tag:blogger.com,1999:blog-6353086521552173699.post2861148778176577768..comments2012-08-31T09:42:57.642-07:00Comments on TechSphinx: Technology vendor risk in this economyTechSphinxhttp://www.blogger.com/profile/13113476014205049527noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-6353086521552173699.post-72835038191742003852009-02-06T15:22:00.000-08:002009-02-06T15:22:00.000-08:00The problem with public companies is that all of t...The problem with public companies is that all of them will try and convince you that they are more stable and reliable than any private company, or any public company smaller than them. If the banking crisis should tell us anything it is that corporate accountants can be just as oily as salespeople. At least with the salesguy, you know you're getting greased.<BR/><BR/>In this market and this economy, I don't believe anyone can say with any certainty what might happen next. Strong mid-sized companies may become attractive acquisition targets for lumbering giants with cash on hand. Previously-stable public companies may make deep cuts into various budgets in order to meet the earnings expectations of a Street environment that punishes small digressions with 30% same-day haircuts. Currently-stable companies with cash may go on buying sprees and wake up with a green-beer hangover.<BR/><BR/>Amongst all of this, many if not most companies could still do far better than they do in product evaluation, which is almost always going to be far more relevant to their experience as users in the near to intermediate term. <BR/><BR/><BR/>Simply put, I would be surprised if even one in ten companies that add a detailed financial review to their decision, make a better selection as a result. I would not be surprised if three or four make a worse one, though.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6353086521552173699.post-65032363075381278372009-02-02T12:45:00.000-08:002009-02-02T12:45:00.000-08:00I agree with you wholeheartedly, hence my emphasis...I agree with you wholeheartedly, hence my emphasis on diligence. If the company is private, by all means buyers should ask to see audited financials. If the vendor refuses, I would view it with some suspicion. Also, buyers should be willing to sign a non-disclosure agreement and they should make sure that they have a resource on hand that is capable of talking through the financials in a knowledgeable way. I have posted about thast before.TechSphinxhttps://www.blogger.com/profile/13113476014205049527noreply@blogger.comtag:blogger.com,1999:blog-6353086521552173699.post-58758311291619452072009-02-02T10:18:00.000-08:002009-02-02T10:18:00.000-08:00The problem with private companies is that all of ...The problem with private companies is that all of them will try and convince you that they're <B>stable private companies</B>, but in reality in this market and in this economy, they're all <B>declining private companies</B>. Without audited financials, you have to trust some oily sales guy's word, which is highly risky.Anonymousnoreply@blogger.com