When in doubt, acquire. That seems to be the mantra for most internationalisers. Acquisitions are the cornerstone of any expansionist strategy. They do not, however, provide all the answers in every circumstance.

There are situations where acquisitions are the appropriate vehicle for growth, but they come with their own inherent risks: picking the wrong target, management's time in sourcing and in post-acquisition implementation, to say nothing of purchase price and associated premium. Most research puts the chances of successful acquiring at roughly 50%, with cross-border transactions being even lower. Yet, as will be seen, acquisition remains the entry mode of choice.