Business alliances

Technology drivers
Building alliances
US CEOs more open to business alliances, ways to work together

 
James R. Verrier,
CEO, BorgWarner Inc.
Alliances are becoming core to strategy in a time when innovation capacity will determine future growth prospects and even relevance for many of today’s mainstream business.
Becoming the partner of choice

Joint ventures and business alliances are becoming more prevalent as businesses seek new ways of collaboration to accelerate growth and to capture innovative technologies even faster. So what specifically can make an alliance today hard to do, or at least harder than some CEOs expected?

 
John Hayes,
Ball Corp.
More US CEOs seek strategic alliances than are able to find them
Connect with our leaders
John Potter
Partner, Deals
Tel: +1 (612) 596 4900
Nigel Smith
Principal, Deals
Tel: +1 (646) 471 2651

 
Gary J. Goldberg,
CEO, Newmont Mining Corporation
M&A outlook for 2014

As more business leaders grow comfortable with their positioning for changing markets, deal flow could well follow. In 2014, industry sectors most dependent on technology-driven convergence continue to be ripe for acquisition activity, especially as organizations look beyond their core competencies in adjacent markets.

Acquisition strategies are ripe for change: 57% of US CEOs would like to or have plans to change M&A approaches as they look to reinvent capabilities across a number of functions.

CEO perspectives


Roger Wood,
CEO of automotive supplier Dana Holding Corporation.
Watch the video

“We have to understand what is happening. And in many cases we can work together to provide an optimum solution that neither of the parties could provide alone. That is the collaborative environment that we have to play in.”


Dr. Paul E. Jacobs,
Chairman and CEO, Qualcomm Incorporated
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“Convergence is an overused word, but when you have convergence of industries, everybody thinks that means that everybody in both industries gets to play. Really, the progress is made by the overlap. It’s the people who can understand both industries.”


James R. Verrier,
CEO, BorgWarner Inc.
Watch the video

“We’re very open if it’s drivetrain or engine and wherever it may be in the world. That gives us some flexibility. We have about 30 possible target companies that we’re evaluating. Some are very preliminary; some are getting much closer toward potential transaction.”

“We have to understand what is happening. And in many cases we can work together to provide an optimum solution that neither of the parties could provide alone. That is the collaborative environment that we have to play in.”
Roger Wood, CEO of automotive supplier Dana Holding Corporation.

“Convergence is an overused word, but when you have convergence of industries, everybody thinks that means that everybody in both industries gets to play. Really, the progress is made by the overlap. It’s the people who can understand both industries.”
Dr. Paul E. Jacobs, chairman and CEO, Qualcomm Incorporated

“We’re very open if it’s drivetrain or engine and wherever it may be in the world. That gives us some flexibility. We have about 30 possible target companies that we’re evaluating. Some are very preliminary; some are getting much closer toward potential transaction.”
CEO James R. Verrier, CEO, BorgWarner Inc.

Business implications
  • Empower the front line. Business alliances can be initiated far from the center by business managers closer to customers or suppliers. Front lines are where a lot of innovation is happening today, and as a result, these alliances can mushroom quickly into strategic importance for a business, even if the capital commitments are relatively small.

  • Be prepared to balance the shift in control to act upon the opportunities that new forms of alliances may help unfold. When all parties to a JV or business alliance partake in the respective strategic rationale, i.e., how the value can be shared and the framework for the ongoing monitoring and management of the alliance, there is a far greater likelihood that the participants will be able to build a sense of mutual trust.

  • Become a partner of choice. As more US companies look toward alliances as a way to access different markets and technologies, it’s becoming more important to be the company that start-ups and established companies in other industries want to work with. Communicating the capabilities that your company can bring to the partnership is key - and so are CEOs who are willing to step in and protect the alliance when cultures start to clash.
Connect with our leaders
John Potter
Partner, Deals
Tel: +1 (612) 596 4900
Nigel Smith
Principal, Deals
Tel: +1 (646) 471 2651