An acquiring firm that focuses heavily on integrating a target firm, which represents a sizeable portion of its total operations, frequently sees deterioration in its own current operating performance.

Question

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Integrating a target firm can be a complex process that requires significant time, resources, and attention from the acquiring firm. During this time, the acquiring firm may experience a slowdown in its own operations due to the amount of focus and resources devoted to the integration process. Additionally, there may be difficulties in aligning the cultures and systems of the two firms, which can further impact the acquiring firm's current operating performance. Therefore, it is true that an acquiring firm that focuses heavily on integrating a target firm may see deterioration in its own current operating performance.

An Acquiring Firm That Focuses Heavily on Integrating a Target