Alternatives to merger—Joint ventures and other strategies

Mergers are plagued by organizational upheaval, enormous costs, ‘poison pills’, high turnover and a variety of other ills. Despite these problems, merger activity is increasing. Corporate executives pursue merger as a means to grow, improve profitability, reduce dependence on one industry, invest excess cash and improve the management of acquired companies. This article suggests alternative strategies that accomplish these objectives without the repercussions that accompany merger activity.