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<p>[QUOTE=&quot;medoraman, post: 1277183, member: 26302&quot;]Very true. I will look long and hard at an acquiring company since many times its a poor decision being made. I have sold stock based on acquisition announcements, buying the firm being acquired and selling the acquiring firm.</p><p><br /></p><p>Yes, some empire building goes on, but also justification of purchase price usually assumes a lot more cost savings that ever materialize. I have seen very successful acquisitions, (Ebay of Paypal), and very poor ones, (Ebay of Skype). One thing that is hard for the general public to see, is the value of buying out a competitor. Many times the best way to improve margins is to buy the cheapest competition. On the surface it may appear the purchase was unsuccessful, but if it weren&#039;t for the acquisition profits at the parent firm would not be as high as they currently are.</p><p><br /></p><p>Chris[/QUOTE]</p><p><br /></p>

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