TPACmuse · @TPACmuse
2nd May 2016 from TwitLonger
TPAC Acquisitions Transform to Service Level Agreements
BDG analysis determines the potential for TPAC business, based on inquiries, quotations, and present day business negotiations. (Although speculation and forward thinking) If TPAC was to process just 20 percent of the estimated numbers, the company's financial situation would be stressed.
Even acquiring targeted assets would cause TPACs financial obligations to increase. This could destabilize TPAC at the point of fulfilling its obligation to process high volume orders especially with short turnaround times.
BDGs Solution: Make the acquisition target a part of the process.
BDG rethinks and moves to collaboration using the acquisition target: China businesses seeking USA market share (Better said, increasing manufacturing outputs).
TPAC delivers a Service Level Agreement based on providing raw materials that are associated with the end product parts they are manufacturing.
Win, Win for both the targeted acquisition and TPAC. TPAC doesn’t use present day cash flows or funding dollars to acquire instead it makes revenue on the sale of raw materials.
When TPACs Financial cash-on-hand and reserves improve, it can then rethink acquisitions.
So for now no acquisitions....Think Business Collaboration as a way to increase total manufacturing outputs.
Work Smarter, Not Harder