Companies execute acquisitions so that each can create more value more quickly—it's risky, since about half of those fail before they get off the ground. But, even in the case of successfully being acquired, there can be pitfalls for a company and its customers.
It's because of those pitfalls that Hytrol has never considered being acquired. It's not just the risk involved—you don't find the success that we've had without taking risks. It's because we know exactly how we create value for our customers and our employees, and being acquired just isn't consistent with the way we create it.
This is the way Hytrol chooses to do business, and the way we'll choose to do business for years to come.
We value stability
If there's one main reason being acquired isn't for us, this is it. The instability that comes with an acquisition can harm our customers, employees and production. We're a 70-year-old company with a rich history and a future we have plans for. Being acquired by another company puts that in jeopardy, because it can be difficult to perfectly align the visions of two businesses.
In addition, we want to continue to be in control of our future. Our business model relies on a high degree of autonomy, and our customers and integration partners would suffer without it. We take pride in knowing that year-in and year-out, industry professionals know what to expect from us.
We focus on what works
We know what we're experts at. For 70 years, we've been perfecting our products and crafting our company culture. We seek to grow and diversify our product line when it makes sense, but we put a great deal of thought into how to create the most value for our customers. Our workforce has embraced this same culture of creating that kind of value, knowing they'll be taken care of in return. This outlook has created loyalty and productivity—it's what we're most proud of, and it's what makes Hytrol stand out amongst the competition.
The integration of products and company cultures runs the risk of creating more issues than benefits. Company cultures can clash, and that makes the integration problematic. In addition, asking employees to suddenly become experts in a new product isn't realistic. It takes time, training, and effort to become familiar with products. We've spent years creating a workforce that is excellent at producing material handling solutions, and we'd like to continue that well into the future.
We're proud of our brand
What do you think of when you think of Hytrol? Everything we do at Hytrol must be consistent with what our customers expect of us. During an acquisition, that brand—and what it stands for—could be lost. Too often, companies try to grow for growth's sake. Our strategy for growth includes continuing our reputation as a reliable and stable material handling solutions manufacturer. Hytrol has one goal: to design and manufacture the best material handling systems in the world. Any growth we implement must line up with that goal. Our reputation depends on it.
A lot can happen in a month, a year or even a decade, but one thing is certain: Hytrol's decisions will always be based on what we can bring to the table for our customers, and our plan for growth is included in that.
About the Author:
Bob West is Hytrol's vice president of corporate development. With more than 23 years of experience at the company, Bob is involved in many aspects of the organization such as strategic planning and operations management.