Superior Performance from Implementing Merger and Acquisition Strategies: A Resource-Based Analysis

As a senior manager at a major publishing company, Bob Cochran had managed the firm’s acquisition strategy over the previous two years. While Bob had helped complete several acquisitions, he was particularly proud of a just-completed acquisition of a small specialty publishing house. Several attributes of this acquisition made its completion particularly satisfying. First, the acquired company’s list of authors complemented the current list at Bob’s firm, and even filled in some important gaps on that list. Moreover, this acquisition also benefited the small specialty firm. The acquisition reduced the small firm’s overheads, and gave it access to a larger distribution network that otherwise would not have been available. In every way, this acquisition seemed like a ‘match made in heaven’, as both firms would benefit from a merger. Even the managers of the small specialty firm recognised the benefits of such an acquisition, and had openly encouraged several potential suitors.