When one company buys out another, it gives the smaller company a chance to survive. People get to keep their jobs, customers get to keep using the product.
But there are also losers. Dilbert's Law of Mergers calls for 15% to always be laid off.
Plus, there is the negative-hiring effect. (When a new business opens, economists guestimate that 2.5x more jobs are created from the added flow of $$ in the area.) There must be a similar ratio for job and $$$ losses from mergers. Here's a couple of examples:
-- magazines and other publications have one less advertiser to derive revenue from.
-- external pr firms lose a client.
-- other outsourced services, such as CD production and accounting, may lose a valued customer.
Overall, are acquisitions good or bad for the industry that surrounds the CAD business?