Seize the competitive advantage with today's most powerful strategic tool: mergers and acquisitions
Driven by rapid globalization, technological advances, and dramatic changes in public policy, industry restructuring has become "business as usual". Yet the failure rates in M&A have been high. The best way to compete in this new climate is to make M&A part of your overall business strategy and skill set.
The Art of M&A Strategy demystifies this complex subject by taking you step by step through the types of M&A strategy and the process, providing real-world examples of companies that have successfully used M&A in their overall business strategy, such as Cisco, GE, Google and many others.
Part I outlines how M&A can create value in strategy. For each of a range of corporate strategy situations, the role and rationale for M&A as a tool is outlined, including: building and managing a business portfolio; participating in industry consolidation; corporate growth; and using acquisitions to create “real options”. Some well-known historic examples are used to illustrate success in strategies of each type that have been achieved through M&A.
Part II is a “how to” guide to the development and execution of a successful M&A strategy. It begins with a review of strategic planning and outlines how to determine the role of M&A, considering the industry context, the competitive imperatives and strategy options. If M&A is selected as one of the strategic weapons, subsequent chapters then outline how to search and screen partner candidates, how to choose between buying and selling, and finally how the board of directors should be engaged in M&A decisions.
Part III goes from M&A as an event to sustained strategic M&A programs. In particular, it examines the implications of globalization and the restructuring of industries on a global basis. When M&A is central to strategy, competitive M&A skills are essential, so the book outlines the most strategic aspects of post-merger integration, how to use advisors throughout the process and, moreover, the core competencies required for successful M&A programs.
Ken Smith has practiced as a strategy consultant for 25 years, earlier with McKinsey and Company and more recently with SECOR Consulting, where he was also a Managing Partner and Chair. In 2010, Ken accepted an appointment at the University of Guelph as an Associate Professor and Associate Dean of Executive Programs in the College of Management and Economics, where he continues research and consulting on business and public policy matters associated with industry restructuring and M&A.
Alexandra Reed Lajoux, chief knowledge officer, National Association of Corporate Directors, has three decades of experience in business information. After teaching literature and languages at the university level, she served as editor of a series of professional publications, including Directors & Boards, Mergers & Acquisitions, Export Today, HR Director/Human Capital, and Director's Monthly.