There’s plenty of evidence to show that M&A activity can be a boon to corporate growth. But there is no one-size-fits-all approach that can ensure success in this area. Take a look at six ways companies can “buy” growth through mergers and acquisitions.
Roll up. Enjoy a greater market advantage by buying direct competitors to increase the company’s scale and scope.
Feed the machine. Acquire early-stage companies to fill your R&D pipeline and take advantage of a more mature distribution network.
Enter adjacencies. Scoop up businesses with products and capabilities that relate to your own, or that can benefit from access to your existing resources.
Leverage strengths. Acquire companies in the same or similar industries. Then use their strengths to bolster your own.
Accelerate access. Merge with a like-minded business in order to gain access to new geographies or customer segments.
Open new doors. Diversify into higher margin or higher growth industries by acquiring a company in an unrelated sector.
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M&A, Transactions and PMI