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Business Growth Strategies

Mergers and Acquisitions (M&A)

 

 

 

 

The role of mergers and acquisitions has evolved as a strategy tool for fast-track technology-led companies. In the current rapidly changing environment and in the era of systemic innovation, where technology is embedded in people and processes, well-planned M&A are recognized as critical to fast-track technology company success – and even survival.

 

 

 

Two Types of Acquisitions

Synergistic Acquisitions

– taking over of one established corporation by another

Venture Acquisitions

– complement or substitute for research and product development.. More

 

International Business

Issues to Consider

Development Strategies and Examples

 

 

   

The Four Main Reasons for Making an Acquisition

 

 

 

 

① To acquire complementary products, in order to broaden the line
② To acquire new markets or distribution channels

③ To acquire additional mass, and benefit from economies of scale

④ To acquire technology, to complement or replace the currently used one

  Joint Venture Venture Acquisitions Synergy 1000ventures.com Ten3 Business e-Coach: why, what, and how 2 Types of Acquisitions Benefits of Joint ventures

 

 

 

Merger synergies are great as they may give companies the needed technology, people, infrastructure, global sales, marketing and distribution opportunities. This is the reason why the majority of technology companies that go public tend to be acquired within two years after the flotation.

 

Strategic Partnerships

Getting People Issues Right in Mergers and Acquisitions

 

 

 

 

 

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.