Mergers, acquisitions and other transactions can be instrumental in growing a company, but they should be pursued through a deals strategy that helps the company achieve a strong overall portfolio of businesses. Here’s how boards can help their companies develop that strategy.
Growth is essential for success. Along with organic growth through increased sales and new products and services, many companies pursue inorganic growth through acquisitions, mergers, joint ventures and other deals. For some companies, these transactions can be high-profile, “bet the farm” deals. For others, it’s mostly smaller acquisitions or alliances. Some deals are successful and some aren’t.
What’s often less clear is how the various transactions a company has done or wants to do are tied together. A true deals strategy supports the company’s broader portfolio strategy. Our new paper explains how boards can work with management to refine or develop a strategy that crystallizes the potential areas for inorganic growth and identifies the types of transactions that will help achieve it.