WABTEC - greedy Goliath ?
Author: Peter
Date: 01-08-2020 - 23:37
WABTEC bought out MotivePower last year. Now they just bought RELCO.
Organic growth by increase in sales is a healthy way to grow. But growth by acquisition can be a recipe for disaster. Your revenue goes up but you spend a lot of cash on the takeover and plus you take on debts of the other company.
I found a quote from a YouTube video: in 2016, Harvard Business Review said that, “typically 70% to 90% of acquisitions are abysmal failures.”
I’m kinda hoping WABTEC fails with these acquisitions. I was really sorry to see MotivePower in Boise come to an end. It was nice having a rail industry player out west.