S U M M E R 2018

QUARTERLY ADVISOR REVIEW

I N S I DE T H E I S S U E :
• From Our Team
• Top 5 Advisor FAQs of the Quarter
• Guidepoint on Social Media
• Advisor Blog Q & A
• Advisor Spotlight
• In Case You Missed It
FROM OUR TEAM

Catch up with Guidepoint and learn

from other experts in our network.

Welcome to the latest issue of the Quarterly Advisor Review! We hope that you have been
enjoying this series, and we appreciate the feedback that so many of you have provided.
Thank you for being a valuable part of Guidepoint’s network!

In this edition we discuss how Guidepoint uses social media channels and how our Advisors
are featured on each platform. We also answer your top FAQs and, as always, we spotlight
one of our outstanding Advisors so that you can catch up with Guidepoint and learn from
other experts in our network.

We hope that this issue helps you learn more about Guidepoint! Please feel free to reach out
to us any time with questions or feedback.

­– The Advisor Relations Team

advisor.relations@guidepoint.com
1.844.414.0000

2 | QUARTERLY ADVISOR REVIEW

TOP 5 ADVISOR FAQS OF THE QUARTER

1. Who is eligible to participate in Guidepoint consultations?

Any Guidepoint Advisor is eligible to participate in Guidepoint consultations! Whether you hold traditional
full-time or part-time employment, work primarily as an independent consultant, or are retired or between
jobs, you are always welcome to accept project requests and complete consultations, provided that
your participation is not prohibited by your employer or an agreement you have with anyone else. If your
employment situation changes, please be sure to update your profile at the Guidepoint Advisor Portal to
reflect that change.

2. May I publically disclose that I am an Advisor in Guidepoint’s network?

Yes, you may! Please feel free to note that you are an Advisor in Guidepoint’s expert network on your resume,
on your LinkedIn profile, and anywhere else that you would like. Of course, please keep in mind that all
information regarding Guidepoint projects and clients is confidential as per Guidepoint’s Terms & Conditions,
so you may never disclose the identity of any clients or the subject matter of any consultation.

3. How can I maximize the number of consulting opportunities that I receive?

Keeping your Advisor profile up to date allows Guidepoint to identify which projects you are eligible for.
Please be sure to provide detailed descriptions of your current and recent roles, including your specific
responsibilities and accomplishments, and to note any areas of specialized experience and knowledge. You can
view and edit your profile at any time via the Guidepoint Advisor Portal.

When you receive a project request, we recommend accepting as soon as possible to maximize your chance of
being selected by the client. We find that Advisors who provide detailed 2-3 sentence screening responses are
most likely to be selected. If you receive a project request that is not a good fit, please select “Decline” to help
Guidepoint better understand the topics on which you can and cannot consult.

4. How much will I be compensated for a completed consultation?

Guidepoint issues your payment using the hourly rate noted in your profile, which you can view at any time on
the Guidepoint Advisor Portal. Unless otherwise noted, payments are prorated by the minute based on the
duration of your consultation (the total time that you and the client spend speaking with each other). Please
note that all rates are in US Dollars.

5. How can I contribute to the Guidepoint Advisor Blog?

Contributing to the Guidepoint Advisor Blog is a great opportunity to build your personal brand and receive
recognition as an expert in your field. If you are interested in contributing a post to the Guidepoint Advisor
Blog, please email advisor.relations@guidepoint.com and note a topic that you would be interested in writing
about if selected. Possible topics include recent industry and market trends, noteworthy disruptions, and
long-term outlook. Contributors hold senior roles in their industries/fields, and they have highly developed
expertise on the topics that they write about. Please note that contributions are not compensated. A
Guidepoint representative will contact you if we feel that you could be a good fit for the Advisor Blog.

SUMMER 2018 | 3
GUIDEPOINT ON SOCIAL MEDIA

Guidepoint actively posts on various social media platforms to promote the benefits of our
services, office culture, and you, our Advisors. If you are connected to us, you may have
seen some content that we regularly feature.

Each time we publish a new Advisor Blog

post, it is first promoted on LinkedIn. This
is where we present thought leadership
pieces from Advisors in the various
industries that we cover. This is also where
you can find Guidepoint news in the form
of Press Releases and office news.

Once an Advisor Blog post is published,

it will be featured on Twitter in the
following weeks as a #TBT
(“Throwback Thursday”) post.
This is a refresher to
our followers for
topics that are still
trending.

If you’re interested in checking out what’s

going on in the Guidepoint offices, you
can see it on our Instagram and Facebook
accounts. You can find each of our social
media profile links on the back page
of this newsletter. We welcome you to
connect with us!

4 | QUARTERLY ADVISOR REVIEW

ADVISOR BLOG Q & A

I​ n this section, Advisors from our Advisor Blog series answer questions related to current
trends in their industries of expertise.

Q: How do brands in the coffee and breakfast industry stay ahead of their
competition?

Key players in the coffee and breakfast foods industry are able

A:
to stay ahead if they remain innovative in the face of increased
competition.
Employers in the quick service restaurant industry will have
no choice but to look more and more to ordering kiosks and
VIK PATEL
beverage machines that make the beverage in order to mitigate
the need to employ as many staff as we currently demand.

Article: Is Competition What’s Heating up Your Coffee?

Q: With e-commerce having 92% growth rate in dog food alone, should brick-
and-mortar pet stores be worried?

A:
While e-commerce is expected to stay strong, it will likely not
affect the regional pet chain stores. These stores will continue
to enjoy growth in double-digits due to exceptional service and
a focus on better merchandising.
PHILLIP COOPER

Article: When It Comes to E-commerce, You Can Bet on Pets

Q: How can we change today’s management systems to achieve a higher level of

organizational efficiency?

The general belief is that without a superior instance controlling

A:
a company, or any structure, the producing entity will not deliver
consistent and timely results. However, we are living in a world
where “group source” is the new reality, with shared responsibility
and transparency, so managing along the principles of the self-
controlling entity becomes more realistic and easier to implement. KAI WULFF

Article: How to Manage Organizations with Varied Long-Term Motivations

SUMMER 2018 | 5
ADVISOR SPOTLIGHT

This quarter we are excited to highlight Alon Ben Joseph, co-

owner and co-CEO at Ace Enterprises Group B.V., a family
business operating as a wholesaler of diamonds, fine jewelry
and watches. Alon is an expert in the luxury jewelry industry and
has connected with Guidepoint clients to share his experience
in luxury trends and retail. Learn more about Alon, and read his
piece from our Advisor Blog below.

Breitling’s New Ownership:
What to Watch
By Alon Ben Joseph
HOW DID CVC BEAT THE LUXURY GROUPS?
In October 2016, rumors started that one of the few
independent, family-owned and run watchmaking
companies was for sale. Six months later, the British,
privately-held CVC Capital Partners managed to
buy a controlling stake of 80% in the Swiss luxury
watchmaker Breitling for an amount of approximately
800 million Swiss francs
($879 million).
How did CVC beat LVMH, That might be the biggest
Swatch Group, Richemont, reason to appraise Breitling as
and Kering? It’s likely
a “one-billion company”
CVC outbid these market
leaders in a bidding war,
as they did not have a foot
in the door with the luxury industry. That might be
the biggest reason to appraise Breitling as a “one-
billion company”, while the last reported turnover was
recorded in 2016 for “only” 420 million Swiss francs
($424 million). Assuming their EBIT is 10%, that means
they paid a multiplier of at least 23 times.
Although all four of the above luxury leaders had the
cash to buy, there are likely reasons they did not win
the tender:
• LVMH has two “sport” brands in their portfolio -
TAG Heuer and Hublot. Together, with Zenith they
need a lot of attention and investments to grow.
• Swatch Group has Omega, and one might argue
that they are aiming at the same end-consumer.
• Richemont would have been my bet on who
would buy Breitling. They lack a mainstream
sports brand, and most of their brands are in
niche markets. However, they don’t even come
close to Breitling in design or price point. They
likely needed their reserves to buy the remaining
shares of YOOX Net-a-porter Group.
• Kering would have been a great candidate as
they also lack a real sporty luxury watch brand
in their group, but they have so many sectors to
consider, and their number
one brand, Gucci, needs too
much “attention” at this point
in time.
HOW IS CVC GOING TO
MAKE MONEY?
We assume CVC bid a
multiplier of 23 times their
EBIT, and private equity companies hold onto a
company for an average of seven years and have an
expectancy of 20% annual return on investment. This
means that by 2024, they should have a turnover of at
least $2.5 billion and find a new buyer who is willing
to pay at least one time the turnover. To reach this
growth, the new management team should show an
average growth rate of at least 30% annually. This
is very tough, but not an impossible mission. So,
what key ingredients does CVC have to make a killer
recipe?

6 | QUARTERLY ADVISOR REVIEW

ADVISOR SPOTLIGHT (CONT.)
• They persuaded Georges Kern (formerly
TAG Heuer, IWC and Head Watchmaking
Brand Richemont) to come on board as both
shareholder and CEO.
• They are going to focus mainly on a consumer
market in China where double-digit growth
rates are possible, and Kern has a succesful track
record, while heading the Swiss premium watch
brand IWC.
• They are buying out all of their external
distributors, and therefore, immediately creating
more profit margin by verticalizing
• Breitling has zero experience with e-commerce,
but this will be activated by Kern within 18
months after joining the company.
• Revamping the complete company; logo, watch
designs, marketing campaigns and new strategy
on every level
Alon Ben Joseph is Co-Owner & Co-CEO at Ace Enterprises
Group B.V. (01/1998 - present), a privately held family
business operating as a wholesaler of diamonds, fine
jewelry, and watches. In this position, he is responsible for
Ace Enterprises Group, the parent company of Ace Luxury
Group, ChronoTime, Infinitas Diamonds, Parrera Watches
and Ace Online. This latter company was founded in 2008
STATUS OF THE INDUSTRY TODAY
In February 2018, I was invited by Georges Kern to
come to Zurich, Switzerland with leading journalists
and other key account Breitling retailers. This was
the European stopover of the Breitling Road Show,
where the “new” Breitling 3.0 was presented to
us and the world. It is impressive what Kern and
his new management team pumped out within 12
months of joining the 134-year-old company. Further,
Breitling was the “buzz” brand at both SIHH 2018
and BaselWorld 2018 this past winter (the two major
events every year that create the sentiment for the
following year).
For Breitling, it was an exceptional year at
BaselWorld 2018, as they exceeded their commercial
expectations and broke all sales records. Time
will tell if in the coming seven years they can
keep up these steep growth rates. According to
their self-proclaimed hashtag on social media,
#LegendaryFuture, they seem very confident.
to handle all the eCommerce and Internet activities for
the Ace Luxury Group. His tasks include the management
of retail stores, eCommerce, Import, Export, and
manufacturing activities, design of jewelry, wholesale of
exclusive Swiss watches and real estate management. He
is a Board Member of NJC (Dutch Jewelers Club) and NJU
(Dutch Jewelers Federation).
SUMMER 2018 | 7
IN CASE YOU MISSED IT

In the previous Advisor Spotlight, Guidepoint Advisor Chris Slezakowski discussed

how “smart” product advancement has taken over everything from phones and cars to
entertainment systems, but this is not yet the case for new homes. The infographic below
shows some of the benefits of utilizing technology in the construction industry

TECHNOLOGY BUILDS IN
THE CONSTRUCTION INDUSTRY

DESIGN
Using digital tools to design buildings and bridges allows
engineers to:

• Produce efficient structures

• Model structures correctly
• Assemble structures before coming to build

360

SMART HOMES
As technology becomes more sophisticated
elsewhere, the following sophistications are NOT
standard in new homes:

• Central locking
• Video monitoring
• Wi-Fi heating controls

SUPPLY CHAIN
Another growing trend is tracking materials:

• Unlike many other products, construction materials are rarely

tracked to the point of use

• Difficult for manufacturers to understand the dynamics of the

supply chain

• Installers don’t always have the link to the manufacturer

Did you miss our last Advisor Newsletter? You can take a look back on previous FAQs,
trending topics, information on Guidepoint, as well as the Advisor Spotlight.

8 | QUARTERLY ADVISOR REVIEW

Learn More
For more information please contact:
e: advisor.relations@guidepoint.com
p: +1.844.414.0000

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