Buy vs. Partner: Deciding when M&A or an alliance is the right path for growth

April 10, 2018


Many companies rely on growth for survival and success, and choosing the right mechanism for growth is crucial. Among the most common paths for inorganic growth are mergers and acquisitions (M&A) and strategic partnerships, such as alliances and joint ventures (JVs). While both can drive business growth, deciding whether to buy or partner with another company can be daunting. Each brings its own challenges along with the benefits, and CEOs, company owners and other leaders can’t afford missteps.

It’s essential for businesses to understand the key considerations in determining the best path for inorganic growth:

Capabilities: Filling a gap or building on strengths
Control: Weighing investment, access and ownership
Cost: Determining the business ROI
Conditions beyond a company’s control: Predicting success based on external factors
Keeping the right pieces: The role of divestitures in growth decisions
Best of both worlds: When a partnership and M&A make sense

In the coming months, we’ll dig deeper into each of these considerations. In the meantime, read Buy vs. Partner: Deciding when M&A or an alliance is the right path for growth for more information.


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Contacts

Bob Saada

US Deals Leader Tel: +1 (646) 471-7219 Email: bob.d.saada@pwc.com

Curt Moldenhauer

US Deals Solutions Leader Tel: +1 (408) 817 5726 Email: curt.moldenhauer@pwc.com