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The Simple Secret Behind Why Acquisitions Fail

March 27, 2019

Corporate acquisitions often fail for a simple reason: the buyer pays too much. An old Wall Street adage comes to mind: “Price is what you pay; value is what you get.” When our investment firm purchases shares of a stock, we pay a price that is within pennies of the last trade. But when a company is acquired, the purchase price is negotiated during long dinners at fine restaurants and usually goes higher than the latest stock quotation. Read more at CFO.com.