Should CEOs be Chairmen?
15 years ago
Thursday, October 30, 2008
Mergers and Acquisitions
I thought I would share this article with everyone. Apparently GM is going to have cashflow problems and needs to do something. I also thought it was appropriate to share with everyone considering they are buying an existing business. It could be a joint venture or complete buyout. The deal is quite complicated but it shows how complicate purchasing or creating a joint venture can be, especially if you are trying to expand. Reminds me of rapid growth problems. The article is here http://www.msnbc.msn.com/id/27457578/
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2 comments:
Wow, could that be anymore confusing? I think that the main thing I got out of that article is that a lot of people would lose jobs and maybe for no reason. I believe that GM needs to exploe other options. Like the article said this is only one possible fix. I wouldn't want to know that tax payers money from the bailout is going to help put people who need the employment out of work.
Basically, GM wants to borrow money to get money now (almost like a short term loan). However they won't pay it back fast, if ever. They will just chop up the other company and sell off its assets. Freeing up more cash, I can see them phasing out the whole division, if purchased.
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