There is something at play that many company leaders just can’t get right – acquiring other companies. Many assumingly lucrative companies were acquired and then failed.
Either there was a lack of full disclosure before the transaction, or the new owners were over confident in their ability to create astronomical profits from those companies.
A mantra I fully subscribe to is, great companies are bought, not sold.
When a company approaches you to sell their business, you must ask why they are selling. Could it be that the ship is about to sink, are they relocating, retiring, bored by their industry or do they foresee calamity.
Back in 2012 Tiger Brands acquired 63% of Dangote Flour Mills, therefore controlling the company; changed the name to Tiger Branded Consumer Goods Plc. However, the company performed poorly.
Three years later, Dangote Industries had to buy it back for a nominal $1 and took over their debts. Tiger Brands had to write off R700 million ($53 million) in loans that it granted the operation.
Denne historien er fra September 2017-utgaven av Forbes Africa.
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Denne historien er fra September 2017-utgaven av Forbes Africa.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
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