With most acquisitions, a strategic purchaser is looking to grow value by enhancing their top and bottom line. These acquisitions work best when they accomplish one of two goals: leveraging a core advantage or minimizing a weak area. The more market share one acquires, the greater the top line … and protection from the competition.
On the other hand, most companies have a weakness or limiting factor that accounts for a reduction of either top or bottom line. If one can find a company that does that factor well, purchase it, and integrate it into one’s business, market share expands … and business flow is improved.