CLAR - An M&A Strategy That Builds Competitive Advantage And Outperforms
Normally, I avoid companies involved in heavy M&A activity for a reason: it does not work.
This truth is borne out by study after study that all show that mergers and acquisitions tend to destroy shareholder value. Whether due to culture clashes, integration troubles, or good old-fashioned overpaying, the elusive 'synergies' promised by management usually never materialize. But there is an acquisition method that does work. Although few companies master the "bolt-on" or "tuck-in" strategy, over time it can create enormous competitive advantages.
The Wrong Way
This is the method that does not work. The