Strategic Acquisitions

9. Examining the Alternatives

An acquisition may often look like an attractive short cut to success. But you should also consider other routes to expansion.

9.1 Build up another business from scratch.

• It may be cheaper and simpler in the long run.

9.2 Sign up long-term contracts with another company.

• For example, rather than buying a company for its distribution network, contract it to distribute your products on your behalf and get the benefits without the risks.

9.3 Form a joint venture.

• It is often cheaper to get out of a joint venture than offload a failed acquisition.
• A joint venture gives you access to the other party's management and employee skill base, without the need to contribute to the overheads.