Originally posted by ogl
One unprofitable company buys other unprofitable company to be profitable...
Interesting movie...
![Lol](https://www.pentaxforums.com/forums/images/smilies/lol.png)
We'll I'll go out on a limb and say you must not be a millionaire. And you're not doing yourself any favors holding to that wisdom.
I work for a company -- and survivor that started and fought through the internet era -- that went from being deeply un-profitable, to making un-leveraged buy-outs of other un-profitable entities until it became flat to slightly profitable. The execs then had the wherewithal [& balls] of using the incredibly cheap money available our there to making leveraged buyouts of first purchasing an un-profitable entity 3x our size, then a few years later another leveraged-buyout of an un-profitable entity that was our 2nd largest competitor now our new 4x combined size; making for an entity 8x larger than the original. ... Our company increased our revenues 15x within a few short years while through benefits from synergies and removing redundancies greatly expanding margins, by [to recap] combining several un-profitable entities. We're on-track to be paying off the few hundred million dollars of extremely cheap debt within just a few years and becoming a monster cash cow (but I don't doubt there will be another leveraged purchase before that time).
So, you just laugh at the thought of it. Me, I've backed management and it's payed off several-fold.