I imagine that all of you are paying taxes today. You are rapidly becoming a minority and not because you chose to be. You are among the productive and not one of the moochers. I’m sure you know that we are rapidly reaching the point where more are receiving from the government than those paying to. It’s a scary place to be in a democratic country. I suppose we should be thankful we are still a republic.
A lot of you will be expressing this dissatisfaction at a Tea Party rally today. When you go, carry a sign expressing your view.
Here is a little something to get you into the mood.
I have written often about the need to constantly evaluate results and make appropriate adjustments.
While I am a very big proponent of planning, both strategic and tactical, nothing gets done until you actually get in the game. And, when you are in the act of acting, things don’t often go as planned. The real performer, the one who really get things done, is the one who can make the most out of the current situation.
Merging with or acquiring another company has long been a favored strategy to business growth.
Why grow?
Well here are a couple of reasons.
Larger entities enjoy many advantages in the market. They are often better capitalized since the avenues to finding new equity or debt is easier for a larger company. They are better positioned to make better “deals” with vendors and partners. They are better able to weather rough times. They are more attractive to large customers since they can supply needs with ease. They are well positioned to withstand competitive pressure. They can afford better advisors and consultants. They are more attractive to new employees. They can offer better benefits.
Larger entities are simply more valuable. Their very size makes for excellent economies of scale. This typically results in higher profits and better cash flow. This combination of high revenue and better profits will command a higher multiple in the market.
I wrote about perspective the other day and it reminded me of the universal law of relativity. John Assaref covered it recently in his blog. He made the observation one’s wealth depends upon its relativity to Bill Gates or a citizen of the third world. I enjoyed reading it and how well it dovetailed into the point I made about perspective.
It also reminded me of a conversation I had with him earlier this year about the Five Musts for Success.
