5 Ways to Destroy Company Value: Poor Ownership Structures, Bad Liquidity Timing, Pointless Acquisitions, Weak Balance Sheets, and Mindless Growth
GigaOm M&A Advisor: Â “Sales Don’t Create Value. Â What You Do Creates Value.”Â
1. Opportunistic acquisitions
2. Growth for the sake of growth
3. Weak balance sheet
4. Convoluted ownership structures
5. Missing the window on a liquidity event
How does this play out in the real world?
Just look at Cisco, writes Wolf. Â OverÂ the span of 10 years, Ciscoâ€™s sales rose nearly 94 percent while its enterprise value actually declined 29 percent.
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