Most neglected capital asset..... called Reputation

As the world continue to ride on the economic uncertainty, Asia has continue to spearhead healthy growth in this region. A brief encounter at the M&A (mergers & acquisitions for those who are unfamiliar) scene shows that Asia M&A which has grown from a small, financing focused product just about five years ago to a significant part of the financial growth story. Asia M&A activity now comprises of about one third of global volume - up from just 7% in 2006. In all these M&A activity, amidst all the analyses, legal and regulatory compliance details, lies a very important expectation which is the expectation that the parties to the M&A deal will live up to what was agreed and committed. Here lies the greatest test of all.....will the other party live up to its commitment? Although one hope that all things plan well will goes well but sometimes things just don't goes that the way it should. There is a famous quote that says;

"A warrior accepts that we can never know what will happen to us next. We can try to control the uncontrollable by looking for security and predictability, always hoping to be comfortable and safe. But the truth is that we can never avoid uncertainty. This not-knowing is part of the adventure. It is also what makes us afraid."

However despite the fact that uncertainty will be there, parties to the deal should learn to build on their reputation capital. It is the basic principles of integrity and fairness with which firms can build an enduring reputation for his enterprise. Companies that embraces it finds competitive advantage in the corporate, social and environmental circle. It is a value creation that puts the company a step beyond and differentiate it from the others. Companies in a deal should endeavour to plan and work out what has been agreed. It is sometimes easy to take things lighter after the deal is inked but failure to deliver has a price to it and it is also one which is very difficult to reverse. However always need to be reminded as another wise saying goes:

"If you must choose between a good reputation and great wealth, choose a good reputation. - King Solomon.


Looking out:

1) I have a friend who invested in a TaeKwanDo school. Do check it out if you or your friends are interested. Here is the link. www.kyungheetaekwondo.net


Look forward to our next sharing,
KH