Girlie,

Why don't you compare similarities of the 90's with the 80's.  Also
outline the cyclical decades prior.  The current acquisition mode going
on in the 90's is similar to the early 80's but on a GRANDER scale.  The
results of such acquisitions hurt all markets in the 80's.  With this in
mind and the acquisition of the 90's @ 500%+ from the 80's, what could
the results entail.  The recent growth began early '91 forward.  Five
years prior to 1991, the market was in a huge slump.
Things to consider about the 90's.  How long will technology carry this
growth path?  How has 401K impacted this market?  With people borrowing
from their 401K's at record rates (a huge no, no in my book) how long
can the money cycle go (borrow, spend, pay, pay yourself interest,
someone borrows from your 401K)?

Traces of the 80's have presented itself slowly here in the 90's.  What
tends to cover up this OVER acquisition, is emerging markets and
technology, i.e, Internet, Telecom, Television etc.,.  Some companies
today have increased Revenues, but only through acquisitions.  Over
capacity though (using fabrication and manufacturing as an example) is
running rampant and not enough customer to fill it.  They have bought
the companies for the customer base, but some have failed miserably at
integrating several off sites into one or left them independent to do
what they do best. Buy satellite divisions to provide Value Add to your
existing customer base versus acquiring customer that would not do
business with you in the first place.

Very brief, but I can assist you further should you need it.

John Gulley
Director of Technology and Marketing
candidate Southern Methodist University Executive MBA Program, Dallas,
Texas




-----Original Message-----
From: Girlie Austria [mailto:[log in to unmask]]
Sent: Friday, September 03, 1999 10:24 PM
To: [log in to unmask]
Subject: [TN] NEED SOME INPUTS


Hey Guys,

I just want to get your opinions regarding the business trend of merging
and acquisition (acquiring of one company by the other company).  What
are
the pros and cons, benefits?

Any inputs will be highly appreciated, I just need those info on my
research as part of my MBA program.

Thanks

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