Merger & Acquisition Update

As you will recall from my previous post on our future acquisition strategy, I mentioned that an update on our sleep bank account, nappy inventory turn ratio and outsourced service provider relationships was to follow in the near future.

That time is now.

The sleep bank account has seen consistent improvement in real terms since the deal close date (20Nov2005). Although average full-term REM time length is shorter, parental gross rack time is only 1.5 hours below norm (as measured over a 24 hour window). This may appear poor, but the time spent developing the acquisition well out weighs the cost of sleep deprivation.

The nappy inventory turn ratio is still elevated at approximately 9.5 per day. Again, this is outweighed by the fact that the visiting NHS Midwife take a strange pride in the korma sauce production (a legitimate descriptive term used by said NHS Midwives) the acquisition has generated.

The outsourced service provision (now complete) was a resounding success. Shirley the Dula- a true "knowledge worker" of the 21st century- held the interim Chief Operations Officer role of Park & Park plc with aplomb, as well as imparted a high degree of comfort and wisdom to the managing director in charge of acquisitions.

Following on that, the internal US consulting arm of Park & Park sent in the Senior Manager in charge of Maternal Relations for a two-week expat secondment. This also was a strong success and deeply appreciated.

At this point, the business is on course to meet it's fiscal year end projections (Jan 05).

An outline of our corporate structure and ownership will follow in the near future.

Any change in dividend status will be announced in due time.

Comments

Anonymous said…
Memo from: Park & Park Global, Political Affairs Division, Oswego, IL
To: Park & Park Global, Corporate Acquisitions/Expansions Division, London Office, UK

Re: Recent successful acquisition

This office appreciates the timely update regarding your recent acquisition. However, we could not fail to note the lack of any quantitative information on the long-term return on investment (ROI) potential of this and any future planned acquisitions.

As the Political Affairs Division (PAD)of Park & Park Global largely relies upon the branch offices, both local and overseas, for continuing expansions and as a source of external funding, the COO of PAD would like to be fully informed as to the London office's expectations for the recent acquisition to generate a positive cash flow.

Current research indicates the troubling possibility of a negative cash-flow in the near and mid-term (1 to 20 years), with an uncertain event horizon for transitition to positive cash-flow status in the long-term.

Suggestions to strengthen both the short and long-term ROI will be forthcoming from this office.

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