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Why Most Mergers and Acquisitions Don’t Add Shareholder Value

    Why Most Mergers and Acquisitions Don’t Add Shareholder Value

    economic-value-add-in-mergers-and-acquisitionsDuring a recent meeting of 40 M&A professionals, I facilitated a discussion around the results of a 1999 KPMG study on the success of Mergers and Acquisitions in large companies. This study indicated that 83% of mergers and acquisitions fail to increase share holder value. The M&A professionals who participated in this discussion represented middle market mergers and acquisitions. Members of the group were asked three questions:

    1. What are the key reasons for these results?
    2. What impact does this have on intermediaries?
    3. Can overcoming these results differentiate your business?

    Overall Summary: Intermediaries in M&A transactions play a strong role in the success of a transaction, which affects their compensation. Pre-close planning, post close execution and cultural differences are Continue reading Why Most Mergers and Acquisitions Don’t Add Shareholder Value