- July 30, 2022
- Posted by: Ramkumar
- Category: Posts
As an M&A strategist, I would aim to arrive at looking to determine those regions and markets where an acquisition will facilitate a shift in market share and improve the acquirer’s #competitiveadvantage.
Some of the common M&A strategies i use are:
1)When a competitor in the industry has more resources and typically preserves its resources by defending its market share, the strategy would be to identify an acquisition target to narrow the competitor’s market share gap. I term it as buying #marketshare.
2)When the more significant player has fewer resources and less market effectiveness, there is a high likelihood that the acquirer will gain market share organically; thus, an M&A strategy would reflect an inappropriate use of resources.
3)When the acquirer lacks specific capabilities, the correct #mergersandacquisitions strategy would be to compete on a narrower front, fight local battles, and improve combat effectiveness. Thus, in my view, acquisitions in a particular area that are close the distance in that specific domain are well-invested resources.
What are your #mergersandacquisitions strategies?
[…] Mergers and acquisitions deals often come with uncertainty. There are uncertainties in understanding the target business, the macro-economic indicators, and the risks within the industry. With so many uncertainties inherent in such deals, i often use a framework to declutter the information and bring some order to the chaos. […]