Objectives
- Identify a promising acquisition candidate’s characteristics.
- Explain “licensing” and how it can be used as a growth strategy.
- Explain “strategic alliances” and describe the difference between technological alliances and marketing alliances.
- Explain “joint ventures,” and describe the difference between a scale joint venture and a link joint venture.
Internal and External Growth Strategies
Mergers and Acquisitions
- Mergers and Acquisitions
- An acquisition is the outright purchase of one firm by another .
- A merger is the pooling of interests to combine two or more firms into one.
- Purpose of Acquisitions
- Acquiring another business can fulfill several of a company’s needs, such as:
- Expanding its product line.
- Gaining access to distribution channels.
- Achieving competitive economies of scale.
