SMT007 Magazine

SMT-May2017

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16 SMT Magazine • May 2017 • Is this for securing current leading position (command a price premium or better technology or better manufacturing)? • Is this for diversification of business portfolio (a new way to do business)? • Is this for re-positioning in the industry's value chain? • Is this a defense against commoditization? • Is this for "not missing out on the next big thing"? • Does the acquisition alter or change business model? If so, what are the tactics? • Is this to aim at a jump-start trans- formative growth and change the growth trajectory (buying innovations)? • Is this for a new business model as platforms for transformative growth? If so, is the autonomy in order? • What are behind those numbers including today's anticipated market, technology, manufacturing, customers, etc.? • What other synergies will be obtainable after the acquisition? • Does a bolt-on acquisition or platform acquisition make more strategic sense under the company's specific environment? The last phase of acquisition involves the nuts and bolts of integration. The success of ac- quisitions depends on how well the manage- ment can integrate the acquired entity into the company while maintaining the efficiency of day-to-day operations during and after the ac- quisition. To foresee how integration will play out, we must be able to describe exactly what we are buying. Albert Einstein speaks of it this way: "You do not really understand something unless you can explain it to your grandmother." This also brings up another question: Can a company synergistically and advantageous- ly integrate an acquired entity into the parent company if the company has not been able to demonstrate the ability for organic growth? The ultimate success of a public company is typically measured by shareholder long-term re- turns and the value creation for all stakeholders. The board of directors should be prudent when considering potential transactions, as acquisi- tions do not guarantee increased shareholder re- turns. An owner-oriented culture certainly adds additional value to executing acquisitions. Needless to say, there have been innumera- ble success stories in elevating a company's top- line and bottom-line in a timely manner, thus the long-term shareholder returns, through well-thought-out and adroitly executed acquisi- tions. It is all up to the company! SMT Appearance Dr. Jennie Hwang will present a lecture on "Assembly Integrity and Reliability" at the SMT Hybrid Packaging International Conference on May 17, 2017 in Nuremberg, Germany. Dr. Jennie Hwang, an internation- al businesswoman and speaker, and business and technology advisor, is a pioneer and long-standing contrib- utor to SMT manufacturing since its inception as well as to the lead-free electronics implementation. Among her many awards and honors, she is inducted to the Interna- tional Hall of Fame-Women in Technology, elected to the National Academy of Engineering, named an R&D-Stars-to-Watch and YWCA Achievement Award. Having held senior executive positions with Lockheed Martin Corp., Sherwin Williams Co., SCM Corp, IEM Corp., she is currently CEO of H-Technologies Group, providing business, tech- nology and manufacturing solutions. She serves as Chairman of Assessment Board of DoD Army Re- search Laboratory, Commerce Department's Ex- port Council, National Materials and Manufactur- ing Board, various national panels/committees, in- ternational leadership positions, and the board of Fortune-500 NYSE companies and civic and university boards. She is the author of 475+ publications and several books, and a speaker and author on trade, busi- ness, education, and social issues. Her formal education includes four academic degrees as well as Harvard Business School Executive Program and Columbia University Corporate Governance Program. For more information, please visit, www.JennieHwang.com. DO ACQUISITIONS BEAR FRUIT? A PRAGMATIC PERSPECTIVE

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