Does the concept of building shareholder value through the 1+1 = 3 methodology work for most companies trying to diversify?
Building shareholder value through 1+1 = 3 is concept of synergy. When a company diversifies, it ventures into new industries, Diversification could be related or totally new. Whether synergies work or not depends on how the companies have diversified. Various factors like method used to diversify, new business cultural fit with the new business, etc. If companies don't take enough care, the diversification can be a failure too. If done properly, companies realise synergies.
Does the concept of building shareholder value through the 1+1 = 3 methodology work for most...