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Navigating deal-making risks in the direct selling channel amid evolving regulatory standards
By: Troy Keller, Michael Lindsay and Anthony Badaracco
Mergers and acquisitions is an important growth strategy in many industries, and the direct selling space is no different. Companies in this sector tend to embrace a variety of deal types. The higher-profile deals may involve a major player in the industry acquiring a peer company.
These types of transactions can be transformative, but they also tend to be big bets for the acquirer. Another important approach involves moving upstream by acquiring manufacturing capabilities and even agricultural production.
Top executives share their perspective on timing, preparation and clarity of purpose
By: Jenna Lang Warford
“We wanted to… make it more hip, more fun, but we did not want to disconnect with the overarching brand.” — Lela Tucker, Executive Vice President Marketing, Bella Grace Global
The trick to successful rebranding, according to Harvard Business Review’s November 2023 podcast, is to keep as much “cumulative advantage” as possible.
“The modern fantasy about wow, business is changing so quickly. You’ve got to keep morphing and changing, updating your brand, getting a new visual identity. Don’t do that. Why? …because you interrupt habit,” says Roger Martin, professor emeritus and former dean of the Rotman School of Management at the University of Toronto (Canada).
DSA opposes ‘harmful’ final rule, warns of uncertainty ahead for direct sellers
By: SSN Staff
On Jan. 10, 2024, the U.S. Department of Labor (DOL) published a long-awaited Final Rule for classifying independent contractors under the Fair Labor Standards Act (FLSA). Set to go into effect on March 11, 2024, the Final Rule—Employee or Independent Contractor Classification Under the Fair Labor Standards Act—will rescind the 2021 Independent Contractor Rule and, according to the DOL, will bring the DOL’s guidance more in line with current case law, as well as long-standing judicial precedent.
Emphasizing that the Final Rule was enacted to safeguard employees who may be misclassified as independent contractors, the DOL emphasizes that it does not wish to disrupt the industries utilizing independent contractors.
Core Factors vs. Totality of Circumstances Test