In this article, we argue that post-acquisition performance can be improved by adding an outside-in business-level strategy to synergy-driven corporate-level strategy. Multinational companies (MNCs) frequently opt to accelerate new business development through the acquisition of innovative companies. We present an in-depth case study of an integration failure after a multi-million-dollar acquisition and also explore how the integration was eventually turned into a success. Initially, the synergies between the MNC legacy business and the acquired company do not play out as expected. As new business development stalls and important growth markets are missed, corporate value destruction occurs. As often happens, consultants are hired to fix the problem, but cannot turn the tide. Eventually, the MNC empowers key people inside the company and finds a way to solve the problem. The essence of the solution lies in deep, genuine, outside-in strategizing at the business level. In hindsight, the MNC suffered from corporate strategy myopia relying on high-level analyses and net-present value (NPV) calculations of potential synergies as a starting point for post-acquisition integration, instead of a clear, outside-in view of the strategic business model required to create value.
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