I think that primary goal remains, however the finer details and complications are difficult and more time consuming than anyone could have realized for big businesses, and while we wait for them to catch on, we are wasting time and opportunity.
I think recognizing this and the understanding of their product in the market and the impact it would have has led to this strategy.
Think of it this way, and as MF partly touched on (not in his words at all) - If they (big players) are having trouble adapting to the future (Intiger's service) due to issues that have nothing to do with the product, the people, or the price, but stem from their own inability to adapt. Why not get to market, and let the masses use the product, let the market become accustomed to it.. perhaps even dependent on it? Eventually it's a case of "well everyone else is doing it" as it becomes more widely adopted. It then makes the transition easier and more socially acceptable for everyone to take up / rely on the service completely.
We must consider as well that if you're a big player, and you use Intiger for a large portion your SOA's etc including the analytics (KLiP), suddenly an uncomfortable amount of your business becomes reliant on this service. We can understand then, why such due diligence is required - and this is outside the issue on the public/internal perception of outsourcing jobs..
So establishing a "watertight commercial working model" is basically becoming the back bone of a large licensee. So on this train of thought, what options do you take?
If I'm a big licensee, one option is to simply pay the $85,000,000~ish to acquire Intiger. It's a question of Intiger's return on investment. I'd wager that $85m would be back in your pockets in a very acceptable time frame. Potentially a game changing investment... but still must take significant time to consider and the risk is measurable. It's also an option that is always on the table... unless someone else buys it first of course. However I also know that I'm already far more advanced along this line of due diligence than any potential competition and thus have time to mull it over.
If I didn't want to go down the acquisition route, and perhaps wanted time to slowly and better understand it and the effects it would have on my business (day to day or the transitional phase)... but also wanted to avoid scrutiny, anything unforeseen, and keep competitive advantage... well.. I'd probably publicly trial it, announce a seal of approval and that I'd look into it's potential advantages in the future. Drop the subject... then internally let a portion of planners "look into its potential advantages for the future" immediately... so that when the "future" arrives, it's just a matter of ink and and a smooth transition as opposed to a publicly scrutinized "upheaval". Then option one is back on the table with minimal risk, albeit at a higher price as involvement will likely mean financial appreciation which will reflect in the SP(*we hope).
Another alternative would be what I believe is our "expected" agreement where you're willing to publicly contract Intiger to integrate it's services into your business so that you can both profit. Brush off all the public ignorance over outsourcing and support each other through any potential teething problems, all the while your competition still has both options available to them, and can also negate your advantage through similar contracts and/or gain advantage consuming a large (controlling) portion of the share register if any promise of the business is shown. This route basically screams exclusivity to me. There's no way I'm a big player and entering into an agreement without it. Something important to note as well, as it was stated by PC - they are not opposed to exclusivity. (if the price is right obviously) Nor should they/we be.
The humanist in me says that I don't see any would be interested parties in control of these big businesses deciding to split the pie evenly when they can have all of it (If. The. Product. Is. Good.), or they can wait for the business to solidify itself in the market while taking more risk adverse routes.
This is of course removing the potential to reverse engineer it and or copy the business for themselves for reasons MF has stated previously. (literally sourcing humans)
So as I muse over everything in my own mind, Once Sentry and NAB have given confirmation of the product, I'll be confident in the product. I'm confident in the people, and I'm now confident in the route they've chosen as I don't see the big players doing anything other than low risk maneuvers over a potential time frame I'm not comfortable investing the fruition of my hopes and dreams in (to each his own). My only remaining question that unfortunately can't be answered is - "when is this portal going to be ready?"
If NAB and Sentry both publicly announce the efficacy of Intiger, that will be a more significant announcement then we realize. I don't see a contract being entered into as the more I think about it, the more Sentry asking for exclusivity makes sense. At this point now, it's very risky to ink a deal when Intiger being bought out is on the table for any large competitor. And if they believe the product then they must believe that to be possible or have defense for it. Lastly, they have the option to all simply slip into anonymity and continue to use the services, so from that perspective, the only reason to rush into a contract is to A: gain exclusivity B: buy Intiger or C: help Intiger appreciate in value.. I suppose there's reasons they'd want to do this. Not sure why NAB would, but for Sentry, if you can't get exclusivity and you can't exactly afford / justify buying them, then perhaps the next best thing is to simply do your best to make sure they can't be controlled (ie invest big in the business) and or without some compensation in the event of change of ownership that compromises them / creates a conflict of interest with the new owners.
From Intiger's perspective, the business needs to appreciate to hit their targets so they get paid and the bonus side effects it will have. They do the ground work getting *everyone who needs to generate a SOA cost effectively* to build revenue, it makes them more appealing to buy out as not only does this investment save you costs, but it's also turning a profit and potentially increasing your customer base for other services. Even if the big boys don't catch on right away, you're still well on your way to meeting those milestones as making headway into becoming an independent and/or otherwise financial planners every day necessity will still get you there. If they do catch on at any point, then the game is over, you win.
Side bonus, if they (or anyone similar) do enter into a contract now, you also win.
I think a lot of these questions / concerns / realizations are the underlying reasons why the SP has slid to where it is, and isn't keen to fall below the price on acquisition of Intiger.
As soon as we have confirmation of the product via big boys, I'd say you can sleep tight with your investment, because at that point it will only be a matter of time, if it isn't already.
ps these are entirely my imaginations, and in no way represent reality. take it with a grain of salt. do your own research. get some sun.
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