Acquisitions, Alliances, and Ventures
Growth is usually seen as coming from within, particularly with smaller operations. Doing more of the same with added resource is a typical response to shareholder expectations for growing the business.
Increasingly companies need to consider expansion through leveraging the attributes of other operations to best achieve strategic goals. Product & service expansion; markets; and global reach are all opportunities that need consideration to underpin growth. Limiting growth to what the current operations can visualize and manage, is a risk to growing shareholder value in today’s global world.
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Strategic Review for Acquiring & Divesting
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Target Opportunities
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Negotiation & Coordination
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Implementation; culture management and performance analysis
Strategic Expansion
Strategic expansion can range from teaming agreements and joint venturing; licensing and market alliances; through to acquisition and merging of operations. By mixing these tools and techniques a company can accelerate market growth and broaden its portfolio.
Properly executed it can extract added value through rationalized overhead and cost reduction, while leveraging a fresh and broader base of talent and management skill to drive growth and take the company forward to global markets.
Challenge & Adaptation
The challenge is not only in unifying the expansion tools used for growth, but rests in the ability to adapt within the current operation. Recognizing weaknesses and embracing the change generated from joining forces with others is critical to sussess. The “whole must be greater than the sum of the constituent parts”
Acquisitions Solutions
Inventing Email: Growing a startup email provider for acquisition into global system
An early email pioneer sought to expand its market reach beyond Washington, D.C. A licensing and integrated services strategy was crafted to establish anchors worldwide with telecoms providers.
By implementing the strategy, the startup achieved global adoption of its email technology with leading service providers. As a result, revenues increased along with bundled services and the company was acquired in a multi-million dollar deal by a global operator.
Wireless Systems: Transforming a key provider into a diversified, growth-oriented enterprise
A major telecommunications enterprise sought to become an integrated services organization. A three-phase strategy was developed to increase reach through local joint ventures and market share through acquisitions. Through the strategy, the organization significantly expanded its portfolio and established a strong presence in US and European markets. The portfolio enabled substantial cross-marketing and integration of services that propelled the enterprise as a leading telecoms provider.
Software Development: Driving growth with diversification amid shrinking primary market
A software company faced collapse when regulatory changes eliminated its primary market. A strategy was devised to diversify revenue streams in allied sectors through ventures and acquisitions.
The strategy succeeded and created three robust revenue streams–consulting, processing, and imaging–that have continued to grow over the past decade.