If a multinational firm fails to effectively integrate their acquisitions,this can result in
A) cost savings.
B) further acquisition.
C) expansion.
D) divestiture.

Question

Quizplus · Accepted Answer

Research shows that a majority of acquisitions of public corporations result in value destruction rather than value creation. Many large multinational firms have also failed to effectively integrate their acquisitions, paid too high a premium for the common stock of the company, or were unable to understand how the assets of the acquired firm would fit with their own lines of business.

If a Multinational Firm Fails to Effectively Integrate Their Acquisitions,this