Strategic Ingredients for Successful Food Industry Acquisitions
- VOLUME XIII, ISSUE 11
- Executive Insights
Why do some mergers and acquisitions (M&A) activities in the food and beverage industry succeed while others fall flat? L.E.K. Consulting analyzed nearly 3,200 acquisitions of food and beverage companies in North America during the past decade and found that at least one-third of these deals appear to have destroyed value of the acquiring company.
And one of the most common reasons that these deals failed is that they were based on false strategic premises. To address this challenge, L.E.K.’s new report outlines a management framework that provides a fact-based approach to acquisition strategy. And the report also provides a three-step process that can help managers develop more reliable insights into the following key areas: scale, scope and skill.