Companies want to pursue growth through acquisitions. People saw only the glamorous side of acquisitions. Does not subscribe to school of thoughts that came from one CEO’s instincts, but taking Bruce Nolop, since becoming executive vice president and chief financial officer of Pitney Bowes, he's learned how hard it is to pull them off. Through this process he developed the 5 basic rules: Stick to adjacent spaces, take a portfolio approach, have a business sponsor, know how to judge an acquisition, and don't shop when you're hungry. • Shift their business portfolio from a hardware orientation to a focus on software and service offerings. • Acquisitions have increased company’s revenue by more than 25% contributing to positive net income and cash flow • Need to be adjacent and aligned with the current business • Adjacency of a company with the current company makes more sense rather than an unrelated business • Logical extension of current business mix always preferable P&G uses acquisition to expand its product lines and grows the acquired brands
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