TAMPA, Fla. (PRWEB) March 29, 2006
Dean Burnetti says he would like to see his company, TWay.com, grow bigger, but he says the company has no plans to make that growth happen through the acquisition of other companies.
Burnetti, who is TWay.com’s president, said today that industry giants such as EBay have grown rapidly through acquisitions, but he says those companies have admitted that acquisitions have also caused a number of problems.
“Acquiring other companies can be a shortcut to rapid growth and it can certainly enhance a company’s numbers, but frankly we don’t think the headaches are worth the trouble most of the time,” Burnetti said. “We plan to grow by simply getting better at what we do, and by providing an ever-higher level of customer service.
“Our customers let us know that they like that approach, and we plan to stick with it.”
In a recent filing with the U.S. Securities & Exchange Commission, EBay said that future acquisitions could strain its finances. EBay acquired eight new companies during 2005.
“Future acquisitions or mergers may result in a need to issue additional equity securities, spend our cash, or incur debt, liabilities, or amortization expenses related to intangible assets, any of which could reduce our profitability and harm our business,” EBay said in its filing.
Burnetti agreed with that assessment, and said other problems could result from rapid expansion as well.
“We would also worry about spreading our management team’s time and talent too thin,” Burnetti said.
“Expansion via acquisition is not a strategy that makes sense for us to pursue,” Burnetti said. “Our customers tell us they want low rates and good service – they don’t have an interest in how big we get. We try to keep that in mind as we determine our best strategies for the future.”
TWay.com does not charge listing fees. Its pricing structure is very competitive when compared to other online auction sites, due to its low operating costs and lean-and-mean approach, Burnetti said.
ABOUT TWAY.COM: TWay.com moves online buying and selling to the next level with unparalleled flexibility, options and service. It also offers marketing partnership opportunities to savvy entrepreneurs. To learn more, visit the website at http://www.TWay.com.