You are on page 1of 7

Need identification

► ISPAT
►preacquisition discussion and
►debate to post acquisition integration

► Non-profitable growth, leveraged cash


► 65 years old
► Divestment
► Decisiveness and lightning speed
►Electrolux
Need identification
► Effective market research
► Assess financial needs of the seller
► Urgency of the seller
► Speed
►Electrolux
►ISPAT
►N.Piramal

► Discipline vs. flair.


Stage 3- Integration
► Do you jump into it ???
► Strategically understand
► How to integrate
► Acquisition integration
Integration stages
► Stage 1:
► Remove the top
► Develop their infrastructure, simultaneously
optimally utilize existing
► Invest and build their competence, brands
► Operationally clean, strategically sound
► Linkage between ur and their managers
Again- economics drives markets
► Yes, it is financial, but that does not mean it
is only financial
► Stop the bleeding
► Stage-2
► Efficiency of operational processes
► Quality of products
► Customer satisfaction indices
Integration Stage 3
► Strategicplanning
► Employee commitment
► Product development

► Simple
Sample
► 1988- textiles to pharmacy
► Acquisitions, organic growth and strategic
alliances
► Mutually exclusive???
► Acquisitions
 Nicolas labs- 1988,
 Indian operations of Hoffmal La Roche
 hoechst’s R & D facility
 Lacto Calamine’s R & DBoeringer Mannheim Germany

You might also like