Bigger Alone Isn’t Always Better in Consumer Products M&A

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Consumer products companies looking at mergers and acquisitions need to focus on transactions that address the need for a set of coherent capabilities around which they can build businesses that succeed in the competitive, modern era rather than on scale alone.

Bigger Alone Isn’t Always Better in Consumer Products M&A. Instead, Coherence Is Critical to Modern Transactions in the Sector, J. Neely Explains in Latest Episode of Mergercast by Booz & Company.

For consumer products companies looking at mergers and acquisitions, bigger alone isn’t always better.

J. Neely, a Partner at Booz & Company, explains that companies instead need to focus on transactions that address the need for a set of coherent capabilities around which they can build businesses that succeed in the competitive, modern era.

Neely discusses this idea in Episode 32 of Mergercast by Booz & Company, the second in a three-part podcast series exploring coherence in consumer goods M&A.

“Historically, especially in the 1950s and '60s, competitors in the consumer products space had great opportunities to get bigger, and this in turn drove tremendous scale benefits. Today, however, what was once a key source of differentiation and competitive advantage has become more of a cost of entry. Companies that outperform in the modern era have to find other ways to achieve differentiated results, and that’s where we think capabilities really come into play,” Neely says.

Neely goes on to explain how companies are competing around capabilities today and the extent to which organizations are gravitating away from scale alone in selecting M&A targets.

About Mergercast
Mergercast by Booz & Company is a podcast series exploring the world of mergers, acquisitions and restructurings. The current episode, No. 31, has a runtime of 13 minutes and 19 seconds. Listeners can play the podcast on its homepage (http://www.booz.com/mergercast) or subscribe via RSS feed, e-mail or the iTunes store.

About Booz & Company
Booz & Company is a leading global management consulting firm, helping the world’s top businesses, governments and organizations. Our founder, Edwin Booz, defined the profession when he established the first management consulting firm in 1914.

Today, with more than 3,300 people in 61 offices around the world, we bring foresight and knowledge, deep functional expertise, and a practical approach to building capabilities and delivering real impact. We work closely with our clients to create and deliver essential advantage. The independent White Space report ranked Booz & Company #1 among consulting firms for “the best thought leadership” in 2010.

For our management magazine strategy+business visit http://www.strategy-business.com.

Visit http://www.booz.com to learn more about Booz & Company.

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Sharon Bially

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