There are all kinds of acquisitions in the business world, but some more successful than others. In order to be in the former category, six broad types have been identified. In neither case, will overpaying for acquiring ever work. One such corporate strategy for acquiring is to improve the other company’s performances. Another is to remove excess competition from the market. Sometimes smaller companies may have great produce or service in their portfolio but being small limits their market access which may get rectified by such an acquisition. It will also help in scaling up the business’s industry-specific capabilities. Another factor in the acquisition could be inorganic skill or technology capture at lower cost than building in-house. Savvy acquirers identify winners early on and facilitate their seamless growth.

Source:http://www.mckinsey.com/business-functions/strategy-and-corporate-finance/our-insights/the-six-types-of-successful-acquisitions?cid=other-eml-cls-mip-mck-oth-1705

Uploaded Date:05/07/2017