jeudi 7 janvier 2016

Purchase competition?

I've had this question on my mind, I thought I'd share.

You manufacture propellers for boats. You've been in business for 20+ years, you have a very solid business and so has one of your competition (who is located in another state). The difference between the two of you is you make a four blade propeller and they make a six blade propeller. You find out their facility experienced a flood and the owner wants to take the insurance money and retire, he wants to sell what is left of his business. I realize there are many variables involved, but let's say you don't see any of them as a problem (financing, logistics, etc). My question is, would you purchase this business (which has a good name in the industry) with it's customer base? Or do you chance they completely go out of business making one less competition? And you may or may not pick up some of their customers?

What would you do and why?


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