Prince George wrote:Omicron, I'm interested in any examples that you can name of that actually happening. That pattern is a common tech-startup dream - after running on sweat-equity for years, get a buy offer from (insert big company here). But the buyout examples that I can think of were not ones where the purchaser said "you are awesome and we will pay handsomely to have you", but were consolidation in various old declining industries.
The 'Hello chaps! Here's $100 million for your troubles!' example was a slight exaggeration on my part (
), but the basic point remains - to use the motoring industry as an example, all Holden Commodores and its variants for Australia and the world are built here, the majority of Bridgestone products are built here, all Tenneco products (Monroe, Lukey, Walker, Carline) are built and managed here, all Mitsubishi vehicles are imported, distributed and locally-developed here - but none of these companies are technically headquartered here or (with the exception of Holden) local brands.
To be a bitch *cough* and play devil's advocate, what brands of Edmonton, Alberta could we all think of and point to as examples of successful national/international expansion? Hell, what brands could we confidently (and correctly) identify as being entirely headquartered and local to Brisbane? There is only so much nationally-competitive business that the market can support, and it's no stretch to think that the majority of that will come from the bigger, richer cities. It's a fact that we are not a big, rich city; we're not any more highly-educated than the rest of the nation; we don't have lower income or company taxes; we don't have vast government revenues; we aren't close to other nations; we aren't a major transport hub, and so on.
This shouldn't all be interpreted as a 'we're screwed beyond our control so you should all give up' analysis, but it should be add some context to the discussion. Local business can thrive within a relatively small state and add plenty to the economy, but it certainly won't appear impressive on a national scale. It should be pointed out that both NSW and Queensland are in far more precarious financial positions than us with all their headquarters and whatnot, so realistically, to what extent should we be aiming for nationally-competitive brands when they don't necessarily add anything to the financial welfare of the state? It may be that South Australia is better-served by serving others - natural resources to mining companies and other countries, call centres for large businesses who need large floorspaces at minimal cost etc. - that keeps South Australians employed without having them ruling the world. Not everyone can, you know.
I'm just speculating here, of course. Wine time has commenced, you see.