Choosing the best option for growth. More often than not we find our clients have too many choices rather than too few. The difficulty lies in prioritizing options and determining which one is the best path forward. You may find yourself in a similar situation. With so many options how can you choose? Although it …
Tag: External Growth
M&A – The Route to Success?
The polyolefins industry, like so many others, is evolving significantly. Growth in emerging markets and Asia has skyrocketed while European and North American markets have matured. Last week I was invited to speak at the Future of Polyolefins Conference 2014 in Dusseldorf, Germany, where top executives from key industry players such as Borealis AG and …
Pharmaceuticals Refocus and Consolidate
Pharmaceutical companies are using acquisition to become “pointy,” or more focused. Two recent examples are Bayer and Merck. Bayer is focusing on over the counter medications by acquiring Merck’s consumer care business for $14.2 billion. On the other hand, Merck has become more streamlined through divestment. As I’ve mentioned before, although divestment means becoming smaller, …
What Business Are You In?
Let’s admit it right away: This is a trick question. The correct answer is usually not the first answer. Here’s a classic example from the annals of corporate America: Union Pacific thought they were in the business of railroads—the commonsense answer. In reality, they were in the business of mass transportation. Had they recognized this early …
Discounts Don’t Drive Growth for Consumer Staples
Facing a stagnant market, retailers of consumer staples have turned to aggressive discounts to drive growth. According to the Wall Street Journal, more than 50% of consumers’ purchases include markdowns! More Discounts is NOT More Growth Businesses in non-growth or declining growth markets understandably must find new ways to capture market share. However, offering more …
Cost Synergies Ill-Suited for Long-Term Growth for Men’s Wearhouse
After battling for six months, Men’s Wearhouse and Jos. A. Bank finally came to an acquisition agreement on March 11 for $1.8 billion, forming the country’s fourth-largest men’s retailer. Men’s Wearhouse expects cost synergies of $100-150 million over the next three years to result from the deal, including the benefit of better purchasing power. While …
Credit Union Trends: Non-Interest Income Infographic
Non-interest income is a hot topic in the credit union industry. Check out Capstone’s infographic on non-interest income below. Click on the image for a closer look. How can you generate more non-interest income? Many credit unions and CUSOs are turning to external growth and mergers and acquisitions to generate more non-interest income. Find …
Growth Strategies for Credit Unions
I was invited to write an op-ed for the Credit Union Times for their focus report on growth strategies. While there are a variety of options to consider when exploring implementing new products and services to grow, credit unions can only grow by meeting the needs of future members. I offer five ways to pursue growth …
The Greatest Hurdle Facing Tech Mergers
The biggest tech M&A disasters were the Time Warner-AOL $350 billion merger and Google’s $12.3 billion acquisition of Motorola Mobility. In my observations, the greatest hurdle facing tech mergers is integration. Even where the strategy of the acquisition is solid, if the integration of the two workforces and assets is not executed properly, it will fail. Even …
Focusing On the Right Growth Opportunities
The following question was asked during our most recent webinar, “Discovering Markets.” Q: How do you choose which quadrant of the opportunity matrix to focus on? A: When beginning to plan for external growth, you may be blown away by the sheer number of possibilities and options. As exciting as they may appear, you’ll have …
