Look outside
Shreiber says a growth-by-acquisition strategy can grow up alongside an innovation-centered organic growth strategy. But, in order to
splice the two strategies into a single growth philosophy, you need
to define the goals of your company.
At J&J Snack Foods, a good acquisition is defined as a company
that produces products that complement J&J’s array of offerings.
Throughout the years, J&J has made several acquisitions, including
a rival soft-pretzel manufacturer, which helped solidify the company’s
standing in the soft-pretzel market, and a frozen beverage and snack
manufacturer, which allowed J&J to broach a new market while staying in the snack-food arena.
“A good acquisition should bring together different products,”
Shreiber says. “It should also complement and supplement different
goings-on in your company. For us, that means it should complement
what is going on in our research centers, put us in different categories, such as frozen novelties, apart from traditional snack foods
and beverages.”
But acquisitions aren’t just about the products you want to add.
Once you’ve made the decision to buy another company, you must
consider the people and culture you are acquiring along with the
company’s name and product line.
Shreiber says each acquisition is unique, bringing with it its own
set of challenges as you attempt to stitch together two cultures and
combine two sets of employees.
“Acquisitions are like your children,” he says. “Each one is unique.
They each bring different people with them, all talented, but each
with their own special set of skills. That’s why you have to mesh the
cultures very quickly, because you can’t let things just lay dormant
and sit there. That would only fan the forest fire because if you have
people who are not communicating and not working together, that
doesn’t work for anybody.”
J&J Snack Foods tries to complete an acquisition and integration
process in the span of several months. Anything quicker is likely not
realistic, and anything slower will likely create stagnation.
“You need to resolve any issues that come up and do it quickly,” Shreiber says. “That’s why we’ll bring these new people in,
integrate them with our people, listen to their ideas, give them
our views and make sure they mesh.”