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It sounds weird, but companies trying to expand to areas they don't have experience in is nothing new. There are other unique incentives in play right now, but
by AJ007 9y ago
It sounds weird, but companies trying to expand to areas they don't have experience in is nothing new. There are other unique incentives in play right now, but they aren't particularly crazy.
Imagine your company is about to be on the ugly end of major changes to economic policy in your country. You still have access to credit, so you may consider buying another business. You want to hedge against currency risk, so you buy a company in another country whose currency you think will do ok. Also, you need a purchase that is big enough to matter and you need to do it quickly.
If the finances are right, and the business metrics of the acquired company doesn't decline too quickly you may make out pretty well.