Quoted: Hart Posen is an expert on business strategy at the University of Wisconsin-Madison’s School of Business. He said he was surprised to see Kohl’s move forward with Franchise Group, Inc. because the holding company runs such a different set of retail businesses.
“There are two reasons one firm acquires another firm. One reason is they believe that the firm’s assets are undervalued, they think they’re getting a good deal on it,” Posen said. “More often than not what we would like to see in these situations is what we would call a strategic buyer — a buyer that brings specific assets or knowledge or expertise to bear — that we believe may add value within Kohl’s. And it’s not at all clear to me that this buyer is a strategic buyer in that sense.”