As expected, there's a significant amount of commentary pertaining to the new SBA Size Standard Recertification rule that goes into affect on June 30, 2007. Some of it is constructive and insightful opinion, and unfortunately, some of it is profit-motivated rhetoric.
The contribution on WashingonTechnology.com entitled New SBA size further stratifies small business is the subject here.
The author states:
"The most significant effect of the new rules is likely to be on the merger and acquisition market. In many instances, valuations will be lowered and due diligence processes will be deepened. The imperative for buyers in M&A transactions derives from a combination of opportunity and confidence in the future. Acquirers seek comfort in the belief that the acquired company’s customers will remain loyal, the contracts will run their full term and beyond, and there will be minimal surprises."
Considering the author's firm is "an international investment bank, [that] provides a wide range of services, including mergers and acquisitions, financing, financial opinions and advisory services, and financial restructuring", it becomes apparent that the driving force of the commentary is not the negative or positive impact of the ruling on the business community but the net effect of the rule on his industry's profit margins.
The new rule is not an end-all solution. It may not even be the right solution. There are other changes that could/should be implemented that would provide a benefit for the small business community as it relates to federal contracting, and this a step in the right direction.
His contribution starts off very appropriately. The first word is "Arguably..."
Most members of the small business community are committed to seeing our Nation continue and our Government have the resources needed to provide the services that keep the lights on, the schools open and the bad guys out. As a member of that community, I like most of the others, have contributed a considerable amount of sweat equity and am not a fan of those outside of this community profiting from our hard work while at the same time imparting rhetoric that is not neccessarily in our best interest.
His article suggests that the result of the rule is charity for the needy. Consider the source.
Not everyone in the small business community is a true entrepreneur willing to bust their tail to succeed.
Most that I know are.
Like any segment of the population, there are opportunists that want to take advantage of any situation they can.
I don't know what affect the rule will have in the long run, but it's a start.
Everyone is entitled to an opinion. This is mine.
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