Abstract

This article examines the methods used by six firms to assure that their top managements will be knowledgeable when confronted with the problem of negotiating for an acquisition and the role played by corporate planning groups in the acquisition analysis process. The role played by corporate planning groups in analyzing the potential for growth by acquisition is explored. The director of corporate planning (or his equivalent) and members of his staff were interviewed in six large firms where it was known that the corporate planning group had been involved in the conduct of acquisition studies. There are many reasons why a firm might make an acquisition.