Details

  • Service: Advisory, Transactions & Restructuring, Transaction Services, Management Consulting, Business Performance Services
  • Type: Survey report
  • Date: 23/09/2011

A new dawn: good deals in challenging times 

The report discusses the results of the sixth global survey commissioned by KPMG to examine M&A deals throughout their life cycle — the way these deals were managed and the value they created. The survey focuses on acquisitions completed between the final months of the M&A boom and into the GFC.
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A key message of the paper is that corporations need to track and report on their revenue synergies throughout the integration process in order to improve market perception of the value arising from their deals.

 

Key findings

  • Although the economic times were challenging, there was an increase in the proportion of deals that created value – 31 percent of deals created value compared with 27 percent previously.
  • The major factor in determining price is cost savings and performance improvement plans.
  • In ASPAC, 40 percent of deals are destined for failure and 20 percent of deals show neutral value.
  • There is limited HR due diligence amongst acquirers with only 38 percent of respondents undertaking due diligence.
  • The number of Private Equity houses who are admitting failure has trebled to over 30 percent.
 

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Transaction Services

Even in challenging economic times, business leaders need to consider major transactions as a means of renewing and transforming their enterprises.