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REDDIT

Why would a conglomerate status lower the value of a business?

B
Dec 9, 2025 · 14:32

Why would a conglomerate status lower the value of a business? I thought investors loved economies of scale, synergies etc?

*"The decision to sell two of its four main businesses to alleviate investors' concerns over the perception that Smiths is undervalued because it was a conglomerate"* (The Times, UK, week 1st Dec25) re: break-up of Smiths Group