It is largely considered a good sign for the economy and economic growth when mergers and acquisitions (M&A) activity picks up. And so far 2015 has been the most active year since the Great Recession.
Certainly we are seeing indications that the big will continue to get bigger across a variety of industries as companies look to expand their footprints, overtake competition, and reposition themselves for prevailing growth. Here are a few far-reaching examples:
- Charter Communications® combines with Time Warner®
- Petco® and PetSmart® are in talks to merge
- Office Depot® and Staples® may become one
- Merger talks continue to brew between Anheuser-Busch InBev® and SABMiller®
- And rumors are flying about Apple® acquiring Tesla® to fast track its move into the automotive market.
What about deals within our industry?
- Anthem® agreed to buy Cigna® Corporation
- Family Dollar® and Dollar Tree® joined forces
- CVS Health® acquired Omnicare®
- Pfizer® gobbled up Hospira®
- AbbVie®’s announced megadeal to acquire Pharmacyclis®
- Valeant Pharmaceuticals® bought Salix Pharma®
Is this good or bad news for the healthcare industry? From where I sit, most of these acquisitions generate considerable market concern, angst, and adjustment. Regardless of which side of this equation you’re on, the reality is that M&A activity will continue to flourish.
The good news for all is that it presents an opportunity for change. Opportunity to re-establish one’s footing. Opportunity for an honest self-appraisal of your strengths, weaknesses, and threats. And an opportunity to assess what, if any changes, you may need to make to retain your market position.
If M&A activity is occurring in an area that begins to affect your company, your brand, or your future, doing nothing is simply not an acceptable option.