Three Active Acquirers

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Case Study- Strategy Three active acquirers Why have these three firms chosen to grow by acquisitions? What are the similarities and differences in growth strategies among the three firms?  Symantec Corporation was founded in 1982 and is the largest maker of security software for computers. It has chosen to grow by acquisitions to play successfully in the computer-software industry which is very competitive. Indeed, intellectual capital and talent provided by acquisitions enables Symantec to staycompetitive despite the very rapid pace of change.  Republic Industries has chosen to grow by acquisitions of auto dealerships and rental-car agencies in order to become a megastore in auto-retailing business. This industry was actually highly fragmented and inefficient and its customers were dissatisfied. By building a national branded retailer, Republic hoped to exploit economies of scale that would push it into a dominant position.  U.S. Office Products was created in 1994 and sells office supplies. At that time, the office products industry was very fragmented and made up of many small retailers. U.S. Office Products has chosen to grow by acquisitions to take advantage of the opportunity for consolidation in this industry. What are the similarities or differences in the “typical” acquisition deal structures of the three firms? How might these structures support the firms’ growth aims? Typical acquisition deal-structure for the three companies: How have the three firms performed in recent years? How might their acquisition strategies have affected this performance? Why?  Symantec From 1989 to 1997, Symantec’s average annual growth rate in share price has been 12.7%. It is under the S&P 500 Index which has performed at 15.08%, and significantly under the average performance of Computing and Software companies during this period.

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