I think we have looked at the recently acquired business model issue before and there is some merit in the way SGH undertook expansion via this model. By acquiring existing law businesses and bringing them under the SGH banner makes sense as it immediately gives them a presence and foot print in new growth areas. The risk is over paying for the new businesses and growing too rapidly , eg taking on more debt for purchases before establishing positive cash flow from new acquisitions. This model has been used successfully buy many other companies including GXL and RFG.
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