Legacy system companies never die, they just get bought and change purpose. Example, pioneering modem maker, US Robotics is being bought by LA based, Platinum Equity LLC.(http://www.latimes.com/business/la-fi-robotics15aug15,1,3565452.story?coll=la-headlines-business)

Robotics never made the change from dial up modems. Platinum, (www.platinumequity.com)  started by Tom Gores with 600 grand ten years ago, in contrast, keeps growing by acquiring companies with technology that produces enduring cash flow. Entertainment products, medical imaging, managed network solutions, web systems, soft wear, integrated IT solutions businesses have all, one after been snapped up in quick buys by Gores. He's become a billionaire using leverage and smart strategic repositioning of often unwanted overlooked companies. He bought from General Electric, Vivendi Universal, Hays, CompuCom, Alcatel, Kemper Services, Motorola, Lucent Technologies, Fujitsu, AT&T and IBM. Now his company owns 21 businesses, is 40,000 employees strong with 11 bill in total revenues.

Increasingly, companies need to change strategy constantly, and quickly, to survive. Otherwise, despite their heritage or even prospects, a Tom Gores will buy them, strategise and position properly, and reap the rewards.

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Posted in Main Page by Richard McKinnon No Comments Yet