View photos More 5. T announced plans to acquire BellSouth in a deal that was slated to give the firm even more dominance in the wireless arena.
By Lee Frederiksen, Ph. January 8, Share Mergers and acquisitions have become a popular business strategy for companies looking to expand into new markets or territories, gain a competitive edge, or acquire new technologies and skill sets. So what is the impact of all these mergers? Seeking a solution to a business problem There are essentially two kinds of mergers and acquisitions: A financial merger or acquisition is pursued, as the name implies, for financial reasons—often to pick up some quick cash or as an investment.
Download the The Visible Firm Guide Strategic mergers and acquisitions offer a solution to a different business problem.
Perhaps the acquirer is looking to grab a new product line, add some additional facilities, enter a new market, or gain expertise and intellectual property. The bottom line is a strategic merger yields value for both the acquired and the acquiring firm.
So what does a strategic merger look like? A few years back we were researching firms that received unusually high valuations.
One caught my attention. It was a smaller firm that specialized in top-secret work and had deep experience and contacts in one of the intelligence agencies. This firm was sold for an eye-popping times revenue. When we asked the acquiring firm about why they were willing to pay such sums, their reasons were perfectly clear.
The target firm offered must-have qualifications and contracts with a must-have client.
To not have these capabilities would put the acquiring firm at a significant disadvantage when competing for upcoming work. In short, they believed the long-term value for the acquiring firm was much greater than the inflated purchase price.
But when is it advantageous to proceed with an aggressive growth strategy of mergers and acquisitions, rather rely on disciplined organic growth? For example, maybe an opportunity presents itself that requires fast, decisive action.
Or maybe a competitive threat compels a defensive move to get bigger, faster. Here are five situations in which mergers and acquisitions have proven useful as a growth strategy: It is a prime opportunity for a strategic merger. Companies quickly realized they would be sidelined without the skills and experience necessary to meet the new security demand.
The firms with the requisite experience and relevant client lists suddenly found themselves strategically valuable and highly sought-after acquisition targets.
Cybersecurity, accounting, and engineering are just a few examples that immediately come to mind. The reality is, intellectual property IP is the new currency of modern business.Successful Mergers and Acquisitions| Key Drivers, Examples, Case Studies – 7 th September will be celebrated as a big day in the history of global technology industry as the merger between Dell-EMC came to fruition.
As Dell-EMC merged into one, the global technology industry cheered. Mergers and acquisitions have become a popular business strategy for companies looking to expand into new markets or territories, gain a competitive edge, or acquire new technologies and skill sets. M&As are especially popular in the professional services space with the growing wave of retiring Baby.
Mergers and Acquisitions definition- Both Mergers and acquisitions are prominent aspects of corporate strategy, corporate finance and management. The process of M&A deals on the ways of buying, selling, dividing and combining of different companies.
Nov 16, · mergers and acquisitions Blackstone to acquire $ million stake in Sona BLW, to merge it with Comstar Blackstone is in advance talks to acquire a stake in Indian auto parts maker Sona BLW Precision Forgings. • As the economy recovers, successful mergers will be those that have focused on integrating and motivating new talent—not those involving a bargain-basement approach to acquisitions.
Supporting business transformations – mergers and acquisitions Often, a CISO and security is not part of the planning process for a merger or acquisition.