ARC Group Holdings
ARC Group Holdings

Group Philosophy

Group Philosophy

ARC Group Holdings's original philosophies, policies, principles, and practices that were the guiding principles of Marty Basington, the founder of the Group, are outlined below and still hold true today.

Flexibility

Flexibility is essential. Without it, there can be no compromise or negotiation and therefore, no transactions. Below are some thoughts that aid in flexibility:

  • Every generalization is false, including this one.
  • There are exceptions to every rule.
  • Life is full of contradictions. The key to survival is maintaining balance.
  • The ability to think independently is key. Conventional wisdom is usually wrong.
  • Don't force your own position. Take what the defense gives.

Quality People

An organization is only as good as the talent and inspiration of its people:

  • Quality people possess both ethics and ability.
  • Viewing track record, contacting references, interviewing, and testing are key elements in determining a candidate's quality.
  • "Sharing" or "pooling" talent is the key to considerable growth.
  • Our philosophy on sharing is that it's better to share with good partners, than to have it all without them.
  • Competency and experience determine ability.
  • In evaluating a company or business, our due diligence is primarily establishing whether or not to trust the management.
  • Great companies weren't always great, so why are they now? Simply put…people made it happen.

Caution and Conservatism

We optimize chances for success by minimizing risk. Below are thoughts on exercising caution:

  • "More important than return on capital is the return of capital." – J.P. Morgan
  • Lenders are a co-participant in our transactions and are an important franchise of our business.
  • Buffet: "My favorite holding period is forever."
  • The only thing you know for sure when you write a check is: that is how much you can lose.
  • The short-term may be known, but great results come over the long term.

Running Scared

There's a value to pessimism and uncertainty – It's our best defense:

  • Murphy was an optimist.
  • The phrase, "don't worry" is the kiss of death.
  • No deal is closed until the checks clear the bank.
  • If we don't kill the competition, they will kill us.
  • Insecurity is a valuable trait.
  • Always envision the downside before entertaining the upside. Ask, "What can go wrong?" and "What if…"
  • Conducting parallel, as opposed to successive efforts, is the best insurance.
  • Murphy was an optimist.
  • The phrase, "don't worry" is the kiss of death.
  • No deal is closed until the checks clear the bank.
  • If we don't kill the competition, they will kill us.
  • Insecurity is a valuable trait.
  • Always envision the downside before entertaining the upside. Ask, "What can go wrong?" and "What if…"
  • Conducting parallel, as opposed to successive efforts, is the best insurance.

Service Mentality

Our industry is often ego-driven. We have a service mentality:

  • We are here to serve sellers, each other, and the companies – they are not here to serve us.
  • We must be considerate in how we treat everyone. And, everyone is a reference sooner or later.
  • Subordinate yourself to make the other party more comfortable.
  • Ego doesn't make money – it costs money.
  • One of the world's greatest tools is to listen, and never interrupt.

Professionalism

We are known by the level of professionalism we convey to those with whom we come in contact. Below are some thoughts on professionalism:

  • Do things well, or don't do them at all.
  • Reliability is key. If we simply do what we say we will, which is almost unheard of today, we have great competitive advantage.
  • Follow the law of successive approximation – set standards, and constantly exceed them. Raise the bar after every success.
  • Concentrate on the task at hand, while keeping the goal in mind.
  • We should view each business situation with the "helicopter quality" – an overview from above with details on the ground.

Analyses

Albert Einstein had the following sign in his office: "Not everything that counts can be counted and not everything that can be counted counts."

  • Always utilize a dual approach of considering non-analytic and analytic factors.
  • Non-analytic includes the character of people with whom we deal, and the awareness of the global social, political, and economic trends shaping the world in which we live.

Positive Attitudes

Though we are cautious we should approach each situation with a positive attitude:

  • A deal should be good for all parties involved.
  • Greed and envy are a great obstacle to progress.
  • We stay away from politics.
  • Find out how to make things work, not why they won't.
  • We want prosperity for our partners and colleagues.
  • We put ourselves in each other's shoes.
  • We are not litigious.

Time

In our business, as in many, time means everything. Below are some thoughts that stress the value we place on time:

  • "Time is the coin of human existence." – Carl Sandburg
  • Writing priorities gets you halfway there.
  • "He who controls himself controls the world." – Anonymous
  • Planning is vital, whether for the long-term or for individual days.
  • Staying physically and mentally fit provides the extra edge.