I think the main calculus is around estimating future profits. Do they make a profit? Is it a crowded space? Is the market space growing? What assets do they have? People, land, factories, or intellectual IP? Etc etc.
I don’t know the details of either deal but it’s easy to imagine a case where Craftsman tools is just a brand in a crowded market with no special sauce. For example Sears never even made the tools, they outsourced it. Also it sold for 900m, 500m was the initial payment.
> Also it sold for 900m, 500m was the initial payment.
Yep, you're definitely right, I misread. Still less than a billion.
> I think the main calculus is around estimating future profits. Do they make a profit? Is it a crowded space? Is the market space growing? What assets do they have? People, land, factories, or intellectual IP? Etc etc.
Yeah I guess that makes enough sense, though I have to admit that sometimes it feels kind of removed from reality sometimes.
I don’t know the details of either deal but it’s easy to imagine a case where Craftsman tools is just a brand in a crowded market with no special sauce. For example Sears never even made the tools, they outsourced it. Also it sold for 900m, 500m was the initial payment.