From: Brock (bhinzmann@sric-bi.com)
Date: Tue May 20 2003 - 22:04:39 EEST
KCA124@aol.com wrote:
> Why would anyone want to acquire 3D?
>
> Huge debt. Aging Products. Weakened name due to financial dealings.
The usual justification for such acquisitions are:
patent portfolio
brand name recognition
large customer base
increase in distribution channel
possible synergies from:
trimming operating costs on the administrative side
productivity improvement from an increase in morale
bigger pool of research and new product development money.
Stratasys may not feel it's worth the effort. Such mergers and
acquisitions usually have huge culture clash problems, the time spent
and costs of which are usually grossly underestimated. Stratasys may
feel its own patent and technology portfolio is plenty competitive
enough. Management of a broader portfolio and much different lines of
product may be more costly than it appears. Stratasys may feel it is on
an upward climb, so why distract the team with a big acquisition.
Neither company is that big, so maybe they could make it work, in terms
of the time and numbers of people involved. However, most big mergers,
even the ones that look good on paper, but especially those based on ego
and locker room one-upmanship, fail in their execution. The folks at
Stratasys have to decide which big challenges in life they find most
stimulating to growth and prosperity.
Brock Hinzmann
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