Unformatted text preview: 8 Effective Acquisition Strategies
Attributes Results Low-to-Moderate Debt Merged firm maintains financial
on Innovation Continue to invest in R&D as part of the
firm’s overall strategy
firm’s Flexibility Has experience at managing change and
is flexible and adaptable
is 1–29 Types of Restructuring: Downsizing
• A reduction in the number of a firm’s employees
and sometimes in the number of its operating
– May or may not change the composition of
businesses in the company’s portfolio.
businesses • Typical reasons for downsizing:
– Expectation of improved profitability from cost
– Desire or necessity for more efficient operations 1–30 Types of Restructuring: Downscoping
• A divestiture, spin-off or other means of
eliminating businesses unrelated to a firm’s core
• A set of actions that causes a firm to strategically
refocus on its core businesses.
– May be accompanied by do...
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- Spring '12
- Firm, Achieving Acquisition Success