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:

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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 ...

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