THE FINANCE GHOST: Sorbet may be a sweet deal for Clicks

  • 📰 FinancialMail
  • ⏱ Reading Time:
  • 45 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 21%
  • Publisher: 63%

Ireland News News

This is a classic ‘bolt-on’ acquisition that, for a pricey company that some call ex-growth, could be a really smart strategic shift

The word “platform” gets thrown around a lot these days. There are applications beyond the world of technology, though in its purest form I still think of a platform as being something like Apple’s iOS or Microsoft’s Office ecosystem.

When you have an empty space in your house, there’s an opportunity to fill it with something. If it’s an entirely new room, then this might be an acquisition in a new market. Once you’ve filled it with a display cabinet or shelving, you’ve executed the equivalent of a corporate acquisition. As you decorate around that piece of furniture, you’re “adding bolt-ons” to your “platform” that you’ve proudly created.

After all, which is harder — choosing the display cabinet for the wall or a pot plant to go on it? Exactly. Part of the challenge is the pressure to keep growing. If growth stops, a listed company will be valued like an inflation-linked bond at best. In other words, investors will value it based on a high dividend yield, which inevitably means a modest share price. Corporate executives don’t get paid to sit on their hands and watch a share price fall over.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 20. in İE

Ireland Ireland Latest News, Ireland Ireland Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

NICHOLAS SHUBITZ: Austerity versus saving the poor: new initiatives in development financeThe world is gradually turning from Western finance towards more just alternatives such as Brics
Source: BDliveSA - 🏆 12. / 63 Read more »

International Finance: Fugitive South African CEO ordered to pay $3.4bn in record fraud case involving BitcoinA US judge has ordered a South African executive to pay more than $3.4-billion (R62.3-billion) in restitution and fines for a fraud scheme involving Bitcoin — the highest-ever civil monetary penalty in any US Commodity Futures Trading Commission case.
Source: dailymaverick - 🏆 3. / 84 Read more »