In all companies there always needs to be a host of opinions because all companies represent many different aspects. The company provides employment, they provide customers a good or service they want and hopefully need on a regular basis. The company by doing those things has supplier firms and the list goes on. If the company wants to and has a desire to grow, eventually it will need advisors to help them through the process. In most things in life, the best solution often needs a little massaging for everyone to agree to the best solution.

In the world of mergers and acquisitions, there will be different viewpoints and they have to be addressed one way or the other. What maybe a great economic decision, may not be a great political decision because of the things people believe at the time.

An article from Reuters, in the steel making world, Japan’s Nippon Steel which has had a presence in the US for years, made an offer to buy US Steel based in Pittsburg for $14.9 billion. In the world of politics, made in America or manufactured in America is a political concern and various interest groups have tried to strengthen their positions.

Nippon Steel reading the tea leaves, hired former US secretary of state Mike Pompeo to advise them. It would not be surprising they have many other advisors and public relations firm.

Linking to dividend paying stocks, after the economics works for the company and the price is agreed to many companies need a government agency to sign off on a merger and acquisition. If they need approval, the budget includes higher people who had senior levels of leadership in the government to go through the process and hopefully make the economics work. Individuals can be of different political stripes, but companies have to work with governments and do not want to tied too much to one party or another.

Linking to dividend paying stocks, the larger a company becomes the potentially greater influence it has and working with the government agency is a key element of its success. Somewhere in the regulations a government can use all the tools, but they rarely use all the tools, they can use some of them. Government relations are important element of large companies, and it is one of the reasons why they sponsor events to buy goodwill, what events do the companies you sponsor have and do you support them?

There are more questions than answers, till the next time – to raising questions.