How much would you pay for a company with stagnant sales, an income statement awash in red ink and a balance sheet showing more than $250 million in hidden “Goodwill” losses?
Not much, I hope, but if you’re Adecco, that number would be an astounding $1.3 billion, which it put up today for professional staffing flameout MPS. Why?
According to Adecco Chief Executive Patrick De Maeseneire, “We are delighted to have MPS Group become part of the Adecco Group, in a move that will see Adecco taking the world-wide lead in professional staffing.”
How did investors react to Maeseneire’s largesse? Adecco stock is off almost 4%, which amounts to more than $300 million in lost shareholder value based on Adecco’s market cap of $9.5 billion.
Here’s an idea, Mr. Maesenaire: tuck that $1.3 billion back in your pocket, get off your rear end and get back to core values like delivering value to clients.
And if you’ve forgotten how to sell, go hire the guy/gal at MPS who sold you on the $1.3 billion, because someone at MPS really knows how to sell.
