Companies, the 7th Edition?
- This is the 7th edition of the book,
- We update it periodically to reflect topics happening in the moment
- Tim Koller, how this coronavirus panic and shutdown of entire states and industries impacted how companies are valued?
- Not every company and industry has declined at the same rate
- The market has been able to show who will benefit from the shut down
- There is a lot of uncertainty with regards to the recession in the market
- There is a lot of risk and a lot of opportunity right now
- How does McKinsey stay on top of the pulse of everything?
- We don’t publish anything that is not already public domain
- We do help clients anticipate and take actions strategically to deal with potential obstacles
- How do you feel the average business owner should react to this coronavirus economy?
- It really depends on their starting point or how the shut down is affecting them.
- Make sure that you have the liquidity you need lined up so you can make sure that you can survive through this time.
- We think it is essential that you think about the well-being and safety of your employees and consumers.
- Think about ways that you can encourage customers to come back to your business once everything is over.
- Tim Koller Do you have any advice to present a valuation on a business during this time?
- I think this is a time where you have to focus on what is the best case I can make for when the business comes out of this.
- I want to be specific about the plan and quickly get back on track to generate revenues and cash flows
- Be as prepared and knowledgeable about how the situation is affecting you and your business.
- Tim Koller How, you come across as a very proactive person…so how do you typically organize the first four hours of your and what time do you typically wake up?
- What are a few of your daily habits that you believe have allowed you to achieve success?
- What mentor has made the biggest impact on your career thus far?
- What advice would you give the younger version of yourself?