Corporate Mergers and Acquisitions: New Game, New Goals

  20 Years Ago Today
Reasons Financial Play Performance Jump
Risks Over-leverage Assimilation/Integration
Targets Diverse Similar
Prizes Tangibles Intangibles
  (Plants, Equipment, Inventory, etc.) (Core Competencey, Customers, Channels, Content)
Success Factors Transactional Operational
Pressure Points Sequential & Staggered Parallel & Overlapping
Assets Financial (Hard Capital) Intellectual (Soft Capital)
Info. Technology Centralized Decentralized
Organization Functional Process-driven
Supply Shortages Over-capacity
Mandate Stabilize Exploit Instability
Market Forgiving Merciless

The Big Shift

In today’s business world the game is growth. Ramping up. Getting bigger to get better. Some companies go at it conservatively, in incremental fashion. Other outfits shoot the works. Their game plan aims at exponential growth, and that usually means mergers and acquisitions . . . growing by leaps and bounds . . . combining operations to get maximum market share, economies of scale, payback on technology investments. In other words, major upsizing, in high gear.

What’s driving this big shift toward dominating instead of ...