- Leistung:M&A-Strategie
- Sektor:Medien und Verlagswesen
Issue
The client wanted to grow e-revenues primarily through acquisition but did not have a clear view of which business models would be best placed to create value over the medium term. The problem in making an investment decision was the speed with which internet businesses go in and out of favour. They also had little visibility of which potential targets were available in the many niche sectors it operates in.
Approach
AMR scanned the online market in five of the industries that the client was most active in. Interviews with customers, advertisers and website users were used to identify the most attractive businesses, and further analysis was required to extrapolate the business models that were likely to remain successful over the medium term.
Recommendations
AMR delivered a series of potential acquisition targets within distinct market segments and industries but it was clear that there were few attractive business models within the niche markets where our client was strongest. A strategic vision was developed with the client and AMR established that this strategy could not be fulfilled by acquisition alone. Greater organic development capability would have to be developed.
Result
The client fully accepted the recommendations and built a new global e-business team to execute the dual acquisition and organic development strategy devised in conjunction with AMR.
Insight from AMR’s research
Acquisition is the obvious route to enter new and rapidly developing markets but deciding which targets are attractive or not cannot depend purely on current financial performance. Without a clear vision of the type of business model that is likely to succeed in the future, many acquired companies will only bring short-term benefit before being left behind as the market evolves.