Yeah, that has less application to what we are seeing in dive industry than you suppose.Not being mean. In a declining industry the largest players can get assets and market share very cheaply, which contrast to the market not rewarding investment in IP, product development, sales and marketing effort which is more expensive. It can be very lucrative if the purchased asset was just mismanaged, but in a declining industry that isn't enough, as some players in our industry have discovered.I am pretty sure scuba is not the only business that has acquisitions, mergers, and companies going out of business. If I want to buy a new car, I will not be buying a Packard, Hudson, Rambler, Nash, Oldsmobile, Pontiac, Saab, etc. If I sit down to discuss it with friends over a beer, we will most likely be drinking something belonging to one of the mammoth multinational firms that control almost all of the brewing market. If it gives us headaches, the remedies we seek will also be owned by huge multifaceted corporations.
Before I retired from public education, I created one of the first online schools in our state, and I co-created the state's official online education program. Upon retirement, I was hired by a small online education company to be their director of curriculum and instruction. I created the vision for the company, and we thrived. We were then purchased by a major corporation headed by the famed Michael Milken, and I was suddenly the Executive Director of Curriculum for K-12 Learning, the largest such company in the world. I went from creating much of our coursework at the desk from which I am writing now to directing teams creating each course with a budget of at least $100,000 per course.
That was good.
Unfortunately, as we grew, I lost control. My vision of a targeted market for our product was changed by executives I never met to making one product that would work for every market, which meant it could not be just right for any market. We also had to use some of the 30 or 40 other companies in our family for much of the work, and some of them just plain sucked. For example, they made us use one of their companies in India to create an Advanced Placement Art History course, and the first time I looked at what they produced, I was aghast. Not only could they not write in clear English, even with my limited knowledge of art history, I could see that much of what they wrote was simply wrong. The pictures they used were misidentified, and it would only take me a few seconds on Google to confirm that. When I talked to them about it, I realized no one in their company knew a thing about art history.
So I see the good and the bad of mergers and acquisitions, but I don't see how any of it can be controlled.
There are also a ton of reasons to do regards accounting as well depending on the corporate structure, especially if diversified. You can also paper over your fundamentals doing it for a variety of reasons, from good strategic plan, hope, prayer to crook as well.