While acquisitions of privatized businesses may be attractive because of the potential for MNCs to increase their efficiency, the valuation of these businesses is generally more difficult.

Question

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Privatized businesses may have limited financial information available, making it more difficult for MNCs to accurately value these businesses. Additionally, political and regulatory risks may also affect the valuation of privatized businesses.

While Acquisitions of Privatized Businesses May Be Attractive Because of the Potential