Again it depends. Look at Church & Dwight, more known as the Arm & Hammer company. Their strategy of expanding all over the grocery store cleaning isle seems to have worked as they have a whole team of brands and brands at different price premiums. They have bought smaller cpg companies successfully
yes, certainly there are successes, but it's good to realize that that's only about half of attempts. if you're an involved shareholder, it's eminently reasonable to be skeptical of executive strategies that feature m&a centrally.
And even with the half rate "successes" ( Success in terms that is actually defined by the executive themselves ), most of them were done with a miraculously talented team that normally has little to do with the executives.
Because in an ideal world you expect M&A to provide synergy, but it is often where 1+1 = 1.5 or less, and at best successes are 1+1 = 2. What people should be aiming for is 1+1 = 2.5 or more.
And recent Intel ( Post Andy Grove or Post Patrick Gelsinger ) has a track record of both poor strategic decision, acquisition and execution.
Note: That is M&A with respect to diversification.
