M.B.A. / One of the most basic motivations for acquisitions is growth. Acquisitions provide means whereby a firm can grow quickly. Firms acquire other firms with the hope of experiencing economic gains. These economic gains may come as a result of economies of scale or scope. Economies of scale are the reductions in per — unit costs that come as the size of the firm's operations, in terms of revenues or units of production, increases. Economies of scope occur when a firm can offer a broad range of services to its customer base. The growth of Voltex involved horizontal acquisition of ELCENTRE, and other Electrical wholesalers throughout South Africa. The pursuit of "Market Power" was the main motive in the formation of Voltex in 1990. The buyout of ELGRO, the parent company of ELCENTRE was the vertical integration in pursuit of financial synergy. The financial synergy lowered the volatility of cash flows, by gaining the confidence of the suppliers of capital, and investors viewed Voltex less risky. The takeover of ELGRO was caused by the failure of Bennet & Fountain (B&F), a UK subsidiary of Voltex. Successful acquisitions can be a source of value creation and growth. Unsuccessful acquisitions can destroy value rapidly, as could seen in this dissertation, B & F did destroy value, which led to operating problems. Top executives could also lose their jobs when acquisitions fail.