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Five value creation principles for your next M&A transaction
Raising the bar on generating value from acquisitions
Clear definitions of M&A success vary, but a common theme is delivering market-beating returns on shareholder capital. As you shape your next M&A deal, explore what successful acquirers do to maximize value creation and value capture.
Five M&A value creation principles
Anecdotally, one might hear that most M&A deals fail. However, over the years, companies have become better at creating value from acquisitions. In Deloitte’s 2020 M&A trends survey, respondents indicated that more than 60 percent of deals on aggregate achieve or exceed the expected value when the deal is signed. However, there is still room for improvement. Only 24 percent of corporate respondents could confidently state that over three quarters of their deals over the last two years measured up.
To improve the chances of exceeding expected value from M&A, Deloitte has developed simple and practical guidance that can act as a cornerstone for your next value creation program. The principles we outline are rooted in analysis from M&A deal data we have compiled as part of our Global Synergy Database of more than 1,200 deals, and draws on our experience advising clients on more than 10,000 transactions over the past 10 years.
Key factors drive M&A success
These five value creation principles should be kept top of mind as practical guidance at the outset of every M&A transaction, and could be considered a ready checklist for management and integration leaders as they lead their companies to become more effective acquirers.
Get in touch
Kuttayan Annamalai Principal | Deloitte Consulting LLP |
Govind Narayan Manager | Deloitte Consulting LLP |
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Yasir Mehboob Senior Manager | Deloitte Consulting LLP |
Josh Skwarczyk Consultant| Deloitte Consulting LLP |
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