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There may be a correlation but you can make the argument that the cause runs the other way. You imply that the acquisition causes the failure - but another read
by bradleybuda 3y ago
There may be a correlation but you can make the argument that the cause runs the other way. You imply that the acquisition causes the failure - but another read would be that failing businesses are put up for sale (insiders see the failure first) and the acquirer is left with the shutdown.
The idea of an employee buyback leading to success (we'll see!) would, of course, lend credence to your causal theory.
- NoMoreNicksLeft 3y agoOn top of that, employees are more likely to be in denial and will chase the sunk cost for years.
- jacquesm 3y agoThis is a very good point, there are multiple ways to look at this. One of the bigger (and harder) questions to answer in the run-up to a DD is whether or not the reason for the seller to sell is the stated one.
- wahnfrieden 3y agotho you talk about it like an alien event / debate contest, mismanaged takeovers that end the company are common enough, incl from japan acquisitions and in that industry