Haspeslagh, P.C. and Jemison, D.B. (1991, Chapters 1-4, and ). Managing Acquisitions: Creating Value Through Corporate Renewal. New York: Free Press; Collier Macmillan Canada; Maxwell Macmillan International
3 important questions on Haspeslagh, P.C. and Jemison, D.B. (1991, Chapters 1-4, and ). Managing Acquisitions: Creating Value Through Corporate Renewal. New York: Free Press; Collier Macmillan Canada; Maxwell Macmillan International
The goal of acquisitions, according to the author, is
To develop organizational capabilities (they must seek to create value instead of capturing. Integration is the key to value creation)
When a company buys another company, it must share and transfer capabilities, but it must also protect what already makes the acquired company valuable. So Before integrating, managers must ask two important questions
- How much do the two firms need to work together? High or low interdepencence
- How independent must the acquired firm remain? High or low autonomy
- How independent must the acquired firm remain? High or low autonomy
These three types tell managers how integration should be managed.
1️⃣ Absorption acquisitionsHigh interdependence – Low autonomy
2️⃣ Preservation acquisitions
Low interdependence – High autonomy
3️⃣ Symbiotic acquisitions
High interdependence – High autonomy
2️⃣ Preservation acquisitions
Low interdependence – High autonomy
3️⃣ Symbiotic acquisitions
High interdependence – High autonomy
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