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Usually the acquired gains most of the boost. There's a net gain if there is an increase in market power. It's rare to get positive synergies, unless you cons
by mathattack 11y ago
Usually the acquired gains most of the boost. There's a net gain if there is an increase in market power. It's rare to get positive synergies, unless you consider layoffs a synergy.
- emodendroket 11y agoDon't most shareholders? Labor is an expense.
- mathattack 11y agoPoor wording on my part - I wasn't putting in a value judgment. By positive synergy I mean on the revenue side. "They have A sales people selling B per year on product set C. We have D sales people selling E per year on product set F. If we allow their salespeople to sell F and ours to sell C, our revenues will grow from A * B and D * E to A * (B + E) and D * (B + E)." That's a long way of saying revenue promises rarely materialize, but cost ones usually do.
- emodendroket 11y agoWell, you're right, but whether or not they do shareholders seem to behave as if they do (in the same way shareholders seem to think offshoring is a sure thing but increasingly people are finding it's not, necessarily).