Last year, the Corporate Executive Board Company (CEB) made an acquisition, which it was very enthusiastic with. So far, all signs show that the acquisition isn't really adding anything to the company except for adding a badly managed business with ultra low margins to its holdings.
First, some background information: Corporate Executive Board is a consulting company that provides a variety of services to corporations and its clients include many Fortune 500 companies. The company has been growing at a pretty decent rate until recently and the investors have a lot of faith in the company, evidenced by its P/E ratio of 71. When companies reach maturity and their earnings nearly peak, they are expected to trade for...
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