Creating – Rather than Destroying – Value through Acquisitions
Acquisitions can make important contributions to a company’s growth strategy. The strategic due diligence process described in this paper brings customers and markets into acquisition decision making in a forceful and important fashion. As a result, it allows firms to move to a proactive approach that defines and uncovers the acquisitions that have the potential for value creation. The end product of these new concepts of strategic due diligence is an increased likelihood that acquisitions can become an even more important element of growth strategy, with a strong probability of rewarding shareholders with profitable growth. Throughout the paper, short case studies are used to illustrate the elements of the strategic due diligence process.