Purchasing Unrelated Business
If a related company starts to purchase unrelated businesses, how should it change its structure or control mechanisms to manage the acquisitions?
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When an organization acquires businesses with unrelated products, services and activities from its existing businesses, it might need to consider restructuring its organization to a holding entity. This holding entity is then tasked to manage the operations of its various and varied activities. This reorganization allows for the different entities comprising the organization to have their own vision, mission, objectives and goals as it is impossible for an organization which is composed of unrelated businesses to synchronize ...
Solution Summary
The changes a company should go through when they purchase unrelated businesses are outlined.