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Employing lesser-known corporate development strategies while avoiding problematic blind spots

Joseph Calandro Jr. (Joseph Calandro, Jr., is a Managing Director of a global consulting firm, Fellow of the Gabelli Center of Global Security Analysis at Fordham University, author of Creating Strategic Value (Columbia Business School Publishing, 2020), and a contributing editor of Strategy & Leadership (jtacalandro@yahoo.com))

Strategy & Leadership

ISSN: 1087-8572

Article publication date: 29 March 2022

Issue publication date: 15 April 2022

109

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

Copyright © 2022, Emerald Publishing Limited

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