Every decision in an M&A is dependent on a number of variables. Making the right decision in the moment may not be the right decision down the road, but making no decision at all is worse.
The most impactful decision, though, is how the two companies will integrate (or not) once the deal closes. To some extent, this will be determined by your motivation for starting the M&A process to begin with. The similarities and differences between your business model and the business model of the company you’re acquiring will play a large role as well.
In this Process Street post, I’ll do a quick rundown of the two primary strategies, tuck-in and bolt-on, as well as everything you need to know in order to determine which is the strategy for your business.
- Round 1: Tuck-in vs. bolt-on: Debrief
- Round 2: Tuck-in vs. bolt-on: Pros
- Round 3: Tuck-in vs. bolt-on: Cons