A relentless focus on speed to value and precise execution will help companies achieve superior outcomes.
After more than two years of sluggishness, dealmakers are growing optimistic especially as inflation and interest rates fall, facilitating easier funding for M&A. However, the deal landscape remains challenging with high valuations, fierce competition for performing targets, and companies increasingly using M&A to not only accelerate growth but also to acquire new capabilities to transform their businesses through “complex” transactions.
This report analyzed US corporate M&A activity over the past eight years to understand if complex M&A delivered outsize returns compared to noncomplex deals. We dissected deal data, pored over press releases, and interviewed expert dealmakers of complex deals to unpack specifics around what made their deals successful and what they could have done better. Our conclusion was that despite higher risks, complex M&A can yield greater returns than simpler deals.
The unanimous agreement among survey respondents that M&A has become more complex over the last three years highlights the evolving nature of the M&A landscape, and emphasizes the need for a strategic approach to dealmaking.
Excellence in value creation begins with the clearly communicated, long-term M&A strategy of corporate leaders supported by systematic business reviews.
Functional leaders in sales, marketing, finance, operations, HR, and IT, etc., must actively participate in a robust diligence process to develop and defend deal assumptions.
An organization that adopts a strong M&A-friendly culture, effective change management practices, and a diverse talent mix will improve its ability to meet deal objectives and speed up value creation.
To successfully pivot when risk or opportunity strikes and realize full value, companies will need strong leadership focus and a dedication to iterative learning across deals to build long-term M&A capabilities.
Succeeding in complex M&A
Complex deals can drive exceptional growth and shareholder value. Download our report to learn how to improve your odds of success.
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KPMG Deal Advisory and Strategy distributes a wide selection of thought leadership that highlights the latest M&A issues and trends.
