Dr. John Psarouthakis, Executive Editor, www.BusinessThinker.com. Founder and former CEO, JP Industries, Inc, a Fortune 500 industrial corporation. Adjunct professor, Strategy and Acquisitions, Ross School of Management, University of Michigan
This is the 5th of short articles of my thoughts about Acquisition of a business.
Building a good team is important right at the outset of your search. You will need an attorney almost immediately, to review any confidentiality agreements or letters of interest that must be signed. However, you should also begin to think about the other team members you will need early on in the search process. A good accountant is essential to the adequate review of the seller’s books, and possibly in addition, an independent auditor. Other consultants you need may depend upon your own skill levels and the nature of the business. If you will need outside funding, a financial consultant may be needed. Depending upon your own background in the functional business areas of sales and marketing, operations, engineering and manufacturing, you may or may not require outside help. An environmental consultant is increasingly needed whenever real property is involved in the transaction, to assure that no hidden problems exist.
Michael Ammann, President at San Joaquin Partnership. Public-private partnership organizational leader with start-up, turnaround & organizational renewal experience in multi-jurisdictional economic development marketing organizations and a metro chamber of commerce.
The San Joaquin Partnership recently announced another successful project moving into San Joaquin USA – Crumb Rubber Manufacturers (CRM), a nationally known company that specializes in the production and supply of crumb rubber for various asphalt rubber technologies. CRM is moving into the former Hormel food processing facility in Stockton and will initially employ 50 people. Finding a new user for an old facility is the toughest job in economic development. Hooray! Let’s give a cheer to all those involved in bringing CRM to Stockton for a job well done!
Now let’s step back and realize the long-term benefits of CRM’s San Joaquin location for years to come as they ramp up business, pay annual taxes while growing employment and payrolls up to 100 employees.
From MIT’s Technology Review
Tech companies are trying to hasten the spread of the digital revolution, but a new study suggests it could do more harm than good.
As the New York Times writes, this contradicts some of the assumptions behind Silicon Valley efforts to spread Internet access to poorer nations, such as Google’s Internet-by-balloon effort, Project Loon, and Facebook’s subsidized Internet service,Internet.org. In India, Facebook’s effort, which provides only limited access to the Internet beyond the social network, has indeed already come in for some severe criticism.
It also seems like an important counter to an overarching philosophy of techno-optimism that sometimes seems to pervade the tech industry. Richer countries need to bear this in mind as well. The spread of more advanced digital technologies like artificial intelligence and robotics could start giving some companies huge advantages, while eradicating or fundamentally changing many jobs.