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> Further, you are also asking a corporation to admit that it's not as good at deploying capital as the smaller company. That's may be true but is a tough posit
by jaggederest 9y ago
> Further, you are also asking a corporation to admit that it's not as good at deploying capital as the smaller company. That's may be true but is a tough position to take.
That's literally what they're saying by acquiring though. They're saying "We could use this money internally to build a clone but your company is operating at a discount to what we can do ourselves"
And yes, certainly, capital is good either way :)
- setr 9y agoWell, its also that the target company already has a working and functional foundation, and possibly product, and has already gone through the effort of finding experts in the area, and have a bunch of employees trained to work on the system. The choice is something like $5M acquisition or $1M building it + 2 years For a large corporation, it makes sense that money is cheaper than time