Written by: Vickie Sullivan | August 26, 2014
Using Chaos To Our Advantage
Yes, the world is more complex and volatile now. And most of it is deliberate according to this summer article from Strategy+Business.
The upshot: between 2010 and 2013, “transformational deals”, those mergers that open up new markets, increased 15%. At the same time, the easier “absorption deals”, those acquisitions that complement current operations, declined 11%. Why? Companies are looking for growth outside their core competencies. It’s the response to a disruptive marketplace.
Why do we care? Because integration is the deal-breaker. Make sure two disparate organizations work together is critical for realizing the value of the merger. Translation: big budgets to ensure that these difficult moves are successful. Which means more opportunities for small and mid-sized B2B firms.
Even better: these game-changers know they need help. According to PriceWaterhouseCooper’s (PwC) 2014 M&A survey, less than 25% say they have the internal resources to pull this off. The price is huge: fewer than half achieved financial goals and only 35% reached the operational objectives.
Folks, this is what we call a goldmine. B2B experts of all stripes will be needed here. Your next best step: drill down on these deals and figure out how you can help.
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