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Author: ECOaccount Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 558  
Subject: Re: Valuation Date: 7/28/2001 3:40 AM
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I feel that organic growth is always better. There is none of the problems that can be asociated with growth through acquisitions.

Such as:
1.)Administrative, managerial, manufacturing, etc. redundancies

2.)Over-payment of goodwill and/or other intangible assets

3.)Unsuccessful integration of products and/or services

4.)Lack of innovation(Breeds laziness on part of management in
finding new and creative directions for growth).

5.)Also...You tend to inherit the culture of company being acquired,
thereby diverting energies from management that could be used on
productive issues, to focus on staff acclimation(To new culture).

6.)I am sure we can go on and on with these problems,but I am getting
tired.....

7.)Oh yes, 1 more before I go....As the company grows larger(through acquisitions)each subsequent acquisition needs to be that much larger in order to sustain a historical growth rate....Herein lies a fundamental problem with inorganic growth, it's eventual unsustainability.


Good night,will continue after I get a nap.....


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