Monday, December 21, 1998
In the current financing climate, the perennial call for consolidation
is again being heard from industry pundits and consultants and financial advisors
who need to make money in fair markets or foul. But the issue is not whether
there are "too many" companies, but whether the specific needs of the individual
acquirer are fulfilled by a given transaction.
While the "big picture" people may see an over-broad universe
of companies ripe for consolidation at low prices, individual companies may
see a much narrower subset of potential acquisitions that would contribute to
the building of their businesses.