Post-merger integration survey
Challenges and trends in the M&A Brazilian market
Deloitte presents a survey that aims to identify trends and investments cases in Brazil. The research was conducted with 87 local executives involved in merger and acquisitions transactions, from 2012 to 2015.
The report dives into the Brazilian organizations ultimate challenges, and approaches how they can be prepared to face them in order to increase the likelihood of success in M&A deals.
Key findings of the survey
The report reveals findings, setbacks and success tips from real deals, such as around synergies, integration planning and readiness, organizational structuring, communication and change management. Additionally, provides what were their drivers for successes, from 2012 to 2015, the main risks and challenges, and what companies can do to help increase the likelihood of return on the investments made.
Interest in the Brazilian market
63% of the companies affirm they will keep or even increase their level of investments in merger and acquisitions until 2017. Yet, 77% highlight that they have been in processes of post-merger integration or successful acquisition from 2012 to 2015.
43% of the respondents indicate that they surpassed or reached its synergy targets, while 18% say that they did not achieve their goals.
Factors for the success
The respondents determine four key drivers:
- Having a strong executive sponsorship
- Involving management from both sides (buyer and target)
- More rigorous selection and a dedicated integration team, and developing a comprehensive integration plan
- Developing an in-depth integration plan
Factors with minimum impact
- Size of the deal
- Size of the target or buyer
- Cross border versus national deals
The majority of respondents says they would focus more on their change management program, cultural fit alignment and a more rigorous selection of integration leader and team.