Sheldon Baker05.07.10
Chuck Slotkin, Founder/Managing Director, New Jersey-based Nature’s Equity
Chuck Slotkin is the founder and managing director of New Jersey-based Nature’s Equity (www.naturesequity.com), an investment banking firm with a passion for green companies. Mr. Slotkin developed his middle-market investment banking experience at such New York-based firms as Herzfeld & Stern and Gruntal & Co. Personally committed to natural products, supplements, organic food, personal care and alternative health modalities, he has combined his professional experience in mergers and acquisitions, equity financing and valuations to be part of more than 225 sustainable and green financial transactions.
I chatted with Chuck to get enlightened about some of his green businesses and personal Insights...
Health E-Insights: What significant challenges face leaders in the natural products industry today?
Mr. Slotkin: Marshalling the management and financial resources necessary to take advantage of the huge opportunities resulting from the mainstreaming of most segments of the natural products industry. When I first got involved in the industry, a branded product company doing $2 million in revenue was considered successful and rightfully so. Beyond a talented entrepreneur or husband-wife team, a deep management team was not essential. Today, branded products companies need to attain revenues of $5 to $10 million, depending upon the category, in order to demonstrate traction in the market. A well rounded management team is necessary to compete successfully. Fortunately, the pool of experienced management is ample to meet the needs of emerging growth companies.
Health E-Insights: What helps lead you to making a successful transaction?
Mr. Slotkin: The ability to balance self confidence and practicality. While entrepreneurs need to be optimists regarding the capabilities of themselves and their companies, most founders and CEOs are not experienced in mergers and acquisitions or large capital raises. In such a situation, educating oneself about how the process works and listening to others who have successfully been through the transaction process is extremely important.
Health E-Insights: What mistakes are made during the transaction process?
Mr. Slotkin: Not closing a transaction that an objective observer would consider a very good or great deal. I have seen entrepreneurs walk away from almost-completed transactions at the last minute, even if the transaction meets or exceeds their financial goals. Sometimes the owner is not yet ready to separate himself or herself from their creation. Other times, the motivating factor is hubris—“if I wait one more year, my company will significantly increase in value.” Sometimes this indeed is the case. Many times the reverse is true—the company falls in value because of downturns in the broad economy or financial markets; the company’s market sector loses favor with investors and acquirers; and/or the performance of the company measured by rate of sales growth and profitability declines. Whatever the causes, the entrepreneur may have to wait a few years for an economic recovery and/or turnaround in the performance of his or her company.
Health E-Insights: What's your most vivid or disturbing recurring dream?
Mr. Slotkin: I have not had any vivid or disturbing dreams lately. Stay tuned.
Health E-Insights: What was your favorite game as a child, and why?
Mr. Slotkin: Playing hide-and-seek with a lot of kids in Bayonne, NJ, as darkness fell. It was very exciting as the ability to recognize other people as it started to get dark was as important as the ability to run fast. Most of us consumed a lot of carrots during the summer hoping that would aid our night vision.
For more information and interview consideration, contact Sheldon Baker at sbaker@bakerdillon.com or visit his website at www.bakerdillon.com.
For more information and interview consideration, contact Sheldon Baker at sbaker@bakerdillon.com or visit his website at www.bakerdillon.com.