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Is M&A the best way to grow your company?

- by Shellie Karabell

There are several good ways to grow a company, but only about a third of firms actively use all the methods available to them, and this narrow focus widens the corporate gap between success and failure significantly.

That’s according to a 10-year global study of 162 telecom companies conducted by Laurence Capron, INSEAD strategy professor, and Will Mitchell, a professor at Duke University in Durham, North Carolina.

“You should go for an acquisition when you cannot acquire    the technology or specific human skills through other avenues – alliances, contracts, partnerships, licensing, joint ventures” says INSEAD’s Capron, the director of the ‘M&As and Corporate Strategy’ programme for executives. According to the study, firms acquiring resources in multiple ways are 46 per cent more likely to survive over a five-year period than those relying mainly on alliances, 26 per cent more likely than those focusing on M&A, and 12 per cent more likely than those sticking with internal development.

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2 Responses to “Is M&A the best way to grow your company?”

  1. 4entrepreneur 4entrepreneur says:

    [New Post] Is M&A the best way to grow your company? – via #twitoaster http://4entrepreneur.net/2011/01/05/is-m…
    via Twitoaster

  2. [...] Right acquisitions is the key for steady growth for google [...]

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