We have seen it too many times before – global companies that grow via acquisition, but struggle with cultivation. Companies often invest in acquisitions without first determining the ideal portfolio strategy and asking questions such as:

-  To what extent will these companies be mutually reinforcing?

-  What will each of the company’s roles be in the portfolio?  Will they be cash cows or stars?  

-  Will they provide the foundation for the company or the next wave of growth?

Prada and other luxury retailers have, in the past, gotten by on their looks alone. While I support and even work for a privately owned, entrepreneurial firm, in Prada’s case, I think going public might temper the family company, make them more accountable and motivate them to better nurture the companies they have acquired.

If Prada demands perfection from its designers and, well, its entire staff, shouldn’t investors demand that same perfection from the company?

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