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Saturday, November 10, 2007

Market trends for Mergers ( i.e. marriages)



A merger (i.e. marriage) is being planned by my board ( i.e. mom and dad) in Pakistan. They will inshahallah look at several potential merger opportunities. The market experts ( i.e. Auntees, other auntees and more auntees) are saying that the market is bullish right now. I did alert the board on a couple of opportunities that I wanted explored but they were vetoed. They also like to look into related companies first but the related companies did not have any merging potentials ( thank god..)

While I wanted the board to be open to international opportunities, the board wants to look locally (i.e. Pakistan) to start with and then perhaps go international. Knowing the ups and downs of the markets internally does help the board to decide. However, given that after the merger the company will go international, adjustment factors for different international environments would need to be considered.

Merger rumors among my close friends and associates ( my personal investments) are usually high whenever I visit Pakistan because they know whenever the board gets together for a physical meeting there may be something brewing. Previous rumors were proven false to the disappointment of many and to the joy of a few.

The board might short list potential "companies" for talks about merging before my trip to Pakistan. The board will undertake intense due diligence during the talks. The due diligence can be financial, behavioral and so on. I have a strong veto on the board too. The other "companies" have their own boards too, however the power of the principal on these boards can be too limited which we as a board need to watch out for.

Once a candidate is selected, terms and conditions for the merger are ironed out. The contract isthen signed and the two parties merge..and there is a potential for spin offs as well,...

10 comments:

Anonymous said...

Sallam alaykum.

LOL! :) I hope the merger goes well. May It be a blessed merge insh-Allah.
Great blog masha Allah.

Anonymous said...

it better be a roti company...

Daughter of Adam said...

Wishing you all the very best Hammad.
Keep up the Istikhara and go with the flow. Am sure God Almighty has nothing but the good in store for you.

Duas from here.

WaSalam

Unknown said...

... didn't get to say this to you yesterday but you are officially MMAD (Marriage Merger Affected Dude)...

Insha'Allah all will go well and she'll make you perfectly round rotis with chicken curry. And for the spin off: not so squashed water melon that's not been dropped on the kitchen floor. Lol.

Anonymous said...

May Allah bless you in this task. Are you open to referrals? I know someone who might suit you (and vice versa). I am just a regular reader, but if you are open to the idea we can get in touch inshaAllah. JAK.

Din said...

Adnan/Anonymoustaslim bajee/Asma Bajee/
:

Jazakallah khair!


Anonymous 2,

you can email me at hammad . din @ gmail . com

Unknown said...

hahahhahah! May it be a blessed Merger indeed.

Ameen.

Unknown said...

Salam,

Merger is antiquated. It never seems to work properly. Acquisition is what you should be thinking about.

Talal

Din said...

Walaiakaum salam Shaykh,

I agree. I understand that the big smart companies sometimes call an acquisition a merger i.e. they are hiding behind words...:-)

W'salams

Hammad

Raf3 said...

Salaam Sidi,

You know the condition of business in Pakistan these days. Foreign investment is much needed.
If an a merger can take place with an international company, long term benefits can be reaped. In case of an acquisition, just make sure that the local company acquires the foreign company and not vise versa!
I hope the board understands the potential of such a merger and the benefits it will bring along with it, insha'Allah

w'Salaam

P.S. Seems like this was written after a Roti overdose!