By the drum

What does ‘strategic fit’ mean for an agency acquirer?

If we want to create shareholder value through M&A the acquirer has to create higher returns than the premium paid for the target company, that much is obvious. Beyond the simple financial rationale for investing in a good business an acquirer and the target will often talk about the ‘strategic fit’ between the two organisations, leading to an analogy better communicated as 2 + 2 = 5.

There’s an important distinction to make here between ‘strategic fit’ and simple ‘synergies’. For the learned amongst you, synergy is derived from the Greek works ‘sun’ Read full story ›

Source: The Drum