Web Bubble Unwound - Acquisitions Turn into IPOs and Startups »

Posted By korr 7 months, 3 weeks ago in Business & Finance

Prop it 2 Drop it

In a bull market, acquisition is the name of the game. Companies find themselves with cash on hand and strong sales - so the natural next step is to invest some of those profits into buying up competition and other smaller businesses that are related to the industry. So when times are good, they are really good - but when the market slows down, even small changes to revenue can lead to big losses in the company's total holdings.