M&A will not help selling snake oil
Many financial freaks and fraudsters tried to pass themselves as financial genius by scrambling for more M&A to grow their sick companies. They tried to acquire or merge with other presumingly better managed and viable companies by using their cash hoards. In the short term it looks good on paper that the company is so much bigger and with more products or services available, and more sources of income.
The problem is that what is real is real and what is snake oil is still snake oil. Companies selling snake oil will see their customer base dwindle and their revenue falling daily. The customers either got fed up with the snake oil and refuse to buy anymore, or may have been poisoned and are dying or dead. Without a broad base of customers to support a company, to buy and consume its products and services, no amount of gimmicks in M&A will work or will last. What is the point of a mammoth company through M&As, offering more snake oil when there is no customer?
A rotten company selling snake oil is still a rotten company selling snake oil and will lose its customers in no time. Customers can be cheated once, twice but not thrice. Those who continue to be cheated will also ended up in the critically ill list.
Companies have to be real and sell the real stuff, the good stuff, the stuff that are of real values to their customers. Cheating customers with snake oil is like cheating themselves. The company will be run to the ground. The only survival, unfortunately, will be the snake oil sellers that come and go, peddling their snake oil as the panacea to all company ills. How long can snake oil sellers hold their bluff? It depends on the real owners of the company, the employers. If the employers are dafter than the snake oil sellers and willingly be deceived by the snake oil sellers, the bluff could be sustained for a long time as the daft owners would not know that they are being duped. By the time they worked up it would be too late.
Think Barclay, JP Morgan, think New York Stock Exchange, and many more. And when nothing is done to flush out a rotten system and getting rid of the snake oil, no amount of feedback and window dressing can help.