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

PART IIDevelopment and Execution of M&A Strategy

In Part I of this book we outlined four broad roles of M&A in strategy: developing the business portfolio, consolidating an industry, acquiring for growth, and developing real options. While it was noted that some deals could play multiple roles, usually one role will predominate, based on the nature of the company (e.g., holding company or operating company) and the industry situation (e.g., consolidating or growing).

We also noted how value can be created in each case and cited numerous examples of companies that have successfully created value using M&A to build business portfolios, consolidate industries, grow new global corporations, and exploit uncertainties with the acquisition of real options. ...