The other side of Buyouts and Mergers

I always wonder why successful companies put itself on the market for sale. I mean, with over $100 million in revenues every quarter, you are doing just fine.

So, why get sold? Is it the pressures of the stockholders and Wallstreet for better performance? Is it because of fatigue that top management gives up? Is it the lure of big and quick money? I wonder.

Wasting the Brand : I’ve seen great brands killed. SSI technologies is a good example. It started off with just a single training centre in T.Nagar and then phenomenally catapulted to be a Top 10 Software major. Phenomenal growth. I’m in awe with Suresh Kalpathi, the founder CEO.

But now, there is no more SSI. Software division has been sold to Scandent. The education division merged with Aptech. So what happened to the SSI brand? Killed and Vanished.

Products get killed : When rivals merge, one of the two competing products gets killed. And that’s sad.

Employee layoffs : This is the toughest part. The uncertanity of your job when a buyout happens is torturous. I can imagine how the employees of Macromedia must be feeling now.