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I think the main calculus is around estimating future profits. Do they make a profit? Is it a crowded space? Is the market space growing? What assets do they ha

I think the main calculus is around estimating future profits. Do they make a profit? Is it a crowded space? Is the market space growing? What assets do they have? People, land, factories, or intellectual IP? Etc etc. I don’t know the details of either deal but it’s easy to imagine a case where Craftsman tools is just a brand in a crowded market with no special sauce. For example Sears never even made the tools, they outsourced it. Also it sold for 900m, 500m was the initial payment.

tombert 2y ago
> Also it sold for 900m, 500m was the initial payment. Yep, you're definitely right, I misread. Still less than a billion. > I think the main calculus is around estimating future profits. Do they make a profit? Is it a crowded space? Is the market space growing? What assets do they have? People, land, factories, or intellectual IP? Etc etc. Yeah I guess that makes enough sense, though I have to admit that sometimes it feels kind of removed from reality sometimes.