Acquisitions are a principal way in which companies grow and expand. Therefore, the strategic implications of them are of considerable importance. However, reasons for acquisition are not always strategic in nature. The decision to acquire a company should result from a well-developed Acquisition Strategy integrated with the whole Corporate Strategy. Moreover Acquisition Strategy is Just a tool of the Corporate Strategy. The combination of acquisitions being based on motives of a non-strategic nature, together with payment of a substantial premium for the acquired company, most often under time pressure, has in many cases led to unsuccessful acquisition results. We will suggest in this lecture to approach company acquisition from the Corporate Strategy perspective. At one side this should greatly enhance, but not guarantee success in either an individual acquisition or in an acquisition program, at the other side this will underline the important role of the marketing function in the initial steps of the acquisition process.
Author: William L. Sammon
February 27, 1985
Author: Jorge GarcÃa-GonzÃ¡lez
September 14, 2003
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