Do distressed sales end up costing you more in the long run?
So, when is a low priced acquisition really a good deal? Just like the residential real estate industry, some sector valuations are being indirectly influenced by ‘distressed’ sales. Unfortunately, a number of buyers only see a great price and fail to factor in the additional investment required to turn around a failing company, or lose sight of the fact that a good portion of the value they sought has already been lost, never to be recovered - like exceptional employees who have already moved on, or customers that have sought out replacement products.
Posted by MarshallWarwaruk, Vice President on 20 January 2010
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