Employing lesser-known corporate development strategies while avoiding problematic blind spots
ISSN: 1087-8572
Article publication date: 29 March 2022
Issue publication date: 15 April 2022
Abstract
Purpose
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;
Design/methodology/approach
Four lesser-known corporate development strategies offer lucrative alternatives to engaging in an M&A bidding war.
Findings
One strategy: The derivatives market allows executives to acquire financial products to hedge their material balance sheet exposures when market pricing is incredibly low.
Practical/implications
Relatively few acquirers make initial “toehold” investments in their targets prior to making a bid.
Originality/value
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;
Citation
Calandro, J. (2022), "Employing lesser-known corporate development strategies while avoiding problematic blind spots", Strategy & Leadership, Vol. 50 No. 3, pp. 15-20. https://doi.org/10.1108/SL-03-2022-0016
Publisher
:Emerald Publishing Limited
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