M&as and Corporate Strategy

Find the right path to optimise your business portfolio

Developing and managing a successful portfolio of businesses requires taking the right path to acquire, redeploy or divest resources and capabilities. Whether that means a merger, an acquisition, an alliance, a licensing contract, a divestment or internal development, it is imperative to understand the pros and cons of each path and to learn which is most appropriate for a successful corporate strategy.

The M&As and Corporate Strategy Programme, has been designed by INSEAD faculty based on their most recent research and teaching innovations. It uses case studies developed at INSEAD that feature real-world examples of portfolio growth and restructuring, as well as value-creating and value-destroying, M&As and divestitures. These are sourced from a range of industries that include financial services, telecommunications, packaging, chemicals and manufacturing.

Mapping the path to optimise your portfolio of businesses is a challenging task. With help from INSEAD faculty and a select group of peers, you will undertake a learning journey to explore three critical questions:

• What is the right composition of your portfolio of businesses to provide the set of resources and capabilities your company needs to create value?
• How to select the right mix of internal and external corporate development tools to manage your business portfolio?
• How to develop a rigorous, holistic approach to successfully manage M&As and divestitures to strategically supplement your internal development and restructuring efforts?

HOW YOU BENEFIT

• Portfolio examination. Define your optimal portfolio of businesses, as well as the right mix of internal and external growth
• Preparation for an M&A. Enhance your M&A capabilities through the development of a disciplined and holistic process for acquiring and integrating new resources and skills
• Post-M&A counseling. Design a post-M&A integration approach that fits strategic objectives, while also taking into account human constraints

CONTENT OVERVIEW

The M&As and Corporate Strategy programme has been built on the thought leadership developed at INSEAD in corporate strategy, business portfolio strategy and M&As. Through lectures, interactive case studies, small-group projects and experience-sharing workshops you will be equipped with a set of frameworks, practical tools and world-class peer contacts that will make you better prepared to tackle the critical corporate-level issues of your organisation. Specifically, you will be coached in the following.

BUSINESS PORTFOLIO OPTIONS

• Understand what drives companies to grow or restructure their business portfolio
• Evaluate your business portfolio and determine the appropriate businesses to acquire, restructure or divest through a disciplined decision-making process
• Develop a corporate parenting advantage by adding greater value to an individual business unit

CORPORATE DEVELOPMENT TOOLS

• Understand the opportunities and weigh the risks associated with the use of each corporate development tool: build, acquire, ally, license or divest
• Select the optimal mix of corporate development tools to grow and restructure your business portfolio

SELECT, VALUE AND INTEGRATE M&AS

• Counter the social and psychological pressure of industry-wide waves of M&As with a rigorous due diligence process
• Evaluate valuation proposals by understanding and quantifying synergy drivers in M&As and learn how to capture value from your M&A deals
• Integrate M&As into your corporation whilst retaining the value of the target capabilities and people, especially with small entrepreneurial structures
• Navigate the cultural minefield in the context of your cross-border acquisitions

STRATEGIC VERSUS FINANCIAL BUYERS

• Recognise when resources or businesses should be divested and select the right divestiture tool
• Handle takeover offers from private equity firms and compare them with those of strategic buyers and with internal restructuring options
• Identify and capture opportunities from selling entrepreneurial firms
• Decide when and how to use less integrative modes of resource acquisition than M&As, such as alliances and joint ventures
• Recognise the value of sequential engagement through alliances
• Understand the benefits and limitations of alliances
• Clarify your criteria for choosing acquisitions over alliances