Friday, September 21, 2007

Bookshop Acquisitions

The name says it all. Risk Capital Partners has set up a new company called Bookshop Acquisitions and it has already done what it says. That is, it has purchased the Irish and UK divisions of Borders for ten million pounds.

Do they sell books? Doesn't sound like it. They buy book shops. And then what? Sell them on for a profit? I picture a clutch of accountants hovering over ledgers, tallying figures and suggesting that the firm invest in book shops. They could as easily suggest gobbling up auto parts stores or any other widget producer.

Borders will maintain a 17% interest in the new firm, but after all, someone has to be on hand who knows how to sell books. In the end, that's where the profit comes from.

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