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While very true, sometimes failure/shutting down/bankruptcy is a deliberate decision as it maximizes profit elsewhere. <the latest crisis> is just an excuse to
by Atlas22 4y ago
While very true, sometimes failure/shutting down/bankruptcy is a deliberate decision as it maximizes profit elsewhere. <the latest crisis> is just an excuse to save reputation for an action a large portion of the population would view as pure greed void of morality. Its fairly common in the startup world in the form of being acquired by companies like amazon/google/microsoft and then shutting down not long after. The acquiring company gets many benefits from this including substantial realized tax losses (among many other tax opportunities), accelerated absorption of assets (or cash if they liquidate), customer relationships, and valuable employees, etc. This can be especially profitable for large companies during poor economic times as they can acquire at usually significant discounts.