Growth amid the uncertainty

The pandemic has done more than disrupt lives—it’s disrupted the consumer sector and accelerated the trends reshaping the space, namely digitalization and direct-to-consumer. In a way, this created a stronger environment for mergers and acquisitions (M&A) activity, both in Canada and around the world, as companies sought to either capitalize on opportunities (through bold, transformational acquisitions and disruptive M&A) or find a partner to weather the storm (through strategic portfolio optimization and the disposal of non-core assets). 

Companies consider M&A for a variety of reasons—to reset and rebound, accelerate growth, or disrupt the industry. The motive matters when deciding on the best approach to making a deal. To uncover what these reasons may be in today’s environment, we surveyed over 1,300 corporate and private equity executives across Canada and the United States. The results shed useful light on the strategies of the majority of M&As considered successful by the market.

As consumer-facing companies navigate their highly competitive market, M&A must be considered as a means to grow the business, acquire capabilities, or add value through acquisition or divestiture. When the time comes, successful executives need to follow three main principles: find the right deal, do the deal right, and see it through.