Mergers, Acquisitions, and the Growth Trap
Today we’re going to continue our exploration of the growth trap. I define the growth trap as seeking business growth for the sake of business growth with little regard for operational or cultural implications.
However, like the budgeting process, c-suite magical thinking poses the biggest threat to value addition in M&A and can quickly turn what on the surface looks like a great idea and a big value-add into a transaction that ends up destroying corporate value.
Is Bigger Always Better? Exploring the Growth Trap
The question today is this. Is bigger always better? In zucchini, the answer is a resounding no. In business, the answer is a bit more nuanced, but bigger is certainly not always better.
As leaders, we routinely fall into what I like to call the growth trap. The growth trap shows up in various forms, but it can be a huge morale killer and represent significant risk to the business.