Three Lessons for Top Management

Abstract

In this final chapter, Matsumoto highlights three lessons gleaned from the Japanese outbound acquisitions discussed. First, it is better to prepare for and not underestimate the pitfalls surrounding the usual beliefs about the benefits of M&As. Companies can create synergy only by investing significant amounts of management resources after acquisitions. Second, the primary goal of overseas acquisitions should be sustainable profit growth; it is a mistake to seek short-term financial gains or increases in share price as their sustainability is unlikely. Third, businesses must redefine themselves as they pursue large-scale cross-border M&As. At the same time, to avoid the dilution of an acquisition’s positive impact, it is important to divest from companies that are not highly profitable or are outside of the strategic business.