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Corporate Acquisition 101: Inspired by Niccolo Machiavelli

Posted by Raunak Mahajan on July 16, 2012

In Chapter 3 of “The Prince” Machiavelli states, “when states are acquired in a country differing in language, customs, or laws, there are difficulties, and good fortune and great energy are needed to hold them, and one of the greatest and most real helps would be that he who has acquired them should go and reside there.”

Now here lies a lesson for all those consulting or undertaking Corporate Acquisition, especially one where entities from different countries or cultures are involved. Just replace “states” with “companies” in the above quote and the message is clear: The CEO or Chairman or Decision Maker of the company that makes an acquisition overseas, must move his office to the acquired company and run his business from there until Integration of the two entities is truly complete.

Further he wrote, “Because, if one is on the spot, disorders are seen as they spring up, and one can quickly remedy them; but if one is not at hand, they are heard of only when they are great, and then one can no longer remedy them. Besides this, the country is not pillaged by your officials; the subjects are satisfied by prompt recourse to the prince; thus, wishing to be good, they have more cause to love him, and wishing to be otherwise, to fear him.”

Proximity to employees of the acquired company will go a long way in allaying their fears and insecurities. Needless to say, this is of utmost importance when you wish to leverage the resources of the acquired firm to the fullest.

 

 

 

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One Response to “Corporate Acquisition 101: Inspired by Niccolo Machiavelli”

  1. […] Corporate Acquisition 101: Inspired by Niccolo Machiavelli (doakonsult.wordpress.com) […]

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