We published an update on this Long Idea on August 11, 2021. A copy of the associated Earnings Update report is here.
We’re often skeptical when companies make big acquisitions, and for good reason. Study after study shows that mergers and acquisitions destroy value for shareholders somewhere between 70%-90% of the time. Misaligned incentives often encourage companies to overpay for businesses on the premise of “combined synergies” that never materialize.
However, this firm has shown an ability to create value through acquisitions in its past, and we expect it to succeed with its upcoming acquisition as well.
You need a Professional Membership or higher to view all the content on this page.
Already a member?
Learn more about our research here.