China

Details

  • Service: Advisory, Transactions & Restructuring, Corporate Finance, Integration & Separation, Joint Venture
  • Type: Survey report, White paper
  • Date: 6/29/2011

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 represented.

 

The survey focuses on acquisitions completed between 2007-2009 - the final months of the M&A boom, the credit crunch and the subsequent global recession.

A new dawn: good deals in challenging times
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The findings highlight:

Even though economic times were challenging, there was an increase in the proportion of deals that created value - 31% of deals created value compared with 27% in the previous survey
Despite successful deals being done with a focus on growth rather than reducing costs, the major factor in determining price is still cost savings and performance improvement plans
Asia Pacific region shows a binary chance of deals being a success with 40% of deals showing that they are destined for failure and 20% of deals showing neutral value
Despite impacts of cultural issues on the success of cross border deals there is still limited HR due diligence amongst acquirers with only 38% of respondents undertaking due diligence in this area
As the downturn emerged corporates became more cautious and were not willing to overpay for acquisitions, this resulted in an increase in the proportion of deals enhancing value, from 27% in 2005-06 to 31% in 2007-09
The number of Private Equity houses who are admitting failure has trebled to over 30%.

 

 

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