Before we get down to the detail of this article, let’s think about Daimler’s merger with Chrysler for 36 billion dollars. Only a few years after the merger completed, Daimler had failed to realise the expected synergies with the Chrysler business unit so negotiated a deal to sell 80% of Chrysler for 7 billion dollars. However, this didn’t represent the true capital loss. You see, due to the pay down of debt amongst other expenses, Daimler actually paid around 600 million dollars to drop Chrysler from their portfolio, a catastrophic failure by anyone’s standards.
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