StlSluggers wrote:I worked for 4 years in the corp fin dept of a company that bought 4 companies per year, on average. I've actually done the math on who to lay off and why - and picked up their work. The biggest reason for acquisitions are those overhead savings right there.
Yep our company does the same. We bought 3 golf courses in the last 18 months in San Diego and consolidated all the management/back office positions. Huge overhead cuts since payroll is typically your biggest expense.
I'm not sure if it would be cheaper to operate out of Belgium or in the US though with the weakened dollar. Typically it takes 3+ years for larger companies to transition.