Which of the following is NOT a significant risk when a corporation attempts to diversify by...
Which of the following is NOT a significant risk when a corporation attempts to diversify by acquiring a new venture?
a. The acquiring firm may end up in a bidding war that causes it to over-pay for the acquisition.
b. The acquiring firm may not be able to sustain the new venture's past performance.
c. The new venture may not be able to transfer its valuable capabilities to the acquiring firm.
d. The new venture may end up growing so quickly that it requires additional investment from the acquiring firm.
Homework Answers
d. The new venture may end up growing so quickly that it requires additional investment from the acquiring firm.
This is not a significant risk instead it is a benefit as the organization is in growth level that will help the business overall.
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Way” and why has this approach been so successful in
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corporate diversification strategy, identify and discuss the top
three reasons why most (50-60%) of acquisitions fail to create
shareholder value.
What are the five major components of “CEMEX
Way” and why has this approach been so successful in
post-acquisition integration?
In your opinion, what can other companies learn from
the “CEMEX Way” as a benchmark for acquisition
management?
Article:
CEMEX: Globalization "The...
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