Analyzing Alliances: What To Look At And How
Source: IESE School Of Business
An alliance, or an arrangement for cooperation between businesses, is a mix of market transaction and merger or takeover among companies. Though allied, each party retains its own independent governing body, separate balance sheet and some degree of autonomy in decision making. Such cooperations offer lucrative opportunities, leading many entrepreneurs to regard alliances as a 21st century necessity. However, with so many alliance failures, businesspeople are right to be edgy, especially as the reasons behind the success or failure of an alliance remain unclear.