When contemplating an acquisition,
you should carefully consider the alternatives.
In other words, there are other ways to go here.
And you should make sure you carefully consider those other alternative
strategies.
For instance, maybe you could achieve the same strategic
objective through organic growth.
You might just focus your time and resources and energy on innovation, or
scaling your existing business model.
Just simply doing more of what you do in more markets.
You might alternatively consider a strategic alliance.
Maybe that's a potentially less risky,
less expensive way to enter a new product or geographic market.
We can find a strategic partner and put some sort of an agreement together,
to work together and share the revenues.
So these are alternatives to growth through acquisition,
and it may be that they're better alternatives.
Again, you have to carefully think about the pros and the cons and
think about whether one of these routes is a better route to go
than the risky route of making that potential acquisition.
A successful acquisition requires clarity.
It requires clarity about how it will create value.
Remember it goes back to this basic idea and
strategy of what generates a valuable competitive position.
When you're thinking about a potential acquisition,
you need to really confront whether that acquisition is going to enhance the value
of your existing competitive position.