Diversification Acquisitions

Diversification and acquisition create value by allowing companies to expand and grow their business to the extent that there are multiple businesses operating under one unit. When businesses diversify then they have multiple streams of revenue coming back into the same company all while acquiring a bigger footprint in their given market. Diversification and acquisition destroy can destroy value for a company if there are not enough resources to diversify at the time the company is looking to expand or if they begin to obtain more assets than they have revenue to support. Thoughts on the subject?

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