M&A Strategies
M&A strategies to address market
challenges include:
Rolling up existing suppliers
and customers to gain market
share;
Rolling up companies to buy
customers and enabling
technology;
Merging forces with competitors
to obtain scale;
Initiating a new business by
purchasing one with the
necessary content or elements;
Adding a new vertical category
to an existing business;
Acquiring enabling
infrastructure to support
marketplaces and the associated
supply chain.
Beware of Barriers to Success
Reasons why most mergers and
acquisitions do not deliver
expected results include:
too high aspirations from the
very beginning; companies turn
to be less compatible than had
been hoped; both the acquirer
and the acquired underestimate
the difficulty of integrating
operations and bringing together
contrasting corporate cultures;
poor
risk anticipation and management
skills; people issues are
not dealt with from the start
and left until after the deal
has been struck.
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