Improve M&A outcomes
The business world as we know it, no longer exists.
Every industry is being redefined by new technologies that blur the lines of the physical, digital, and biological worlds. These shifts are accelerating change like never before, creating great opportunities and risks. Business practices are also rapidly evolving, becoming automated, intelligent, agile, and ubiquitous-what TCS calls Business 4.0™.
Mergers and acquisitions (M&A) have always been a part of every business strategy. In today’s era of rapid transformation, mergers, acquisitions, and divestitures have become powerful tools to capture new customers, compete more fiercely, and eliminate assets that no longer enable competitiveness.
Create your M&A strategy
Based on our experience, we have identified four dominant M&A strategies.
Most companies embrace one as its primary M&A strategy and are opportunistic in the others:
Optimizers focus on improving existing products, services, and business practices to maximize customer satisfaction and profitability.
Transformers take an inside-out approach, seeking incremental innovation on existing or improved technologies, to actively capture new customers and markets.
Explorers take an outside-in approach, investing in leading-edge technologies and external innovation partners to expand customer capture and create new industries.
Revolutionaries take the boldest steps. They seek ways to disrupt and cannibalize so that they can take on new competitors, capture new markets, and create new industries.
Successful M&A is a combination of good strategy and great execution. TCS recommends an approach, such as the FITME framework, which can help companies evaluate options and create the M&A strategy that’s right for them.
FITME framework for M&A