Tinkham Veale II
The world lost a great tycoon this past week. Tinkham Veale II was 97. Mr. Veale started back in the 1960s and built a huge conglomerate from an office in a stable, as legend has it. By the mid-1990s, his empire enjoyed sales of over $10 billion and employed 36.000 people. He was both a wealth and job creator. Sadly, too many of today’s so-called tycoons only know how to create wealth by destroying other people’s jobs.
The Veale Growth Strategy
Here’s how Mr. Veale grew his empire.
Tinkham Veale II
He recognized that small companies have a chronic problem with accessing critical resources. The biggest challenges are access to growth capital as well as professional expertise. Companies couldn’t grow because they “were having a terrible time getting over legal, tax and accounting complications,” Mr. Veale explained. So he devised a strategy to help them which he called “corporate partnership.” This consisted of acquiring small, profitable businesses and keeping their management in place.. He would pay for them with a combination of cash and stock from his public company, Alco Standard. He also implemented generous profit sharing plan to keep everyone fully incentivized.
His investments covered a broad spectrum of industry from motor homes, chemicals, electrical, metallurgical, and liquor distribution. Under Mr. Veale’s leadership Alco enjoyed a compound growth rate of 20% or better for 30 years.
You can read more about him here: Alco Standard Corportation.
The gentleman followed the tycoon playbook system.
One Response to Tycoon Acquired Small Firms to Help Them Grow: Tinkham Veale II
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Very inspirational stuff.