Key Chemicals (as it will be referred to here) is a Swiss company. After a 30-year period of steady growth, based on the acquisition of other businesses, the original Vevey-based distributor of chemicals to the food processing industry was transformed into a distributor of a wide range of specialist chemicals operating across most of Europe. After spending four years integrating past acquisitions, reducing costs, and increasing margins, the CEO recognized that the company was ready to embark on a new phase of growth and persuaded the board of directors to resume the company’s previous strategy of acquiring existing businesses. After reviewing the company’s strengths and weaknesses and the possibilities for generating more shareholder value, the board decided to search for acquisition targets that would add value by providing access to new markets. The CEO worked with the marketing and finance directors to identify possible acquisition targets that could help KeyChemicals achieve this strategic goal. They enlisted a merchant banker to help them develop a search strategy, which they quickly implemented. Within a few weeks, they identified a shortlist of three acquisition targets and presented their findings to the rest of the board. The three were whittled down to one, Eco-Pure, a family-owned company that dominated the water treatment chemicals market in Denmark. The company was attractive because a strategic analysis indicated that the only cost-effective way for a new competitor to break into this market would be to acquire Eco-Pure. The owners were approached and indicated a willingness to consider the possibility of selling the company, so Key Chemicals embarked on a more detailed examination of Eco-Pure to ascertain whether the acquisition would add value and how much they should pay to acquire the company.

Imagine that you have been asked to advise Key Chemicals about how to manage the integration of Eco-Pure as part of Key Chemicals Denmark? What advice would you give to the CEO? Which theories and concepts would inform the advice you would offer?