Edit post

Edit your reply below.

Post Body
Enter your post below.
All industries tend to consolidate over time. There are efficiencies associated with being bigger--particularly as manufacturing moves overseas. The smaller businesses will not be able to compete. [quote]QUOTE: While it is true that Corporate America is always looking for business to buy, they do not always look for a good fit. In fact some corporations go on a buying spree only to run succesful businesses into the ground. Think about Lionel during the General Mills era or what happened to Burma-Shave when they sold out. [/quote] The acquisitions of today are more synergistic than when General Mills bought out Lionel. In the 1960s & 1970's the Wall Street darlings were conglomerates who owned a lot of different companies in multiple industries. The idea was that over the long term there wouold be more balanced growth--less vulnerability to economic cycles. These companies were taken apart in the 1980's because they lacked commercial synergy. The acquisitions of today are made by people who undersdtand the business and can wring out duplicative costs.
Tags (Optional)
Tags are keywords that get attached to your post. They are used to categorize your submission and make it easier to search for. To add tags to your post type a tag into the box below and click the "Add Tag" button.
Add Tag

Update Reply

Login, or register today to interact in our online community, comment on articles, receive our newsletter, manage your account online and more!

Model Railroader Newsletter See all

Sign up for our FREE e-newsletter and get model railroad news in your inbox!