Mergers and acquisitions (M&As) are key strategies for almost all top corporations today, especially our desi ones. Indeed, India Inc. should be at the forefront of any M&A action, given that the concept was dealt with in great detail in our ancient texts.
Kautilya’s Arthashastra even defines the ways of acquiring a firm: “Acquisition is of three kinds; new, formerly possessed and inherited” (13.5.2). But Chanakya also made it clear that acquisition is not just mere killing and conquering. Rather, it’s a well-thought strategy that strives for the betterment of both the parties involved.
So M&As, in addition to material benefits, M&As should look out for people too. If this is understood, all such processes will automatically be successful, whatever category they belong to:
Taking over a new firm
In the olden days, kings used to go and win over new territories all the time. But they needed to do a lot of study and research for this as not many knew about a strange new place.
Even today, the first step in acquiring a firm is to research it in detail. This study is usually the part of a ‘strategic planning team’. Due diligence and meetings can follow only after the identified company is studied deeply.
Dr Radhakrishnan Pillai is an Indian management thinker, author, and Founder of Atma Darshan and Chanakya Aanvikshiki. Dr Pillai has extensively researched Kautilya’s Arthashastra, the 3rd century BC treatise and incorporated it into modern management.
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