They create product road maps to identify holes in their product line. While the business group determines if it can do the work in-house, the business development office scouts for opportunities to buy it. Once business development locates a candidate, it conducts an expanded due diligence, which goes beyond strategic, financial, and legal checks. Successful acquirers are focused on long-term capabilities, so they make sure that the target's products reflect a real expertise. They also look to see if key people would be comfortable in the new environment and if they have incentives to stay on board.
Acquisitions can cause great uncertainty, and skilled people can always go elsewhere.
In short, the authors argue, high-tech acquisitions need a new orientation around people, not products. All rights reserved .