June 27, 2018
When considering the best path for inorganic growth, the decision depends in part on a company’s capabilities goal. How close a target’s capabilities are to your own can help shape the deal structure and likelihood of generating real value.
If the capabilities in question are fully or mostly aligned with your current capabilities, an acquisition might make sense. But for some companies, a potential transaction may not be just a matter of building on strength. If factors make it challenging to achieve synergies and cut costs through M&A, an alliance, joint venture or other strategic partnership could be an appealing alternative.
Companies should be able to answer key questions to determine how close a potential acquisition’s or partner’s capabilities are to their core capabilities. They also need to understand how strategic partnerships can enhance or leverage their capabilities – within their sector and across industry lines.
Learn more about this part of the acquisition-alliance decision in Buy vs. Partner: Focus on capabilities, part of the PwC Deals series Buy vs. Partner: Deciding when M&A or an alliance is the right path for growth.