In the latest “solocast” episode of the Fueling Deals podcast, I discuss some of the bigger, higher-profile and more newsworthy deals of 2018, and I highlight the lessons that can be drawn from these deals and brought into your business and its own deals, no matter how large or small your business may be.
By analyzing the inner workings, strategic motivations and structural differences of these deals, I believe we can take away some powerful lessons and information about the making of a deal. Through reviewing what the “big guys” are doing, we can apply their philosophies and successful strategies to our own businesses.
There are as many reasons for doing a deal with another business as there are types of deals that can be done. We can learn a great deal about the motivations behind these deals, what the deal partners expect to gain, and even when deals with competitors are appropriate and beneficial. Listen to the episode and apply these lessons to your own deal-making.
The Motivation Behind Deals
As we analyze 2018’s biggest deals, consider the motivation behind them. In some cases it is obvious; IBM’s acquisition of Red Hat positions the company to be the #1 hybrid cloud provider in a rapidly growing market. The benefits of the acquisition are clear, as the deal helps IBM cement its dominance in the market.
Other times, the advantages aren’t as obvious. Why would Apple partner with one of its primary competitors, Google, for the purposes of cloud-based web services? Apple and Google are rivals in many other areas, but this partnership makes sense for both companies as it helps pressure their other main rival, Amazon. Since both companies benefit from the deal, the partnership is worth pursuing despite their ongoing competition in other areas.
The Key Lessons
Even though we are talking about multi-million and billion-dollar deals between huge, dominant corporations, the lessons we can take away from our analysis of their deals can be scaled and applied to businesses of any size. Just like with Oracle’s acquisition of DataFox, you can turn to deals to become even stronger in the areas of your business in which you’re already succeeding. Or, like with AT&T’s purchase of AlienVault, you can acquire a company that will help you boost your internal operations.
There are many other reasons to consider deals as a powerful tool for inorganic growth. The recipe for a successful deal involves having a clear understanding of what your deal partner is bringing to the table, how it will benefit your organization, and whether the deal will be more cost-effective and timely than trying to grow organically in that same direction. It is for this reason that I believe there is much value to be found in analyzing the deals of others and looking into the deeper truths and the nuts and bolts of those deals.
Learn more about Finding the Right Deal by listening to my episode on Fueling Deals podcast.
Corey Kupfer is an expert strategist, negotiator and dealmaker with more than 30 years of professional deal-making and negotiating experience. He is a successful entrepreneur, attorney, consultant, author and professional speaker. He is also the creator and host of the Fueling Deals Podcast.
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