Motley Fool Money How Corporations are like Teenagers
Mar 31, 2020
Explore the intriguing parallels between corporate decision-making and teenage reasoning. Delve into the pitfalls of how companies often make choices similar to impulsive teens, particularly in mergers and acquisitions. Discover why many acquisitions fail to generate value and the vital need for firms to rethink their strategies. It’s a thought-provoking look at how maturity—or lack thereof—affects business decisions.
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Narrow Framing in Acquisitions
- Many companies make acquisition decisions with the same narrow focus as teenagers.
- They fixate on a single option instead of exploring alternatives, leading to poor choices.
Avoid Acquisitions
- Avoid acquiring companies, as most mergers don't create value and many even destroy it.
- This is due to narrow framing and the pressure to avoid the appearance of failure.
