Meg's Rules: Buyout Tips from eBay CEO

Meg Whitman, chairman and CEO of eBay, ranked the most powerful woman in business in a Nov. 2005 ranking from Fortune magazine. "The Empress of eBay," operates with a three acquisiton rules for big-ticket corporate buyouts, such as the $2.6 billion move to purchase Skype and the purchae of several other $1 billion-plus companies.

Those rules, however, are applicable to my small-ticket purchases. Here's a rundown of "Meg's Rules," based on a profile from Fortune.

1. Look for Synergy:

In corporate deals: Target buyouts that fit with the rest of the operations.

In personal life: Buy clothes, furniture, trinkets & gadgets that are compatible with other items I own.

For second income: Make extra bucks in business opportunities or select freelance writing assignments that match or feed off my basic skills.


2. Does the acquistion target work as a "standalone business?"

In corporate deals: Every buyout should be a viable and attractive business on its own.

In personal life: Does the garment, computer, sofa or whatever work as a single piece? Do I have to buy more stuff to make a new purchase work? If I have to spend more to make a new purchase work: let it go.

For second income: Is this a hobby or a business? Is the reward worth the investment of my time or energy?


3. Examine the Corporate Fit

In corporate deals: Does the culture of the acquired company match the business philosophy of the parent company? Are both companies on the same page?

In personal life: Is this purchase, investment or business consistent with my core values? Am I mindlessly living and spending?

For second income: Is my heart in it? Does this part-time job really fit in with my life style and home life? Do I need to earn more money or should I just cut back on spending?

A little while ago, I posted a piece about selling your soul for money.

And on the subject of high-powered women, No Limits Ladies featured an interesting post about Oprah, wealth and plans.

I also enjoyed this piece about from Forbes magazine about Ebay. Here's a snippet of the article:

Just 11 years old, the online auctioneer makes piles of money--$339 million on $1.4 billion in sales in the third quarter--by charging sellers fees for posting merchandise online and by taking a cut of the final transaction. According to ACNielsen International Research, more than 724,000 Americans say eBay is their primary or secondary source of income. Millions more sell stuff there from time to time. --Forbes.com