Buying a U.S. company offers a quick and easy way to acquire a client base without having to build one up slowly through traditional sales and marketing efforts, efforts that can be expensive, time consuming and not always successful. As described in part one of this series, acquisitions can provide U.S.-based expertise and infrastructure that can be used to re-invent and re-energize a business by shifting some portion of its production and service operations to more competitive locations.
International and U.S. buyers can reinvent stagnating U.S. firms through a business model that is referred to here as the acquisitions plus globalization (A+G) model. The A+G business model can be applied to companies that have either not rationalized enough of their production and service operations to competitive locations around the globe or have done so through high-cost arrangements that can be scrapped and redone.
