Investor's Business Daily
Could An Acquisition Help Check Point Boost Revenue?

By Donna Howell

Having money has its challenges, Check Point Software Technologies Ltd. is finding out.

Check Point has $1.3 billion in the bank, a profit margin nearly triple the next guy's and a nagging question: When is it going to buy another company - and perhaps in so doing boost its flagging sales and stock?

Acquisitions aren't always the way to do that, says Fariborz Ghadar, director of global business studies at Pennsylvania State University.

"Listen to what the new areas of customer concerns are," he said. "Look at your competitors and see what segments they're no good at. That's the segment to go after."

Ghadar's research shows that many firms that sought to grow through mergers did not. But when industries underwent big changes, those firms that invested the most in new technology saw a big payoff.

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REPORTERS & EDITORS: For more information, please contact Wyatt DuBois in the Smeal College of Business Media Relations Office at 814-863-3798 or wed112@psu.edu .

Penn State's Smeal College of Business offers highly ranked undergraduate, MBA, executive MBA, Ph.D., and executive education opportunities to more than 5,500 students at all levels. Featuring academic departments of accounting, finance, marketing, insurance and real estate, management, and supply chain and information systems, the college is also home to major research centers such as the Center for Supply Chain Research, the Institute for the Study of Business Markets, the eBusiness Research Center, the Farrell Center for Corporate Innovation and Entrepreneurship, the Center for Global Business Studies, and the Center for the Management of Technological and Organizational Change.

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