Bulked-up Symantec eyes new conquests

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Beware of serial acquistors

It's usually an indication of one or more of the following (all bad):

1. They're trying to draw attention away from internal problems.

2. They've lost the desire or ability to create anything new or significantly improve their existing products with internal talent(better to buy than invent).

3. They can't attract new customers, so they try to buy them instead.

4. They're looking for cash cows they can milk to death for little or no effort (customer beware!).

5. They've lost their focus and are trying to be all things to all people.

In addition, buyouts are usually done with borrowed money, which has to be paid back with interest and the rates tend to be high (ever heard of junk bonds?). That's money that is not available to pay employees and/or stockholders or to improve the product. I don't see occasional acquisitions as a problem, but I wouldn't invest a penny in a corporation that's constantly looking for new companies to buy.

Posted by: John L. Ries   Posted on: 12/16/04 You are currently: a Guest | Members login | Terms of Use

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