It is widely recognised that a significant percentage of M&A transactions fail to deliver value to shareholders, and this phenomena can be observed around the world. Where does it goes wrong? It can be tempting to blame poor merger integration for the meagre returns, and certainly the execution of an integration can have a major impact on whether or not a transaction is regarded as successful. However, it may also be useful to consider if the deal was worth doing in the first place. Maybe some transactions should never have happened.
The A.T. Kearney / IR Society research examined which metrics and analyses get the most emphasis in evaluating proposed international M&A transactions. Maybe the solution to the question of "what goes wrong" lies in the tools used to filter (and one would hope eliminate) value-destroying transactions from those that create value.
About A.T. Kearney Management Consultants
A.T. Kearney is a global team of forward-thinking, collaborative partners that delivers immediate, meaningful results and a long-term transformational advantage. Since 1926, the firm has been trusted advisors on CEO-agenda issues to the world’s leading organisations across all major industries and sectors. The firm has 57 offices around the world in 39 countries.
Published: 5 May, 2013