Corporate Mergers and Acquisitions: New Game, New Goals
|20 Years Ago||Today|
|Reasons||Financial Play||Performance Jump|
|(Plants, Equipment, Inventory, etc.)||(Core Competencey, Customers, Channels, Content)|
|Pressure Points||Sequential & Staggered||Parallel & Overlapping|
|Assets||Financial (Hard Capital)||Intellectual (Soft Capital)|
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 ...