A week rarely seems to pass without the announcement of new corporate alliances involving leading players in major industries. However, as we all know, many of these relationships are destined not to live up to the expectations of those concerned. In fact, some experts claim that 70 percent of acquisitions actually erode shareholder value.
When companies in mature industries have extracted as much as they can from internal innovation and improvements, they seek to make a quantum leap ahead of the competition by reinventing the rules of competition within their industry through a dramatic redesign of their value chains.
Of course, acquisitions offer the greatest latitude for redesign and creation of new customer value, but is it possible to reduce the risks involved?