The Art of M&A Strategy: A Guide to Building Your Company's Future through Mergers, Acquisitions, and Divestitures

CHAPTER 5M&A in Strategic Planning

If one does not know to which port one is sailing, no wind is favorable.

—Seneca

M&A strategy must advance the strategy of the corporation—as noted throughout this book, from our opening chapter on holding company portfolios to the previous chapter on real options. Successful companies—even holding companies—need a strategy for what type of assets they will acquire and how they will add value. Sometimes the value is in the selection and stewardship alone (e.g., some holding company models); other times the value is created in integration (e.g., value in consolidation) or in the ongoing growth and development (e.g., value in revenue growth); and sometimes the value will depend on circumstances requiring some ...