One primary corporate growth tool is acquisitions; however, 40-80% of acquisitions fail to meet their stated expectations. Yet, they continue to be a dominant strategy for corporate renewal and expansion (market share, customer bases, future corporate revenues).
How can a company reduce its acquisition risk? They need to focus on long term growth that is not restricted by quarterly results. To do this, the focus areas should be:
- Improve execution efficiency
- Build internal resources for innovation
- Partner through licensing and alliance agreements
A company should strongly consider these three focus areas before succumbing to the allure of an acquisition.
Is your growth dependent upon acquisitions?
