Traditional organic growth in the high tech industry is dead, due to the rising cost of R&D, speed of technology turnover and a more demanding, diverse customer base. Instead, leading companies are using M&A as a growth strategy.
As companies use M&A as a tool to help them transform their business to enter new industries, markets and geographies, their approach to M&A must change rapidly. These are the three major reasons for leveraging M&A.
Growing the core
Pursuing growth via expansion in existing markets, customer segments, product set or customer markets drives growth.
Migrating to adjacent businesses
Growing via expansion in the value chain with new distribution channels, geographies, product or tech modifications serving new customer segments.
Pivoting to new opportunities
Achieving growth through new products and services, migrating into “white spaces.” Doing so involves risk, and market reaction is not always positive.
Accenture differentiates through a value-led perspective, unmatched scope and scale, and digitally powered capabilities.
Full range of value levers from growth to cost
Leading revenue growth accelerators
Scope and scale
Accenture’s global reach
175,000 worldwide technology experts
Powerful ecosystem with SAP, Salesforce, and others
Largest, most advanced analytics capability
3,800+ data scientists/AI specialists
Proven AI-enabled accelerators dedicated to M&A
Firms who bought in a downturn tend to have a higher three-year total shareholder return (TSR) than their S&P 500 sector average.
Increase from M&A during epidemic outbreaks.
Increase from M&A during downturns.
Decrease from M&A during financial shocks.
While using M&A to fuel growth is a complex process, a few first moves can help smooth the journey.
Adapt to changing geopolitical landscape
Keep pace with a highly varied business environment of the semiconductor industry with many regulatory and government protocols.
Base target screening
Create a robust target screening process based on your companies R&D investments and technology roadmaps.
Test with joint ventures
Understand the impacts of the transformational M&A deals versus smaller, less significant M&A activity.