If I said I know someone who bought a company nine years ago and never sold for a loss of 80%, you probably think that I was describing a person who does not have an inch on business sense.
But it would be wrong because that’s exactly what Mercedes-Benz a few days ago, when they unload Chrysler. Here’s what happened, as Mark Landler May 14 in a divorce on economic enterprises, in his article in The New York Times:
“The price of freedom for the soon-renamed Daimler AG is $ 677 million in cash – the Out-of-pocket-expense in the $ 7.4 billion transaction – Chrysler to Cerberus, for his hands. It is approximately $ 18 billion redundancies in health care and pensions. For a merger, if a value of $ 36 billion, it was a humiliation Comedown. ”
The article states that Mercedes is much more than $ 36 billion paid for Chrysler in 1998. If you have the money expenditure on the improvement and restructuring of Chrysler, they are actually paid $ 60 billion.
“Buy a business, you can not” is a lesson to know this story. But I’m going to be another perspective on the Chrysler-Mercedes Split:
Business is the wrong man has enormous purchasing power
Chrysler is not alone in the world, you can now for 20% of what it was worth only a few years ago. Are experienced and hone your skills, you will find offers of smaller companies.
I can imagine that, like me, you have us a company and I thought: “They are so poorly this company, how they manage more and more to stay in business?”
But have you realized that this great company can earn? They are survival, even if poorly managed. Simply by managing and – for better service or sales strategy, more, or any other right – you can probably increase profits quickly.
Buying a company, the bad, but still survive, may be counterintuitive for a company to buy – but it makes much sense. It is also one of the strategies we’ve discovered in my Trump University Course, The art of buying a business.
RSS feed for comments on this post · TrackBack URI
Leave a reply