Creating Win-Win Situations The Beauty of the BLUO Business Model

tock exchange rules are simple: the profits of one side correspond to the losses of the other. The rules that divide the world into winners and losers seem to apply for most parts of the economy. But in the BLUO world they are definitely not applicable. Here it is only winners. To understand this beautiful side of the BLUO business model one has to take a closer look at the interests of each party, such as in the typical situation described below regarding the sale of a loss making company by a major corporation.

The seller is a winner because after the sale of a loss making subsidiary to BLUO he can again concentrate on his core business. Immediately his profitability will increase and analysts will approve of the divesture.

The target company, often struggling for survival, is a winner because after the BLUO initiated restructuring measures it will soon be back on track. Survival is no longer the issue. Rather the agenda centers around quality, new products, expanding market share and growing profitability.

The employees are the main winners. Coming from a situation where every job was at risk the employees of the now turned around company have a secured future again. On average companies have more jobs after the restructuring phase than before the takeover!

The buyer of a company restructured by BLUO is a winner because he can acquire a state of the art company that is adding value to his entity. And because BLUO is focused only on the restructuring and not on achieving the ultimate exit price the buyer makes a good bargain.

Trade unions are winners because the company has survived and the workers will hence continue to be unionised, securing the trade union’s influence and reputation. That is why unions in the past have mostly welcomed takeovers that were staged by BLUO team members.

The domestic economy is a winner because work places remain in the region, financing the social systems and providing tax income for the government. And if at the end of this process BLUO and its investors are making a fair profit no one should be worried when they are winners as well.

And if at the end of this process BLUO and its investors are making a fair profit no one should be worried when they are winners as well.