Last night, over dinner, I was telling my family about Adidas' plans to buy Reebok.
Gauri, my younger daughter who is nine years old thought about what I had said and then blurted:
"I think Subway should buy Big Chill (her favourite restaurant in Khan Market, New Delhi)".
Highly amused, I asked Gauri, "Tell me three reasons why Subway and Big Chill should merge."
Gauri is highly familiar with the term "merge" because when we play Monopoly, two players often merge when they find synergies (complimentary properties, cash and properties combo etc.)
Its extremely fascinating to discuss stuff like this over the dinner table with kiddos.
Gauri thought about my question for a while and then giggled, in substance, the following reasons:
- Subway Sandwich outlets have awesome smell and if Subway merges with Big Chill, then more customers will come to eat in the merged entity;
- Big Chill makes the best desserts in the world and Subway makes the best sandwiches in the world, and therefore, if the best of both are offered under the same roof, the revenues of the combined entity will be more than the revenues of the two outlets on a stand-alone basis; and
- People who can't eat subway sandwiches (like Gauri's elder sister Garima, because she got braces installed recently) can eat the Big Chill food, while other members of the family freak out over both. So, there will be more reasons for such families to visit the combined entity.
Not bad at all!
Keep it up Gauri, you've all the hallmarks of becoming a fundoo M&A player...