Rules to acquire by

Strategic Direction

ISSN: 0258-0543

Article publication date: 21 March 2008

Keywords

Citation

Nolop, B. (2008), "Rules to acquire by", Strategic Direction, Vol. 24 No. 4. https://doi.org/10.1108/sd.2008.05624dad.005

Publisher

:

Emerald Group Publishing Limited

Copyright © 2008, Emerald Group Publishing Limited


Rules to acquire by

Article Type: Abstracts From: Strategic Direction, Volume 24, Issue 4.

Rules to acquire by

Nolop B. Harvard Business Review, September 2007, Vol. 85 No. 9, Start page: 129, No. of pages: 9

Purpose To set out the approach that Pitney Bowes adopts towards acquisitions. Design/methodology/approach Presents advice from the CFO of Pitney Bowes, based on the company’s acquisition experience. Explains that Pitney Bowes has bought seventy companies in six years and treats acquisition as a business process. Lists and discusses five principles on which their acquisition activity is based, including a focus on adjacent areas; management of acquisitions like a portfolio of investments; and ensuring that each acquisition has a clearly defined leader, or business sponsor, who is personally focused on executing the business plan for the acquisition. Highlights the importance of clarity on how the acquisition is to be evaluated and warns against the human tendency to “shop when you’re hungry”, buying more than is needed and being insufficiently price sensitive. Distinguishes between bolt-on and platform acquisitions and discusses the importance of due diligence reviews to identify and eliminate major sources of potential risk before the transaction is closed. Originality/value Advocates a disciplined process as the basis of a successful and value-adding acquisition program.ISSN: 0017-8012Reference: 36AY732

Keywords: Mergers and acquisitions, Pitney Bowes, Process management