12/17/2006

Private Equity acquisition, makes a difference?

Management has been singing Christmas Carols ever since our acquisition. Here are a few lines from them :)

1) Private Equity is good because it will allow us to do what we want to instead of what the market wants...

Well, I think otherwise..don't we all do what the market wants. If we do what "we" want to do, there will be no "we". I agree that there might be a few innovative ideas that we would like to pursue, but me knows that we are already pursuing such ideas in the company.

2) Valuation of over 30% is great!

Me thinks that this is the highest valuation you are setting onto yourself. Don't you have the confidence that you can grow much bigger and larger? Look at Facebook (totally different market)..they really like themselves and are almost shunning all attention from acquirers and maybe going towards an IPO which they think will earn them $8 billion dollars. Companies like Facebook, YouTube can be built in no time, but companies like Sabre are built with decades of perseverance. Acquisitions are important for small companies like YouTube, Facebook..Why Sabre?

3) Nothing will change after the acquisition.

Nothing can be funnier than that. When you are giving over the cudgels to somebody else, you think they will let you operate the way you want to? They would think very different from the bunch that thinks that a 30% hike in valuation is great! I am just waiting for a change in tune, direction and control.

4) Sabre will stay together as a unit.

Very difficult one. Me thinks that the monster Sabre is, it would be very difficult for someone to deep dive into it. Maybe, breaking it up into more manageable pieces would do the trick for them?

5) Offshoring, no changes?

Umm..depends on the new acquirers experience with offshore which I have no insight into. If they have had a good experience with the same, we have to get ready for some tumbling times and if their experiences have been bad, there will almost be no changes in direction.

Waiting for the end of first quarter 2007 for the final agreement and the changes that will follow :). Live life king size till then!

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