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Best Buy buyout plan still a mystery

The co-founder of technology retail giant Best Buy is continuing to work on a proposal to buy back the company. He is working on a limited timeline to find the right investors to help finance the buyout, estimated to be worth about $10 billion.

As in many complex business decisions, there is more at play in the Best Buy financing deal than financial risk. A source told reporters that one of the finance firms that is most interested in backing the sale has stated that it is important for Best Buy to survive as an entity. Industry watchers note that the investment firm has put a lot of resources into retail in the past, suggesting a strong preference for that type of investment.

In addition to concerns for the company itself, the sale of Best Buy also raises some questions about the future of the business, particularly the international division. While most businesses expand to new locations in order to continue to grow and increase profits, the recently appointed CEO of Best Buy says that they are looking carefully at what the company is doing abroad.

"One of the key strategic questions is what is the purpose of being global?" he said in a recent interview. "Retailing is not necessarily a global business. Is being global or multinational a strategic advantage or is it just a collection of countries?"

While expanding to a variety of countries might not be the biggest concern for most Fairfax county businesses, the question of targeted expansion is often addressed as a part of the overall evaluation for proposed acquisitions and mergers.

Source: The Star Tribune, "Schulze's potential buyout group starts to take shape" Thomas Lee, Sept. 27, 2012

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