The centre cannot hold, and things are falling apart. Or so the market maintains, judging by the brittle share prices of JSE "growth-by-acquisition" counters such as Torre Industries, Distribution & Warehousing Network (Dawn), Famous Brands, Stellar Capital Partners, Ascendis, Brait, enX Group and Anchor. Investor fretting revolves mainly around two issues: operating assets toiling in unfavourable economic conditions; and whether there has been an overpayment for assets. There is a third consideration. Will executives grasp the nettle to ensure value is salvaged for shareholders, or will value seep away through prolonged pussyfooting? Sometimes the outcomes for acquisitively assembled companies are downright nasty — remember the fate of shareholders in such illustrious businesses as Macmed Health Care, Brainware, Queensgate and MGX Holdings, to name a few that have (dis)graced the JSE over the decades. If anything, there is reinforcement of the notion that successful acquisitive cou...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.