Advice offered to companies completing successful business negotiations
Firms taking over another company could consider a number of different strategies.
Firms that have completed successful business negotiations
should consider four different approaches when deciding how much
independence and organisational autonomy should be given to the
acquisition in order for it to remain successful, it has been
Writing in the Strategist newsletter published by Hoey
Associates, Eamon Hoey outlined the different methods enterprises
can employ once a merger has been completed.
The new entity should be absorbed into the current operation if
the target business requires a high amount of interdependence, he
A company ought to be "established as a standalone autonomous
subsidiary" if the newly-acquired company needs to remain
independent, Mr Hoey added.
Alternatively, a third method is to "give each firm access to
the other's strategic capabilities" in order to keep the
The final option is to take a hold of the target as it requires
"implementation of tight financial controls, limited autonomy and
knowledge transfer", Mr Hoey observed.
Earlier this month, sales negotiation expert Alain Burrese
claimed it is vital for businesses to always be fully prepared
ahead of sales negotiations.