Insights
BUSINESSVANCOUVER February 7–13, 2017
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Impostor syndrome is genuine threat to women’s workplace advancement
Small-business builder Cybele Negris
S
o here’s my dirty little secret: I’m an impostor. There, I said it. It only took me 20 years and lots of sleepless nights worrying about what other people might think. But now that it’s out in the open, the truth, I believe, will set me free. What I’m talking about – for those business associates and friends who might be a bit nervous at this point – is the much-discussed “impostor syndrome.” That’s the phenomenon whereby highachieving individuals think they don’t belong – that they’re frauds and it’s only a matter of time before everybody figures them out. It’s an idea that’s been around since the 1970s, when U.S. psychology professor Pauline Rose Clance started studying the issue among her students. Back then, it was largely seen
as a “women’s” issue. But since the study came out nearly 40 years ago, Clance and others have realized it’s something that men feel in equal measure – but don’t verbalize. I can relate. As the CEO and majority owner of a successful tech company, and someone who has served on numerous boards, I work mostly with men – men of varying levels of accomplishment and talent. But what unites them all, at least superficially, is an outward confidence that they belong. On paper, I should belong too. For 17 years I’ve led Webnames. ca, a profitable and growing company with no debt. We’ve built relationships with Fortune 500 clients around the world and have a widely admired corporate culture. I’ve won several local and national awards for entrepreneurship and leadership. And yet every time I walk into a room of my peers, my heart skips a beat and the nagging self-doubts resurface. Why am I here? Did somebody make a mistake in inviting me? While the impostor syndrome affects men and women in equal measure, what doesn’t have such parity is confidence. A recent Harvard Business Review article makes it clear: there is an undeniable “confidence gap”
between the sexes, and it’s having a profound effect on who chooses what professions – and who ultimately climbs to the top. The problem is particularly acute in science- and technology-driven organizations like mine: of my employees, fewer than 20% are women, and only one works on the technical side of our business. So what can be done about it – this confidence gap, this lack of female representation in the field, this feeling of “not belonging” – for those who do make it to the top? I think the answer is threefold. First, we need to find ways of encouraging girls earlier in life to believe that math and science are viable pursuits. At Science World, data collected by University of British Columbia Prof. Andrew Baron indicates 26% more boys than girls under the age of two are being brought to the facility’s Living Lab. That’s a decision being made by parents that has long-term implications. The school system also needs to create equal opportunities for excellence. In B.C., the provincial government has taken an important step by introducing mandatory coding courses into the K-12 curriculum – but teachers play a
critical role too in ensuring girls get equal time, as boys are often quicker to put up their hands. Second, companies need to go out of their way to attract and retain female employees. That’s something I’m hyper-aware of at Webnames.ca, where just five out of every 100 technical job applications we get are from women. While an increasing number of employers offer flexible work hours and familyfriendly policies to encourage women to stay and grow within a company, it’s not enough. We need to put women in leadership roles – and mentor them toward that goal – to ensure better representation within our ranks and build clear paths for promotions and raises. Third, the female leaders of the business world need to speak out more – to be both seen and heard. That’s what I’m doing. As a younger woman, I had a huge fear of public speaking. But I was determined to confront it, taking courses at the Dale Carnegie leadership centre to try to lick the problem. It still took another decade of pushing myself to accept those stress-inducing speaking offers. Now, I regularly speak to audiences in the hundreds – and with each passing speech, each passing year, it gets a little
There is an undeniable “confidence gap” between the sexes, and it’s having a profound effect on who chooses what professions
easier. I also make an effort to take on a young woman in technology as a mentee each year so she can learn from my mistakes, and we work on planning out career/life goals. When there are more of us “girls” sitting around the decision-making table, giving keynote addresses or passing on our knowledge, it’s only a matter of time before the confidence gap shrinks and that sense of not belonging starts to abate. But until then, we need to face our fears head-on – and embrace our inner impostor. • Cybele Negris (cybele@webnames. ca) is president, CEO and co-founder of Webnames.ca, Canada’s original .CA registrar.
Six steps to completing a management buyout of your company
Money Matters Robert Napoli
O
ne of the best investments you can make is buying the business you work for. Owning your own business gives you control over your future; the business is yours to expand and you reap the rewards from your hard work. Over the next five to 10 years managers and management teams will see their bargaining power increase as retiring owners seek to exit. There are simply more baby boomers than generation Xers. A management buyout (MBO) can be a viable succession plan for businesses of all sizes. In an MBO, the management team buys the company it works for using the security and cash flows of the company itself to obtain the capital
required. Management invests its equity, akin to a down payment on a home, and borrows and/or seeks equity financing from institutional lenders and investors for the rest. An MBO presents several advantages for the buyer: it minimizes investment risk, as the buyer has inside information on the business already, and the rates of return on equity can be far higher than those on other assets. There are additional benefits from the use of leverage, and tax advantages from owning a business. Potential buyers should have a plan to expand the business, perhaps double it in size, to make it worthwhile. The most important advantage of an MBO is it puts the buyer in the driver’s seat. Here are six steps needed to successfully complete an MBO.
outside investors and increase your bargaining power with the vendor when it comes time to sell the company.
Build your management experience and credibility Work with the owner to transition the management of the various key functions to you and/or your team. By proving you can run the company you will validate your worth to
Approach with an offer Businesses change hands only when the owner is ready to let go. You can get a sense of the owner’s fears, motivations and concerns through open dialogue – it may be a good idea to initiate discussions with the help of
Position yourself to become an owner Building rapport and trust with the owner positions you as a front-runner to buy the business. The owner likely cares a great deal about the employees and the business’ legacy, so demonstrate that under your management the business can run independently, allowing the owner to gradually step back from the company. While you are managing the business, perform your due diligence and understand all the risks ownership will entail. Get your significant other on board, as investing considerable time and money is often a family decision.
a trusted outside adviser. The owner will need to feel comfortable with the deal and with ceding control, and will need to be confident that his or her next move will be fulfilling. Every situation is unique, but be prepared for challenges around seller motivation.
conventional lending sources, subordinated debt, private investors, the vendor and your own equity. Our firm offers a management buyout package that can include loans and/or equity finance to enable management teams to buy businesses up to $20 million in value.
Negotiate from a position of strength The owner wants to obtain the best possible price and receive fair value for the business. The MBO will need to compete effectively with other options, such as sale to private equity or a strategic buyer. Therefore it helps if the management team is a key component of the succession plan. If your absence from the business would create a problem for a future buyer, your negotiating strength improves. This is not to say you can hold all the cards or force the owner into a decision; however, it may help in putting you into a preferred position to be chosen as the successor.
Close the deal An important transaction like this requires expert advice. We recommend having a tax adviser, a corporate finance adviser and a corporate lawyer to help negotiate and structure the deal. This team will prove essential to keeping the deal on track, documenting it properly and avoiding pitfalls. A management buyout is not for the faint of heart. But if you have dreamed of running your own show, and reaping the rewards of ownership, it could be your best chance at achieving your ambitions. •
Finance the purchase Financing for the MBO can come from a combination of
Robert Napoli (rnapoli@ firstwestcapital.ca) is vice-president of First West Capital and president of ACG British Columbia, an association dedicated to driving the growth of middle-market businesses in B.C.