When a parent company holds the value trap business, there is a high possibility of destruction of value.
How does it destroy the value?
Thanks for the support.
Ask the Tutor ACCA SBL
value trap business
9y ago#1Yes, value can be destroyed because the parent has been lured into acquiring a subsidiary it cannot provide help to. The danger is that is spends money desperately trying to improve a company that is beyond its capabilities to help.
Sign in to reply to this topic.