Diversification is good for shareholders

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Question 1: If you are planning an acquisition that is motivated by trying to acquire expertise, you are basically seeking to gain intellectual capital. What concerns would you have in structuring the deal and the post-merger integration that would be different from the concerns you would have when buying physical capital?

Question 2: Diversification is good for shareholders. So why wouldn't managers/owners acquire firms in different industries to diversify their company?

Reference no: EM132459772

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