Over the previous two decades, many Wall Street analysts have been highly critical of companies that have gone about achieving growth through means of acquisitions alone. The main criticism of these companies is that the growth is not organic. Tony Petrello critics view growth through acquisition as often times being a transparent ploy on behalf of the executives to grow the assets under their management, thus, raising their status and possibly their paychecks in the process. But this analysis is not always correct. There is still a place for strategic acquisitions, as evidence by many of the most successful companies in the world.
As a rule, if acquisitions create actual value through real synergies, where one company’s strengths plays off and enhances the other’s, then it is oftentimes completely appropriate to engage in a strategy of acquisitions. There are many other situations in which a company may also want to acquire competitors or companies that allow it to expand its market share.
One case of a company that has gone about strategic acquisition to the right way Nabors Industries. Under the sagacious leadership of CEO Tony Petrello, Nabors Industries has raised its book value from $1 million in 2005 to well over $17 billion today. This remarkable growth has not just been through the use of strategic acquisitions. UnderPetrello’s leadership, Nabors Industries has pursued its own research and development of highly innovative technologies, such as its hydraulic fracturing and directional drilling products as well as its proprietary drill operations software to learn more: http://people.equilar.com/bio/anthony-petrello-nbr/salary/503049#.WKHy57YrKRs click here.
It has been through the combined effects of both strategic acquisitions and in-house research and development of hi-tech solutions to many of the most pressing problems of North American oil extraction that Nabors Industries has risen to the top of the game, today, being the single largest supplier of directional drilling and hydraulic fracturing equipment in the United States.