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Friday, 8 June 2012

Acquisitions Distracted Hastie Management?

The ABC Inside Business program had two short segments on the collapse of the Hastie Group last weekend. Including a discussion on the large number of acquisitions undertaken by Hastie, and the lack of integration. Video can be found at: http://bit.ly/MgU7Yk

The Inside Business panel makes the point that management was so busy trying to absorb the 20 acquisitions  undertaken since 2005 (resulting in 80 entities, 44 companies, and 27 payrolls), that they weren't keeping an eye on other aspects of running the business.

An alternative view would be that Hastie's approach to acquisition strategy and integration provides an insight into how one of a range of issues in the company was being managed, rather than the cause of management taking their eye off the ball.

1 comments:

Bruce Pulbrook said...

I have some knowledge of Hastie having followed its progress for a while. My perception is that some of the earlier acquisitions seemed to make sense in that they enabled Hastie to play a larger role in building construction and ongoing maintenance eg expanding from airconditioning to installing cables, etc. other monitoring and communication services in buildings such as shopping centres and offices.
The expansion into the UK seemed to be both ill timed, just before the GFC; and poorly thought through: they bought a UK based previously family owned construction business with operations in the Middle East that was difficult to integrate into their own business and it was difficult for Hastie to improve the operations.