Strategic Approaches to Acquisition Integration PPT
This PPT slide, part of the 24-slide Acquisition Integration Approaches PowerPoint presentation, outlines 4 distinct approaches to acquisition integration within the context of a merger and acquisition (M&A) model. Each approach is designed to address different strategic objectives and operational considerations during the integration process.
The first approach, Preservation, emphasizes the importance of maintaining the core benefits of the acquired entity. This strategy focuses on "nurturing" the original strengths and capabilities that made the acquisition appealing in the first place. It suggests that management should prioritize the retention of key resources and relationships to ensure continued value creation.
Next is Symbiosis, which advocates for a balanced approach where management must navigate the complexities of boundary preservation while fostering boundary permeability. This means that while it is crucial to maintain some level of separation, there should also be a gradual integration process that allows for collaboration and synergy. This approach recognizes the need for a thoughtful transition that respects the unique attributes of both organizations.
The Holding approach indicates a more passive strategy, where integration is not actively pursued. Here, value is generated primarily through financial mechanisms, such as risk-sharing or leveraging existing management capabilities. This method may be suitable in scenarios where the acquired entity's independence is deemed beneficial.
Lastly, Absorption calls for a more assertive integration strategy. Management is encouraged to be bold in executing the vision for the acquisition, ensuring that the integration aligns with broader organizational goals. This approach suggests a comprehensive assimilation of the acquired entity into the parent organization.
These 4 strategies provide a framework for executives to consider their options during the integration phase of M&A, each with its own implications for management and operational execution.
This slide is part of the Acquisition Integration Approaches PowerPoint presentation.
EXPLORE MORE SLIDES FROM THIS PRESENTATION
EXPLORE MORE PRESENTATIONS ON
Flevy is the world's largest knowledge base of best practices.
Leverage the Experience of Experts.
Find documents of the same caliber as those used by top-tier consulting firms, like McKinsey, BCG, Bain, Deloitte, Accenture.
Download Immediately and Use.
Our PowerPoint presentations, Excel workbooks, and Word documents are completely customizable, including rebrandable.
Save Time, Effort, and Money.
Save yourself and your employees countless hours. Use that time to work on more value-added and fulfilling activities.
