When Rivals Merge, Think Before You Follow Suit
Journal
Harvard Business Review
ISSN
0017-8012
Type
journal article
Date Issued
2011-12-01
Author(s)
Abstract
The article argues that companies should think carefully before responding to a rival's merger activity by pursuing major acquisitions of their own. It is noted that such hastily-arranged deals are often not well-considered, can come at a steep price if a bidding war breaks out, and frequently involve less-than-optimal target firms. Several alternative strategies are discussed including strategic retreat from peripheral markets, focusing more on innovation and organic growth, and building a counterposition by means of multiple small acquisitions. INSETS: WINNING THE BATTLE . . .;. . . BUT LOSING THE WAR..
Language
English
Keywords
Competitive Strategy
Execution
Mergers & Acquisitions
Strategy
Strategy management
HSG Classification
contribution to practical use / society
Refereed
Yes
Publisher
Harvard Business School Publ. Corp.
Publisher place
Boston, Mass.
Volume
89
Number
12
Start page
25
End page
27
Pages
3
Subject(s)
Division(s)
Eprints ID
219923