Enhancement Deals: Strategic Acquisitions for Capability Growth PPT

This PPT slide, part of the 34-slide Capabilities-driven M&A PowerPoint presentation, presents a focused analysis of capabilities-driven mergers and acquisitions (M&A) through specific examples of enhancement deals. It highlights how companies have strategically acquired capabilities to bolster their existing systems. Three notable cases are examined: Google’s acquisition of DoubleClick, Disney’s acquisition of Pixar, and Altria Group’s acquisition of UST Inc. Each example illustrates the financial investment involved and the strategic benefits realized from these transactions.

Google's $3.1 billion acquisition of DoubleClick is noted for enhancing its digital advertising effectiveness. This deal provided Google with a leading display ad platform, significantly improving the measurability and performance of its services for various stakeholders, including publishers and advertisers. The emphasis here is on how this acquisition made advertising more relevant to audiences.

Disney's $7.7 billion purchase of Pixar is framed as a move to expand its core capabilities in animation. The integration of Pixar's innovations not only reinforced Disney's longstanding expertise, but also enhanced its marketing strategies, particularly in targeting audiences for theme park attractions and merchandise. This example underscores the importance of synergy in enhancing existing capabilities.

Altria Group’s $11.8 billion acquisition of UST Inc. is discussed in the context of entering the smokeless tobacco market. This deal provided Altria with essential production capabilities and access to specific tobacco forms, facilitating a strategic adjacency move.

The slide concludes with a cautionary note that such deals may require significant investment and come with inherent market risks, along with the possibility of longer maturity periods for returns. This insight is crucial for decision-makers considering similar strategic investments.

This slide is part of the Capabilities-driven M&A PowerPoint presentation.

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Core Competencies M&A (Mergers & Acquisitions) Distinctive Capabilities Innovation M&A Production

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