Acquisition

Suppose BZCS wants to acquire another construction company which is excelled in Office Construction which has been high profitable during last years. As well as it is given that the future of the office construction sector is declining. What will be your recommendation?

I would not recommend to acquire it because past performance is not a good predictor of future performance and more particularly the prospect is declining. Since it is unsure that the target company will generate sufficient return, this is high risk, hence do not go ahead.

Action: Appoint PR Director to advise the target company of the decision.

Anything else you would add?

Great!