Most research suggests that only half of corporate acquisitions succeed in creating value for the acquiring business. As set out in the chart (click on it to enlarge the chart) a full-scale acquisition is only one way to obtain and use the assets and capabilities of other organisations. Unfortunately, many business leaders do not always consider the full range of options available, and tend to focus primarily on ‘going-it-alone’ and ‘full acquisition’.
As you look at your growth agenda and determine ways in which you can accelerate its success, review each of your initiatives against the list of these nine alternative approaches to exploiting other organisations’ skills and assets. Sit down with your team and assess the potential benefits vs. the downside risks for each of these nine options.
Once you do this you will find that few of your initiatives fall into the ‘go-it-alone’ or ‘full acquisition’ options and that, in most cases, more attractive options are available.
To find out more read Chapter 9, Accelerating Growth Through Alliances and Acquistions, from my book The CEO’s Strategy Handbook.
© Stuart Cross 2012. All rights reserved.