Why Do Companies Pursue Conglomerate Acquisitions?
Companies often pursue conglomerate acquisitions for several reasons:
Diversification: By entering unrelated industries, companies can mitigate risks associated with market fluctuations in their core business. Growth: It provides an avenue for growth when opportunities within the existing industry are limited. Economies of Scope: Companies can leverage shared administrative resources and expertise across different industries. Financial Stability: Diversified revenue streams can lead to more stable financial performance.