Acquisition Question
Hi guys,
I had a quick question regarding the 'rationalisation' of an acquisition. Unfortunately I don't have any M&A experience and couldn't find anything online on this topic, so I was hoping some of you might be able to help me understand based on your experiences in the industry.
For example, let's say Company A is acquiring Company B. Company A owns a number of high end clothing brands (think Ralph Lauren, etc.), one of which has a small store presence (~80 stores) which sells a number of brands, while Company B operates in a similar business but has a larger number of stores primarily selling lower cost brands (~800 stores), also selling some of Company A's brands already.
Company C (~800 stores) is a large competitor of Company B and their stores are typically quite closely located.
Obviously all brands have their own e-commerce presences as well.
How would we begin to understand if there is an opportunity for rationalisation of a combined store network where Company A is acquiring Company B?
I was thinking of maybe looking at the distance between stores, the population within the region the stores are located, the gross disposable income per head in the region. Am I completely on the wrong track?
Any help or insight at all would be hugely appreciated!
Thanks.
Comment to avoid glitch.
Bump.
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