Tag: Transaction

  • Is There Insurance That Protects a Business Owner From a Strike?

    Is There Insurance That Protects a Business Owner From a Strike?

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    Even if you are only a little tiny-bit news savvy, you are probably aware of the breaking news about how politics is affecting a business. When an online company won a contract with the government to supply detention centers in Texas with bedding furnishing, no one would have imagined the upheaval?

    Employees of the online furniture business voiced their disapproval via a thoroughly disruptive strike.

    Notwithstanding that the decision to do business with the detention center was based on the commercial advantage of gaining profit and that in place of sleeping on the floor, the children at the centers would get actual mattresses and beds, the company’s employees determined that the transaction would make a statement of approval for detaining those illegals that were unlawfully attempting to cross the border.

    The result of the walkout is in no shape or form good for business and as the refusal of employees to return to work continues it only gets worse and worse.

    But while worker strikes occur within many industries – from teachers, hotel staffers and garbage collectors to nurses, hospital and aging home workers and other business employees – there is one common thread connected to the broad diversity.

    It can bring extensive financial loss to the boss and his or her corporation.

    And while there are a slew of insurance products that actually protect the business owner, there is only a specialty type of coverage that can shield a company from the devastation related to a workers’ strike.

    It’s called Strike Insurance.

    A strike insurance policy can only be bought separate of a business owners policy because it is considered specialty coverage.

    It is best to sit down with an insurance specialist to determine if your business would actually benefit from this type of coverage.

    As far as protection is concerned, the policy would cover the financial losses related to a continuous strike. Should your business suffer the effects of an employee strike, you would be compensated for day-to-day loss of income and monetary damages related to the walkout. Be aware, though, that policy limits apply and a strike that sees no end would also not be subject to an infinite duration of coverage protection.

    For more on this type of special coverage, contact an experienced insurance agent that has the know-how and network of leading insurance companies to locate the right fit for your business situation – at the best quote.

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    Source by M Wyzanski

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  • Why Customer Concentration Impacts a Business Sale Transaction

    Why Customer Concentration Impacts a Business Sale Transaction

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    Few owners recognize the major impact that customer concentration has on the sale of their business. Customer concentration represents a significant obstacle and will affect the salability, valuation, and deal structure of a business-for-sale transaction. Not only will it create problems in qualifying buyers but it will impact the ability for any prospective purchaser to obtain third party financing to complete the acquisition. Determining if customer concentration is present in an enterprise is a critical element of the succession planning process.

    Customer concentration is a situation when one customer represents a significant portion of revenues or when the business has a very small customer base. Based upon the expert one consults, the exact percentage for a concentration to exist varies. In most cases it is recognized when one customer represents more than 10% of sales or when the top five customers comprise greater than 25% of a company’s revenue. In either situation, a huge risk is created from the lack of diversification and steps to mitigate it should be taken years in advance of a planned business exit.

    When evaluating a business sale it is important for an owner to recognize that their client base has a significant impact on the enterprise value of the company. A broad and diverse base of customers where there are a large number of clients contributing to the business’ revenue will achieve a higher transaction value as it reduces the risk that a sizable decrease in earnings will occur if any one customer is lost or a particular industry segment that the business serves encounters economic distress.

    In addition to a lower sales price, businesses with customer concentration issues are more difficult to market for sale. For main street business transactions (those with adjusted earnings of less than $2mm) third party financing is used in the majority of cases. Businesses with high levels of customer concentration are very difficult to get financed. Lenders may provide only partial financing, offer sub-optimal terms, or decline the loan altogether. In situations where third party financing is not available, the pool of available buyers is significantly restricted and the terms of a deal could be heavily weighted on a contingent earn-out based on retaining the revenues derived by the largest customers. “Typically we want no customer concentration over a 10% level when considering financing an acquisition. Higher levels are possible with much more explanation and supporting documentation but remain a major concern” states Steve Mariani, President of Diamond Financial Services.

    Lastly, customer concentration will have a direct impact on the deal structure for the business sale transaction. Buyers will strive to bridge the customer concentration risk through a variety of delayed ‘performance based’ financing methods. For example: Assume both parties agree on a transaction price of $900,000 based upon $300,000 of adjusted earnings (a 3x multiple). If the key account in question represents $75,000 of the $300,000 this would represent $225,000 of the transaction price. A buyer will strive to isolate the $225,000 component to ensure that revenue is maintained post sale. After a period of 12 months, if the customer and income are still in place the seller would receive the funds. If the identified client and corresponding revenue was lost during this period, a pricing adjustment would be made.

    In situations where the buyer is unable to obtain transaction financing due to customer concentration issues, the seller might have to accept a “contingent earn-out” for the revenues derived from the largest customers, or worse, they may also have to finance a major portion of the “non-contingent purchase price” negotiated with buyers.

    Contingent payouts could be structured in a variety of methods:

    Earn-Out:

    Earmark part of the purchase price with payments made over a period of time contingent upon the retention of specific customers or achieving specific revenue targets.

    Escrow:

    A percentage of the acquisition price will be held in an escrow account for a specified time.

    Seller-Financing:

    The seller would be responsible for financing a major portion of the purchase price through a seller note. The seller note could be structured with contingencies for revenues derived from the largest customers.

    With any of these deal structuring techniques, the seller cannot be expected to guarantee the revenue in perpetuity and if the transaction price is based upon retaining one or more key customers, the seller may require more active involvement in maintaining the client relationship during the term of the agreement. Obviously, this brings an additional complexity to the transaction.

    In most cases, buyers will look to discount the amount they are willing to pay for a business (with high customer concentration) unless they receive assurances that the risk is low. While the obvious strategy to reduce customer concentration risk is to diversify and increase the business customer base, there are a number of situations where customer concentration either does not pose a significant risk or could be mitigated.

    Customer Contracts:

    Having a contract in place will not eliminate all of the risk of losing a key customer, but it will provide the buyer with security that the revenue and profits will continue after a change in ownership takes place. When customer contracts are involved, the ability to assign or transfer will be important to understand. In many cases, a stock sale vs. asset sale is elected to preserve these contracts.

    Barriers to Entry or Exit:

    Businesses could have intellectual property, product expertise, or patents that create competitive advantages barring competition. Others are located in geographically remote areas where the supply benefits discourage customers from changing the relationship. Lastly, there could be significant capital requirements for manufacturing and tooling or agency approvals (pharmaceutical or government contracting industry) that creates a barrier to entry from potential competitors.

    Providing a Variety of Products and/or Services:

    Having a broad relationship with a key customer where the relationship is not based solely on one product, one location, and one individual decreases the risk that a singular change will fundamentally impact the future revenue stream and continuity of the account.

    Economies of Scale or Synergies:

    The acquisition may be pursued by a strategic buyer where they are bringing new products/services to the enterprise, a broader geographic distribution footprint, or economies of scale in production. Any of these elements would assist in reducing the concentration of revenue risk that an identified key client would represent to the future organization.

    Summary

    Businesses which have high levels of customer concentration are inherently risky and it is important for the owner to appreciate this concern from the perspective of a potential acquirer. Ultimately, the buyer seeks only to retain the customers which have contributed to the success of the business and are factored in the valuation and transaction price. From the position of a buyer a few logical questions and concerns would be:

    1. How does the value of the company change if a customer representing 10% or more of revenue and/or profits is lost in the first year?
    2. How easy would it be for the client representing the customer concentration concern to leave the business?
    3. What unique situations exist within the business to preserve the customer relationship in the years ahead?
    4. What are the logical steps and corresponding costs to mitigate the customer concentration risk?
    5. How do I achieve a win-win transaction? Protecting me, the buyer, against the risk of a near term revenue loss while providing the seller with the proper remuneration for the fair market value of their business?

    While the risk may not be able to be totally eliminated, there are a number of situations where customer concentration is more palatable and a proper explanation should be provided to the buyer at the earliest opportunity. Getting out in front of this potential challenge is critical to achieve a win-win deal. When good communication exists, and two fair and reasonable parties are at the table, there are a number of structuring options available, when necessary, to mitigate the risk and negotiate a fair and reasonable transaction price. Obviously, the best approach for a prospective business seller would be to develop and implement plans to reduce any customer concentration elements years in advance of a business exit. Eliminating this type of risk is just sound advice for any small business owner regardless of whether a sale is contemplated.

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    Source by Michael Fekkes

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  • No Evidence That Shekau Received €5m Foreign Fund From An NGO

    No Evidence That Shekau Received €5m Foreign Fund From An NGO

    Boko Haram Terrorists
    Boko Haram Terrorists

    Fact-checkers at HumAngle online newspaper have described a news report published on Opera News that Abubakar Shekau’s faction of Boko Haram was in disarray after it received a donation of five mIllion euros from an “unidentified” international non-governmental organisation as false.

    The publication claimed that senior members of the group have also turned against each other over how the fund should be shared within the group.

    The story claimed that a military source said “Shekau is getting blind as such only the very close ones of his aides have access to him. The issue of €5m is causing serious disaffection in their camps.

    “Shekau has been receiving such funding in the past and he was never able to build his terror infrastructure beyond what is currently being dismantled. Our commanders are not concerned that he is still defrauding those sponsoring him, if there is any concern it is that we should be able to capture him before his own fighters kill him,” the military source said as claimed by the news report.

    No Evidence That Shekau Received €5m Foreign Fund From An NGO 1Boko Haram Terrorists


    But according to HumAngle newspaper, the Director of Nigerian Army Public Relations, Sagir Musa, when contacted to verify the claim said he was not aware of either the “verified intelligence reports” or the claim that Shekau received five million euros foreign fund through an NGO in the North-East.

    The newspaper also said it searched autogist.com, the blog that the news was attributed to but could not find the story published on the blog.

    “Fact-checkers at HumAngle contacted the Director of Nigerian Army Public Relations, Sagir Musa, to confirm the veracity of the claim and he said he was not aware of either the “verified intelligence reports” or the claim that Shekau received five million euros foreign fund through an NGO in the North-East.

    “We searched autogist.com, the blog that the news was attributed to but could not find the story published on the blog. Also, no reliable medium reporting terrorism published the story. Other conflict and insurgency reporters were contacted by HumAngle but none was aware of the “verified intelligence report”.

    “As the name of the NGO was not disclosed, it became difficult to trace its operation history. 

    “However, Nigeria’s military had suspended several NGOs from operating in the North-East following allegations of collaborating with the terrorist organisation. But no NGO has ever been charged to court by the authorities and the suspended NGOs were later allowed to resume operations in the region.

    “Scholars and experts on Boko Haram have suggested different methods of terrorism financing, from state sponsorship to external support by other terror groups like ISIS and Alqa’eda. But Shekau’s faction of Boko Haram relies on self-funding streams through fishing, farming, crowdfunding, extortion, taxation, raids and ransom taking to finance its operations,” the newspaper published.

    Quoting a report on Boko Haram sources of funding, it continued, “Much of Boko Haram’s funds are transported through human cash couriers, which are able to move rather easily between the porous borders of Nigeria, Niger, Cameroon and Chad… very little evidence of either Gulf or other foreign funding exists,” a report on Boko Haram sources of funding concluded.

    “Due to the strict surveillance of monetary operations to avoid terrorist financing in Nigeria, financial regulations have forced Boko Haram to avoid remittances of funds online. Such a huge amount is not possible to be transferred without its being intercepted by international and local intelligence platforms.”

    The newspaper further said Nigeria Financial Intelligence Unit follows any suspicious transaction with the aim of curbing terrorism financing.

    “It collates information of all beneficiaries of humanitarian assistance to avert financing of terrorism through covert operations, thus making it impossible for any NGO to follow “previous channels and beneficiaries’ templates” of funding terrorism as claimed by the report.

    “Humanitarian organisations work hand in hand with EFFC Department of Special Control against Money Laundering (SCUML) to checkmate their activities to curb terrorism financing, according to Abdurrashid Ibrahim a worker at the financial unit of an NGO in the North-East.

    “Any transaction from five million naira must pass through a special control unit against money laundering (SCUML) clearance process be it for individual or corporate organisation,” he said.

    Furthermore, there is no evidence that an NGO was allowed to operate after the military discovered that “Shekau has been receiving such funding in the past” as claimed by the news.

    According to HumAngle findings, Abubakar Shekau does not operate or rely on an advisory council (Shura). 

    He is reported to be ruthless and brutal to any opposition within the group, making it unlikely for any Boko Haram commander to disagree with the leader.

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  • NRD opens all ID-related transactions by appointment during CMCO

    NRD opens all ID-related transactions by appointment during CMCO

    NRD opens all ID-related transactions by appointment during CMCO 2

    PUTRAJAYA: The National Registration Department (NRD) has opened its offices nationwide to assist the public with pending identification document (ID) transaction on an appointment basis.

    In a statement today, the NRD said most of its offices have been operating by appointment since the implementation of the Conditional Movement Control Order (CMCO) on May 4, except the offices located at urban transformation centres (UTC) and in the CMCO areas.

    “This is in line with the government’s announcement. All transactions with the NRD can be done by appointment between 8.30 am and 4 pm. Customers can set their appointments by contacting any of the NRD Customer Service offices nationwide.

    “This appointment-based service is being offered to ensure compliance of the Covid-19 preventive measures, especially in terms of social distancing,” the statement said.

    The statement also said that the NRD will also follow the strict standard operating procedure (SOP) during the CMCO, including taking necessary details of customers and their body temperature, using hand sanitizer and sanitising the counters from time to time.

    It said customers who have secured an appointment are not allowed to bring other people to keep them company during the appointment so as to ensure social distancing and minimise the number of people in the office at any one time.

    For Mykad application involving 12-year-old applicants or a wedding ceremony which requires the attendance of more than one person, they will be advised to come in a minimal number.

    “The public are advised not to walk in to the NRF office without an appointment as service can only be rendered if an appointment slot was vacated. If the transaction is not urgent and can be postponed, they are also advised to come after the MCO is lifted,” it said.

    The government’s announcement that birth registration could be made within 90 days after the end of MCO period without any penalty is still in force, hence no need for the public to rush to register births.

    Further information on the NRD services during the CMCO can be obtained at its website at www.jpn.gov.my or its official social media sites. –Bernama

    NRD opens all ID-related transactions by appointment during CMCO
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  • The War Between the Sexes – The Feminine Attitude, The Male Beauty, Men as Aesthetes and The Process of Delusion

    The War Between the Sexes – The Feminine Attitude, The Male Beauty, Men as Aesthetes and The Process of Delusion

     

    6. How Marriages are Arranged

    I have said that women are not sentimental, i.e., not prone to permit mere emotion and illusion to corrupt their estimation of a situation. The doctrine, perhaps, will raise a protest. The theory that they are is itself a favourite sentimentality; one sentimentality will be brought up to substantiate another; dog will eat dog. But an appeal to a few obvious facts will be enough to sustain my contention, despite the vast accumulation of romantic rubbish to the contrary.

    Turn, for example, to the field in which the two sexes come most constantly into conflict, and in which, as a result, their habits of mind are most clearly contrasted—to the field, to wit, of monogamous marriage. Surely no long argument is needed to demonstrate the superior competence and effectiveness of women here, and therewith their greater self-possession, their saner weighing of considerations, their higher power of resisting emotional suggestion. The very fact that marriages occur at all is a proof, indeed, that they are more cool-headed than men, and more adept in employing their intellectual resources, for it is plainly to a man’s interest to avoid marriage as long as possible, and as plainly to a woman’s interest to make a favourable marriage as soon as she can. The efforts of the two sexes are thus directed, in one of the capital concerns of life, to diametrically antagonistic ends. Which side commonly prevails? I leave the verdict to the jury. All normal men fight the thing off; some men are successful for relatively long periods; a few extraordinarily intelligent and courageous men (or perhaps lucky ones) escape altogether. But, taking one generation with another, as every one knows, the average man is duly married and the average woman gets a husband. Thus the great majority of women, in this clear-cut and endless conflict, make manifest their substantial superiority to the great majority of men.

    Not many men, worthy of the name, gain anything of net value by marriage, at least as the institution is now met with in Christendom. Even assessing its benefits at their most inflated worth, they are plainly overborne by crushing disadvantages. When a man marries it is no more than a sign that the feminine talent for persuasion and intimidation—i.e., the feminine talent for survival in a world of clashing concepts and desires, the feminine competence and intelligence—has forced him into a more or less abhorrent compromise with his own honest inclinations and best interests. Whether that compromise be a sign of his relative stupidity or of his relative cowardice it is all one: the two things, in their symptoms and effects, are almost identical. In the first case he marries because he has been clearly bowled over in a combat of wits; in the second he resigns himself to marriage as the safest form of liaison. In both cases his inherent sentimentality is the chief weapon in the hand of his opponent. It makes him cherish the fiction of his enterprise, and even of his daring, in the midst of the most crude and obvious operations against him. It makes him accept as real the bold play-acting that women always excel at, and at no time more than when stalking a man. It makes him, above all, see a glamour of romance in a transaction which, even at its best, contains almost as much gross trafficking, at bottom, as the sale of a mule.

    A man in full possession of the modest faculties that nature commonly apportions to him is at least far enough above idiocy to realize that marriage is a bargain in which he gets the worse of it, even when, in some detail or other, he makes a visible gain. He never, I believe, wants all that the thing offers and implies. He wants, at most, no more than certain parts. He may desire, let us say, a housekeeper to protect his goods and entertain his friends—but he may shrink from the thought of sharing his bathtub with anyone, and home cooking may be downright poisonous to him. He may yearn for a son to pray at his tomb—and yet suffer acutely at the mere approach of relatives-in-law. He may dream of a beautiful and complaisant mistress, less exigent and mercurial than any a bachelor may hope to discover—and stand aghast at admitting her to his bank-book, his family-tree and his secret ambitions. He may want company and not intimacy, or intimacy and not company. He may want a cook and not a partner in his business, or a partner in his business and not a cook. But in order to get the precise thing or things that he wants, he has to take a lot of other things that he doesn’t want—that no sane man, in truth, could imaginably want—and it is to the enterprise of forcing him into this almost Armenian bargain that the woman of his “choice” addresses herself. Once the game is fairly set, she searches out his weaknesses with the utmost delicacy and accuracy, and plays upon them with all her superior resources. He carries a handicap from the start. His sentimental and unintelligent belief in theories that she knows quite well are not true—e.g., the theory that she shrinks from him, and is modestly appalled by the banal carnalities of marriage itself—gives her a weapon against him which she drives home with instinctive and compelling art. The moment she discerns this sentimentality bubbling within him—that is, the moment his oafish smirks and eye rollings signify that he has achieved the intellectual disaster that is called falling in love—he is hers to do with as she will. Save for acts of God, he is forthwith as good as married.

    7. The Feminine Attitude

    This sentimentality in marriage is seldom, if ever, observed in women. For reasons that we shall examine later, they have much more to gain by the business than men, and so they are prompted by their cooler sagacity to enter upon it on the most favourable terms possible, and with the minimum admixture of disarming emotion. Men almost invariably get their mates by the process called falling in love; save among the aristocracies of the North and Latin men, the marriage of convenience is relatively rare; a hundred men marry “beneath” them to every woman who perpetrates the same folly. And what is meant by this so-called falling in love? What is meant by it is a procedure whereby a man accounts for the fact of his marriage, after feminine initiative and generalship have made it inevitable, by enshrouding it in a purple maze of romance—in brief, by setting up the doctrine that an obviously self-possessed and mammalian woman, engaged deliberately in the most important adventure of her life, and with the keenest understanding of its utmost implications, is a naive, tender, moony and almost disembodied creature, enchanted and made perfect by a passion that has stolen upon her unawares, and which she could not acknowledge, even to herself, without blushing to death. By this preposterous doctrine, the defeat and enslavement of the man is made glorious, and even gifted with a touch of flattering naughtiness. The sheer horsepower of his wooing has assailed and overcome her maiden modesty; she trembles in his arms; he has been granted a free franchise to work his wicked will upon her. Thus do the ambulant images of God cloak their shackles proudly, and divert the judicious with their boastful shouts.

    Women, it is almost needless to point out, are much more cautious about embracing the conventional hocus-pocus of the situation. They never acknowledge that they have fallen in love, as the phrase is, until the man has formally avowed the delusion, and so cut off his retreat; to do otherwise would be to bring down upon their heads the mocking and contumely of all their sisters. With them, falling in love thus appears in the light of an afterthought, or, perhaps more accurately, in the light of a contagion. The theory, it would seem, is that the love of the man, laboriously avowed, has inspired it instantly, and by some unintelligible magic; that it was non-existent until the heat of his own flames set it off. This theory, it must be acknowledged, has a certain element of fact in it. A woman seldom allows herself to be swayed by emotion while the principal business is yet afoot and its issue still in doubt; to do so would be to expose a degree of imbecility that is confined only to the half-wits of the sex. But once the man is definitely committed, she frequently unbends a bit, if only as a relief from the strain of a fixed purpose, and so, throwing off her customary inhibitions, she, indulges in the luxury of a more or less forced and mawkish sentiment. It is, however, almost unheard of for her to permit herself this relaxation before the sentimental intoxication of the man is assured. To do otherwise—that is, to confess, even post facto, to an anterior descent,—would expose her, as I have said, to the scorn of all other women. Such a confession would be an admission that emotion had got the better of her at a critical intellectual moment, and in the eyes of women, as in the eyes of the small minority of genuinely intelligent men, no treason to the higher cerebral centres could be more disgraceful.

    8. The Male Beauty

    This disdain of sentimental weakness, even in those higher reaches where it is mellowed by aesthetic sensibility, is well revealed by the fact that women are seldom bemused by mere beauty in men. Save on the stage, the handsome fellow has no appreciable advantage in amour over his more Gothic brother. In real life, indeed, he is viewed with the utmost suspicion by all women save the most stupid. In him the vanity native to his sex is seen to mount to a degree that is positively intolerable. It not only irritates by its very nature; it also throws about him a sort of unnatural armour, and so makes him resistant to the ordinary approaches. For this reason, the matrimonial enterprises of the more reflective and analytical sort of women are almost always directed to men whose lack of pulchritude makes them easier to bring down, and, what is more important still, easier to hold down. The weight of opinion among women is decidedly against the woman who falls in love with an Apollo. She is regarded, at best, as flighty creature, and at worst, as one pushing bad taste to the verge of indecency. Such weaknesses are resigned to women approaching senility, and to the more ignoble variety of women labourers. A shop girl, perhaps, may plausibly fall in love with a moving-picture actor, and a half-idiotic old widow may succumb to a youth with shoulders like the Parthenon, but no woman of poise and self-respect, even supposing her to be transiently flustered by a lovely buck, would yield to that madness for an instant, or confess it to her dearest friend. Women know how little such purely superficial values are worth. The voice of their order, the first taboo of their freemasonry, is firmly against making a sentimental debauch of the serious business of marriage.

    This disdain of the pretty fellow is often accounted for by amateur psychologists on the ground that women are anesthetic to beauty—that they lack the quick and delicate responsiveness of man. Nothing could be more absurd. Women, in point of fact, commonly have a far keener aesthetic sense than men. Beauty is more important to them; they give more thought to it; they crave more of it in their immediate surroundings. The average man, at least in England and America, takes a sort of bovine pride in his anaesthesia to the arts; he can think of them only as sources of tawdry and somewhat discreditable amusement; one seldom hears of him showing half the enthusiasm for any beautiful thing that his wife displays in the presence, of a fine fabric, an effective colour, or a graceful form, say in millinery.

    The truth is that women are resistant to so-called beauty in men for the simple and sufficient reason that such beauty is chiefly imaginary. A truly beautiful man, indeed, is as rare as a truly beautiful piece of jewelry. What men mistake for beauty in themselves is usually nothing save a certain hollow gaudiness, a revolting flashiness, the superficial splendour of a prancing animal. The most lovely moving picture actor, considered in the light of genuine aesthetic values, is no more than a piece of vulgarity; his like is to be found, not in the Uffizi gallery or among the harmonies of Brahms, but among the plush sofas, rococo clocks and hand-painted oil-paintings of a third-rate auction room. All women, save the least intelligent, penetrate this imposture with sharp eyes. They know that the human body, except for a brief time in infancy, is not a beautiful thing, but a hideous thing. Their own bodies give them no delight; it is their constant effort to disguise and conceal them; they never expose them aesthetically, but only as an act of the grossest sexual provocation. If it were advertised that a troupe of men of easy virtue were to appear half-clothed upon a public stage, exposing their chests, thighs, arms and calves, the only women who would go to the entertainment would be a few delayed adolescents, a psychopathic old maid or two, and a guard of indignant members of the parish Ladies Aid Society.

    9. Men as Aesthetes

    Men show no such sagacious apprehension of the relatively feeble loveliness of the human frame. The most effective lure that a woman can hold out to a man is the lure of what he fatuously conceives to be her beauty. This so-called beauty, of course, is almost always a pure illusion. The female body, even at its best is very defective in form; it has harsh curves and very clumsily distributed masses; compared to it the average milk-jug, or even cuspidor, is a thing of intelligent and gratifying design—in brief, an objet d’art. The fact was curiously (and humorously) display during the late war, when great numbers of women in all the belligerent countries began putting on uniforms. Instantly they appeared in public in their grotesque burlesques of the official garb of aviators, elevator boys, bus conductors, train guards, and so on, their deplorable deficiency in design was unescapably revealed. A man, save he be fat, i.e., of womanish contours, usually looks better in uniform than in mufti; the tight lines set off his figure.

    But a woman is at once given away: she look like a dumbbell run over by an express train. Below the neck by the bow and below the waist astern there are two masses that simply refuse to fit into a balanced composition. Viewed from the side, she presents an exaggerated S bisected by an imperfect straight line, and so she inevitably suggests a drunken dollar-mark. Her ordinary clothing cunningly conceals this fundamental imperfection. It swathes those impossible masses in draperies soothingly uncertain of outline. But putting her into uniform is like stripping her. Instantly all her alleged beauty vanishes.

    Moreover, it is extremely rare to find a woman who shows even the modest sightliness that her sex is theoretically capable of; it is only the rare beauty who is even tolerable. The average woman, until art comes to her aid, is ungraceful, misshapen, badly calved and crudely articulated, even for a woman. If she has a good torso, she is almost sure to be bow-legged. If she has good legs, she is almost sure to have bad teeth. If she has good teeth, she is almost sure to have scrawny hands, or muddy eyes, or hair like oakum, or no chin. A woman who meets fair tests all ’round is so uncommon that she becomes a sort of marvel, and usually gains a livelihood by exhibiting herself as such, either on the stage, in the half-world, or as the private jewel of some wealthy connoisseur.

    But this lack of genuine beauty in women lays on them no practical disadvantage in the primary business of their sex, for its effects are more than overborne by the emotional suggestibility, the herculean capacity for illusion, the almost total absence of critical sense of men. Men do not demand genuine beauty, even in the most modest doses; they are quite content with the mere appearance of beauty. That is to say, they show no talent whatever for differentiating between the artificial and the real. A film of face powder, skilfully applied, is as satisfying to them as an epidermis of damask. The hair of a dead Chinaman, artfully dressed and dyed, gives them as much delight as the authentic tresses of Venus. A false hip intrigues them as effectively as the soundest one of living fascia. A pretty frock fetches them quite as surely and securely as lovely legs, shoulders, hands or eyes. In brief, they estimate women, and hence acquire their wives, by reckoning up purely superficial aspects, which is just as intelligent as estimating an egg by purely superficial aspects. They never go behind the returns; it never occurs to them to analyze the impressions they receive. The result is that many a man, deceived by such paltry sophistications, never really sees his wife—that if, as God is supposed to see her, and as the embalmer will see her—until they have been married for years. All the tricks may be infantile and obvious, but in the face of so naive a spectator the temptation to continue practising them is irresistible. A trained nurse tells me that even when undergoing the extreme discomforts of parturition the great majority of women continue to modify their complexions with pulverized talcs, and to give thought to the arrangement of their hair. Such transparent devices, to be sure, reduce the psychologist to a sour sort of mirth, and yet it must be plain that they suffice to entrap and make fools of men, even the most discreet. I know of no man, indeed, who is wholly resistant to female beauty, and I know of no man, even among those engaged professionally by aesthetic problems, who habitually and automatically distinguishes the genuine, from the imitation. He may do it now and then; he may even preen himself upon his unusual discrimination; but given the right woman and the right stage setting, and he will be deceived almost as readily as a yokel fresh from the cabbage-field.

    10. The Process of Delusion

    Such poor fools, rolling their eyes in appraisement of such meagre female beauty as is on display in Christendom, bring to their judgments a capacity but slightly greater than that a cow would bring to the estimation of epistemologies. They are so unfitted for the business that they are even unable to agree upon its elements. Let one such man succumb to the plaster charms of some prancing miss, and all his friends will wonder what is the matter with him. No two are in accord as to which is the most beautiful woman in their own town or street. Turn six of them loose in millinery shop or the parlour of a bordello, and there will be no dispute whatsoever; each will offer the crown of love and beauty to a different girl.

    And what aesthetic deafness, dumbness and blindness thus open the way for, vanity instantly reinforces. That is to say, once a normal man has succumbed to the meretricious charms of a definite fair one (or, more accurately, once a definite fair one has marked him out and grabbed him by the nose), he defends his choice with all the heat and steadfastness appertaining to the defense of a point of the deepest honour. To tell a man flatly that his wife is not beautiful, or even that his stenographer or manicurist is not beautiful, is so harsh and intolerable an insult to his taste that even an enemy seldom ventures upon it. One would offend him far less by arguing that his wife is an idiot. One would relatively speaking, almost caress him by spitting into his eye. The ego of the male is simply unable to stomach such an affront. It is a weapon as discreditable as the poison of the Borgias.

    Thus, on humane grounds, a conspiracy of silence surrounds the delusion of female beauty, and so its victim is permitted to get quite as much delight out of it as if it were sound. The baits he swallows most are not edible and nourishing baits, but simply bright and gaudy ones. He succumbs to a pair of well-managed eyes, a graceful twist of the body, a synthetic complexion or a skilful display of ankles without giving the slightest thought to the fact that a whole woman is there, and that within the cranial cavity of the woman lies a brain, and that the idiosyncrasies of that brain are of vastly more importance than all imaginable physical stigmata combined. Those idiosyncrasies may make for amicable relations in the complex and difficult bondage called marriage; they may, on the contrary, make for joustings of a downright impossible character. But not many men, laced in the emotional maze preceding, are capable of any very clear examination of such facts. The truth is that they dodge the facts, even when they are favourable, and lay all stress upon the surrounding and concealing superficialities. The average stupid and sentimental man, if he has a noticeably sensible wife, is almost apologetic about it. The ideal of his sex is always a pretty wife, and the vanity and coquetry that so often go with prettiness are erected into charms. In other words, men play the love game so unintelligently that they often esteem a woman in proportion as she seems to disdain and make a mock of her intelligence. Women seldom, if ever, make that blunder. What they commonly value in a man is not mere showiness, whether physical or spiritual, but that compound of small capacities which makes up masculine efficiency and passes for masculine intelligence. This intelligence, at its highest, has a human value substantially equal to that of their own. In a man’s world it at least gets its definite rewards; it guarantees security, position, a livelihood; it is a commodity that is merchantable. Women thus accord it a certain respect, and esteem it in their husbands, and so seek it out.

    11. Biological Considerations

    So far as I can make out by experiments on laboratory animals and by such discreet vivisections as are possible under our laws, there is no biological necessity for the superior acumen and circumspection of women. That is to say, it does not lie in any anatomical or physiological advantage. The essential feminine machine is no better than the essential masculine machine; both are monuments to the maladroitness of a much over-praised Creator. Women, it would seem, actually have smaller brains than men, though perhaps not in proportion to weight. Their nervous responses, if anything, are a bit duller than those of men; their muscular coordinations are surely no prompter. One finds quite as many obvious botches among them; they have as many bodily blemishes; they are infested by the same microscopic parasites; their senses are as obtuse; their ears stand out as absurdly. Even assuming that their special malaises are wholly offset by the effects of alcoholism in the male, they suffer patently from the same adenoids, gastritis, cholelithiasis, nephritis, tuberculosis, carcinoma, arthritis and so on—in short, from the same disturbances of colloidal equilibrium that produce religion, delusions of grandeur, democracy, pyaemia, night sweats, the yearning to save humanity, and all other such distempers in men. They have, at bottom, the same weaknesses and appetites. They react in substantially the same way to all chemical and mechanical agents. A dose of hydrocyanic acid, administered per ora to the most sagacious woman imaginable, affects her just as swiftly and just as deleteriously as it affects a tragedian, a crossing-sweeper, or an ambassador to the Court of St. James. And once a bottle of Cote Rotie or Scharlachberger is in her, even the least emotional woman shows the same complex of sentimentalities that a man shows, and is as maudlin and idiotic as he is.

    Nay; the superior acumen and self-possession of women is not inherent in any peculiarity of their constitutions, and above all, not in any advantage of a purely physical character. Its springs are rather to be sought in a physical disadvantage—that is, in the mechanical inferiority of their frames, their relative lack of tractive capacity, their deficiency as brute engines. That deficiency, as every one knows, is partly a direct heritage from those females of the Pongo pygmaeus who were their probable fore-runners in the world; the same thing is to be observed in the females of almost all other species of mammals. But it is also partly due to the effects of use under civilization, and, above all, to what evolutionists call sexual selection. In other words, women were already measurably weaker than men at the dawn of human history, and that relative weakness has been progressively augmented in the interval by the conditions of human life. For one thing, the process of bringing forth young has become so much more exhausting as refinement has replaced savage sturdiness and callousness, and the care of them in infancy has become so much more onerous as the growth of cultural complexity has made education more intricate, that the two functions now lay vastly heavier burdens upon the strength and attention of a woman than they lay upon the strength and attention of any other female. And for another thing, the consequent disability and need of physical protection, by feeding and inflaming the already large vanity of man, have caused him to attach a concept of attractiveness to feminine weakness, so that he has come to esteem his woman, not in proportion as she is self-sufficient as a social animal but in proportion as she is dependent. In this vicious circle of influences women have been caught, and as a result their chief physical character today is their fragility. A woman cannot lift as much as a man. She cannot walk as far. She cannot exert as much mechanical energy in any other way. Even her alleged superior endurance, as Havelock Ellis has demonstrated in “Man and Woman,” is almost wholly mythical; she cannot, in point of fact, stand nearly so much hardship as a man can stand, and so the law, usually an ass, exhibits an unaccustomed accuracy of observation in its assumption that, whenever husband and wife are exposed alike to fatal suffering, say in a shipwreck, the wife dies first.

    So far we have been among platitudes. There is less of overt platitude in the doctrine that it is precisely this physical frailty that has given women their peculiar nimbleness and effectiveness on the intellectual side. Nevertheless, it is equally true. What they have done is what every healthy and elastic organism does in like case; they have sought compensation for their impotence in one field by employing their resources in another field to the utmost, and out of that constant and maximum use has come a marked enlargement of those resources. On the one hand the sum of them present in a given woman has been enormously increased by natural selection, so that every woman, so to speak, inherits a certain extra-masculine mental dexterity as a mere function of her femaleness. And on the other hand every woman, over and above this almost unescapable legacy from her actual grandmothers, also inherits admission to that traditional wisdom which constitutes the esoteric philosophy of woman as a whole. The virgin at adolescence is thus in the position of an unusually fortunate apprentice, for she is not only naturally gifted but also apprenticed to extraordinarily competent masters. While a boy at the same period is learning from his elders little more than a few empty technical tricks, a few paltry vices and a few degrading enthusiasms, his sister is under instruction in all those higher exercises of the wits that her special deficiencies make necessary to her security, and in particular in all those exercises which aim at overcoming the physical, and hence social and economic superiority of man by attacks upon his inferior capacity for clear reasoning, uncorrupted by illusion and sentimentality.

    12. Honour

    Here, it is obvious, the process of intellectual development takes colour from the Sklavenmoral, and is, in a sense, a product of it. The Jews, as Nietzsche has demonstrated, got their unusual intelligence by the same process; a contrary process is working in the case of the English and the Americans, and has begun to show itself in the case of the French and Germans. The sum of feminine wisdom that I have just mentioned—the body of feminine devices and competences that is handed down from generation to generation of women—is, in fact, made up very largely of doctrines and expedients that infallibly appear to the average sentimental man, helpless as he is before them, as cynical and immoral. He commonly puts this aversion into the theory that women have no sense of honour. The criticism, of course, is characteristically banal. Honour is a concept too tangled to be analyzed here, but it may be sufficient to point out that it is predicated upon a feeling of absolute security, and that, in that capital conflict between man and woman out of which rises most of man’s complaint of its absence—to wit, the conflict culminating in marriage, already described—the security of the woman is not something that is in actual being, but something that she is striving with all arms to attain. In such a conflict it must be manifest that honor can have no place. An animal fighting for its very existence uses all possible means of offence and defence, however foul. Even man, for all his boasting about honor, seldom displays it when he has anything of the first value at hazard. He is honorable, perhaps, in gambling, for gambling is a mere vice, but it is quite unusual for him to be honorable in business, for business is bread and butter. He is honorable (so long as the stake is trivial) in his sports, but he seldom permits honor to interfere with his perjuries in a lawsuit, or with hitting below the belt in any other sort of combat that is in earnest. The history of all his wars is a history of mutual allegations of dishonorable practices, and such allegations are nearly always well grounded. The best imitation of honor that he ever actually achieves in them is a highly self-conscious sentimentality which prompts him to be humane to the opponent who has been wounded, or disarmed, or otherwise made innocuous. Even here his so-called honor is little more than a form of playacting, both maudlin and dishonest. In the actual death-struggle he invariably bites.

    Perhaps one of the chief charms of woman lies precisely in the fact that they are dishonorable, i.e., that they are relatively uncivilized. In the midst of all the puerile repressions and inhibitions that hedge them round, they continue to show a gipsy spirit. No genuine woman ever gives a hoot for law if law happens to stand in the way of her private interest. She is essentially an outlaw, a rebel, what H. G. Wells calls a nomad. The boons of civilization are so noisily cried up by sentimentalists that we are all apt to overlook its disadvantages. Intrinsically, it is a mere device for regimenting men. Its perfect symbol is the goose-step. The most civilized man is simply that man who has been most successful in caging and harnessing his honest and natural instincts-that is, the man who has done most cruel violence to his own ego in the interest of the commonweal. The value of this commonweal is always overestimated. What is it at bottom? Simply the greatest good to the greatest number—of petty rogues, ignoramuses and poltroons.

    The capacity for submitting to and prospering comfortably under this cheese-monger’s civilization is far more marked in men than in women, and far more in inferior men than in men of the higher categories. It must be obvious to even so pathetic an ass as a university professor of history that very few of the genuinely first-rate men of the race have been, wholly civilized, in the sense that the term is employed in newspapers and in the pulpit. Think of Caesar, Bonaparte, Luther, Frederick the Great, Cromwell, Barbarossa, Innocent III, Bolivar, Hannibal, Alexander, and to come down to our own time, Grant, Stonewall Jackson, Bismarck, Wagner, Garibaldi and Cecil Rhodes.

    13. Women and the Emotions

    The fact that women have a greater capacity than men for controlling and concealing their emotions is not an indication that they are more civilized, but a proof that they are less civilized. This capacity, so rare today, and withal so valuable and worthy of respect, is a characteristic of savages, not of civilized men, and its loss is one of the penalties that the race has paid for the tawdry boon of civilization. Your true savage, reserved, dignified, and courteous, knows how to mask his feelings, even in the face of the most desperate assault upon them; your civilized man is forever yielding to them. Civilization, in fact, grows more and more maudlin and hysterical; especially under democracy it tends to degenerate into a mere combat of crazes; the whole aim of practical politics is to keep the populace alarmed (and hence clamorous to be led to safety) by an endless series of hobgoblins, most of them imaginary. Wars are no longer waged by the will of superior men, capable of judging dispassionately and intelligently the causes behind them and the effects flowing out of them. They are now begun by first throwing a mob into a panic; they are ended only when it has spent its ferine fury. Here the effect of civilization has been to reduce the noblest of the arts, once the repository of an exalted etiquette and the chosen avocation of the very best men of the race, to the level of a riot of peasants. All the wars of Christendom are now disgusting and degrading; the conduct of them has passed out of the hands of nobles and knights and into the hands of mob-orators, money-lenders, and atrocity-mongers. To recreate one’s self with war in the grand manner, as Prince Eugene, Marlborough and the Old Dessauer knew it, one must now go among barbarian peoples.

    Women are nearly always against war in modern times, for the reasons brought forward to justify it are usually either transparently dishonest or childishly sentimental, and hence provoke their scorn. But once the business is begun, they commonly favour its conduct outrance, and are thus in accord with the theory of the great captains of more spacious days. In Germany, during the late war, the protests against the Schrecklichkeit practised by the imperial army and navy did not come from women, but from sentimental men; in England and the United States there is no record that any woman ever raised her voice against the blockade which destroyed hundreds of thousands of German children. I was on both sides of the bloody chasm during the war, and I cannot recall meeting a single woman who subscribed to the puerile doctrine that, in so vast a combat between nations, there could still be categories of non-combatants, with a right of asylum on armed ships and in garrisoned towns. This imbecility was maintained only by men, large numbers of whom simultaneously took part in wholesale massacres of such non-combatants. The women were superior to such hypocrisy. They recognized the nature of modern war instantly and accurately, and advocated no disingenuous efforts to conceal it.

    14. Pseudo-Anaesthesia

    The feminine talent for concealing emotion is probably largely responsible for the common masculine belief that women are devoid of passion, and contemplate its manifestations in the male with something akin to trembling. Here the talent itself is helped out by the fact that very few masculine observers, on the occasions when they give attention to the matter, are in a state of mind conducive to exact observation. The truth is, of course, that there is absolutely no reason to believe that the normal woman is passionless, or that the minority of women who unquestionably are is of formidable dimensions. To be sure, the peculiar vanity of men, particularly in the Northern countries, makes them place a high value upon the virginal type of woman, and so this type tends to grow more common by sexual selection, but despite that fact, it has by no means superseded the normal type, so realistically described by the theologians and publicists of the Middle Ages. It would, however, be rash to assert that this long continued sexual selection has not made itself felt, even in the normal type. Its chief effect, perhaps, is to make it measurably easier for a woman to conquer and conceal emotion than it is for a man. But this is a mere reinforcement of a native quality or, at all events, a quality long antedating the rise of the curious preference just mentioned. That preference obviously owes its origin to the concept of private property and is most evident in those countries in which the largest proportion of males are property owners, i.e., in which the property-owning caste reaches down into the lowest conceivable strata of bounders and ignoramuses. The low-caste man is never quite sure of his wife unless he is convinced that she is entirely devoid of amorous susceptibility. Thus he grows uneasy whenever she shows any sign of responding in kind to his own elephantine emotions, and is apt to be suspicious of even so trivial a thing as a hearty response to a connubial kiss. If he could manage to rid himself of such suspicions, there would be less public gabble about anesthetic wives, and fewer books written by quacks with sure cures for them, and a good deal less cold-mutton formalism and boredom at the domestic hearth.

    I have a feeling that the husband of this sort—he is very common in the United States, and almost as common among the middle classes of England, Germany and Scandinavia—does himself a serious disservice, and that he is uneasily conscious of it. Having got himself a wife to his austere taste, he finds that she is rather depressing—that his vanity is almost as painfully damaged by her emotional inertness as it would have been by a too provocative and hedonistic spirit. For the thing that chiefly delights a man, when some woman has gone through the solemn buffoonery of yielding to his great love, is the sharp and flattering contrast between her reserve in the presence of other men and her enchanting complaisance in the presence of himself. Here his vanity is enormously tickled. To the world in general she seems remote and unapproachable; to him she is docile, fluttering, gurgling, even a bit abandoned. It is as if some great magnifico male, some inordinate czar or kaiser, should step down from the throne to play dominoes with him behind the door. The greater the contrast between the lady’s two fronts, the greater his satisfaction-up to, of course, the point where his suspicions are aroused. Let her diminish that contrast ever so little on the public side—by smiling at a handsome actor, by saying a word too many to an attentive head-waiter, by holding the hand of the rector of the parish, by winking amiably at his brother or at her sister’s husband—and at once the poor fellow begins to look for clandestine notes, to employ private inquiry agents, and to scrutinize the eyes, ears, noses and hair of his children with shameful doubts. This explains many domestic catastrophes.

    15. Mythical Anthropophagi

    The man-hating woman, like the cold woman, is largely imaginary. One often encounters references to her in literature, but who has ever met her in real life? As for me, I doubt that such a monster has ever actually existed. There are, of course, women who spend a great deal of time denouncing and reviling men, but these are certainly not genuine man-haters; they are simply women who have done their utmost to snare men, and failed. Of such sort are the majority of inflammatory suffragettes of the sex-hygiene and birth-control species. The rigid limitation of offspring, in fact, is chiefly advocated by women who run no more risk of having unwilling motherhood forced upon them than so many mummies of the Tenth Dynasty. All their unhealthy interest in such noisome matters has behind it merely a subconscious yearning to attract the attention of men, who are supposed to be partial to enterprises that are difficult or forbidden. But certainly the enterprise of dissuading such a propagandist from her gospel would not be difficult, and I know of no law forbidding it.

    I’ll begin to believe in the man-hater the day I am introduced to a woman who has definitely and finally refused a chance of marriage to a man who is of her own station in life, able to support her, unafflicted by any loathsome disease, and of reasonably decent aspect and manners—in brief a man who is thoroughly eligible. I doubt that any such woman breathes the air of Christendom. Whenever one comes to confidential terms with an unmarried woman, of course, she favours one with a long chronicle of the men she has refused to marry, greatly to their grief. But unsentimental cross-examination, at least in my experience, always develops the fact that every one of these suffered from some obvious and intolerable disqualification. Either he had a wife already and was vague about his ability to get rid of her, or he was drunk when he was brought to his proposal and repudiated it or forgot it the next day, or he was a bankrupt, or he was old and decrepit, or he was young and plainly idiotic, or he had diabetes or a bad heart, or his relatives were impossible, or he believed in spiritualism, or democracy, or the Baconian theory, or some other such nonsense. Restricting the thing to men palpably eligible, I believe thoroughly that no sane woman has ever actually muffed a chance. Now and then, perhaps, a miraculously fortunate girl has two victims on the mat simultaneously, and has to lose one. But they are seldom, if ever, both good chances; one is nearly always a duffer, thrown in in the telling to make the bourgeoisie marvel.

    16. A Conspiracy of Silence

    The reason why all this has to be stated here is simply that women, who could state it much better, have almost unanimously refrained from discussing such matters at all. One finds, indeed, a sort of general conspiracy, infinitely alert and jealous, against the publication of the esoteric wisdom of the sex, and even against the acknowledgment that any such body of erudition exists at all. Men, having more vanity and less discretion, area good deal less cautious. There is, in fact, a whole literature of masculine babbling, ranging from Machiavelli’s appalling confession of political theory to the egoistic confidences of such men as Nietzsche, Jean-Jacques Rousseau, Casanova, Max Stirner, Benvenuto Cellini, Napoleon Bonaparte and Lord Chesterfield. But it is very rarely that a Marie Bashkirtsev or Margot Asquith lets down the veils which conceal the acroamatic doctrine of the other sex. It is transmitted from mother to daughter, so to speak, behind the door. One observes its practical workings, but hears little about its principles. The causes of this secrecy are obvious. Women, in the last analysis, can prevail against men in the great struggle for power and security only by keeping them disarmed, and, in the main, unwarned. In a pitched battle, with the devil taking the hindmost, their physical and economic inferiority would inevitably bring them to disaster. Thus they have to apply their peculiar talents warily, and with due regard to the danger of arousing the foe. He must be attached without any formal challenge, and even without any suspicion of challenge. This strategy lies at the heart of what Nietzsche called the slave morality—in brief, a morality based upon a concealment of egoistic purpose, a code of ethics having for its foremost character a bold denial of its actual aim.

    Extract from IN DEFENSE OF WOMEN by H. L. Mencken

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