If planned and executed successfully, acquisitions can accelerate growth and shareholder value for acquiring companies seeking greater market share and/or further diversification. While acquisitions can accomplish what takes years to build organically, a well-developed and well-executed acquisition plan is critical to achieving positive results.
Highly acquisitive companies as well as institutional private equity funds review numerous acquisitions on a recurring basis. But only a select number of target companies make the cut based primarily on the potential to create and realize future incremental value.
Many companies focus growth efforts on organic strategies only. However, implementing a program of strategic acquisitions, if done correctly and in conjunction with organic growth initiatives, can generate sustainable shareholder value more rapidly and effectively.