Innovate for Revenue Growth
For deals with the strategic aims of acquiring new content and technologies, accessing new customers and developing new capabilities, revenue growth is at the center of the value proposition. Consequently, innovation for revenue growth becomes the mantra for the combined firm. Transactions can help or hinder the combined company’s ability to innovate. This chapter presents practical approaches to innovation for revenue growth during M&A, including a clear definition of innovation, innovation beyond R&D, and actions to promote innovation across the combined organization. The tools, templates, best practices, potential pitfalls, and a case example of how to effectively address innovation during M&A are also addressed, along with the main participants, core activities, buyer’s and seller’s perspectives, and key cross-border considerations.