Purpose
The purpose of the Special Purpose Acquisition Company is to generate prosperity now and in the future.
Personal prosperity is defined as a low household debt to disposable income ratio, and a high net wealth to disposable income ratio.
Commercial prosperity is defined as high throughput and low operating expense.
Current Problem
Some of the problems that currently exist are
- The labour laws are complicated.
- The law can and is interpreted in different ways.
- There is political interference in the labour unions.
- Personal agendas play a role in the quality of the interaction between employers and employees.
- The system consists of humans who look after their own agendas.
- There is a power struggle between employees and employers.
There is a survival/stability threat: If the employer and employees cannot work together to improve the labour relations, the employer will be forced to implement automation, which will result in job losses.
The Core Problem
In order to manage the company as an engine of prosperity, the company must have motivated employees.
In order to have motivated employees the company must increase employee remuneration.
In order to manage the company as an engine of prosperity, the company must control operating expenses.
In order to control operating expenses, the company must decrease employee remuneration.
The company cannot increase employee remuneration and simultaneously decrease employee remuneration.
Picture of the Future
Employers and employees work together to increase mutual prosperity, where the employers give higher rewards to the employees, and the employees provide higher throughput for the employers. The employees are also owners of the company. The company is seen as a prosperity generating machine and not a mere place to work. The emotional burden of going to work is replaced by a certain excitement of contributing to prosperity for all.
The Special Purpose Acquisition Company
The Special Purpose Acquisition Company (SPAC) will be established to buy a current company with a proven track record that has the potential to grow its turnover into its net profit within four years.
The Acquired Company
The ideal company will have a selling price between R 6 mil and R 15 mil, with the following criteria for the company:
- Employers in South Africa
- Employees in South Arica
- Labour intensive industry – Manufacturing, mining or construction
- Low skill, manual labour force
- Older than six years
- Profitable in the last three years
- The demand for the product exceeds the current and future internal supply capacity
- The truly variable cost of the products supplied to the market is between 50 and 70 %
- The company’s employees are reliable and open to an Employee Share Ownership Programme.
Initial Shareholders and the Employee Share Ownership Programme
The SPAC will be the sole shareholder of the company bought with the SPAC capital. The initial shareholders in the SPAC will own 50 % of the declared shares and 100 % of the issued shares.
As part of an Employee Share Ownership Programme the employees will negotiate a process in which they acquire as much as 50 % of the declared shares, through favourable labour conditions.
An ideal end-state would be for the employees of the company bought with the SPAC capital to offer to buy out the initial shareholders in the SPAC.
What will the SPAC do?
The SPAC will set-up an appropriate organisational structure with the right people in the right positions to ensure that the bought company grows sufficiently to make its top line its bottom line.
The employees will receive extensive training so that they act as owners and are a true mission directed team able to manage the company.
Time-proven generic solutions, developed by the Theory of Constraints community, will be modified for the specific needs of the company and its markets.
Eventual Call to Action
Invest now for only $ 50 per share and help create prosperity – Not yet. Let us build the trust relationship first.