Corporations continue to merge, divide, spin and acquire at record pace: 2016 saw more M&A deals globally than at any previous time since the 1980’s, just eclipsing the pre-financial-crisis record high in 2007.
There have been recent headline-grabbing failures, but deals that don’t make it to the altar are exceptions. Most transactions are approved by shareholders and regulators. However, an approved transaction isn’t necessarily a successful one. In his 2016 letter to Berkshire Hathaway shareholders, Warren Buffett wrote “As is the case in marriage, business acquisitions often deliver surprises after the “I do’s.” How true. According to KPMG, 4 out of 5 M&A deals fail to deliver promised shareholder value.
M&A activity will likely continue at its record pace. What can’t continue is the rate at which these transactions fail to deliver on their promise. Our TransACT integrated financial transaction offering is designed to close the gap. By including a focus on culture from beginning to end, we help clients ensure their transaction doesn’t just get approved; we help them ensure it succeeds.