You got to know when to hold ’em, know when to fold ’em, Know when to walk away and know when to run.
—Kenny Rogers, “The Gambler”
Most companies have to consider acquisitions and divestitures at different stages of development. Portfolio companies, of course, buy and sell companies as their primary business activity. Most other companies will also consider acquisitions as they grow, and they will sell assets or divisions as they optimize. Ultimately, most companies will also be faced with an opportunity to sell the entire company, and in some cases there will be little choice if shareholders like the premium being offered.
Yet, many companies do not consider acquisitions, divestures or, in particular, the ...