11. Company Buyouts: For What it’s Worth
If a company keeps posting impressive returns, or its assets are underpriced, eventually even Wall Street will figure it out. This is where buyouts come from.
Here is a list of the 24 Burkenroad companies that have been bought out since we started in 1993:
We don’t focus on companies we think will be bought out. We focus on strong, well-run companies selling at attractive valuations. These just happen to be the characteristics of companies that attract suitors.
And I’d be remiss if I didn’t note that many academic studies show that most mergers don’t work out as well as expected. The newlywed companies ...