AQUISITION REWARDS For the Dedicated Buyer: Part II

Experienced acquirers like Pfizer Inc, Cisco Systems Inc, and Newell Rubbermaid Inc have developed world-class m&a capabilities. For these companies, m&a expertise has become a competitive advantage in its own right. But what about a company that does not have deep experience in m&a or t...

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Bibliographic Details
Published inMergers and Acquisitions Vol. 39; no. 10; p. 20
Main Authors Cools, Kees, King, Kermit, Tsusaka, Miki, Neenan, Chris
Format Trade Publication Article
LanguageEnglish
Published Wilton Middle Market Information LLC 01.10.2004
Subjects
Acquisitions & mergers
Bids
Competitive advantage
Customers
Discounted cash flow
Integration
Manufacturers
Stockholders
Strategic planning
Trends
Valuation
United States > US
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Summary:Experienced acquirers like Pfizer Inc, Cisco Systems Inc, and Newell Rubbermaid Inc have developed world-class m&a capabilities. For these companies, m&a expertise has become a competitive advantage in its own right. But what about a company that does not have deep experience in m&a or that is trying to do a kind of acquisition that it's never done before? How does a company become a successful acquirer? Companies that want to pursue acquisitive growth need to develop 3 key capabilities: 1. embedding of m&a strategy in a comprehensive growth strategy, 2. development of a far more rigorous approach to the valuation and pricing of potential targets than typically takes place in most companies today, and 3. learning how to break the compromise between speed and thoroughness in postmerger integration. It is striking how frequently executives rake what is largely a reactive approach to m&a.
ISSN:0026-0010