If a new business is very similar to that of the acquiring firm,it adds little new to the corporation and only marginally improves performance.

Question

Quizplus · Accepted Answer

If the new business is very similar to the acquiring firm, there may be little new knowledge or expertise added to the corporation, which may limit the potential for improved performance. This is why companies often look for businesses with complementary offerings or unique capabilities to acquire.

If a New Business Is Very Similar to That of the Acquiring