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Big Company Fun

2 Comments

So – there’s a BIG public company in this industry who’s name I won’t tell you but I think you can probably draw several conclusions since the story is always similar.

Recently said, Unnamed company purchased another company in our industry. That company – Unnamed company B – had a long history and excellent reputation in the rental, concert touring, and install markets.

Once the purchase was completed company A began to tear apart company B to try and justify their purchase. Unfortunately, that process also included shedding of some long term staff, not to mention the diminished morale of those who remain.

Additionally, Company A has gone through management changes, share price drops and a decreased market share. This of course has lead to finger pointing, the blame game, and a generally ugly environment within which those remaining quality employees must continue to try and thrive.

The moral of this story is this. Why in the world do big companies always find this money burning a hole in their pockets to a point where they make stupid purchases? They seem to “create” synergies in their heads, only to realize later those synergies never really existed.

In the case I speak of – my guess would be that within the next 12 months, Company A divests its once prized possession, Company B, albeit at a HUGE discount from the recent purchase price. It’s the right move – and if they do it sooner rather than later, both companies will have an opportunity to return to their once highly acclaimed and envied leading market positions. However, wait too long, and the losses will continue to mount, and the brands (especially that of the unfortunate company B) will cease to exist, at least in the minds of their once loyal following.

Marcel

Author: Marcel Fairbairn

Our expert sales team, collectively, have over 50 years experience in the sound, lighting, production and music industry.

2 thoughts on “Big Company Fun

  1. This is what happens when big ego’s among executives (especially at company A) and greed among vulture capitalists run amok.

    This “marriage” was dead from day one, talk about a mismatch in culture. It’s just a matter of time before the wizards leave for more fertile grounds and I can’t blame them.

    Disclaimer – I used to work for company A and was long time customer of company B.

    Mats

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