Strategic Acquisitions are the flavour of the month, certainly at Apple, so how do you take advantage?
Tim Cook, CEO of Apple told CNBC over the weekend that Apple (which is sitting on approx. $225 Billion in cash) has made 20-25 acquisitions in the last six months alone.
“We acquire everything that we need that can fit and has a strategic purpose to it” Cook was quoted at the recent Berkshire Hathaway Annual meeting – “Apple is primarily looking for talent and intellectual property”. Importantly many of the acquisitions are small and include Pullstring, which creates apps for digital assistants and Data Tiger, a small digital marketing business.
To highlight the strategic acquisition model and focus, in 2018 Apple purchased Texture – a digital subscription model for magazine publishing – and 12 months later Apple rolled out its new subscription service Apple News+.
Strategic acquisitions are a great way to maximise value – this is not a financial multiple being paid but a strategic premium for IP, talent and products that Apple can use its massive reach to amplify.
What IP or product does your business own that could form the basis of a strategic sale to help you maximise exit value?