Company bashing?
I guess if that is what you all say is what I am doing?!?
Well read what I said A G A I N, because I don’t see it as company bashing and not very many people seem to understand what I am saying, so I may be a little defensive in this post.
First off Panther is good to the drivers, their staff and to the customers, but don’t forget it does not matter what any they or we think, it is the guys and gals at that top level that make the decisions. These ‘leaders’ are in reality removed from our world as much as we are removed from theirs.
To make it clear the people at UPS and their consultants (yes there would be a group of acquisition consultants advising them) are looking at risks and performance, something that may go way, WAY beyond the information that is provided to prospective investors during the IPO phase of the company. If UPS would be involved with Panther, there would be non-disclosure agreements (which by the way would also be backed by some SEC insider trading laws and serious fines and jail sentences), a study team at Panther watching how they work and a complete and total opening of the books to outside accounting firm(s). Which all means is this; even if the company at that size (UPS) is needing to expand into a market, they MAY consider Panther too much of a risk because of their fast growth (remember this is post-internet boom/bust era now) and see difficulties in not acquiring the company but the actual integration of the company into the larger company to make it a profitable acquisition as fast as possible.
Sound familiar? Hummmm…….
When you deal with the process first hand or experience a take over or worked on an upper management team, all of which I have done, you may understand the convoluted logic in all of it. There are more things that go on behind the scenes than most care to understand.
As for UPS competing against their #1 competitor, please!
Do you honestly think that UPS is so concerned with FedEx that they would enter ever market that FedEx is in just to compete?
Do you also think that the top dogs, Fred Smith and Michael Eskew don’t talk to each other?
Like I have been saying, they operate at a completely different world and Panther’s leadership is not of that world – maybe Fenway partners is.
Look we are talking about a company, UPS, who has the resources to tackle this other then buying up companies who compete with FedEx, they already have their foot in the door. Like I said in my last post, it may be that they will shift the freight around to allow an expansion.
I had a very interesting talk with a former Panther manager a couple weeks ago, got his card right here for his new company. Well anyway we discussed how FedEx and UPS could actually clean up this entire market with the resources they have in petty cash and came to the conclusion they won’t because of what I said before, they see it as part of a 'package' of services that they can offer to a customer, not as a main stay as part of their business model. FedEx doesn’t dump a lot of money into CC because as I think Terry said it is a foot note on the yearly shareholders report.
You know that UPS could devote .03% of their budget and kick serious a** within this niche market?
If they took the approach I think they should, they would be a force to worry about.