Case | HBS Case Collection | August 2006 (Revised September 2012)

Arrow Electronics--The Apollo Acquisition

by Stephen P. Kaufman

Abstract

Having already made 10 acquisitions of competitors in the last decade, the CEO of Arrow is evaluating the acquisition of another small competitor to boost sales, become #1 in a niche market segment, and achieve economies of scale. He is struggling with whether the deal makes strategic sense given forecasts that this niche segment is declining, whether the price is too high given the competitor's lack of profitability, and how to integrate the company into Arrow to maximize its value if he does the deal. Provides information to permit valuing the acquisition and developing a post-merger integration strategy and plan.

Keywords: Mergers and Acquisitions; Integration; Valuation; Performance Evaluation; Competitive Strategy; Corporate Strategy; Strategic Planning; Growth and Development Strategy; Electronics Industry; United States;

Citation:

Kaufman, Stephen P. "Arrow Electronics--The Apollo Acquisition." Harvard Business School Case 607-007, August 2006. (Revised September 2012.)