All too often M&A deal making falls into the trap of head-to-head competition that drives valuations to “sky-high” levels. The author suggests ways to avoid the trap. 10; 10; 10;
Four lesser-known corporate development strategies offer lucrative alternatives to engaging in an M&A bidding war.
One strategy: The derivatives market allows executives to acquire financial products to hedge their material balance sheet exposures when market pricing is incredibly low.
Relatively few acquirers make initial “toehold” investments in their targets prior to making a bid.
The strategic logic of hyper-efficient resource utilization has rarely been popular, despite how “obvious” it may initially appear. Most executives seem psychologically oriented to a growth-based approach irrespective of the risks that approach may generate over time. 10;
