value trap business

This topic has 1 reply, 2 voices, and was last updated 9 years ago by Ken Garrett.

Viewing 2 posts - 1 through 2 (of 2 total)

Author

Posts
November 11, 2016 at 5:49 am #348413
Vipin
Member
- Topics: 151
- Replies: 365
When a parent company holds the value trap business, there is a high possibility of destruction of value.

How does it destroy the value?
Thanks for the support.
November 11, 2016 at 10:22 am #348455
Ken Garrett
Keymaster
- Topics: 10
- Replies: 10660
Yes, value can be destroyed because the parent has been lured into acquiring a subsidiary it cannot provide help to. The danger is that is spends money desperately trying to improve a company that is beyond its capabilities to help.
Author

Posts

Viewing 2 posts - 1 through 2 (of 2 total)

You must be logged in to reply to this topic.