Tags |
|
|
Links |
|
|
Other Added - Do High Tech Acquisitions Make Sense?
Your brand is you. It's everything that your business is, encapsulated in a name, and sometimes in a slogan. But naming your business and creating a slogan isn't enough. You've got to build your brand, by showing what your brand stands for.Here are the top five ways to build your brand online:1. Create a Web siteYour Web site can be anything from a tiny billboard site to a huge ten-thousand page extravaganza. Either way, your Web site builds your brand. Of course, the more pages your site has, the more you can showcase your products and your expertise.Tip: you're never done building your brand, and you're never done building your Web site either. Aim to add something to your Web site every day, even if it's only one blog post (see below). Building your Web site is the easiest, the cheapest, and the fastest way to build your brand, online or offline.2. Develop a blogA blog lets you broadcast your branding messages far and wide via the magic of Really Simple Syndication (RSS). Within minutes after you've written a blog post and published it, your post is visible on sites like Technorati, which is bot
TOUGH FOR THE UNINITIATED
So how do deals usually work out for the “average” company that might make an acquisition every couple of years or so? Not very well, in my experience.
I have been involved in numerous acquisition projects, both as a consultant and on the inside of an acquirer. I spearheaded one project internally which led to acquisition of a software company, which I then had to integrate into my business unit I was running at the time. You know what? The buying is much easier than the integrating!
And this, I b
Public Relations Programs and such for Party Supply Companies are not tough due to the number of events they are involved with and yet often sometimes something unique in nature also makes sense because this means a little innovation bonus in the minds of the community. Consider if you will that a Party Supply Company can receive community goodwill thru participation in a Neighborhood Business Mobile Watch Program. What you ask; Why? Well think about the Party Supply business model for a second;PARTY SUPPLY COMPANIES: These people are always where the action is, town get -togethers, grand openings, and big family events. They are a great resource for your program and always willing to help. They come to volunteer group meetings with great attitudes; this is a major bonus. The upbeat attitude will help in the development of the program. They will be good resources too when it is time to throw a party for the group. They also have delivery vans with big pictures on the sides of happy things like giant balloons, to attract attention, thus many people look at the trucks and then see the magnet sign for the neighborhood mobile watch progr
I am not an insider and don’t know the specific details of this merger. It seems to make at least some sense, as Sun has not historically been strong in Storage, which is StorageTek’s forte. Sun has been Private Labeling storage systems from a company here in San Diego for the past several years (probably doesn’t bode well for that supplier!). So having Storage Technology in-house could be a big plus for Sun. The analysts have generally panned this deal, however. They don’t think it does anything to reignite Sun’s growth, which is what they’re looking for. I don’t have enough solid knowledge of the situation to decide whether it’s a good idea from a strategic perspective or not.
What I do know is that it probably will fail.
ODDS AGAINST IT
Predicting failure is a pretty big statement for someone with limited knowledge of the specifics of the deal. But I can make that statement because numerous studies have shown that 40-80% of all mergers fail. That’s a whole bunch of investor money down the drain. And in High Tech, it seems like it’s very hard to find an example of a really good merger or acquisition.
Of course, there are examples to the contrary. Computer Associates built a huge business and shareholder value with an aggressive acquisition strategy, over a long period. Cisco Systems has made many acquisitions of smaller technology companies, purportedly with great success. They profess to have the “secret sauce” on how to make acquisitions a success-and maybe they have. These are two high profile examples of large companies succeeding with M&A as a major part of their strategy. But for every Cisco or Computer Associates, there’s probably 10-20 who have failed with a prominent M&A strategy. Symantec made claims like Cisco for a long time, but recently ended up unraveling a number of their acquisitions. The recent HP-Compaq mega-merger hasn’t panned out too well (especially for one former rock star CEO name Carly!).
TOUGH FOR THE UNINITIATED
So how do deals usually work out for the “average” company that might make an acquisition every couple of years or so? Not very well, in my experience.
I have been involved in numerous acquisition projects, both as a consultant and on the inside of an acquirer. I spearheaded one project internally which led to acquisition of a software company, which I then had to integrate into my business unit I was running at the time. You know what? The buying is much easier than the integrating!
And this, I be
Marketing on the internet or internet marketing is one of the fastest-growing and profitable businesses today. It is an excellent way for anyone to start a small business with little investment, no overhead, and high profit margins. Anyone can get up and running with an online business in hours. Sounds like an easy way to make money, doesn’t it? Compared to other offline small business ventures, it is.However,internet marketing failures still vastly outnumber those who have succeeded in internet marketing. For every story you hear of someone making $10,000 a month at internet marketing there are hundreds of untold stories of those who failed to make a profit or only made a few dollars and then quit. Why do so many fail when the potential to succeed is high?1. Failure to plan – No matter what type of business you are running you need a business plan with well-defined goals. What are your short-term and long-term goals? What steps do you need to take to meet those goals? Write out your plan and review it frequently. You are running a small business. Treat it as one. If you fail to plan, you plan to fail.
What I do know is that it probably will fail.
ODDS AGAINST IT
Predicting failure is a pretty big statement for someone with limited knowledge of the specifics of the deal. But I can make that statement because numerous studies have shown that 40-80% of all mergers fail. That’s a whole bunch of investor money down the drain. And in High Tech, it seems like it’s very hard to find an example of a really good merger or acquisition.
Of course, there are examples to the contrary. Computer Associates built a huge business and shareholder value with an aggressive acquisition strategy, over a long period. Cisco Systems has made many acquisitions of smaller technology companies, purportedly with great success. They profess to have the “secret sauce” on how to make acquisitions a success-and maybe they have. These are two high profile examples of large companies succeeding with M&A as a major part of their strategy. But for every Cisco or Computer Associates, there’s probably 10-20 who have failed with a prominent M&A strategy. Symantec made claims like Cisco for a long time, but recently ended up unraveling a number of their acquisitions. The recent HP-Compaq mega-merger hasn’t panned out too well (especially for one former rock star CEO name Carly!).
TOUGH FOR THE UNINITIATED
So how do deals usually work out for the “average” company that might make an acquisition every couple of years or so? Not very well, in my experience.
I have been involved in numerous acquisition projects, both as a consultant and on the inside of an acquirer. I spearheaded one project internally which led to acquisition of a software company, which I then had to integrate into my business unit I was running at the time. You know what? The buying is much easier than the integrating!
And this, I b
Have you ever counted just how many times you've heard the adage "location, location, location..." when talking about real estate?You've heard it many times because it is important.On the internet, things aren't much different. In order to make the internet a successful (read profitable) part of your real estate business, you need to claim your spot and begin building your website into the powerful marketing tool that it can be.There is no faster or more efficient way to build your real estate business than by using the internet to magnify the power of your marketing efforts.Here are the top 5 reasons why you need to get started yesterday:1. Your Location On the Internet Will Never Change...It's important that your network of past, present and future clients knows how to find you. We all have phone numbers and cell phone numbers, but not too many people will commit to memorizing them or even remembering where they put your business card.With a domain name and website, however, things become a bit easier. People seem to remember domain names, especially when they ar
Of course, there are examples to the contrary. Computer Associates built a huge business and shareholder value with an aggressive acquisition strategy, over a long period. Cisco Systems has made many acquisitions of smaller technology companies, purportedly with great success. They profess to have the “secret sauce” on how to make acquisitions a success-and maybe they have. These are two high profile examples of large companies succeeding with M&A as a major part of their strategy. But for every Cisco or Computer Associates, there’s probably 10-20 who have failed with a prominent M&A strategy. Symantec made claims like Cisco for a long time, but recently ended up unraveling a number of their acquisitions. The recent HP-Compaq mega-merger hasn’t panned out too well (especially for one former rock star CEO name Carly!).
TOUGH FOR THE UNINITIATED
So how do deals usually work out for the “average” company that might make an acquisition every couple of years or so? Not very well, in my experience.
I have been involved in numerous acquisition projects, both as a consultant and on the inside of an acquirer. I spearheaded one project internally which led to acquisition of a software company, which I then had to integrate into my business unit I was running at the time. You know what? The buying is much easier than the integrating!
And this, I b
If you are thinking about a career in culinary arts then studying in a culinary school is a must. You may be a great cook but you will never become expert learning culinary arts yourself. Further taking up a job as a chef in a good restaurant demands a professional qualification, which comes only after attending a regular culinary school.There are many a myth surrounding culinary arts. For example people say culinary is an art and art cannot be taught. This is not true. First culinary is not just an art, its science too. You must know about the ingredients you are using while cooking. You should also have through knowledge of the contents of the ingredients or additives you use to cook food. It helps you to be an informed chef.Another myth is that culinary education is very costly. You see, any education is costly. Culinary is not an exception. But if you compare, a Bachelor of Engineering Degree is much more costly than a Diploma/Degree in Culinary Arts.One of the worst myths is that chefs live a great life - full of glamor and no work. This is not at all true. Most of a chef's time is spent in kitchen with hot oils an
TOUGH FOR THE UNINITIATED
So how do deals usually work out for the “average” company that might make an acquisition every couple of years or so? Not very well, in my experience.
I have been involved in numerous acquisition projects, both as a consultant and on the inside of an acquirer. I spearheaded one project internally which led to acquisition of a software company, which I then had to integrate into my business unit I was running at the time. You know what? The buying is much easier than the integrating!
And this, I b
Are you hoping to earn some decent money via the internet? Are you looking for a person or company to build you a website? Are you looking into ways to promote your website? Would you like to see an increase in traffic to your website? These are all questions to which a couple of years ago I would have answered yes to. I now have built up a network of people who I always use to help me in these particular fields.In my opinion it is very important to establish a network of contacts on the internet. These people should be honest, charge a fair price, be willing to help and give advice and be happy to work quickly with good ocommunication.A few years ago I started to develop an interest in the web and thought that it would be a superb way to promte my speech coaching business. I must admit that at this point I knew nothing about the ins and outs of the net and did not know anybody who could build or promote a website.I spent quite a long time phoning people who were advertising in places such as the yellow pages, the newspaper and of course the internet itself. The prices some of these people quoted were a lot higher than
TOUGH FOR THE UNINITIATED
So how do deals usually work out for the “average” company that might make an acquisition every couple of years or so? Not very well, in my experience.
I have been involved in numerous acquisition projects, both as a consultant and on the inside of an acquirer. I spearheaded one project internally which led to acquisition of a software company, which I then had to integrate into my business unit I was running at the time. You know what? The buying is much easier than the integrating!
And this, I believe, is where the great majority of mergers and acquisitions fail. People at the top fall in love with the “deal”—the strategic fit, the potential boost in short term revenue, the new products added to the portfolio, and generally with the “numbers” of the deal. Investment Bankers and M&A consultants emphasize the financial terms and other “hard” aspects of the potential deal—to the near exclusion of the “soft” factors of the deal. Most of all, I think it’s easy for senior management to become “deal-junkies”—quickly addicted to the adrenaline rush that comes with deal making. Unfortunately, all of this tends to obscure a really important fact. In High Tech, when you acquire a company, you don’t really gain ownership of the people—the key factor that makes a company in our business a success or failure.
MANY PATHS TO FAILURE
The integration of the two organizations and their employees is almost always an afterthought. No one gives much thought to this aspect until Senior Management has already decided they want to do the deal. Then it’s time to start to figure out how two, often disparate, cultures will mesh. In reality, these steps should be reversed—the cultural fit should be studied very closely at first, then other factors of the deal should be examined. IF THE CULTURES DON’T FIT--USUALLY YOU HAVE A DISASTER ON YOUR HANDS. It won’t matter how well the numbers work, how much cost you can take out, or how much geographic or product synergy you envision. It will be a disaster.
Sure, there are many other ways an acquisition can turn out badly. Let’s list a few:
Integration of MIS: There have been many good companies that have struggled (or even choked to death) trying to integrate incompatible back office systems
Product Integration: This is especially true in the case of software companies. A software company “takes out” a competitor. They then spend the next five years trying to integrate the two code bases. Or they kill one of the products, alienating the user base they just acquired. This one occurs over and over again.
Overlapping Brands: The HP-Compaq merger is a good example of this problem. HP paid a huge price for Compaq, and much of the value was i
HTTP = HTML link (for blogs, profiles,phorums):
<a href="http://www.otheradded.com/article/103287/otheradded-Do-High-Tech-Acquisitions-Make-Sense.html">Do High Tech Acquisitions Make Sense?</a>
BB link (for phorums):
[url=http://www.otheradded.com/article/103287/otheradded-Do-High-Tech-Acquisitions-Make-Sense.html]Do High Tech Acquisitions Make Sense?[/url]
Related Articles:
Marketing and Advertising - Can You Make It Work In Your Beef Cattle Operation?
The Importance of Internet Marketing
Get the Best Credit Card Merchant Account
Bookmark it:
|