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Technology Stocks : TAVA Technologies (TAVA-NASDAQ) -- Ignore unavailable to you. Want to Upgrade?


To: Karl Drobnic who wrote (23976)10/15/1998 5:46:00 PM
From: Rick Bullotta  Read Replies (2) | Respond to of 31646
 
<<Acquisitions look like they can earn themselves out by making the database click more than it otherwise would.>>

Yes, but couldn't new hires have the same effect? Bottom line is that "non strategic" acquisitions, such as Mangan, are simply an alternative way to increase/round-out the headcount and resource base quickly.

When you throw in the physical assets (computers, chairs, desks, etc) that Mangan might have had lying around, plus backlog contracts, these types of acquisitions might simply be an justifiable economical alternative to hiring, training, setting up and office, etc., with the commensurate "time to market" advantages (plus the principal(s) of the acquired company have a chance to "cash out").

I applaud TAVA for recognizing the importance of rapid ramp-up, and doing something about it, as this is something I've been very critical of over the past year.

But let's not try to pitch this as a "strategic" move in any way, shape or form...it is purely tactical. The strategic moves are still under construction! We'll have to be patient! <g>

Many good surprises to come from our friends in Colorado...