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Suppose that a high P/E ratio company undertakes acquisitions frequently, and usually buys companies with lower P/E ratios than itself. What should happen over the
Suppose that a high P/E ratio company undertakes acquisitions frequently, and usually buys companies with lower P/E ratios than itself. What should happen over the medium to long term to the P/E ratio of this serially acquisitive company? Is this type of serial acquisition strategy value destructive or not?
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