"We are not a real estate company"

When I was a kid - it was around 2008, by the way - I thought the value of a business is the assets it holds. It wasn't quite like that, but that's mostly what I thought. At the time I was coordinating the sale of a varnishes and paints to multinational I was going to work on. I remember staying up late into the night with my future colleagues making and unmaking lists.

The company that was selling the business also had an apartment in which it operated at one time. When we reached out to discuss it, they told me they were not a real estate company and therefore not interested in the apartment. Not you a discussion, a little negotiation, at least as a courtesy. I remember it was a big surprise to me then. I thought everyone is interested in a property, even an apartment. Now I know - or think I know - how a business is valued and at what price it could be sold, but that's for another time.
My point is that an asset has value to a business as long as it is useful to that business/product for it. Otherwise it is just a real estate investment, which increases or decreases in value depending on market. For the business it's just money locked up. Liquidity with which it could expand into other markets, create new products/models, create brands and increase their visibility. In a word - or more - it could increase.
What I have noticed lately is that - as I thought at the time - so do many Romanian managers in Wood Industry. For them it is more important how many assets they have than the value of the sales of the businesses they run. I think they are very influenced by the way we are. We like to be owners.
Maybe I'm wrong. I really wish you'd contradict me. You can do it a little below in the comments area, on my personal facebook page or linkedin, where it's easier for you. I promise to reply to all comments. Ready....steady....go

About the author


I've had the chance to work in various departments. Thus I gained experience in Finance, Accounting, Logistics, Sales, Operations, Marketing. I am a team player and an all around player. I am an entrepreneur, I coordinated the sale of a wood varnish and paint business to a multinational. In 2016 I discovered the digital world, publishing and online marketing. Since then I have moved my accumulated experience and skills online.

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