The findings of the report highlight the following:
- 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
- ASPAC 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%.