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Strategic
acquisitions (ST 7)
The great leap forward
An acquisition could increase the size
and profitability of your business overnight. It might enable you to take
advantage of new economies of scale, or diversify into new areas. You
might be able to acquire a bigger and better customer base, or strengthen
your management team.
But an acquisition can also bring problems, draining financial and management
resources from your original business.
You need to work out whether the acquisition will add value to your business,
after making realistic allowances for all the hidden costs.
This briefing covers:
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