Musings on Markets: Acquisition Hubris: Over confident CEOs and Compliant Boards

Musings on Markets: Acquisition Hubris: Over confident CEOs and Compliant Boards.

From Damodaran

In my last post, I noted that acquisitions are more likely to destroy value for acquiring firm stockholders than to add value, and that there is little evidence that companies learn from history. That is puzzling, given the manpower, data power and model power that is brought into the acquisition process. How can all these smart people working with sophisticated models and updated data be so wrong so often?

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