Also, until the market iced over, acquisition had become a partnering phenomenon. Now it's not as free an option. Without the capital, alliances are more based on opportunities like co-distribution and research and development sharing. Companies have to rework the way they value alliances, but also the way they value companies themselves. Just because its stock is going down doesn't mean it's not valuable in terms of its level of innovation.
Personality is always key to compatibility.
Organizations themselves require different personalities as they work through their lifecycles, says Segil. You need to know the stage of a company's lifecycle so you don't get pulled into its mindset. It shoots up fast and then it only takes a short time to level off, if at all. Segil says that more than half of all alliances fail in under three years. They fail to access new markets, grow market share or add product.