
Last week I read a news story about a pharmaceutical company called Valeant. They had just announced the acquisition of an eye health company called Bausch and Lomb.
The cost of the deal: $8.7 billion dollars.
By anyone’s measure, the deal is a risk. When you plan to spend billions of dollars to buy a company, you’d better know what you’re doing.
But even though the costs are huge, the rewards are even greater. Through this deal, Valeant is expected to cut $800 million dollars in annual costs every year plus get all the revenue from the new business.
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