Entrepreneurship & Small Business

What happens when a Canadian company gets bought out by an American one?

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  • Jun 21st, 2015 5:54 pm
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[OP]
Banned
Jul 8, 2014
12 posts
2 upvotes
Toronto, ON

What happens when a Canadian company gets bought out by an American one?

What are the possible outcomes of an American company acquiring a Canadian company? Would it always end with the Canadian company getting closed down or are there other things that might happen?
6 replies
Sr. Member
User avatar
Sep 15, 2010
848 posts
417 upvotes
Kawartha Lakes
they take its patents, dismantle the company and sell off anything of value....and "retire" the employees
[OP]
Banned
Jul 8, 2014
12 posts
2 upvotes
Toronto, ON
beaneyov wrote: they take its patents, dismantle the company and sell off anything of value....and "retire" the employees
Is that the only possible outcome or is it the most likely one? There's little to no competition between the two companies as they're in separate companies, and perhaps the buyer may benefit by being able to expand their business to Canada as well.
Deal Addict
Nov 27, 2007
3669 posts
807 upvotes
Close up shop in Canada, and move to USA or Elsewhere that is cheaper.

That is how the cookie crumbles, thank our high cost of living we created for ourselves in Canada.
Deal Fanatic
User avatar
Nov 19, 2004
9139 posts
2045 upvotes
Cambridge, ON
Been there. Hopefully it works out and they keep it going in Canada. But I definitely wouldn't expect it. So many companies taken over like this are dismantled sooner or later.
Jr. Member
Feb 23, 2010
174 posts
12 upvotes
Tim hortons has seen a growth of 10% year over year since it's purchase.
Sr. Member
Jul 10, 2005
763 posts
123 upvotes
Toronto
Canadian operations are cheap at the moment, due to currency exchange.
If the Cdn setup is operating efficiently, it may be worthwhile for the parent company to pick up customers in USA and service them from Canada.
On the other hand, if the CDN company has its own customers, and they can be serviced by a larger USA organization at a small incremental cost (economy of scale) then it's pink slips time...

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