askchapo

It can be if the company is buying something to add onto something they are already doing. In manufacturing industry these days, especially with the tariffs coming around, you will likely see large international conglomerates picking up large regional businesses in the U.S. Btw, this is what will end up happening if the tariffs work to actually 'bring back manufacturing', without capital merger controls, this is what it will end up looking like. Everyone is picturing the comeback of smaller local manufacturing industries, but this is the most likely 'successful' manufacturing growth scenario.

Anyways, if they come in as manufacturing conglomerates with the idea of adding additional facilities and products to your lines and expanding their product expertise to your engineers, then shit is usually good, if they come in under private equity, shit is usually bad because they are trying to turn a higher profit immediately. If people are making money and not in debt, they are usually willing to wait three to four years for facility and process maturation to occur, but if the creditors are at their heels and they are trying to turn a quick buck, shit goes south real fast.