Merger Musings

So Sears and Kmart are going to merge, hey? Let's hope they don't call the combined entity something cute.... like S-Mart.But I'm sure that has already been rejected.

Growth by acquisition or merger (political correctness favors the second, reality the first, as when GM took over Electronic Data Systems as their captive data processor) is an interesting way to grow. When the market is stagnant relative to your past performance, its a quick way to boost profits. Of course, its also a quick way to torpedo yourself -- the most recent major event of that type which I can recall is AOL and Time Warner, but I'm sure there are others.

Doing the due diligence to evaluate the prospective fit is an art, not a science -- though a comic that I saw yesterday in Funny Times put it well: three stern men in suits sitting at a table with Santa, saying 'It's a perfect fit -- you're fat and jolly and we're lean and mean'. And no matter whether the merger is successful or not, there will be fall-out as executives activate golden parachutes, and grunt level employees are shown the door.

I wish them luck. I do hope they keep the blue light special... and I rather like the Martha Stewart cookware. Martha Stewart/Craftsman tools, though...there's a synergistic thought. I can see the ad now -- "Tools With Style".
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