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Part 2: Corporate Acquisition 101: Inspired by Niccolo Machiavelli

Posted by Raunak Mahajan on October 24, 2012

“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.”

Niccolo Machiveli, The Prince

I was reading one of my earliest posts and wondered how it would be if Machiavelli’s golden words could be applied in present day and age. Would it help if President Barack Obama sets up residence in Baghdad and spends three months in a year there? What if the probable next President Mitt Romney builds a million dollar mansion in Kabul and runs the American Empire from there? (no comments allowed on the use of “next president 🙂

I think they should. If the strategy worked in medieval times, I see no reason why it cannot now. Superpowers are capitalist empires driven by economic motives. American presence in Afghanistan and Iraq are examples of territorial conquests, and seeing how much tax payer money has been spent in these wars, it would only make sense to continue in these new acquisitions and get a worthy Return on Investment. I would not expect anything less from such a risky venture.

Below is an excerpt from my previous post. Replace “Corporate Acquisition” with “Territorial Acquisition”, “CEO” with “President” and “employees” with citizens and the message is clear.

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.

As always, comments welcomed.

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4 Responses to “Part 2: Corporate Acquisition 101: Inspired by Niccolo Machiavelli”

  1. In general I like my government to be situated as far away as possible. Having the U.S. president move a few thousand miles away sounds just fine to me.

  2. aaronbanda said

    I like this post. I like the tenets of Machiavelli and how they apply to modern politics. Would you please follow me at: http://www.aaronbanda.wordpress.com?

  3. aaronbanda said

    I like this post. I like the tenets of Machiavelli and how they can apply to modern politics. Would you please follow me at http://www.aaronbanda.wordpress.com?

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