M&A is not always about getting bigger. Often, it’s about recalibrating a business to focus on core competencies and long-term growth. On November 27, United Technologies announced it would split into three companies by 2020. United Technologies will focus on aerospace, Otis on elevators, and Carrier on air-conditioning and HVAC. United Technologies Chairman and CEO Gregory […]

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Campbell plans to sell its fresh foods and international businesses to refocus on core products in North America. The fresh foods business includes brands such as Bolthouse Farms and Garden Fresh Gourmet, which were acquired in 2012 and 2015, respectively. In a time when many food and beverage companies are seeking to increase their hold […]

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Nestle is selling its US chocolate business, which includes brands such as BabyRuth, Butterfinger, and Crunch to Ferrero for $2.8 billion. The deal is part of Nestle’s strategy to sell underperforming brands and refocus on healthier products and fast-growing markets. Nestle recently acquired vitamin maker Altrium Innovations for $2.3 billion and is rumored to be […]

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Capstone advised ATW on long-term strategy which resulted in the divestment of the Stamping Division to refocus on ATW’s core business. Capstone Strategic, Inc. (Capstone) announced today that ATW Companies (ATW) of Warwick, Rhode Island has sold its Stamping Division to Crystal Engineering (Crystal) of Newburyport, Massachusetts. Capstone advised ATW on its long-term strategy to refocus […]

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Middle market companies have faced many challenges to growth, but the tide is now turning. Previously, we had observed the dumbbell effect, where at either end of the spectrum massive corporations and small businesses flourished while middle market companies were caught in between. Unlike large multinational corporations, many middle market companies cannot leverage the same […]

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News in from Coca-Cola reminds us that growth is more about recalibration than it is about adding size. According to the Wall Street Journal, Coke plans to sell off all of its US manufacturing plants by 2017. Why would they do that? Coke has struggled with its asset heavy distribution over the past couple of […]

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Sometimes, a business must first become smaller in order to grow. What I mean is that in order to focus on your strategic goals and respond to changes in demand and in the market, you may need to less of something. This includes stopping a specific product line, shedding customers, or even divesting of an entire […]

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CVS’s $1.9 billion acquisition of Target’s pharmacy business is one of the more interesting deals in the news for a number of reasons. Let’s take a look at the transaction and explore why it makes sense strategically for both buyer and seller. With this deal, CVS will have the opportunity to expand its footprint in […]

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Pharmaceutical companies are using acquisition to become “pointy,” or more focused. Two recent examples are Bayer and Merck.  Bayer is focusing on over the counter medications by acquiring Merck’s consumer care business for $14.2 billion. On the other hand, Merck has become more streamlined through divestment. As I’ve mentioned before, although divestment means becoming smaller, […]

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If your company’s organic growth has hit a plateau or is in decline, leaving the current market may be your best option. If the odds against your success are rising steadily, I strongly encourage you to think about divestment. After seven years, British supermarket chain Tesco is exiting the U.S. market. Tesco is selling its […]

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“Growth” is not what typically comes to mind when we hear a company is selling a part of its business. Our natural intuition is to think growth is simply about getting bigger. But growth is about more than expanding – it’s about recalibration. Economies and markets continually change and, at times, contraction may be the […]

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When you hear the word “grow,” you probably think of getting bigger:  having more customers, more markets, more products, or more revenue. I prefer to see growth strategy as a way to recalibrate your company, enabling you to become increasingly focused and effective. Recalibration is a continual necessity today, because economic and technological changes are […]

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