For what reason(s) does a profitable company typically allow itself to be bought out?
In: Economics
The company I work for got bought out last year. It had been owned by a husband and wife pair, who had been growing the business since the early nineties. It was – and is – making money, and has enjoyed >15% growth year-on-year for the last two decades.
So, why sell?
Well, number one, the buyers offered two billion dollars. And number two, the original founder is now elderly and his health is deteriorating.
Obviously, this is just one example, but I’m trying to illustrate the idea that it happens for any number of reasons, and they’re pretty much the same reasons that anyone sells anything: they want the money more than they want the thing they’re selling.
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