Articles

Where’s the Value? Strategies for Successful Acquisitions: Part 1

Posted By: Karen Fisman

We are living in an M&A world where many acquisitions fail to create value.  But the corollary, of course, is that some acquisitions DO create value, and the obvious question is why.  In the current environment, where companies are relying more heavily on M&A to drive revenue growth, that’s a significant “why”, so we went looking for an answer.

We’ve discussed post-merger integration (PMI) as a critical factor in any successful M&A transaction. But a recent McKinsey article, The Six Types of Successful Acquisitions, takes a front-end perspective.  The authors suggest that successful deals are initiated with specific and detailed value creation strategies, typically fitting with at least one of six archetypes.  We will discuss the first three archetypes this week, and the remaining three in next week’s article, along with some overarching value creation principles.

 

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