Semi-Organic Growth E-Book

George T. Geis

• Herausgeber: John Wiley & Sons
• Kategorie: Fachliteratur
• Sprache: Englisch

Seitenzahl: 347

Veröffentlichungsjahr: 2015

Beschreibung

An in-depth examination of Google's innovative approach to M&A Semi-Organic Growth presents a unique analysis of Google's distinctive expertise in the area of mergers and acquisitions, derived from more than 150 acquisitions carried out over the company's short history. While organizational growth has traditionally been characterized as organic (internally generated) or inorganic (from acquisition), this book examines Google's semi-organic strategy for accelerating product and service revenue, explained through a unique sector/subsector classification scheme that dynamically maps the media, Internet, and technology platform markets. You'll gain insight into Google's disclosure strategies for private company transactions, and more importantly, their methods for integrating acquisitions into product and service offerings to achieve ecosystem synergy. Unique perspective reveals the lessons learned along the way from both successes and failures, and the companion website gives you access to the tools that help you implement what you've learned. Google's extensive use of M&A as a growth strategy has been in sharp contrast to the practices of rivals like Apple, and further contrasts with the failures of many other companies in corporate business development. This book shows you the thinking behind the company's successful methods, and demonstrates the mechanisms behind the success. * Learn why corporate M&A activity often fails to add value * Delve deep into the complex dimensions of M&A integration * Discover what Google has learned through specific deals * Consider innovative integration methods that foster synergy Google is an iconic, premiere company, and it didn't happen by accident. Their success is driven by their innovative approach to strategy in all areas, and their M&A expertise has been a major contributing factor. Semi-Organic Growth takes you through the core workings of Google M&A to provide insight into successful strategy for the modern market.

Leseprobe

Table of Contents

Title Page

Copyright

Dedication

Preface

Acknowledgments

Chapter 1: M&A Success and Failure

M&A Activities

Evaluating Performance

Reasons for M&A Failure

Semi-Organic Growth: Beginnings

Notes

Chapter 2: Imprinting Semi-Organic Growth

Applied Semantics Deal

What Distinguishes Semi-Organic Growth

Semi-Organic Acceleration

Notes

Chapter 3: Google versus Apple: M&A Paths Diverge, then Converge

Historical Perspective in M&A Activity

Dyadic Cascading

M&A Strategy Changes

Notes

Chapter 4: M&A Market Modeling

An MIT Market Model for Google

Key Steps in Market Modeling

Using Marketing Modeling

Broad Appeal of Market Modeling

Notes

Chapter 5: Google Media Deals

Media Deal Categories

Google's Media Schizophrenia

Notes

Chapter 6: Google Internet Deals

Internet Services/Software Market Model

Post-Closure Deal Analysis

Notes

Chapter 7: Google Technology Platform Deals

Smartphones

The Smart Home

Robotics and Artificial Intelligence

Technology Platform Scope and Endgame

Notes

Chapter 8: Failed or Shuttered Deals

Success Metrics

Goodwill Write-Downs and Deal Failure

Failure and the Spirit of Experimentation

Some Shuttered Transactions

An Acquisition and Rapid Exit

Overall Assessment of the Motorola Deal

Notes

Chapter 9: Disclosure versus Secrecy

SEC Guidelines for Disclosure

Company Secrecy/Disclosure Motives

Disclosing Value and Terms

Materiality Revisited

Notes

Chapter 10: Forms of Consideration

Stock versus Cash as Consideration

Motivations for Using Cash or Stock

Consideration Beyond the Close

Notes

Chapter 11: Contingent Consideration

The Earn-out

Retention Bonuses

Moving Away from Earn-outs

Notes

Chapter 12: Dimensions of M&A Integration and Semi-Organic Growth

Typologies for M&A Integration

Google's Integration Styles

Microanalysis Necessary

Notes

Chapter 13: Acqui-Hires Enhancing Google Offerings

Why Products to Reach Customers Should Drive M&A Activity

Forms of Acqui-Hiring

Google M&A Alumni

Notes

Chapter 14: Competitive Deal Constellations and Ecosystem Synergy

Competitive Constellations: Google versus Amazon

Ecosystem Synergy

Ecosystem Synergy and Semi-Organic Growth

Notes

References

About the Website

About the Author

Index

End User License Agreement

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Guide

Cover

Table of Contents

Preface

Begin Reading

List of Illustrations

Chapter 1: M&A Success and Failure

Figure 1.1 Google acquires Applied Semantics

Chapter 2: Imprinting Semi-Organic Growth

Figure 2.1 DeepMind and Robotics Acquisitions

Chapter 3: Google versus Apple: M&A Paths Diverge, then Converge

Figure 3.1 Google's acquisitions in 2010

Figure 3.2 Apple's acquisitions in 2010

Figure 3.3 Apple/Google dyadic M&A cascading in 2010

Figure 3.4 Select Apple acquisition in 2013

Chapter 4: M&A Market Modeling

Figure 4.1 High-level category tree

Figure 4.2 Using a category tree to display acquisitions in social networking

Figure 4.3 Deals using stock as consideration

Figure 4.4 Apple's M&A activity in mapping

Figure 4.5 Acquisitions by Apple, Facebook, or Google in Israel

Figure 4.6 Google deals in response to key competitors

Figure 4.7 Description and classification of sample target

Figure 4.8 Apple/Google mapping-related acquisitions

Chapter 5: Google Media Deals

Figure 5.1 Media (overview) + Advertising segmentation

Figure 5.2 YouTube and some YouTube-related acquisitions

Figure 5.3 DoubleClick and DoubleClick-related M&A deals

Figure 5.4 Advertising deals in additional formats

Figure 5.5 Sample media content–related acquisitions

Chapter 6: Google Internet Deals

Figure 6.1 Internet services/software market model

Figure 6.2 Blogging-related M&A activity

Figure 6.3 Google's M&A activity in Internet retailing

Figure 6.4 Google's M&A activity in mobile apps

Figure 6.5 Select Google M&A's in social networking

Chapter 7: Google Technology Platform Deals

Figure 7.1 Technology platform market model

Figure 7.2 Android and related acquisitions

Figure 7.3 Google's smart home–related acquisitions

Figure 7.4 Robotics, AI, and driverless car-related acquisitions

Chapter 8: Failed or Shuttered Deals

Figure 8.1 Some Google acquisition failures

Figure 8.2 Google buys Motorola Mobility

Chapter 9: Disclosure versus Secrecy

Figure 9.1 Acquisitions for which Google has disclosed purchase price/terms

Figure 9.2 Acquisitions for which Apple has disclosed purchase price/terms

Chapter 10: Forms of Consideration

Figure 10.1 Google's use of stock in acquisitions

Figure 10.2 Apple's use of stock in acquisitions

Figure 10.3 Facebook's use of stock in prominent acquisitions

Chapter 11: Contingent Consideration

Figure 11.1 Sample deals involving earn-outs

Figure 11.2 Sample deals involving retention bonuses

Chapter 12: Dimensions of M&A Integration and Semi-Organic Growth

Figure 12.1 Four possible integration strategies

Figure 12.2 Examples of symbiotic integration during 2014

Figure 12.3 Starting point and movement with an integration

Chapter 13: Acqui-Hires Enhancing Google Offerings

Figure 13.1 Mapping segments against products

Figure 13.2 Google product and service category tree

Figure 13.3 Google acquisitions in support of cloud services

Figure 13.4 Acquisitions in support of Google X

Figure 13.5 Acquisitions in support of Google Play

Figure 13.6 Form I

acqui-Hires

Figure 13.7 Form II

Acqui-hires

Figure 13.8 Form III

ACQUI-HIRES

Figure 13.9 Form IV

acqui-HIRES

Figure 13.10 Google M&A alumni

Chapter 14: Competitive Deal Constellations and Ecosystem Synergy

Figure 14.1 Amazon M&A positioning constellation against Google

Figure 14.2 Google M&A positioning constellation against Amazon

Figure 14.3 M&A ecosystem synergy in advertising

List of Tables

Chapter 1: M&A Success and Failure

Table 1.1 Deal Activities

Chapter 3: Google versus Apple: M&A Paths Diverge, then Converge

Table 3.1 Documented M&A Transactions for Apple and Google (2001–2013)

Semi-Organic Growth

Tactics and Strategies behind Google's Success

GEORGE T. GEIS

Cover design: Wiley

Copyright © 2015 by George T. Geis. All rights reserved.

Published by John Wiley & Sons, Inc., Hoboken, New Jersey.

Published simultaneously in Canada.

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Library of Congress Cataloging-in-Publication Data:

Geis, George T.

Semi-organic growth + website : tactics and strategies behind Google's success / George T. Geis.

pages cm

Includes bibliographical references and index.

ISBN 978-1-118-93322-0 (hardback)

1. Consolidation and merger of corporations. 2. Google (Firm) I. Title. II. Title: Semi-organic growth.

HD2746.5.G447 2015

658.4′012—dc23

To George S. Geis, Terri L. Geis, and Anne L. Geis—three ongoing sources of semi-organic growth

Preface

Around 1995, I became intrigued with developing a methodology and related visualization technology to systematically analyze company acquisitions, minority equity investments, alliances, and other corporate development activities. At the time, I was concentrating on companies that included Microsoft, Intel, and Cisco.

Then along came Google. Starting with the early days of Google, acquisitions appeared to play a particularly important role in the strategic unfolding of this iconic company. Google was becoming an experimental lab, not only for products and services but also in utilizing M&A to further its purposes.

I wanted to understand in depth why Google was engaging in what was an unprecedented level and type of M&A activity.

As of 2015, Google had acquired some 200 companies. But there's much more to the story than numbers. The major thesis of this book is that early in the company's existence, a playbook for M&A activity (which I dub ) was established, and that this pattern became a core element of Google's success.