Business Prof Publishes New Book, ‘Mergers and Acquisitions Strategy for Consolidations’
Norman Hoffmann, an adjunct faculty member in Old Dominion University's College of Business and Public Administration (CBPA), has published a book that draws on his 30 years of experience in corporate mergers and acquisitions.
"Mergers and Acquisitions Strategy for Consolidations" was published July 30 by McGraw Hill. Informed by Hoffmann's own experience with acquisitions and consolidations as a founding executive of Trader Publishing Co. and its predecessors, the book evaluates the often pursued but much maligned "roll-up" strategy of mergers within the context of countless botched examples.
"It demonstrates, however, how the strategy has been employed effectively to produce superior returns by those consolidators devoted to integrating small, value-priced acquisitions within an industry niche," Hoffmann said.
"Mergers and Acquisitions Strategy for Consolidations" analyzes a rarely considered approach that has produced impressive long-term success. In this groundbreaking book, Hoffmann shares the strategy used to create such companies as Starbucks, Tele-Communications Inc. and Trader Publishing, a company that grew to $1.3 billion annual revenue while paying its investors more than $1 billion in dividends during its 20-year history.
That winning merger and acquisition strategy includes:
- The astute and aggressive implementation of "best practices" and enhanced processes;
- The refinement of the business model to "roll out" the launch of new entities to underserved markets; and, most critically
- The identification and pursuit of innovative business development opportunities made possible by the consolidation.
"In addition, the book provides compelling insights into 'practical' valuation considerations, the pitfalls of consolidation, integration tactics, development initiatives and the characteristics of attractive consolidation targets," Hoffmann said.
In these times of globalization, technological advances and dramatic changes in public policy, industry restructuring has become the new norm. With the accelerated rate of mergers and acquisitions, Hoffmann said entrepreneurs and company executives need to know the strategy they are pursuing is the right one.
Hoffmann's strategy takes practitioners well beyond the original deal to provide a solid foundation for the all-important - but often overlooked - process of post-deal integration, where benefits can be realized by the combined expertise of the merger or acquisition entities. "This is where the real profit potential lies," Hoffmann said.
"Mergers and Acquisitions Strategy for Consolidations" takes readers step by step through the process of using M&A rollups as a key part of business strategy, producing returns that far exceed the investment yields possible from any large transaction.
In 2008, Hoffmann began teaching a course on the practitioner's principles of mergers and acquisitions to graduate students of ODU's business college. "Working with students has proven extraordinarily rewarding," he said. "The lively interaction during classroom discussions has been an invigorating and highly enjoyable experience which, in fact, encouraged me to write the book. I look forward to teaching the course each year."
Hoffmann's real-world expertise is commonplace in the CBPA, and indeed throughout the university, as faculty use their expertise and award-winning teaching methods to challenge students to foster creativity, and teach skills for personal and professional success.