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ALAMEDA, Calif. - More than 100 mergers, acquisitions and strategic alliances between CMs and other companies were concluded during 1999, according to a new report from Technology Forecasters Inc.
"Each week, an average of two such deals are completed," said Dr. Charles Mullen, director of high-technology consulting for the firm. "[CMs] not only are purchasing additional electronics assembly facilities - sold by OEMs looking for a cost advantage or other [CMs] - but also are acquiring, merging or allying with a wide range of companies offering electronic design, components, subsystems, systems integration, software, and other products and services along the value chain."
Mullen did warn, however, that in 60 to 70 percent of high-tech strategic alliances, including mergers and acquisitions, one or both parties are unhappy with the deal. To help avoid this situation, the report presents the best-practice strategies employed by executives at CMs, OEMs, design houses and other allying companies, making the deal valuable and successful for both parties.
"The biggest errors made concern mismatched information technology and culture between the companies, lack of clear goals for the alliance, and uncertainty about the value of the deal," said Mullen.
For more information on the report, Mergers and Acquisitions in the Contract Manufacturing Industry: Trends and Best Practices, contact Technology Forecasters at (510) 747-1900 or visit www.techforecasters.com/Report_m&a.htm.