the September 2008 Issue in PDF Format - Trade Show Executive

Bob: Reed Exhibitions Worldwide
has experienced phenomenal growth
under your leadership. How have you
structured the company to achieve
this?
Mike: First and foremost, we are
comprised of local teams serving local
markets, which need to be quick, adaptive
and entrepreneurial. Our competition is
often not from other large organizers, but
rather from local and national companies.
We have regional presidents covering the
world, reporting to me, as well as offices
in 39 countries with 2,600 employees
running 500 shows.
Bob: What is your revenue breakdown,
vis-à-vis organic growth, acquisitions
and launches?
Mike: Revenue increased 42% over the
last four years. That breaks down to
38% organic growth, 12% launch, 15%
acquisition and 23% going the other way
-- divested business.
Bob: Do you have an in-house
“Incubator Team” for acquisitions?
Mike: Not really. We average about 8 to
10 acquisitions a year, investing between
U.S.$150 to 200 million annually. We have
a central team here that acts as a filter
for 20 or 40 different properties that we
are constantly evaluating, which includes
financial, legal, etc. In the majority of
cases, however, the management teams
around the world drive our acquisitions –
it’s truly a “flow up” system.
Bob: What about entering new markets
or territories?
Mike: A team that reports to our
commercial director does the bigger
deals here and I get involved with final
approval.
Bob: What do you look for primarily?
Mike: We’re after a strategic fit with the 47
industry sectors where we have developed
– or are developing – a global event
network. We acquire for the long term,
unlike many businesses funded by venture
capital, which look for a three to five-year
return. We look as far out as
we can, comforted by Reed
Elsevier’s financial backing.
We are constantly seeking
high quality, market-leading
events with good sustainable
growth as well as excellent
management.
Bob: How important is the
management team in an
acquisition?
Mike: One of the things that
could be a deal breaker is the
quality of the management
team and whether they will
stay on board. I would be
less interested in an event or
company if we felt that within
six months, we could lose those
people who developed that business and
have the market reputation, knowledge
and intelligence. We have been very
fortunate in most of our acquisitions to
retain the management. Also, I am always
interested in opportunities where we can
add to our own management team.
Bob: What about your launches? How
quickly can you tap into a new market
opportunity?
Mike: Ideally, we look at a minimum
launch time of 12 months out, but
preferably 18 months out. We have
launched a few shows in six months’ time
to gain a competitive edge or when our
research identified a strong immediate
need.
Bob: How many shows do you launch
each year?
Mike: Historically, we have launched
between 30 to 40 new shows a year. This
year, we’re probably going to launch
25 to 28 events that will come from
our show teams in particular markets.
Approximately 50% will be brand
extensions. We’re also looking seriously
at green themes.
Bob: Can you give an example of a
brand extension in a new region?
Top of their Game. Mike Rusbridge (right) and Alastair Gornall,
chief executive of Reed Exhibitions UK (left), are part of a team
that has built the $1.4 billion company.
Mike: Virtually our entire manufacturing
portfolio has been migrated to Asia or
the BRIC economies. We now have 40
events in China, including electronic
manufacturing, packaging and others that
began elsewhere. We’ve done this by
tracking major industry shifts and moved
our events accordingly. Timing used to
be quite flexible, but today’s window for
accepting an event is quite precise.
Bob: I have observed that this
migration has been integral to your
success over the years.
Mike: Looking at the West, meaning the
U.S. and Europe, versus the rest of the
world, Asia and the BRIC countries were
9% of our total business 10 years ago.
Today, they are over 20% and will grow to
30% within the next few years. Another
part of our success is the ability to see
things multi-dimensionally and define
what industry sectors and geographies
we want to be in and then create events
where our skills match these goals. I
think we’re good at doing this.
Bob: What are the main global
challenges to Reed Exhibitions today?
Mike: Being in 47 industry sectors and 38
countries gives you a greater resilience to
the vagaries of the economy. Short of
everything being down, as it was back in
Continued on page 22
www.TradeShowExecutive.com Trade Show Executive September 2008 21