Friday, 17 October 2008

Broadbean acquired by owners of Jobsite

quite an interesting one this - if only for the fact that any company is acquiring anything at moment
what does the acquisition mean?
  • not quite sure what AND's motivations are - Conkers is also owned by them. I guess its going up the supply chain/value chain - like a brewery buying pubs or possibly a fleet of beer delivery lorries to stretch the analogy perhaps a little too far. Still its a little different from their acquisition history of strong vertical job boards.
  • One does not have to question Broadbean's motivation - and well done to those involved
  • AND have an excellent history of buying companies (Jobsite, Jobs Group, InRetail etc) and allowing the management to grow and develop their business without unhelpful intervention. So Dan's open letter (see above) should be taken at face value i think.
  • Will the other major jobboard owners have a problem with this acquisition (their supply lines being owned by a competitor) - and come off the Broadbean feeds. Can't see that happening in a million years - the client is king and Broadbean's client volumes are pretty substantial to forming a job boards marketplace. But lets see.
  • I would be fascinated to know how they valued this business - there is an argument that the product and the whole job posting technology industry is a commodity that could be replaced in the future - but to be fair it is priced so reasonably that there is no great desire from clients to seek any alternative solution.

In summary - Broadbean is a great business - nicely profitable, low overheads, loyal customer base, limited competition but not quite sure how it fits into AND/Jobsite's product set. But that's not the worse problem to have.

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