They occasionally execute larger deals, but do not rely on big bang approaches. Most focus on areas closely related to their core business, but rarely buy product lines that completely overlap with an existing offering, or that introduce incompatible architectures or business directions. They build strong organizations that constantly identify and monitor potential targets. They have the capabilities to initiate deals but are also prepared to respond to the incoming opportunities, promptly, and in a disciplined manner. Serial acquirers hire the best talent for their business development groups and provide them with a seat at the executive decision-making table.
Internal talent is complemented by the best available partners and outside help.
Some, like Cisco, even have venture capital arms that feed their long-term pipeline of potential acquisitions. Finally, serial acquirers have disciplined processes for integrating their new possessions. These processes address wide-ranging issues, including key employee retention and compensation management, technology integration, facilities, IT, and administrative systems integration. It is often in the strength of their post-merger management and integration processes where the good acquirers distinguish themselves from the average ones and build the confidence required to become serial acquirers. For leading high tech companies, the opportunity is ripe to build or strengthen acquisition programs.