Myriad obstacles can derail a company looking to expand or reduce its corporate portfolio. Strategy experts Andrew Campbell and Jo Whitehead advise that, while some decisions about mergers, acquisitions or divestitures are relatively straightforward, others aren’t so simple. Some deals might seem like a perfect fit, but they carry a hefty price tag; others might currently underperform but present lucrative potential, if the acquirer has the skills to nurture it. getAbstract commends this article for its insights into firms that have made savvy choices under imperfect circumstances and suggests it to executives responsible for finding hidden value in businesses.
In this article, you will learn
- What basic factors underlie strategies on mergers, acquisitions and divestitures;
- Why executives must make trade-offs in corporate portfolio decisions; and
- How companies have achieved success by evaluating their options.
About the Authors
Andrew Campbell and Jo Whitehead are directors at the Ashridge Business School’s Strategic Management Centre.