Success factors for takeovers of listed companies

Many companies invest significant sums in acquisitions – and often do not see the expected value realised after closing. Our study on M&A transactions of publicly listed companies “The M&A dance: Orchestrating synergies and value creation in public company acquisitions” examines the value creation of these transactions by analysing the total shareholder return (TSR) relative to the relevant index (e.g. S&P 500). This creates a market-adjusted measure that isolates the performance of a deal from industry trends. 

Changes in TSR are influenced by various factors and deal-specific characteristics. Synergies – financial benefits that arise directly from the combination of companies, such as sales growth, cost reductions or financing efficiencies – are a cornerstone of value creation in M&A deals. Other drivers include strategic positioning, realising value in the standalone operations of a target company and achieving business objectives such as market entry. 

Our study shows that in 57.2 percent of the transactions analysed, shareholder value was ultimately destroyed. Although many transactions looked promising in the months leading up to completion, TSR fell on average in the two years that followed. 

Common causes of missed value appreciation in transactions are an underestimation of the benefits that lead to higher purchase prices;This leads to higher purchase prices and the failure to realise the forecast synergy effects - especially because integration and execution complexity are underestimated. Companies that want to secure value rely on robust synergy assessments, rapid integration and transparent progress measurement. This reduces risks and increases the likelihood of achieving the planned results. 

Download our study here for more relevant insights.

Successful transactions are possible: In 42.8 per cent of the cases examined, synergies were actually realised – proof that M&A can be an effective lever for sustainable growth when implemented consistently. 

The study combines our transaction expertise with data-driven insights to equip leaders with actionable frameworks – from initial deal strategy to post-transaction value realisation. The goal is to ensure that M&A decisions drive long-term value creation.