Aligning Mergers and Acquisitions with Corporate Strategy
In the previous section we learnt about the motives for acquisition. In this section, we will learn how to align Mergers and Acquisitions (M and A) with corporate strategy.
A successful M and A execution and integration is achieved only when the M and A strategy aligns with the companies corporate strategy. These corporate strategies may be varied including company's growth, becoming more competitive in market, product extension or risk reduction and so on. Acquisition should satisfy the criteria or add valve to the corporate strategy. Hence it should be aligned with the company's strategy.
M and A is a strong strategic tool for a company. Successful M and A includes multiple steps in an elaborate process, which is quite similar to the corporate strategic planning. Acquirer should always consider how to optimise the M and A in the framework of an overall corporate strategy. Let us now review how merger and acquisitions create value in particular: