Tuesday, November 15, 2011

Acquisition Integration Rules

  1. Acquisition supply chain relationships prior to integration 
    1. The current or relationships prior to consolidation DO NOT Transfer to the new parent.  
    1. Pro's
      1. This may introduce an opportunity to reduce your purchase price if the acquired company has enough purchase history  
      2. Con's
        1. This may introduce an opportunity to increase access to higher end products or software, that has a threat and risk.  
          1. The acquired company hadn't met the criteria in the former model.  
          2. The resource skill and ability to maintain the relationship must be factored. 
***Not all practices by the new parent can be applied to the acquisition relationship 
  1. A less controlled culture in the parent may increase threats to external stakeholders.  
  2. These are legal binding relationships that become a decision to separate from the acquired company in any acquired company to the supplier prior to purchase.

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.