A guide to help you decide weather to ally with another company or to acquire it in order to obtain long-term growth for you business.

1. By Arjun Yadav
IIM Indore, Mumbai

2. STRATEGY
RESOURCE
ALLOCATION
MAKE
BUY
CRITICALITY
A strategy to decide weather to go for a merger or
acquisition starts with the understanding of the Resources
a firm requires.
Based on the criticality of the resource, the company can
decide weather to make the resource in-house or to buy it
from an external source.

3. BUY
CONTRACT
/ MARKET
JV&SA /
M&A
RELIABILITY
If the decision is to buy resources, the firm can either buy it
directly from the market if the reliability is high.
In case the reliability of the resource in the market is low,
the firm can consider a merger or a joint partnership.

4. MERGER / JV
MERGERS &
ACQUISITIONS
JOINT
PARTNERSHIP
AUTHORITY
When the question of either acquiring or allying arises, the
decision makers develop a strategy based on their interest
in the level of authority they desire in the other company.
If high level of authority is sought, then the company goes
for an acquisition or a merger. If the company desires low
control, it can look for a joint venture or a strategic
alliance.

5. Thank You !