When analyzing a company that diversifies by acquiring


When analyzing a company that diversifies by acquiring another firm, we consider that diversification related if:

a. The acquiring company and the target company are both operating in the same product market segment

b. The acquiring company and the target company are both operating in the same geographic area

c. The target has several capabilities that are valuable, rare and inimitable

d. The existing capabilities of the acquiring company are critically important in achieving success in the industry of the target company

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Business Management: When analyzing a company that diversifies by acquiring
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