I worked for a company that went through two M&A’s. For the operations, the results were mixed at best. The second time, more than 300 people lost their jobs, myself included. I can see some of the owners and stakeholders making financial gains tough.
Through this course, I learned that my experience is hardly unique, as 50% or more M&A transactions are considered to be failures.
I am all for free market and capitalism, but at the end of the day, is it not cash flow generated through operations that determines the value of a business? If a small group of people make financial gains by buying and selling companies, but at the expense of the operations (including employees), are they not killing the goose that laid the golden eggs? With the attention on ESG in recent years, is this being discussed at all?