Loading up the truck, page-3035

Very good article. Objectivity at its best.

“It is like a house of cards,” he says.

All parties involved are motivated to continue building quick revenue, including law firm executives, investment banks, advisers and shareholders.

“Obviously the person who is consolidating the industry is financially motivated to do as many acquisitions as possible,” he says.

This creates a conflict of interest and can lead to hasty acquisitions of low-quality businesses.

“The whole market falls in love with the company. And no one really cares what you buy. They say ‘keep going’,” says Mr James. “But sooner or later the music stops very often people go, ‘oh, these businesses are actually a load of rubbish and we haven’t created any value along the way’. Here comes the hangover.”