Forget Buy Low and Sell High
You just thought the secret of smart money was to buy low and sell high. Consider what this Wall Street Journal article reveals about the smart money crowd. “Heavy is the Head That Wears the Crown”
Pay 148 and get back 65! Change this to billions and you are the Bank of America paying $148 billion for acquisitions which do so well that the entire company is valued at $65 billion.
http://online.wsj.com/article/SB10001424052970203658804576639510673007804.html
As if competing in this turbulent roller-coaster economy was not bad enough, now you learn that even the smart money major company with access to superb talent, an open checkbook and a renowned brand can do that badly. After a series of good decisions and acquisitions:
- How much risk did Bank of America assume when it acquired Countrywide Financial Corporation (Countrywide)?
- At what point did they get too cocky and forget the basics?
- How much did external pressure from the politicians to close Countrywide impact their decision making?
What lessons can you learn from this posting or article?
Use the rule of three to quickly note three things you should check on after reading this.
Would you like my free M&A checklist to improve your odds? http://fiscaldoctor.com/contact.html
Categories: Governance, Budgeting, Board of Directors, Leadership, consultant, coach, Intellectual Property, economy, Business Management, investment decisions, efficiency, decision maker, business growth, offsite planning, budgets, operational assessment, innovation, corporate governance, Keynote speech., credit ratings, budget, enterprise risk management, business book, due diligence, Manufacturing, Business, facilitating, facilitator, business strategy, ORM, customer, cash flow, creativity, ERM, enterprise risk managment, operational inefficiencies, entrepreneurship, Finance, operations risk management, business consulting services, Accountability, cash, equity, Financing, Management, business plan, Liquidity, business model, leader, ERM expert and speaker, business consulting, business performance management, corporate retreat, liquidity risk, business leader, cash projections, keynote speaker, Marketing, assessment, corporate, change management, enterprise risk management expert, keynote, BPM, culture, Enterprise Risk Management, contingency planning, corporate presentations, communication breakdowns, enterprise risk planning, family business, economic choices, business information., High Growth, disgruntled employees, CEO, Business Growth
Tags: ERM due diligence contingency planning risk business growth corporate governance Enterprise Risk Management profitability leadership business plan budget change management risk assessment operational assessment assessment change business model BPM fiscal strategic plan best practice enterprise risk management operations risk management cash flow customer profitability cash corporate finance cash projections customer balance sheet financial statements liquidity risk ORM income statement fiscal management goals vision strategic planning enterprise risk planning strategy economy profit enterprise risk management expert ERM expert and speaker risk strategy facilitator budgets coach risks consultant family business sales ROI corporate presentations profits enterprise management communication breakdowns risk management taxes target
Comments