Businesses have considered merger and acquisition (M&A) deals as a viable growth strategy for more than a century. In the past, these deals have typically been transactional in nature, pursued for economies of scale and to consolidate costs. But today, in an era where companies need to disrupt themselves or be disrupted, organizations are increasingly pursuing M&A for growth through business transformation.
For example, General Mills (GM) has evolved its M&A approach over the past decade. “Prior to 2017, General Mills largely pursued more opportunistic deals, expanding its consumer packaged goods offering with strategic acquisitions like Annie’s organic and natural food products,” shared Doug Power, former Global Head of M&A for General Mills. “In 2017, we pursued transformational growth with our acquisition of Blue Buffalo Pet Products, Inc. for $8 billion. The acquisition positioned General Mills as the leader in the Wholesome Natural pet food category and successfully reshaped our product portfolio.”
Read Jennifer’s full Harvard Business Review article where she outlines a new approach to M&A.