Here’s why Venture’s latest M&A frenzy might be jeopardising the firm

The merger integration process can be disruptive.

The electronics firm has been binging on mergers and acquisitions (M&A) lately to spearhead growth, including agreements with Avago, Hewlett Packard and Honeywell. However, analysts suggest the bustling activity in terms of M&As might be counterproductive.

According to analysts from UOB Kay Hian, though the recent M&As involving Venture’s customers are less disruptive compared to past M&As, the merger integration process might bottleneck its production volume.

UOB Kay Hian added that the merger integration process might obstruct growth for up to nine months.

Meanwhile, UOB Kay Hian also expects a weaker 2016 for Venture in terms of networking and communications and printing and imaging.

“We expect revenue from networking & communications to increase by a slower 2.7% in 2016 (previously 9%) and 6.7% in 2017 (previously 8.2%). We expect revenue from printing & imaging to decline 13.2% in 2016 (previously -5.4%) and 9.1% in 2017 (previously flat),” UOB Kay Hian said.
 

Join Singapore Business Review community
A NOTE FROM SINGAPORE BUSINESS REVIEW

The people you want to reach are already in this room.

Every quarter, SBR lands on the desks of the founders, CFOs, and directors running Asia's most consequential companies. Every day, they open our newsletter and read our website. It's a room that took twenty years to build — and it's the one most of our partners are trying to get into.
The good news is that the door is open. We work with companies on thought leadership articles, sponsored content, industry summits across Southeast Asia, regional awards programmes, podcasts, and media placements in print and digital. The shape of the right partnership depends on what you're trying to do, which is why we'd rather start with a conversation than send a rate card.
If you have something this room should know about, tell us. We'll tell you honestly whether we can help, and how.

No rate cards until we understand the brief. It's a better use of everyone's time.