Comment by pinnochio
12 hours ago
Definitely. No company has ever overpaid for another company. No fraud or FOMO-driven overvaluation has ever occurred in an acquisition. And all acquisitions have always turned out for the best. It's all 100% pure value creation.
Definitely. And some random guy on HN knows the value of Brex to Capital One better than Capital One does.
Brex can be worth $5b today and also be worth less in the future. These two realities don’t conflict. Acquisitions can and do end poorly. But the vast majority work well. I am not sure what you don’t understand about that?
Your statement is true on average because the world’s economy is continuing to function.
Oh wow, I don't even know where to begin with that.
Like, the world economy can't continue to function even if acquisitions were only 80% value creation on average? Or does the entire world economy depend on companies acquiring other companies with 100% value creation on average, such that it continuing to function logically implies 100% average value creation?
> can't continue to function even if acquisitions were only 80% value creation on average
The number is much much lower than that. Most acquisitions fail or don't have much impact.
"functioning" is doing a lot of heavy lifting here